Japan is known for quality and innovation and has a strong commitment and loyalty to business partners.
Success in Japan means access to a market with a population of 125.8 million.
Also, if you succeed in Japan, you will have more chances to succeed in any other Asian country as it means you have developed a product or a service that has met the high expectations of the discerning Japanese market that has high standards for quality.
Expanding your business into Japan
Here are some reasons why it is worth considering expanding your business into Japan:
- Japan is the world’s third-largest economy after the US and China and the second-largest computer and telecommunications market in the world.
- The Tokyo Stock Exchange is the largest stock exchange in Asia, with more than 2500 companies listed including TSE tier 1 and 2.
- Japan has consumers with high levels of disposable income who are attracted to premium, high-end goods, and services produced by western countries. It is also an excellent market for product testing as the Japanese like to try new things
- Doing business in Japan has the benefit of being the gateway for the rest of Asia
- There is a highly educated workforce with over 700 universities
- It has a strong work ethic with individuals often feeling a strong sense of belonging and responsibility towards their workplace
- Imports and exports are relatively easy to manage thanks to Japan’s geography
- The business culture in Japan focuses on consistent improvement
- In the past there has been little foreign investment as it was not encouraged, but this situation is changing rapidly and there are bigger opportunities.
Doing Business in Japan
Japan is one of the most modern countries in the world and has the following characteristics:
- It is possible to set up a business entity in Japan in just 14 days
- Japan has a highly developed, the modern infrastructure of roads, highways, railroads, subways, airports, harbors, warehouses, and telecommunications
- Japan has over 20 main international ports and 5 international airports.
- It has high-speed internet to reach customers
- The global payment gateways and mobile payment solutions offer convenient ways to receive funds in different currencies
Moreover, depending on the industry though, Japan’s business culture isn’t as challenging as many businesses may believe. Patience, integrity, respect for their business customs and a long term view to business success are the main ingredients to succeed in Japan.
JETRO – Japan External Trade Organisation – reports that an increasing number of companies around the world are partnering with Japanese companies to develop products and services, create innovative technologies and create R&D projects.
Difficulties of Doing Business in Japan
International companies may be concerned about expanding because of Japan’s unique business culture which include:
- Complicated distribution channels
- A high concentration of domestic competitors
- High levels of bureaucracy to negotiate
- Time-consuming corporate tax system
- Problematic gender equality
- English is not a top priority
Japan Market Entry Business Relationships
If you decide to expand into Japan, you will need to:
- Connecting with Japan Business Consultant
- Understand why and with whom you build relationships
- Build and take care of your relationships
- Avoid certain kind of relationships
To do this alone will make it easier for people to understand why a partner such as Sakura Linkage will help you:
- Plan your relationships in Japan and understand that relationships in Japan are seldom defined by legal contracts alone
- Be aware that, as anywhere else, your business partners in Japan will not tell you everything they know and everything they think and feel and plan. You may need an interpreter and negotiator to know their true feelings and intentions.
- Provide the appropriate documentation to impress with facts and achievements in Japanese and English language.
- Help prepare for meetings and do sufficient market research
- Build your company website in Japanese and English as your Japanese partner will do very thorough research about your company.
Interesting Related Article: “Expanding a Business to Japan“