Japanese Firms Struggle to Raise Prices Amid Deflation Legacy

Japanese shoppers resist price hikes due to decades of deflation.

Japanese companies face deep consumer resistance and a psychological aversion to paying more after decades of stagnant prices. Major brands like Uniqlo and Saizeriya navigate this difficult transition as they attempt to offset rising operational expenses. The cultural habit of thrift remains a formidable barrier for businesses trying to adjust to modern economic pressures.

• The backgroundDecades of falling or stagnant prices ingrained a strong aversion to cost increases among shoppers.
• The companiesMajor consumer brands including clothing retailer Uniqlo and casual dining chain Saizeriya illustrate the broader struggle.