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:
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.