As the third-largest economy in the world after China and the US, Japan offers internationally focused companies an exciting opportunity to grow their business in a truly unique market.
A solid population of middle class consumers with high disposable income – who are mostly embracive of new technologies – makes Japan particularly accommodating to international businesses offering premium goods, services or innovative digital solutions.
For small companies, Japan offers a relatively stable environment to do business in, with fantastic infrastructure and a receptive consumer base. British businesses that specialise in manufacturing, consumer goods, high-tech products and services in particular will find Japan an ideal market to conduct business in. Moreover, Japan offers a very open economy and ranks highly for ease of doing business.
As with any new market, Japan offers its own unique set of challenges and it's key businesses do sufficient research and fact finding before embarking on the export process. To get you started, here are a few things you need to know before you start exporting to Japan.
1. Choose a route to market that works for you
Depending on your resources, you may decide to enter the market by setting up a physical business in the region or starting small by exporting your products on a few Japanese marketplaces to gauge interest. You could also decide to go it alone or find a local partner to help with distribution and building connections. Either way, your route to market needs to work for your business in the long term – Japan is a market that favours businesses willing to commit. The Department for International Trade has a number of useful guides and advice for different routes to market and what to bear in mind for each.
2. It’s all about relationships
The business culture in Japan places significant emphasis on relationships, so if you’re looking to do business in the region, it’s vital you begin to build a strong network of personal contacts. Whether you’re planning to open a physical office or just sell through an online marketplace, it’s recommended you build contacts locally who can help you understand the business culture and who could be a good inroad to developing business relationships with potential customers, suppliers and partners.
3. Understanding business etiquette
It will come as no surprise that the Japanese business culture places high value on etiquette, respect and cultural sensitivity. So before you bring your business to Japan, it’s important to learn about their customs and keep in mind values to help you deal with various situations. Most Japanese businesses and customers won’t expect foreign businesses to immediately uphold and understand their traditions, but showing some deference to their culture will go a long way in making your business a success. For example, British businesses are encouraged to get two sided business cards with one side translated into Japanese – and they should be presented by holding the two corners closest to you with both hands.
Get paid like a local
- Open up to 10 local currency accounts, with local sort codes, account numbers and IBANs
- Receive international payments from 100+ marketplaces, overseas buyers and payment processing gateways
- Be up and trading in GBP, USD, CAD, AUD, CNH, EUR, HKD, JPY, NZD and SGD in a few minutes
- Add extra multi-currency accounts in CHF, PLN, SEK and AED
- Transfer funds into your bank account or use them to make domestic or international payments
4. Protecting your intellectual property
Japan places emphasis on strong intellectual property protection and follows a ‘first-to file’ system. Therefore, if your brand, logo, product or service has a distinct characteristic you are looking to capitalise on, it is important you secure the correct trademark and patent protection. Having the right protection could also open up opportunities for your business in terms of brand licensing or collaborating with other Japanese businesses. UK companies with an intention of doing business in Japan should look to register their trademarks with the Japan Patent Office and can do so even without an office
5. Getting the most out of your sales
Once your business is up and running in Japan, you’ll want to repatriate any income you make from sales of goods and services in the country. Whilst previously this could be tricky and involved setting up a Japanese bank account, there are now a range of options for you to get your hard earned income with less hassle.
The World Account makes it easy for businesses selling to Japanese consumers via online marketplaces to repatriate their sales income by removing unnecessary hurdles like the need to open a local bank account or obtain an overseas address. You’ll benefit from our fast, efficient and cost-effective service when doing business in Japan, allowing you to focus on other important things – like growing your business.
To find out how to take advantage of WorldFirst’s services, get in touch with one of our account managers.
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