Your Access to Japan’s Import Market
Japan's food market is currently valued at approximately 80 trillion yen, displaying yearly fluctuations while maintaining a steady demand. The market is expanding due to rising health awareness, a preference for convenient food options, and the needs of an aging population, with an increased focus on eldercare and food products designed for seniors. Furthermore, the food service industry and convenience stores have become significant contributors, strengthening Japan's food sector as a crucial and valuable market for domestic and international producers. Mr. Kusabiraki of M-Cross Engineering specializes in providing services for foreign businesses entering the Japanese market.
Kanta KUSABIRAKIPresident, M-Cross Engineering Corporation
What advantages do foreign companies gain by entering the Japanese food market?
Japan’s vast food market, estimated at around 80 trillion yen, presents substantial opportunities for foreign businesses. This growth is fueled by rising health awareness and a growing demand for senior-oriented foods owing to an aging demographic. The appeal of the Japanese market lies not only in the presence of major retail chains but also in the ability to enter the market through smaller-scale stores or e-commerce. This allows for a more phased approach that aligns with specific business objectives. This approach enables foreign companies to avoid the risks of holding large inventories from the outset. Instead, they can start by testing marketing, observing consumer reactions, and optimizing pricing and marketing strategies accordingly.
Our company utilizes our warehouse in Gifu Prefecture to provide comprehensive support, including inventory management, sample distribution, and agency sales, ensuring a seamless market entry process. With the ongoing growth of e-commerce year after year, many opportunities exist to establish diverse sales channels.
What obstacles and challenges do foreign companies encounter when exporting food products to Japan?
Japan's market features a unique distribution system that requires a strategic adaptation approach. Additionally, Japanese consumers prioritize product quality and brand image, meaning that simply introducing successful foreign models is not enough; localization specifically tailored to the Japanese market is essential. Moreover, Japan has distinct business customs and complex distribution channels. For newcomers entering the market, especially in B2B sectors, establishing connections with key decision-makers may take considerable time, which presents a challenge. Navigating these nuances can be demanding. However, as mentioned earlier, Japan is strongly attracted to foreign brands. Therefore, the key to success will depend on how effectively you can enhance brand awareness to align with local market expectations.
What services can you provide to companies looking to expand into Japan?
Our company offers a comprehensive suite of services for foreign businesses looking to enter the Japanese market, providing distribution support, marketing, sales, inventory management, and localization. We operate a dedicated warehouse in Gifu Prefecture, where we manage inventory and handle sample shipments for overseas companies, facilitating a swift market entry. Additionally, we plan to expand our showroom capabilities, allowing buyers and distributors to experience and assess products directly.
We also plan to open offices in major cities across Japan, fostering a more advantageous entry environment for other companies. This expansion will improve business opportunities while also increasing brand awareness and supporting channel development.
Moreover, product localization is essential for acceptance among Japanese consumers. For instance, customizing packaging design, ingredient labeling, and promotional strategies to cater to the Japanese market ensures smoother sales and increases consumer appeal. At our company, we provide strategic marketing support to help foreign businesses gradually build brand awareness and achieve sustainable sales, ensuring a successful long-term presence in the market.
