Several recent successes by both U.S. and Japanese companies illustrate how rapidly Japanese consumers are adapting to the digital world. These market triumphs range from digital devices and social networking to online sales and electronic money; taken together, they emphasize the importance of considering the digital landscape in communications and marketing endeavors.

It might be difficult to find a better example of success in Japan right now than the iPhone from U.S.-based Apple Inc. With Shipments having more than doubled in the past year, the iPhone held 70% of Japan’s smartphone market at end of the first quarter 2010. Taiwan’s HTC Corp. had the second-highest share, with 11% of the market.

This market will be highly competitive in the coming year, with Apple and both NTT DoCoMo inc. and KDDI Corp. (Japan’s largest and second-largest cellular operators, respectively) all having introduced new phones in June. But what is interesting is how rapidly Apple, via its partnership with Softbank Mobile Corp., has been able to win over such a large base of Japanese fans across all age groups.

Another example of an American company finding success in Japan is Twitter Inc., whose social networking service is even more well leveraged in Japan than in its home market. The percentage of Japanese Internet users who "tweet" is reportedly 16%, compared to 10% in the U.S. One might have anticipated this considering the high incidence of Japanese language blogs, which represent over one-third of the global blogosphere. However, it is still somewhat surprising, and it is certainly a phenomenon not to be taken lightly.

One Japanese company that has found success in Japan’s digital world is now taking its proposition overseas. Rakuten Inc. – which runs Japan’s largest online shopping site, "Rakuten Ichiba" – recently reported domestic operating profit that was 20% above the previous year’s figure. Online shopping was one of the true success stories of 2009, with sales through this channel thriving in a period when overall consumer spending is down. Rakuten recently acquired U.S.-based e-commerce Web site "Buy.com," as well as French e-commerce site "PriceMinister." Hiroshi Mikitani, Rakuten’s founder and CEO, has been quoted as having plans to "move into 30 markets, with 10 additional countries by the end of 2010."

Another high-performance Japanese example is clothing chain Uniqlo, which ranks among Japan’s 10 most valuable brands with some 800 stores at home and 140 abroad. What is interesting is that this highly successful "bricks and mortar" retailer is now aiming to become a major competitor in the digital world as well. Uniqlo U.K. will handle the e-commerce operations, eyeing swift growth. And based on Uniqlo’s success thus far, it is an excellent company to watch for retail innovations, both in Japan and overseas.

Finally, another example that demonstrates the rapid uptake of "things digital" by Japanese consumers is related to payment systems. Specifically, transactions utilizing e-money reportedly rose by 43% year on year in May 2010, the highest growth rate yet. The number of transactions for May was 161 million, largely conducted at supermarkets and convenience stores.

Japanese consumers have long demonstrated a passion for electronic gadgetry and staying connected, and they are rather rapidly adapting to the digital world. In addition, to the "new" sales channels that have been enabled (such as via Rakuten), "social" aspects (i.e. blogs and social networks, like Twitter) are playing an increasingly important role in how consumers evaluate products, make purchase decisions, share their opinions and stay connected with friends and colleagues. As a result, progressive companies such as Uniqlo and others are actively incorporating digital-based strategies into their plans for communicating with customers and motivating them.

Debbie Howard is President of Japan Market Resource Network and President Emeritus of the American Chamber of Commerce in Japan.