Why You Should Consider Business in Japan 2018-10-16T06:48:03+00:00

Why You Should Consider Doing Business in Japan

When asked about why companies do not do business in Japan, a most common answer is the lack of growth potential – usually derived from the overall GDP growth of Japan. However, GDP is a very high-level figure, averaging over many different industries and markets. Additionally, if you want to enter a market, the growth of the total market is not as relevant as your growth in market shares. Furthermore, entering the Japanese market admittedly needs more time than any other, but you will be able to establish long-term business relationships that are not opportunistically abandoned. And when looking a little bit more into details, you will find:

  • Many markets with expected growth rates above 3%, like health care and medical devices, cosmetics, robotics, etc.

  • A huge market – still the 3rd largest world economy – and consumers with a high buying power

  • World leading technology development in many industries

Thus, if you have high quality, innovative products, you definitely should consider entering the Japanese market!

If you would like to know more about Japan, it’s market, and the (business) culture, we have compiled some information here.

Why You Should Consider Doing Business in Japan

When asked about why companies do not do business in Japan, a most common answer is the lack of growth potential – usually derived from the overall GDP growth of Japan. However, GDP is a very high-level figure, averaging over many different industries and markets. Additionally, if you want to enter a market, the growth of the total market is not as relevant as your growth in market shares. Furthermore, entering the Japanese market admittedly needs more time than any other, but you will be able to establish long-term business relationships that are not opportunistically abandoned. And when looking a little bit more into details, you will find:

  • Many markets with expected growth rates above 3%, like health care and medical devices, cosmetics, robotics, etc.

  • A huge market – still the 3rd largest world economy – and consumers with a high buying power

  • World leading technology development in many industries

Thus, if you have high quality, innovative products, you definitely should consider entering the Japanese market!

If you would like to know more about Japan, it’s market, and the (business) culture, we have compiled some information here.

How to Start Business in Japan

Japan is a very special country with a unique culture and business custom, that makes it outstanding from it`s neighbors in Asia and the rest of the world. There are multiple possibilities to start your business in Japan which are also depending on the kind of business you have, i.e. retail, consumer goods or B2B. What all have in common is, that they need a specific approach to be successful in Japan. As San-Ten Consulting is specialized in B2B business and technical products, we would always recommend to start:

A “me-too” product is extremely hard to sell if it is available in Japan already. Japanese companies won`t buy from a new vendor because it is a little bit cheaper. San-Ten Consulting would often recommend to enter the market with a new, innovative product.

In contrast to many (western) countries, distributors in Japan consider themselves as belonging to the buyer, not of the seller. Additionally, if it is a new product, you might consider R&D departments as the right point to connect, not procurement – which many sales manager don`t have contact to. San-Ten Consulting will support you in contacting your potential buyers directly and wherever possible connect to R&D or Business Development departments – if desired, even anonymously.

Many foreign companies come to Japan with a unrealistic time-to-sales idea of a few months. Since building relationship is crucial for the success in Japan, a realistic time frame is one year or even longer. San-Ten Consulting will help you establish the contacts steadily without the Japanese companies feeling pushed, maintain the connections on a  long-term perspective and keep the communication between you and the partners running smoothly with the right understanding. To keep costs low, we offer long-term packages that don’t stress your budget.

To find the best way for your business to enter the Japanese market, we recommend our JUMP Assessment: One day, fixed price, and no further obligations for you. And at the literally “end-of-the-day” you will know your options.

How to Start Business in Japan

Japan is a very special country with a unique culture and business custom, that makes it outstanding from it`s neighbors in Asia and the rest of the world. There are multiple possibilities to start your business in Japan which are also depending on the kind of business you have, i.e. retail, consumer goods or B2B. What all have in common is, that they need a specific approach to be successful in Japan. As San-Ten Consulting is specialized in B2B business and technical products, we would always recommend to start:

A “me-too” product is extremely hard to sell if it is available in Japan already. Japanese companies won`t buy from a new vendor because it is a little bit cheaper. San-Ten Consulting would often recommend to enter the market with a new, innovative product.

In contrast to many (western) countries, distributors in Japan consider themselves as belonging to the buyer, not of the seller. Additionally, if it is a new product, you might consider R&D departments as the right point to connect, not procurement – which many sales manager don`t have contact to. San-Ten Consulting will support you in contacting your potential buyers directly and wherever possible connect to R&D or Business Development departments – if desired, even anonymously.

Many foreign companies come to Japan with a unrealistic time-to-sales idea of a few months. Since building relationship is crucial for the success in Japan, a realistic time frame is one year or even longer. San-Ten Consulting will help you establish the contacts steadily without the Japanese companies feeling pushed, maintain the connections on a  long-term perspective and keep the communication between you and the partners running smoothly with the right understanding. To keep costs low, we offer long-term packages that don’t stress your budget.

To find the best way for your business to enter the Japanese market, we recommend our JUMP Assessment: One day, fixed price, and no further obligations for you. And at the literally “end-of-the-day” you will know your options.