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Practical Entry into Japan A Guide By 1

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Meet the Tokyoesque Team Natalie has a background in Japan market research preparing qualitative and quantitative insight with Nielsen and Asian Consumer Intelligence after working in Tokyo and studying at Waseda University. Originally coming from Silicon Valley, and having obtained her MSc in Global Media & Communications at The London School of Economics, she now heads up the UK arm of software development company NielsenAsian Consumer Intelligence ioet LTDioet LTD. Natalie Meyer CEO and Founder Joanna has a degree in Japanese Studies from Cambridge University and a background in journalism (The Times Tokyo Bureau Chief 1989-1994). She is currently a business consultant specialising in Japan, a trustee of the Great Britain Sasakawa Foundation and a director of Somerset House Trust.The Times Joanna Pitman Tokyoesque Partner 2

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Japan can certainly be a lucrative market, opening the door for further opportunities in the rest of Asia. If youre looking to sell your products and services to a nation that values quality and luxury goods, then Japan is a great choice. There are several key aspects that youll need to consider when making plans to enter the Japanese market. The aim of this guide is to give you an idea of the range of services you can expect to receive from the Tokyoesque team relevant to your unique business plan. We want to be your partners in unlocking the potential of Japan for your brand. We can assist you in one or more of the following areas: 1.Market & Industry-specific research 2.Distribution / Shipping 3.PR and marketing 4.Access to Sellers in Japan 5.Localisation Intrigued by what Japan has to offer? So are we! 3

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Stages of Entry 4 Have a product ready to sell Research target market & Find Buyers in Japan Find a Distributor Set your price Hire a PR Company

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5 You may start out thinking that you want to represent a range of products in Japan. But its worth remembering that often department stores and shops will have limited showcasing space for one brand. Think carefully about your top- performing product(s) and then find out whether it will resonate with Japanese consumers as well as it does elsewhere. Maybe another product you have in your range will perform better within Japan? Why not come up with a brand new idea especially for the Japanese market? 1. Product

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6 Since you can never be 100% sure that your product will succeed in Japan, you will probably want take your initial ideas about the Japanese market for a test run. Commissioning focus groups with consumers and / or buyers can generate interest at the same time as testing how well your product(s) will go down in Japan. For example: new, innovative, eye- catching and colourful products go down well in Japan as do organic ranges. 2. Testing 3. Pricing Ensuring that all stakeholders get a fair and manageable share of the profits is vital, so you need to agree on the perfect pricing structure. Consider that retailers can buy goods at 60% of the Retail Price, wholesalers at up to 45% of the Retail Price and then Distributors have to take a fee as well. Therefore, one aspect to consider is finding a Distributor/Wholesaler to reduce costs. Remember that the customer is the one who will be paying the final marked-up price, so youll need to satisfy them too.

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7 4. Distribution 5. PR Finding a good distributor in Japan should be one of your top priorities in Japan. Developing a good long-term partnership with the right company will ensure that the process runs as smoothly as possible. Finding distributors can be challenging, but there are a number of UK trade shows that offer exposure to Japanese companies looking to do business with the UK and Europe. It is a good idea to have a consultant to guide you and show you how things work in Japan. Your initial PR strategy may be based on Market Research findings, but youll need a company who has your best interests at heart. Making sure that you have covered all bases is the job of any good PR firm. Local knowledge and experience with similar brands will put you in good stead. Youll find plenty of English- speaking professionals too, which will be indispensable for business.

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So How can Tokyoesque Help? 8

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Industry Research Were sure you know your industry like the back of your hand, but its important to constantly be aware of the trends happening in different markets in order to readily identify untapped opportunities to expand or fine- tune your regional business plan. At Tokyoesque, we like to keep ourselves informed about the latest Japanese trends and news, as well as understanding how they fit into a global context. Because were curious about what makes consumers and buyers tick in Japan, we want to channel that sense of curiosity into everything we do. And we will do that with rigour and commitment to you. We can report on the following Key characteristics of the Japanese market Analysis of key competitor performance in the Japanese market (domestic and international) Latest market data Information about industry events relevant to your brand Price comparison 9

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Market Research Tokyoesque have dedicated research partners who we work alongside to help provide answers to initial or existing business ideas about Japan. We can assist you in developing targeted questions and a solid interview guide so that our researchers can obtain the best insights possible. Our team will then analyse the findings and pull together an actionable report, specifically tailored to your needs. We can provide this as a more comprehensive report in conjunction with industry research, or simply as a stand-alone option. Tokyoesques Custom Solutions 1.Japan (Osaka, Tokyo) Business decision makers / Local consumers 2.London Japanese expats (Japanese mothers, overseas employees, students etc.) 10

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Distribution The Japanese market can be quite complex to navigate through for foreign brands looking for distribution in Japan - there are a number of points to consider before making a move. For example, you will need to think about 1.Whether intensive, selective or exclusive distribution is right for your company 2.Locating the channels which would give your products the most exposure to your target market 3.How long the distribution contract term will be Tokyoesques Custom Solutions -Facilitate introductions with distributors relevant to your industry in Japan -Conduct shop tours in Tokyo to impart local knowledge and find best outlet for your products -Assist with any queries you may have during your trips to Japan 11

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PR & Marketing Ultimately, just securing a distribution channel alone isnt going to raise much awareness of your brand value in the bustling Japanese consumer market. Thats where local PR and Marketing companies can help you to build a unique brand story. Tokyoesques Custom Solutions -Introduce you to PR professionals with experience working with your industry. -Give you unbiased practical advice ourselves on tips to market your products in Japan. -Organise a tour of Tokyo + meetings in Japan with PR/Marketing professionals Japan is overflowing with advertising messages, so as a foreign brand it is particularly important to distinguish your brand with a unique and appealing story. But what works in the UK, Europe, the US or elsewhere might not necessarily always reach your audience in Japan. 12

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Localisation Localising your product(s) can mean much more than simply direct translation from English into Japanese. Communicating understandable language is one thing, but communicating in a culturally acceptable way is also important. The Tokyoesque team are all fluent Japanese speakers and can help you to formulate clear and concise copy that will engage Japanese consumers in the long term. We can also discover ways that you might be able to partner with local Japanese companies to align your brand message with an already well- established one? What works in China, India, Korea or Thailand, for instance, may not work in Japan due to subtle underlying cultural nuances, so its useful to understand those differences and see how you can integrate them into your approach without losing your brand identity! Contact us to discuss your localisation needs, and we will tailor a package just for you. 13

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For anything else Just ask E-mail: natalie@tokyoesque.comnatalie@tokyoesque.com Phone: +44 (0)77 4214 5578 Twitter: @Tokyoesque 14