Although Christmas is not an official holiday in Japan, it is observed in other ways.
On Christmas Eve and Christmas, one can find lines of Japanese standing outside of KFC for a little bit of the Colonel's Christmas Chicken.
Christmas Cake is a popular item which sells for about 30-50 bucks at convenience stores. It's also a term used to refer to women over 26.
For young couples, Christmas is a big date night and many of them go to love hotels.