Japan’s vaccination drive is becoming popular – good news for the retail sector

Nobuko Kobayashi from EY said that Japan’s vaccination efforts are gaining momentum after a slow start, and that’s good news for retailers.

Asia-Pacific strategy execution leader at EY, Kobayashi, told CNBC on Friday that the vaccination is becoming popular in Japan. The government says that people who want the vaccine will get it by October or November.

She added that the short-term process would be if the vaccination in Japan reaches a level where people feel comfortable going out. Kobayashi said that the consumption outlook on balance is positive while there are Covid variants like a delta.

Following a sluggish rollout earlier in the year, vaccination rates in Japan have risen substantially in recent weeks. According to Our World in Data, daily Covid-19 vaccine doses administered even crossed the one million mark in June.

According to Our World in Data, Japan’s doses per 100 people reached an average of 0.78 for seven days in a row. That number is considered higher than 0.49 and 0.33 doses in the U.S. with the United Kingdom over the same period.

Still, only 12.66% of Japan’s population is fully vaccinated. Whereas the U.S. and U.K., which inoculated more than 41% of their population. According to World Bank data, Japan had a population of over 125.84 million in 2020.

Olympics are positive for Japan retail

Japan is now weeks away from hosting this Summer Olympics. Tokyo, however, still remains under its priority measures intended to limit the spread of the virus. According to Kyodo News, on Thursday, Yoshihide Suga, Japanese Prime Minister, said Olympics might go on without spectators.

Still, Kobayashi believes that the Olympics might positively impact Japan’s retail landscape.

She added that products such as high-definition TVs might see a spike in demand in the short term. In the meantime, the Olympics would increase the attractiveness of Japan as an international travel destination.