Japan Market Entry Support
Entering a new market provides many opportunities, but also opens the door to unknown risks that need to be assessed as thoroughly as possible.
The world third largest market
- 125 million people,
- world’s third largest GDP,
- Japan represents about 10% of the world’s economy
- 25% of high tech electronics are made in Japan
- 30% of all cars are Japanese
Japan is unique
- Japanese customers are very demanding
- Local Japanese companies are strong
- Japan requires important investments
- Japan management methods are very different
Many foreign companies failed.
Is Japan ready for you? Are you ready for Japan? Our firm provides you with answers to enter Japan and leverage your business.
Japan Market Entry Support
Japan market entry consulting is essential to ensure the success of your entry in the Japanese market. We use a very structured method that will help you with all the steps along the way.
- Market Analysis: Verify the market match of your product or services in Japan. We will analyze the available data and/or conduct a market survey to make clear the feasibility of your business in Japan and provide you with a clear understanding of the market needs and its competition.
- Market Entry Strategy: Our firm supports you in the market entry process. Market Entry Strategy will define the functions you should have in Japan and recommend you the best choice of entry mode. Finally, our firm helps you implement your entry strategy on your decision, which is chosen from various kinds of entry modes such as trade (finding a right distributor), outsourcing (sales rep), JV and M&A.
Japan Market Entry Consulting
Behind every successful product or service launched in a new market and especially for Japan, there is a substantial market analysis on competitors and customers. It is the first and the most crucial step in the development of any marketing plan. It is critical to assess market opportunities and risks. Market analysis is the thorough process of data collection to choose whether the product or the service that is going to come will match customers’ needs and tastes. It all starts with market size, its growth rate, demographics, ongoing market trends, potential competitors, customer needs, distribution channels, laws, and regulations. Market analysis is one of the critical components to help businesses with all the essential information and making wise business decisions on whether to enter Japan or not.
We offer various types of market study by collecting data from statistics, articles, websites, industry directories, and interviews.
As you may know, in most industries in Japan, distribution channels seem to be complicated for newcomers. As an example, some distributors concentrate their function on logistics, meaning they will not conduct any sales activities. Some industries have several distribution layers such as an importer, a distributor, a first dealer, a second dealer, and finally a retailer. This distribution organization can be very tricky for foreigners, and professional support is needed to find the most appropriate distributor.
We offer distributor and partner search services by identifying the most appropriate candidates, pre-screening them, arranging meetings, and accompanying you to the meetings. You do no thave to worry about anything! We also take care of the logistics and interpretation. Do know more about how to negotiate with Japanese, we suggest you to read our article “Negotiating with Japanese: 10 steps to success“.
Due to the conservative or exclusive culture of Japan, a local office and Japanese staff are needed when you enter the market. Finding a distributor alone usually does not work in this mature and fiercely competitive market. In most cases, distributors and retailers in the consumer industry require various kinds of manufacturer support, which includes advertisements, in-store promotions, marketing campaigns, etc. In the machinery industry, pre- and post-sales technical support is a must. Your company needs to respond to these needs with your staff who works in Japan and speaks Japanese.
Japan an ideal market for international businesses with high quality products, unique technology, and valuable brand. If your products require neither high tech service nor rich customer experience, just finding a distributor can be a solution for market entry into Japan. However, in most cases, it’s a better idea for international companies to have a corporate presence and Japanese staff who will understand the cultural difference between Japan and your home country to best serve local customers.
There are two main options for establishing a local entity, a Joint Venture (JV), or Merging and Acquisition (M&A). Our firm analyzes the pros and cons of these options based on market study and helps our client decide which path to follow. We support our clients with target screenings, partner assessments as well as negotiation and closing deals.
Finding the right partner
- Teaser: We prepare a teaser in Japanese about your product or service
- Identify Candidates: We pre-screen and contact candidates to assess their interest
- Shortlist: We shortlist the most promising candidates
- Arrange meetings: We organize the meetings between the client and the best candidates. You do not have to worry; we also handle the logistics.
- Assistance during meetings: We accompany the client and help the client during the meetings (translation, brief on business culture,…)
- Support for negotiation: We assist the client during the negotiation.
- Follow-up: If requested, we follow up on the client’s behalf to ensure that the agreement is appropriately followed.
Importance of Market Analysis
- Understand your customers
- Analyze the trends
- Identify your competitors
- Know the weaknesses of your competitors
- Understand what the potential clients like most/least about the existing product
- Localize the product or service’s identity
- Test before launching