5 steps to enter the Japanese market successfully
1. Overcome the language barrier
Japan is the largest market following China and the US. Entering an English speaking market is an easy option. However, the point often overlooked is how the competitive US market is. When the market is oversaturated, it becomes harder to stand out. Japan market entry needs a bit more effort for a higher return. First and foremost, you will need to hire a team of Japanese/ English speaking staff. Even if you want to expand your e-commerce and DTC (Direct to Consumer) business, most Japanese don’t understand English and leave the site straight away. Although this is the first drawback when businesses try to enter new territory, you need to realise that International companies who overcame this hurdle are making a big profit as a result of this being a less crowded market.
2. Deploy market research
As a Second step, research and strategic advice on market entry options and target market developed by experts. What you think is normal in your country doesn’t apply when it comes to Japan. From complex supply chains to a vast range of retailers, you still need to consider climate and geography on top of the equally huge online market. The market is segmented not only by demography but also by the type of magazines they read, what types of influencers they follow. Moreover, consumer behaviour on a particular product adds an important factor.
3. Understand the target market
Do you know what creates an emotional impact for Japanese Gen Z? Who Christmas is for in Japan (It’s not for everyone)? Each market reacts differently to the same thing. In essence, It’s important to understand the culture and tendency based on the target market to optimise the marketing effort. Brands should position their brand culture through marketing narratives and customer experiences after learning about the customers.
Why Japanese people are getting wealthier and how businesses can leverage
4. Set localised strategy to optimise the result
When you expand your business in a foreign country, you will need to know what works best in a particular market. Japanese people have a particular taste, distinctive culture and way of thinking. For instance, you will need to know what Japanese consumers expect from the shopping experience. Brands wouldn’t be able to move their customers emotionally to win their hearts unless they understand the culture and history. Also, Japanese people are not following western trends in everyday life. Furthermore, everything needs to be translated into Japanese so there is a time lag on western trends and movements. Another key point is that understanding which online/offline media your target market is using is crucial for digital marketing. Japan is a unique country where domestic social media brands dominated before all the social media giants arrived in Japan.
5. Utilise local networks
It’s inevitable to utilise local networks to expand your business. To start with, employ local knowledge to set up the logistics or distribution in Japan. After creating the localised marketing strategy, the local PR company with a strong connection with a vast range of networks can work more effectively to get the word out. An equally important part of growing your business is to engage in business collaborations to enhance your brand presence. This is also to broaden your audience and widen the market. Brands even from the same industry nowadays gain traction through collaboration. Identifying which brands would complement your particular brand or product would be hard, but the local networks can solve the problem. If you are thinking of investing in the DTC business, you can set up a fulfilment office to tackle local customer service and set up pop-up stores to boost visibility, sales and social engagement.
Are you looking for the right resources for your market entry and expansion in Japan?
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