A Clear Explanation of the Resale Problem Becoming a Social Issue in Japan: What’s Behind Consumer Anger and Corporate Struggles?

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Supervisor: Naohiro Takemura

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The resale problem in Japan has rapidly escalated in recent years, especially with the rise of online marketplaces and social media. Products meant for real users are being taken over by profit-driven resellers, causing frustration and distrust among consumers. This article explores the root causes of the issue and how society is responding.

What Is the Resale Problem? The Background of Its Expansion and Impact on Modern Society

Reselling refers to the act of purchasing a product and then selling it to another person at a higher price. Unlike private transactions where people simply pass on items they no longer need, reselling is primarily motivated by profit-making. In particular, limited-edition or popular items are frequently bought in bulk immediately upon release, only to be listed for sale at inflated prices shortly after.

This phenomenon is amplified by the ease of online trading and the speed at which information spreads through social media. Sneakers, gaming consoles, artist merchandise, and even daily necessities like masks and baby products have all become common targets of resale. During the initial outbreak of the COVID-19 pandemic, mask and sanitizer resale at exorbitant prices became a major social issue.

As the attitude of “buy early and flip for profit” becomes more common, regular consumers using proper channels often find themselves shut out of access to desired products. As a result, trust between businesses and consumers is eroding, and stable, fair product distribution is increasingly threatened.

Here is a summary of products frequently targeted for resale:

Product CategoryResale ExamplesTypical Price Difference
Limited SneakersNike, Adidas special editionsSometimes more than triple retail
Gaming ConsolesNintendo Switch, PS5¥10,000–¥30,000 above retail
Concert TicketsFamous artist live showsUp to 5x the original ticket price
Figures & Anime GoodsLimited items from eventsSeveral times the original price
Daily NecessitiesMasks, sanitizers (during COVID-19 outbreak)Over 10x original prices

The Impact of Resale on Consumers and Growing Dissatisfaction

Ideally, products should be fairly accessible to those who truly want them. However, due to reselling, this basic principle is being heavily distorted. On release days, websites crash from high traffic, and long queues often result in disappointment. Repeated frustration leads many consumers to lose interest or hope altogether.

Resold items often appear at 2 to 10 times the original price. For example, a sneaker originally priced at ¥20,000 may be listed for over ¥200,000. This creates significant barriers for consumers, particularly those who are financially limited, stripping away the approachability and emotional value of the product.

Here are typical consumer grievances related to reselling:

Type of ComplaintExample Description
Inability to PurchaseLining up but failing to buy, always losing lotteries
Price FrustrationPaying multiples over retail causes anger and despair
Ethical DissonanceFeeling it’s unfair that resellers profit so easily
Resigned AttitudesPeople stop trying, thinking “it’ll be resold anyway”
Trust ErosionLosing faith in brands and stores

Legal Limitations in Japan on Resale Regulation

Legal restrictions on reselling are still quite limited in Japan. For example, the “Ticket Resale Law” enacted in 2019 prohibits high-profit resales of concert and sports tickets. However, this law doesn’t extend to consumer goods, meaning toys, fashion items, and electronics often fall outside of regulation and are legally resold.

Current legal frameworks and their application to resale:

LawCoverageApplicability to Resale
Ticket Resale LawLive entertainment ticketsYes (under conditions)
Premium Labeling LawMisleading pricing/advertisingPartially applicable
Trademark ActUnauthorized use of trademarksSometimes applicable
Secondhand Dealer ActCommercial resale businessRequires registration/license
Consumer Contracts/Civil LawNot directly relatedLimited applicability

While there are ongoing discussions about regulation, a clear legal standard is still lacking. Legal revisions are needed to target malicious reselling while preserving legitimate secondhand trading.

How Companies Are Addressing the Resale Issue

Manufacturers and sellers risk losing their brand value and loyal customers due to rampant reselling. As a result, many are taking action by introducing measures like lottery-based sales, strict identity verification, and purchase history analysis.

Technological strategies, such as QR-coded tickets and blockchain-based ownership systems, are also being implemented. NFT applications and digital certificates are expected to play a role in suppressing unauthorized resale.

Examples of corporate countermeasures:

StrategySpecific MethodKey Benefits
Lottery SalesDistributes rights to purchase fairlyPrevents bulk buying by resellers
Identity VerificationRequires photo ID at point of purchaseBlocks impersonation or proxy buyers
Membership RestrictionsBased on previous purchase behaviorHelps detect and limit serial resellers
Serialized Product TrackingTied to individual buyer infoEnhances traceability and authenticity
Public Anti-Resale PolicyMessaging via official websites and social mediaPromotes ethical purchasing

What Consumers Can Do to Combat the Resale Market

Ultimately, individual consumer behavior is central to solving the resale problem. The most effective approach is to avoid buying resold products, even when they’re available. Without demand, the resale market cannot sustain itself.

Key actions consumers can take:

Consumer ActionPurpose and Expected Effect
Refuse to Buy Resale ItemsUndermines the profitability of reselling
Use Official ChannelsSupports fair purchasing systems
Raise Awareness on Social MediaBuilds public pressure on companies and authorities
Submit Feedback or PetitionsEncourages stronger policies
Educate OthersHelps raise ethical standards in the community

Conclusion

The resale problem extends beyond economics—it is deeply connected to our values around fairness, access, and community. When essential items or culturally important goods are hoarded and flipped for profit, the emotional connection between product and buyer is lost.

Ignoring the problem risks eroding our trust in the entire purchasing system. Brands, consumers, and governments must collaborate to restore a healthier, more ethical distribution model. It’s time to rethink our consumption habits and recommit to fair, transparent commerce.

By saying no to unethical resale practices and yes to responsible buying, each of us can play a role in shaping a more just marketplace for all.