It is known that Japan is the third-largest economy in the world
and thus, it has placed value on imported goods.
A study has shown that 19% of Japan’s total GDP comes from the imported goods and services. For that reason, Japan is seen by many countries across the globe as a premium market for their goods and services. To take advantage of this market, you need specific international business knowledge, since strict regulations could stop you before you start.
However, selling in Japan can be challenging. Besides the language and cultural differences, there are many complex factors to consider when navigating the market entry.
So, you will need to form a strong relationship with a partner and a distributor first.
FINDING THE RIGHT DISTRIBUTOR
It can take some time to find the perfect distributor in Japan. Most Japanese distributors want to fully understand every detail of both your product and your company. They will also want to have meetings to build up a relationship with your business before signing any distribution agreements. So you will need to take care to choose a distributor that has the sales expertise relating to your product demographic or niche.
A major concern is choosing a distributor with excellent connections and one with a significant market presence. So, 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 processes.
You will not have to worry about any maintenance since you’ll just be borrowing their distribution.