Your Passport to Fashion & Fun

To begin, before diving into fashion, I'd like to start with the broader topic of technology and Japan's startup ecosystem. Historically, Japan has lagged behind other regions such as Europe, America, and even parts of Asia in terms of venture capital and startup development. However, recently we've seen a rise in globally recognized Japanese startups like Mercari, Smart Shoes, and Preferred Networks. The government is also playing a role, introducing initiatives like Japan Investment Corp to support venture capital and digitalization. What shifts do you see driving this newfound global momentum in Japan's startup scene?

It's true that Japan has long been renowned for its excellence in manufacturing and hardware technologies. That legacy, however, also made it challenging to pivot towards bold digital innovation. Yet, in recent years, we’ve witnessed a significant transformation. Companies like Mercari, Smart Shoes, and Preferred Networks are breaking through as digital innovators, signaling a shift in mindset and strategy. These are not anomalies—they represent a growing trend of Japanese startups finding their place on the global stage.

There are two primary reasons for this. First, the domestic market is shrinking due to demographic shifts, which is pushing Japanese businesses to look abroad in search of new revenue streams and to earn foreign currency. Second, Japan's startup ecosystem itself has matured. It’s been roughly 20 years since the startup wave began here, and we’re finally seeing a robust infrastructure take shape—making it easier to launch, fund, and scale new ventures. As a result, startups are increasingly aiming for large-scale success abroad rather than limiting themselves to the relatively small domestic market. The appetite for “home runs” on the global field is growing, and that’s a significant cultural shift.

You've mentioned the shrinking domestic market and the imperative to look abroad. Another factor in play is the weakening yen. While that can be tough for Japanese consumers, it does make Japan more attractive for foreign buyers. How does this dynamic impact your business?

For our platform—which focuses on enabling Japanese consumers to buy international products at affordable prices—a weak yen actually presents a headwind. It makes it more expensive for our domestic users to shop internationally. However, we also see this macroeconomic shift as a tremendous opportunity in other areas.

With around 40 million tourists visiting Japan annually, the inbound market is booming. For many of these visitors, it’s their first exposure to Japanese culture and products. That experience creates a valuable emotional connection. When they return to their home countries, they often want to continue buying Japanese items, which opens the door for us to facilitate cross-border commerce in the other direction—from Japan to the world. Moreover, Japan’s leadership in aging society solutions—particularly in healthcare—is another area of global potential. As the country with the highest proportion of elderly citizens, Japan is at the forefront of healthcare innovation. Products and services developed here can serve as models for the rest of the world. So, even as the domestic market contracts, it becomes a proving ground for globally scalable solutions.

Let's talk fashion. Your platform connects Japanese fashion to global consumers. What kind of feedback do you get from international users about Japanese fashion and your platform’s appeal?

Japanese fashion is prized for its attention to detail, minimalism, and quality. Brands like Issey Miyake, with his iconic pleats, and even more niche labels like Kapital, have found fans abroad. On the more accessible side, brands like Uniqlo offer consistency and subtlety—earth tones and minimal seasonal variation—which many customers appreciate.

Our users, particularly international ones, love the immediacy we offer. If someone sees a product trending on Instagram, they can often buy it instantly on our platform—much faster than waiting for it to hit stores in Japan or elsewhere. That real-time access is incredibly valuable. Additionally, with inflation driving prices up globally, many of our sellers—especially those based near outlet malls overseas—can offer products at more competitive prices. This gives buyers access to deals they couldn’t find through traditional retail.

On the secondhand side, we leverage data to understand when and where items were purchased. If someone bought a Moncler jacket two years ago or a Chanel bag last year, we can estimate its current market value and make highly targeted resale offers. In some cases, these items have appreciated so much that sellers actually earn more than their original purchase price. That’s a compelling proposition, especially for luxury items.

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You mentioned using data to optimize resale offers. AI is transforming how startups operate. How is Enigmo incorporating AI into your platform?

We operate a two-sided marketplace, so AI plays a crucial role on both ends. On the supplier side, we use AI to generate precise demand forecasts. For example, we can predict which outerwear styles will sell out during a given season and recommend procurement levels accordingly. Given how short fashion cycles are, this accuracy helps our sellers minimize risk and maximize their sales potential. On the buyer side, AI powers product recommendations, personalized styling suggestions, and even forecasts a user’s future purchasing behavior. This allows us to tailor promotions and campaigns to different user segments based on their spending potential.

