Japan is the third largest economy in the world, and the value placed on imported goods is quite high. A study has shown that 19% of Japan’s total GDP comes from the importation of goods and services. As such, Japan is seen by many countries across the globe as a premium market for their goods and services. However, to take advantage of that market, you need specific international business knowledge, since strict regulations could stop you before you start.
Selling in Japan can be challenging. Aside from the language and culture differences, there are a number of complex factors to consider when navigating market entry. For this reason, you’ll need to partner with a distributor with whom you can form a strong relationship.
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FINDING THE RIGHT DISTRIBUTOR
The truth is that it can take quite some time to find the perfect distributor in Japan. Most Japanese distributors will want to fully understand every detail of both your product and your company. They will often want to have many meetings to build up a relationship with your firm before signing any distribution agreements. You will need to take care to choose a distributor that has the sales expertise relating to your product demographic or niche.
Some critical issues are choosing a distributor with excellent connections, and choosing one with significant market presence. You should also find one that can provide in-house product registration assistance. A large distributor can assist with a variety of services to help sell your product.
Is a Distributor Better for New Markets?
Particularly in Japan, distributors are a cost effective means to enter a new marketplace successfully.
Here are just a few of the reasons why:
A distributor will take care of all the hiring, optimization, payment and management processes. You won’t have to worry about any maintenance since you’ll just be borrowing their distribution.
Established Channels with Local Knowledge
A good distributor in Japan will already know all the laws and customs of the market. All you need to do is hire them to gain access to the valuable local knowledge they’ve accrued. No reason to reinvent the wheel.
Understanding the Pricing and Purchasing Power of the Market
Along with knowledge of the laws and customs comes knowledge on the most successful pricing and local marketing strategies.
Distributor relationships are ideal for small businesses that plan to enter the Japanese market, since they won’t need to pay for the points mentioned above.
When it comes to English, the Japanese people struggle! You wouldn’t believe the panic and dismay when they want to purchase a product, but give up at the sight of the English language.
Gloture is a new class of promotion agency located in the heart of Tokyo. We specialize in helping overseas startups to launch products in the Japanese market.
As the top choice in our field, we will handle each step from start to finish.
Get in touch today and let Gloture help your brand standout with huge success in Japan!