Continuous Support Services

There are several elements that foreign businesses need to thrive in Japan, but one thing is a must: having a physical presence in the market. Numerous, face-to-face meetings are necessary to close business deals, and navigating the intricacies of Japanese business practices, culture, and language is impossible without being locally engaged.

Typically, foreign companies consider three strategies to overcome this challenge:

Partnering with a local distributer or trader
Establishing a representative office
Establishing a full-fledged subsidiary

Working with A Distributor

Partnering with a distributor or trader in Japan can occasionally yield results. However, in our experience, Western companies and Japanese trading houses often clash over expectations. The Western expectation of a self-motivated, sales-driven distributor is rarely met in Japan, especially regarding B2B transactions. Instead, distributors in Japan consider themselves as part of their customers’ purchasing departments, based on bonds that have been forged through decades of relationship building.

In a market where battle lines are carefully drawn through mutually understood agreements, Japanese distributors often hesitate to explore new product lines or venture beyond their established sector. Doing so would jeopardize the status quo—a harmony of unspoken non-compete agreements between existing players. Partnering with a distributor may be economical, but doing so sacrifices influence over how your products are marketed and sold. In the end, the distributor will always act in their best interest, which may not align with yours.

There are ways to deal with this situation, but doing so demands a deep understanding of Japanese customs, habits, and marketplace dynamics—an overwhelming undertaking for resource-conscious SMEs. We invite you to learn more about this topic in our in-depth article.

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Establishing a Representative Office

For most SMEs with technical products or services, we recommend having a representative office in Japan, and therefore this is the primary service we offer. A representative office is the perfect balance between your needs and the effort and cost associated with maintaining your market presence.

Think of us as your dedicated sales and marketing department in Japan. Acting as part of your organization means acting in your best interest, free from the limitations of the distributor model described above. We primarily work as your agent, facilitating direct sales between you and your Japanese customers. However, should the need arise, we can also provide direct support for trading, logistics, and financial transactions.

With our extensive experience at the crossroads between foreign clients and Japanese customers, we understand both sides of the equation: your business needs and the reality of conducting commerce in Japan.

Your All-In-One Partner for Business Development in Japan

When we represent your company in Japan, we will provide all necessary business development services, including:

Creating a point of contact in Japan for potential customers to address all questions and requests

Establishing connections with potential customers through trade fairs, networking, industry associations, direct emails or calls

Direct sales through customer visits, event presentations, workshops, and seminars

Communication, in Japanese, including document preparation (presentations, leaflets, brochures, and more)

Marketing activities, including advertisements, digital marketing, and press releases

Exhibiting at trade fairs, including booth applications, booth design, and staffing

Organizing logistics and working with importers and distributors in Japan

Supporting financial transactions and contract negotiations

Growing to Meet Your Needs, Every Step of the Way

Additionally, we offer flexible staffing solutions tailored to your business needs. Should you require more than our in-house team, we can expand as your business grows by employing bilingual part-time professionals or freelancers with specialized skills, on an hourly basis. If your business requires even more dedicated support, we can hire a full-time sales manager to focus entirely on your growth in Japan. This approach allows us to adapt our resources and expertise to match your evolving requirements, ensuring cost-effective and efficient market development.

Establishing a Subsidiary

Initially, the cost of merely establishing a subsidiary may be acceptable. However, running a dedicated subsidiary can eventually become overwhelming, especially for smaller companies. Even the minimum operational requirements—a virtual office space, basic accounting and payroll services, and a bilingual senior country manager— can cost up to 30 million yen annually.

Considering the slower B2B sales process in Japan, a typical time-to-market of two to four years, the cost of running a subsidiary can easily balloon to over $1 million before commercial sales are secured. For most SMEs, this makes starting a direct business in Japan an impossibility.

Despite this dire outlook, a case can be made for establishing a subsidiary in Japan. Sometimes, businesses need to convey a certain brand image or service proposition to Japanese customers. Fortunately, San-Ten Consulting also offers a reasonable solution for this situation.

Since a subsidiary does not require its own staff or payroll, we can organize and execute these operations on your behalf, addressing the market under your name. We can manage your subsidiary as part of our service and can offer resources and staffing levels that are the perfect fit for your needs. Aside from the one-time establishment cost, we can run your subsidiary while conducting business development services—an unbeatable combination for a reasonable price.

If you are planning to conduct business in Japan, please contact us here. It would be our pleasure to listen to your needs and recommend a solution tailored to your current situation.