Find clients and sell your products in Japan

Finding clients abroad is always a challenge, and business development in Japan is not different. You need the right contacts and once you reach the decision maker, you need the right sales pitch.

A lot of companies that want to enter the market in Japan do this with their general sales pitch. However, if you don't know the local regulations, pricing levels and your competition's product, sales meetings may be difficult to conclude successfully.

How to sell your product or service in Japan?

Japan is known for its unique blend of traditional and modern culture. As of 2023, Japan has a population of about 125 million. It is notable for its technological advancements, rich cultural heritage, and influential economy.

Japan’s economy, with a GDP per capita of around $40,000 USD in 2023, is one of the most advanced in the world. Major industries include automobiles, electronics, robotics, and manufacturing. The country is also known for its strong emphasis on research and development.

Japan’s primary imports are machinery and equipment, fossil fuels, foodstuffs, chemicals, and raw materials for its industries.

Key cities include Tokyo, the capital and world’s largest metropolitan area; Osaka, known for its modern architecture and nightlife; Kyoto, famous for its historic temples and traditions; and Yokohama, a major port and commercial hub.

International business opportunities in Japan

Most Business opportunities in Japan are in the following sectors:

Alternative Energy – owing to a high population density, clean energy is a priority; the Fukushima nuclear disaster has added to the urgency for clean fuel
Pharmaceuticals & Healthcare – demand for products and services in this sector is growing with a steadily increasing aging population, referred to as the ‘silver’ market
Wealthy Nation – As Japan is the third biggest economy in the world, there is demand for high-quality consumer products
Advanced Engineering & Tech – Japanese businesses are interested in cutting technologies to maintain their superiority in designing and manufacturing internationally winning products
Food and Drink – Given a large population density and ever-diversifying food habits, Japan needs food imports
Gaming & Music – Japan is a major gaming centre and has the second largest music industry in the world

WHAT DO YOU NEED TO KNOW ABOUT JAPANESE BUSINESS CULTURE?

The business approach in Japan springs from its culture. The Japanese follow a group culture where the welfare of the society is its prime goal. It is based on ‘Honne’ and ‘Tatemae’, the difference between one’s true feelings and what a person displays in public. Personal opinions are sacrificed at times, according to the expectation of society. Hence, harmony is their top priority.

The Japanese believe strictly in hierarchy and are courteous to the core. They give importance to human relationships and mutual trust. These are the fundamental aspects of their culture that colour their business transactions and negotiations.

WHAT ARE SOME NEGOTIATION TACTICS IN JAPAN?

It is helpful to be aware of business procedures and etiquette before initiating business with the Japanese:

Japanese follow hierarchical order even at the initial stages of discussion. They prefer to deal with their equivalent counterpart.
Business cards are a must, clearly indicating the position held. The cards are to be offered with both hands to show respect for the parties.
The Japanese prefer an introduction to the business party through a known third source.
Discussions are more through written word and visuals as the Japanese are people of few words.
All business discussions are group oriented. Great emphasis is given to human relationships; any decision making involves all members.
Discussion and decision making are usually slow.
Any language or action that hurts or negatively influences reputation can deter proceedings.
Strict etiquette is followed; excuses are not accepted. Apologies are accepted and discussions are tinged with extreme courteousness.
At the same time, any favour is valued and repaid. The Japanese accept appropriate gifts as a mark of appreciation and value it greatly.
Peaceful and calm negotiations mark their meetings. They hesitate to say no and there are periods of total silence which may indicate either their acceptance or their disapproval.
Business meetings require a formal dress code.

Convince foreign distributors with numbers, not with stories

Alfred Griffioen, founder of Exporteers

In the past 15 years me and my colleagues have approached hundreds of agents, distributors, importers and retailers worldwide for brand owners aiming to sell their products abroad. In 2012 a call was enough to get a meeting. Today, you first have to send your pitch — and then hope that someone will answer.

The distributors needed to reach your clients already work with your competitors. They have invested in marketing, stock and sales, and they are making money. Asking them to switch to you means asking them to start all over again.

My experience is that if you only send a website or product catalogue, answers are rare. Numbers make the difference. Show expected volumes, margins, sales effort and investment. Show that there is a business case for them, not just for you.

Translate your website and check your SEO

Even if your business is really international, it may be wise to set up local website translations and check whether your text aligns with the culture.

This also counts for Japan and its inhabitants. People prefer reading in their own language and also search most of the time in their own language. Therefore you need to include the relevant keywords in your texts, and these may not be a direct translation.

With regards to content, my personal experience is that if you have a successful blog topic in one language, it is likely to do well also in other languages. Don’t reinvent the wheel, just make a proper translation.

Shipping your products

If you sell physical products, you need them to get delivered into Japan. Depending on the country you are in, this may be a challenge.

First of all you may have to pay import duties or settle VAT. This can be complex if you don’t have your own legal entity in the country.

There may also be non-financial bariers, like certifications or approvals to be obtained. Especially for food, cosmetics or medicine this may be the case. Check this in advance, even before you invest in your marketing.

VAlidate the HS-codes you use for shipping

Almost every country or trade block in the world has its own detailing on the international HS-code list. With our report you strongly reduce the risk on misclassifications, delays and higher custom duties than expected.

Tell us what you want to ship and where to and we ask you all relevant questions to get to the most likely code.

Frequently asked questions

How to do business development in Japan?

First determine who can be the end-users for your product or service. From who do they purchase now? Interview a number of key players in the value chain how they perceive your offering and ask them who is your competition. Only then you can position your product or service and effectively approach potential buyers.

Is it difficult to find B2B clients in Japan?

In Japan, just as many comparable countries, this all depends on your offering and the way you organise your sales. If you offering already sells in other countries, you have good chances, but you still need to figure out the market structure and the sales channels that perform best. We always recommend to do interviews with key players first.

Is Japan open for international business?

Yes, Japan is certainly open for international business, the country has trade relationships with many other nations and although there may be import duties, certification and other customs regulations, you can certainly sell your goods there.

How to do sales in Japan?

First of all adhere to the local business culture and follow local ways of making appointments and structuring them. Also in Japan, companies want to make profits so if you can show how your product or service contributes to that, then the interest will be not different than in other countries. Where possible, work with local partners or have your sales supported by an international business consultant.

Can you find B2B clients for me in Japan?

Yes, we can certainly do that, because we have experienced business developers in the country. Of course it is important that your product is good, well documented and you have discovered the best sales processes already in your home country.