- People seeking a market in Japan always start by looking for buyers, but before doing this, they should investigate in advance whether the goods they wish to sell are really suitable for the Japanese market. It is necessary to consider a number of factors, such as whether the product suits Japanese tastes, whether it can compete with similar products already on the Japanese market in terms of design, packaging and price, and whether its materials affect its suitability for conditions in Japan. By conducting prior research along these lines before hurriedly seeking out buyers, it becomes self-evident whether the product is marketable in Japan, the product's rank becomes apparent, and the appropriate buyers and distribution routes become obvious. If seeking an outlet in Japan for the first time, you should bear in mind that finding a suitable buyer can be rather difficult, and that success on your first visit would be a stroke of unbelievably good fortune.
- If prior research indicates the product is unsuitable for Japan, there are two options: to improve the product to make it suitable, or to abandon the idea of penetrating the Japanese market. It may not necessarily be possible to market your own products in Japan as they are, and you should at least be prepared to try OEM. It is important to understand that despite the advancement of globalization, the Japanese have their own special, traditional tastes, and the Japanese market retains its own distinctive characteristics. Even the well-known French bag-maker Louis Vuitton, for example, makes extensive use of OEM to make products suitable for the Japanese market, and a many of the bags to be found in Louis Vuitton's shops in Japan are designed and made solely for the Japanese market.
- It is also important to realize that there are even differences in tastes and preferences between Osaka and Tokyo. People in Tokyo seem to prefer larger products in bright colors, whilst people in Osaka tend to like comparatively small things in plain and simple colors. In the case of artificial flowers, for example, large flowers in bright colors sell better in Tokyo and small flowers in "stylish" rather than particularly bright colors sell more in Osaka. The same applies to handbags.
- It takes a longer time to come to a decision on ordering in Tokyo, but in Osaka a clear decision can be reached quickly. This is because with more small and medium-sized companies in Osaka, company presidents or others with the authority to make decisions based on their own judgment frequently attend business negotiations. In Tokyo, however, people lacking the authority to make decisions on their own are more likely to attend talks, and so the process is more time consuming as they must later consult with their superiors before a decision can be made.
- People coming to sell their products in Japan must know more about their products. For example, when someone who came to sell zippers was asked whether the cord attached to the tape was sewn cord or woven cord, he was unable to answer. Knowing which cord is used tells one the life of the zipper. When in another instance a person who came to sell bags was asked whether the leather was chrome or tannin tanned, he adopted the attitude that this was irrelevant as the main thing was just that someone should buy the bag, calmly saying that "We buy the leather from Italy to make the bags, so I don't know anything about the leather". The price and period of use of the product will vary depending on whether the leather is chrome or tannin tanned. The attitude that you have only to sell the finished product is not a mature one, and you should study the merchandise more and gain specialist knowledge of it.
- Cases in which insufficient preparations have been made are common. It is all very well to show samples saying they have only just been completed, but sometimes people do not know the price or delivery date. You should come to sell your products only after making sure of all these details.
- If targeting the Japanese market, you should if possible produce simple Japanese leaflets or catalogs, and if hoping to sell directly, you should preferably hire Japanese staff or train Japanese-speaking staff. You will then be able to do business more smoothly in Japanese.
- Some foreign companies have export shares in Japan as high as 70% or 85% and still seek to increase this share, but from the point of view of dispersion of risk, this is undesirable. If the Japanese market were to deteriorate, exports could be destroyed at a stroke. It is dangerous to have a market share of over 30% in any specific market. You should try to avoid the high risk and find other markets.
- If unfortunately a claim for damages arises concerning a shipment of products, you should never try to evade the matter or talk yourself out of it. You should acknowledge any faults and pay the damages. You will thus win the trust and confidence required in order to do business in the long-term, and you will win back the cost of the damages many times over. The important thing to remember is that you will "sow loss and reap gain".
- The above points may sound discouraging, but they certainly do not mean that the Japanese market is saturated and impenetrable. It is possible to succeed if you try. Effort and hard work will be repaid, as the success of Toys 'R' Us and McDonald's prove. If you want to penetrate the Japanese market, you should therefore be prepared to invest continuous effort.
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