Leasing executives from Japan’s top developers are on a global hunt for high-potential tenants, especially those from Asia daring to race to retail’s cutting edge.
A recent “killer tenant survey” conducted by Nikkei, which directly interviewed 51 leasing professionals from major Japanese developers, highlights key consumer trends shaping tenant selection. Essentially, it reveals that consumers desire health-conscious, visually striking, and sustainability-focused brands.
Taiwanese herbal specialty store Deng Yi is a hot topic among Japanese retail strategists thanks to its medicinal teas and soup ingredients. The brand, which operates six stores in Taiwan, has yet to enter Japan.
“Our customer base primarily consists of affluent, health-conscious consumers in their 40s and 50s, making Deng Yi a great potential fit for our demographic,” noted a retail leasing strategy manager for a mixed-use complex.
Deng Yi CEO Wu Menglong expressed strong interest in the market. “We have received numerous partnership invitations from various markets,” he said, “and entering the Japanese market is certainly a possibility.”
While Wu was cagey about what markets Deng Yi might be looking at, he was more precise about the kinds of locations that best suit the brand. “Based on our experience in Taiwan,” Wu said, “the following types of commercial environments would be our priority considerations: urban or regional commercial facilities to enhance brand visibility, family-oriented shopping malls to build strong connections with family customers, and commercial facilities targeting affluent and fashion-conscious consumers.”
In the food and beverage sector, Chinese chain Cotti Coffee—famous for its RMB 9.9 (USD 1.36) cups of caffeine—has sparked interest. “More affordable than Starbucks and focused on takeout, it requires minimal floor spaces,” a leasing manager for a family-oriented shopping complex said.
As for apparel and lifestyle goods, mall-leasing teams are prioritizing brands that create buzz through bold store designs and social media magnetism—prime footfall drivers.
A standout is Gentle Monster, the South Korean eyewear label synonymous with avant-garde store designs. The brand opened its second store in Japan in 2024, further cementing its reputation as a disruptor in experiential retail.
“Gentle Monster excels in branding and buzz-building,” a retail leasing manager for a railway-affiliated complex said. “The brand’s massive sculptural installations—like the viral giant face display—make it a crowd-puller.”
Another South Korean contender is Wiggle Wiggle, a quirky lifestyle brand with a pop-art aesthetic. Last December, the brand, which operates eight stores, mainly in South Korea, opened a streetfront boutique in Harajuku, its first Japan salon. Wiggle Wiggle has garnered praise for colorful and photogenic “designs not yet seen in Japan,” according to a mall tenant leasing professional for a multiuse commercial complex.
BM Smile Japan, Wiggle Wiggle’s Japanese subsidiary, is treading cautiously when it comes to the brand’s permanent locations. The company said there is no plan to open the stores in commercial facilities in Japan this year.
“We’re fielding numerous proposals but have focused on pop-up stores for now, with upcoming events planned in the Kansai region and Kyushu later this year,” a company representative said.
Kansai is the area surrounding Osaka, Nara, and Kyoto, and Kyushu is Japan’s southernmost main island.
Among Japanese brands, streetwear label 9090, inspired by 1990s and 2000s youth culture, is making waves. Brand operator Yutori excels in social media promotions by assigning dedicated managers for platforms like TikTok to each of its brands.
“Driven by a young owner, this apparel brand stands out for its innovation and savvy promotional strategies,” a railway mall strategist said.
A sustainability-focused European brand has also been on leasing managers’ radars. Italian outerwear label Save The Duck, known for its “100% animal free” ethos, has drawn attention for its proprietary lightweight thermal insulation that rivals traditional down in warmth and weight.
“It strikes the right balance between premium and accessible pricing, with high functionality,” a leasing professional for a major real estate developer said. “The brand has strong appeal among eco-conscious consumers.”
Save The Duck has one permanent location in Japan, in Osaka’s Hankyu Umeda Main Store. It is also considering “opening three to four stores in Japan between 2025 and 2026,” a brand representative said, expressing enthusiasm for hip and trendy shopping complexes, department stores and prime street locations in central Tokyo and Osaka.
Danish watchmaker Vejrhoj, known for its warm, nature-inspired wooden timepieces, is another name to watch. The brand has announced that for every customer purchase, it will donate the equivalent of one tree planted. This has earned it praise for its strong commitment to sustainable development goals (SDGs), seen as a key attraction by a leasing professional for a railway-affiliated complex.
In the beauty sector, fragrance brands are in high demand.
Thailand’s Karmakamet, a favorite among members of that country’s royal family, has garnered attention for its luxurious, exotic aesthetic. While its products are only available in Japan via e-commerce, “the brand’s stores in Thailand, with in-house cafes, have really been taking off locally,” said a mall leasing manager of a major Japanese real estate developer. “We’re closely following this brand due to its growing popularity and unique concept.”
Marketing manager Wisarut Chaloemsitthaphat confirmed Karmakamet’s expansion plans. “In opening or expanding branches abroad, we are currently planning and have a plan for 2026–2027,” he said.
As for Japan, Wisarut said, “We are interested in areas that are tourist attractions, single-store shops, and currently, we are very open to various locations.”
Beyond traditional retail, hospitality and experience-based concepts are increasingly on leasing teams’ watchlists.
British Soho House, the private members’ club with over 40 global locations, is generating industry buzz. The social club allows members to access its houses, participate in events and use its gyms.
Members must first be recommended to the club.
Holistic spaces that blend lifestyle, work, and leisure are considered key to meeting the evolving needs of modern communities. Bunkitsu, a Japanese pay-to-enter bookstore that can be used as a lounge and coworking space, is emblematic of the trend.
Said a mall tenant recruiter for a railway-affiliated complex, “Future malls will need to integrate elements of not only clothing, dining and living but also workspaces.”
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.