The sharing economy in Japan

AirBnB suffered a major blow when Japan’s main tourism body sharply restricted home-sharing, forcing AirBnB to eliminate four-fifths of its 60,000 listings in Japan. The experience illustrates the country’s hesitant approach to the sharing economy, in which people rent goods and services from one another, usually through internet platforms. The sharing economy’s value in Japan is at most ¥1.2trn yen ($11bn), compared with $229bn for China.

Regulation, which tends to favour big companies and industries, is a key obstacle to faster and more mainstream growth. Another hurdle is the attitude of the Japanese public. Many people are simply ignorant of the existence of sharing apps. Others reckon they may be illegal.

Still a further barrier is social custom. The Japanese also fret that sharing platforms will not provide the high level of service they are accustomed to. Because of this, the Sharing Economy Association has developed a “trust mark” to give consumers more confidence.

Do you participate in the sharing economy? How? If not, why not? Do Homework
How long do you think it will take Japanese people in general to become accustomed to the sharing economy? How might they be encouraged to participate? Do Homework
Will the sharing economy ever become the dominant global economic model? Why or why not? Do Homework