Why your "Direct fromJapan" sourcing strategy is a myth

A guest blog by Jason Ball

I see it every 3-6 months or so. Sometimes 2-3 in a month.

A company reaches out and says:

"We want to buy parts direct from Japan and export them to our country."

Sometimes it is earthmoving equipment parts. Sometimes it is fishing gear. Sometimes it is bicycle components. Sometimes cameras, power tools, or industrial automation parts.

The brands change. Komatsu. Hitachi. Kubota. Toyota. Hino. Isuzu. Shimano. Daiwa. Makita. Canon. Nikon. Fanuc.

But the request is the same:

"Help us bypass the regional dealer and get better price and better supply."

It sounds like smart arbitrage.

In reality, it is a misunderstanding of how Japanese distribution actually works.

What they are really asking for

Most messages look like "We need a local partner to..."

1. Source OEM and aftermarket parts in Japan

2. Buy "direct" from manufacturers or Japanese distributors

3. Export to places like South Africa (or elsewhere)

4. Avoid local dealer pricing and lead times

5. Make logistics and customs "someone else’s problem"

On paper, it sounds understandable, logical. (Putting aside we want the local partner to do all that "on a success basis".) - In practice, it runs into a wall.

The structural reality

In Japan, manufacturers do not just have customers, they have long-term strategic partners. Either way, the system is built to protect:

• Regional exclusivity

• Authorized dealer networks

• Long-term service revenue

• Brand control and warranty control

  
  

So when you ask a Japanese domestic distributor to export to you, you are not just asking for a quote. You are asking them to risk their entire business.

It isn't about 'honor', either. It's about Shinrai (信頼) - the deep, often multi-generational trust and reliance between a manufacturer and their distributor. In Japan, if you break that Shinrai by bypassing official channels, you don't just lose a deal; you lose your right to exist in that supply chain.

Why the "Direct" dream dies

If you want a more detailed or western understandable explanation:

1. THE DISTRIBUTOR RISK IS NOT WORTH IT

Many domestic distributors depend on a small number of manufacturers. Sometimes one maker is most of their revenue. If they are caught shipping parts outside approved channels, the OEM can terminate the agreement. For the distributor, that can be game over.

2. JAPAN HAS A LONG MEMORY

Japan is not a market where you just "start again" after burning trust. Once a company is seen as breaking the rules, doors close. Not just one door. All of them.

3. DATA AND TRACEABILITY IS REAL

Between Serial Number Tracking and End-User Certificates (EUC), the paper trail is absolute. If a hydraulic pump meant for a domestic Japanese repair pings a service log in Johannesburg, the manufacturer traces it back to the exact source in minutes.

4. REGIONAL RULES ARE DESIGNED TO STOP GREY EXPORTS

Different warranties. Different SKUs. Different compliance. Sometimes voltage and safety requirements. These differences exist for real reasons, and also to kill the incentive to ship across regions.

Why certain industries attract this request

Those with the strongest measures to control 'grey' markets in their equipment and parts, are the ones that generate the most requests. These are the most common target industries:

• Earthmoving (Komatsu, Hitachi): Massive price deltas drive this demand, but these OEMs have the most aggressive monitoring systems globally.

• Automotive (Toyota, Hino, Isuzu): These are the most closed supply chains in the world. Engines and transmissions are strictly restricted items.

• Specialized Gear (Shimano, Makita, Canon): As well as supply chain control, differences in regional warranties and voltage ratings are designed specifically to kill the incentive for grey-market exports.

Some people assume 'just go direct to Japan' is a cheat code.

It is not.

The Bottom Line

Those outside Japan often think "there is so much margin lost paying the local distributors" or "If I just pay a higher amount to a local Japan supplier, we can go around the local distributor!"

They are wrong.

A one-time +20% profit on a shipment to Africa is worthless compared to a 30-year guaranteed domestic territory. These companies don't say no to "save face" - they are protecting their lifeline.

What I tell people who ask me this

If you want these parts, you must follow the official process.

You have two choices: buy through an authorized regional distributor, OR approach the OEM and complete the long-term requirements to become an official partner yourself. Independent suppliers and shortcuts to bypass this system do not exist.

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Jason Ball runs Business In Japan (BIJ), LinkedIn’s largest Japan-focused business community with 97,000+ members. He lived in Japan for 18+ years and now helps business leaders avoid common Japan mistakes by finding the right partners, assembling expert panels and making warm, trusted introductions. If you’re working on Japan sourcing, market entry, or business in, with or related to Japan - connect with Jason on LinkedIn.