Diversifying your business in a new market comes with its unique set of challenges. Yet, the fruits of such endeavors can be rewarding beyond measure. Japan, being the world’s third-largest market, flaunts not only a stable economy and politics, but also holds several other distinct factors that make it a lucrative landscape for business expansion.
Delve into these five compelling reasons why expanding your business into Japan is a strategic move you should consider!
Recent consumer behavior in Japan can be summed up by the term “premium consumption.” According to research conducted by the Nomura Research Institute (in JP), there has been a consistent increase in the number of individuals who prioritize premium consumption—those who are willing to pay extra for things they value—since 2000. Concurrently, the number of individuals who opt for cheap products and services over quality has been decreasing annually.
Japanese consumers are willing to pay a premium for products and services they value. So, what exactly do they value? Accenture conducted a study (in JP) revealing that Japanese consumers prioritize factors such as ‘health and safety,’ ‘product background,’ ‘simplicity and convenience,’ and ‘trust and reputation’ over ‘price and quality’ when making purchases. This indicates that products and services with a compelling story and inherent value have the potential to thrive in the Japanese market, especially with effective branding strategies.
Japan has long been renowned for its technological advancements and unwavering commitment to research and development. This presents tremendous opportunities for companies, particularly those specializing in electronics, healthcare, and robotics, to tap into a vast and tech-savvy market that actively seeks out the latest innovations and technologies.
The Japanese government proactively supports foreign businesses, including small and medium-sized enterprises (SMEs), seeking to expand their operations in Japan. They aim to create new business opportunities and stimulate the economy. Some local governments even offer grants to foreign businesses interested in establishing their presence in Japan.
Japanese consumers possess a strong affinity for foreign brands, making Japan an ideal market for businesses aspiring to expand internationally. Furthermore, the ongoing trend of globalisation and the proliferation of social media platforms have made Japanese consumers increasingly familiar with international products and services.
Expanding your business into Japan presents a multitude of advantages. From consumer trends to governmental support, the Japanese market holds significant opportunities for growth. By implementing effective localization strategies and adapting your branding to cater to the unique Japanese market, your business can unlock tremendous potential.
We are here to assist you in seizing the opportunities that Japan has to offer!
Feel free to contact us for further information on expanding your business in Japan.
