It may be a better strategy to find a distributor first who can help you to get your products in smaller chains or individual stores, and then help you to get to the big names. Or to start online.
In this article you will find more information on the retail market and guidance on how to convince retailers and distributors to work with you.
Our local consultant will help you find the right distributors or retailers and convince them to work with you.
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.
Aeon: One of the largest chains with over 400 stores, offering a range of products including fresh produce, meat, seafood, household goods, and Japanese specialties like Wagyu beef, sushi, and bento boxes.
Ito-Yokado: This chain has over 170 stores and is known for its in-store bakery, wide selection of Japanese snacks and candies, and traditional treats in the “Dagashi” section.
Seijo Ishii: A high-end chain offering gourmet products such as imported cheeses, wines, chocolates, Japanese tea, miso paste, soy sauce, and a selection of beauty products.
While Aeon, Ito-Yokado, and Seijo Ishii are among the top supermarkets in Japan, convenience stores like 7-Eleven also play a significant role in the Japanese retail market. These convenience stores are integral to daily life in Japan, offering a wide range of products including ready-to-eat meals, snacks, beverages, and daily necessities.
The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.
If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.
Distributors are risk averse, they know the portfolio they have and tend to be happy with it. They can’t just add a product or service to their range, since it will cannibalize on others:
Getting your products imported and delivered in a specific country can be a challenge. I have good experience with Tecex, who can act as your importer of record and even physical distributor. If you leave your details, they will contact you.
I always put a lot of emphasis on drafting a good distributor pitch. Even if you already have great sales materials for your end-users, this often does not make clear what the benefits are for a potential agent, distributor or retailer to work with you.
When you approach potential sales channels with your standard documentation, chances are high that they are holding of. If you make it crystal clear what are the benefits for them, like in the example presentation, you will get a much higher response rate.
Please note that it helps to put concrete data in your presentation. You may think it is sensitive, but just know the secret is in how you achieve the rotation or the low returns level, not in the data itself. So share it here, in order to get the right attention.
Be well prepared. All retailers expect you to prove why they are going to make more money with your product than with their current assortment. So you must know the competition.