Business · Companies · 9 hrs ago
Japanese firms struggle to raise prices as consumers resist
Japanese companies are finding it hard to raise prices even as their costs climb.
Decades of falling prices have left many consumers in Japan wary of paying more.
Uniqlo reversed a planned increase for basic socks after customers objected, while restaurant chain Saizeriya apologised for adding ¥20 to its Milanese Doria dish.
Rising grocery bills are leaving households less to spend on eating out and clothing.
Small businesses, especially in rural areas, may fear that higher prices will drive away loyal customers.
The Bank of Japan says its 2% inflation target has been met and has been raising interest rates to tackle inflation, with borrowing costs at a more than 30-year high and likely to rise again.
Japanese firms face customer backlash when they raise prices, despite rising costs and inflation.
Uniqlo reversed an increase to the price of its basic socks after public criticism.
Saizeriya apologised after raising the price of its trademark Milanese Doria by ¥20.
Decades of deflation have left many Japanese consumers averse to price increases.
Higher grocery bills are also leaving households with less room to spend on dining out and clothing.
- Who
- Japanese businesses, including Uniqlo and Saizeriya, face resistance from consumers.
- What
- Firms are raising prices to address rising costs, but price increases have prompted backlash.
- When
- Uniqlo’s sock increase was in October; the articles were published on November 8, 2026.
- Where
- Japan.
- Why
- Rising costs are putting pressure on businesses, while decades of deflation have made consumers averse to higher prices.
Japanese businesses
Price-sensitive consumers
Price increases
Japanese businesses
Businesses face rising labour and material costs and say increases are difficult to avoid.
Price-sensitive consumers
Consumers have reacted negatively to price hikes, and higher grocery bills are reducing spending on other purchases.
Customer loyalty
Japanese businesses
Smaller businesses may depend on regular customers and risk alienating them with sharp increases.
Price-sensitive consumers
Some customers have supported businesses for years and may feel the impact of price rises.
A prolonged period of deflation began in Japan, according to the article.
Measures introduced under then-prime minister Shinzo Abe were intended to end Japan’s deflation.
Inflation began to return as the Ukraine war triggered a global energy shock.
Uniqlo raised the price of its basic socks and then reversed the increase after a backlash.
The Bank of Japan declared that its 2% inflation target had been met.
- Uniqlo
- Reversed its basic sock price increase after a backlash
- Saizeriya
- Added ¥20 to the price of its trademark Milanese Doria
- Bank of Japan inflation target
- 2%
- Inflation return
- Began in 2022, after a global energy shock linked to the Ukraine war
- Sachi
- 68-year-old ramen shop owner in Okayama region
3 sources
"Les prix deviennent démentiels": après des décennies de déflation, le Japon peine à s'habituer à l'inflation et ses entreprises hésitent à augmenter leurs tarifs
Why raising prices in Japan amid ‘insanely high’ inflation backfires on firms
‘Feeling guilty’: Price hikes a tough sell in Japan despite inflation
What people are saying
When I imagine myself suddenly announcing a ¥200 hike, for example, I cannot help but feel guilty and sorry for our customers who have supported us for years
So my thinking is, ‘I would rather persevere myself’. I think lots of tiny businesses are like that, especially in rural areas.
look for any excuses to lower prices again
Food prices are getting insanely high, so I have to increasingly rely on stuff imported from overseas, because homegrown products cost me more