Gen Z and the Impact of Oshikatsu on Japan’s Economy

Generation Z’s participation in “oshikatsu,” supporting their favorite idols through significant consumer spending, could aid Japan’s economic recovery. The Bank of Japan notes this trend in its reports, linking it to increased leisure spending among youth. Popular venues, like Oshikatsu Izakaya, illustrate the cultural significance of oshikatsu, appealing predominantly to young female fans. This phenomenon indicates a shift in consumer habits amidst rising expenses.

Generation Z may play a crucial role in revitalizing Japan’s economy, as suggested by the Bank of Japan’s observation regarding the trend of “oshikatsu.” This phenomenon involves younger fans extensively supporting their favorite idols from film and entertainment by purchasing merchandise. An example is Oshikatsu Izakaya Marumaru-no-kai, a unique restaurant in Tokyo’s Ikebukuro district, which facilitates gatherings of such fans.

The restaurant features private rooms where patrons cheer for their idols while enjoying a feast. A case is highlighted involving a 28-year-old woman who frequently attends concerts and spends a significant portion of her income on related merchandise. This demonstrates a trend in Generation Z’s consumer habits, where supporting idols drives consumption and, potentially, economic recovery.

Opened in February 2023, the Oshikatsu Izakaya boasts an overwhelming female clientele aged in their 20s and 30s, representing 95% of its customers. Shun Ueda, the manager, noted the enthusiasm of customers who often arrive with bags full of idol-related merchandise. A recent survey found that approximately 8.1% of respondents engage in oshikatsu, with younger people being the most active participants.

Ryo Hirose, an expert from the NLI Research Institute, posits that oshikatsu helps young people create social connections in an era of weakening traditional job security and community ties. Yohei Harada, a marketing professor, emphasizes how Generation Z uses social media to craft unique identities, with oshikatsu playing a role in that differentiation.

The overall market for idol-related and “otaku” culture items is substantial, estimated at 800 billion yen for the year ending March 2024. While oshikatsu is most popular among younger generations, older individuals also engage in similar fandom activities, showing a broader cultural trend.

The Bank of Japan has recognized these spending behaviors, noting an increase in purchases linked to oshikatsu, especially among youth with growing disposable incomes. Reports highlight this demographic’s willingness to prioritize spending on leisure experiences over daily expenses, despite broader economic challenges and rising living costs. This shift in consumer behavior could be pivotal in stimulating Japan’s economic landscape in the near future.

In summary, Generation Z’s engagement with oshikatsu presents new avenues for economic growth in Japan. Their substantial spending on entertainment-related activities not only reflects changing consumer preferences but also aligns with broader cultural phenomena. As such, the Bank of Japan’s interest in this trend underscores its potential impact on overall economic conditions, highlighting the intersection between consumer behavior and economic recovery strategies.

Original Source: www.asahi.com