Our local teams plan & execute
Alliance experts helps you to develop your market entry strategy on the go. We scan the market, launch your product and grow your sales, constantly monitoring the responses and improving your approach.
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.
The Japanese retail industry is dubbed as being a sophisticated market and is the 3rd largest market for fashion after China and USA. Over the years, the country’s retail sector has been exhibiting moderate growth. Currently, there are around 3,124 shopping malls, 52,417 convenience stores and 240 department stores spread across Japan. In the Shinjuku Isetan Department Store Alone, retail sales amount to about 900 million JPY per day.
The country recently suffered from deflation, a decrease in the price level of goods and services. One of the affected sectors was the home furnishing market which experienced a downward trend. But as the housing market is picking up, the home furnishing sector is also starting to recover. In the mid-price segment, competition is not so stiff which gives opportunities for business brands to target customers looking for high-quality products with value for money.
Japan is globally famous for its advanced skincare market. It is popular for its premium products, the overall value of which amount to 1500 billion JPY. These items include serums, scalp care products, moisturizers and more. The men’s care segment amounts to 150 billion JPY. With Japanese brands known for their effective products, the country is projected to occupy the largest skincare market in Asia.
Based on the data from MAFF, Food Balance, the following comprise the consumption percentage share of the Japanese:
47% of Japanese consumers shop for their grocery requirements at supermarkets while 32% of customers prefer GMS and 7% go to CVS. Smaller supermarkets account for 5% of the total consumption market share in the country.
Apart from capturing the retail opportunities for the younger group, there is an untapped elderly market. Over the years, the elder age bracket in Japan has purchasing power. On an average, the savings of the elderly group amount to about 30 million JPY. One-fourth of the country’s population is comprised of elders aged 65 years old and more.
Asia is considered to be the biggest regional cell phone market. The Asia-Pacific region accounts for more than half of the world’s share when it comes to mobile phone shipments. In the region, Samsung has the highest market share. In Japan, Apple has the highest market share with more than 34% of individuals who prefer to use Apple phones. Japanese companies and other global brands have the following market share:
We work with local teams, who already know the market, speak the language and know the business culture.
We can compare different markets and as we can help you in all of them, we only favor the market that may work out best for you.
We help you avoid cultural misunderstandings, compliance issues, and other risks associated with entering a new market.
The best way to learn about a market is to start reaching out and adjust your sales pitch on-the-go. This is what we do in our Scan-Launch-Grow approach.
1st month
We dive into your product and what sales strategy has worked for you in other countries. We show you offering to various potential distributors or customers to collect feedback. And we review your competition so that we can determine the best market entry strategy.
2nd month
Together with you we develop a first pitch for your target group. We extend our long-list of potential targets further and start reaching out, getting to the right decision makers and pitching your product. And we discuss the results with you, in order to optimise your strategy further.
3rd and next months
We keep searching for new distributor candidates or clients and reach out to them. We also follow-up on previous contacts we had and on leads that you bring in. We introduce you to interested parties, but we can also support in meetings or close deals on your behalf. Every month we review our results.
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