Looking ahead, we plan to extend AI-powered insights to our personal shoppers. AI will help them understand what products will sell well in which countries, what prices to set based on currency fluctuations, and what emerging trends to watch. This functionality will eventually expand beyond fashion to categories like interior goods and kitchenware.

With over 11 million users across 185 countries and more than 8.7 million app downloads, you’ve clearly built trust with global buyers and sellers. What differentiates your platform from others like Mercari or eBay?

Trust and reliability are the pillars of our platform. While we are a marketplace, our philosophy is closer to that of a curated retail shop. First, we require strict ID verification for all sellers. We use AI to monitor listings in real time for counterfeit risks. If we detect a fake, we immediately remove all listings from that seller. Because our sellers know this, they are incentivized to maintain high standards. We also conduct regular quality audits via “mystery shoppers”—our staff members who buy items anonymously to test seller integrity. And if a buyer suspects an item is counterfeit, we provide an in-house authentication service and full refunds when necessary.

Our trouble rate—especially concerning authenticity—is so low that it's statistically even safer than air travel. This high trust factor is why buyers feel comfortable purchasing luxury items—even ones priced as high as 50 million yen—on our platform.

Sustainability is a key theme in today’s fashion world. What are your thoughts on the future of fast fashion versus long-term luxury and the circular economy?

I believe Japan is naturally aligned with sustainability in fashion. Culturally, there’s a deep appreciation for using high-quality items for a long time. It’s part of the mindset here—taking care of things, repairing them, even renewing and repurposing them. This makes Japan well-suited to lead in circular fashion. Instead of constantly chasing the next fast-fashion trend, we see more consumers turning to vintage and high-end used goods that offer long-term value. In that context, platforms like ours can help extend product life cycles, reduce waste, and support more mindful consumption.

Japan is also a hotspot for vintage fashion. Areas like Shimokitazawa and Koenji attract tourists looking for unique secondhand pieces. How do you see this translating to global markets?

One of Japan’s greatest strengths is the care people take with their belongings. Used goods here are typically in excellent condition, which gives rise to a new kind of value—“Used in Japan.” Just like “Made in Japan” signals quality, we believe “Used in Japan” could become a globally recognized mark of trust.

We’re also exploring the storytelling aspect—giving each vintage item a narrative. Who owned it? Where was it worn? What memories does it carry? Combined with expert repairs and refurbishing, these stories can make each item unique and desirable. This approach, paired with technology like VPNs and cross-border e-commerce, positions us to introduce Japan’s vintage culture to international markets in a compelling way.

Let’s pivot to your other venture—BUYMA TRAVEL. Why did Enigmo decide to expand into the travel sector?

There are three reasons. First, tourism is a high-growth market. Second, we can leverage our existing infrastructure—especially our network of personal shoppers and localized expertise. Third, we can differentiate ourselves from other travel providers by offering tailored, experience-driven journeys.

We’re not just selling trips; we’re curating life experiences. For example, a traveler might buy local fashion through our platform, then attend a Shohei Ohtani baseball game, followed by a visit to Tokyo Disneyland—all guided by a personal concierge. These are not one-size-fits-all tours—they are deeply personalized, and that’s where we see the opportunity.

BUYMA Travel

And you're also targeting outbound Japanese tourists?

Yes. We’re focusing on destinations like Hawaii and Guam where Japanese tourism is strong. These areas are expected to fully recover post-COVID, so we’re making strategic acquisitions there to build presence and scale quickly.

Speaking of acquisitions, you’ve set a target of reaching 10 billion yen in sales by 2027. How do M&As factor into that strategy?

Our growth strategy is built on three pillars: revitalizing the Buyma platform with AI and overseas expansion, accelerating our travel business, and promoting the vintage/circular economy space. In each of these areas, we are actively pursuing M&As to strengthen capabilities, gain market share, and scale faster.

For example, we acquired Formal Trans, LLC to enhance our travel offerings. Similar deals in fashion and sustainability are also under consideration. The key is to align acquisitions with our core strengths and vision.

Final question—what is your personal legacy goal as CEO? What would you like to achieve before handing over the reins to the next generation?

I want to build a brand that stands shoulder to shoulder with the likes of Sony—a globally respected name that originated in Japan but has an impact far beyond it. Enigmo should be recognized not just as a Japanese company, but as a truly global innovator. That’s the legacy I’m working toward.

For more information, visit their website at: https://global.enigmo.co.jp/