When it comes to Japan, some companies think they just have to enter the market and the money (Yen) will just pour in.
Earlier this year, I was approached by a company in a rush to enter the Japanese market with their web based business. Their competitors were there making money so they needed to get there fast.
Most companies with no history of operating in Japan only see dollar signs when thinking of entering the Japanese market. Although there are tremendous benefits to entering the market, companies need to open their minds up a bit more when even considering the possibility of entering this vastly different market and culture.
Be realistic is what I say. Find the help and the information you need to make a successful entry into the market to ensure that you have staying power. Bigger companies have not done this and with all their might and money, failed miserably.
The first problem this company had was their very unrealistic time line for entry into the Japanese online retail market.
Their second was that they wanted to translate their current website site content directly into Japanese without thought of rewrites or taking into consideration culturally sensitive writings. They were thinking that 'one size would fit all', in this case, that just putting Japanese text on their website would be enough.
They also did not consider setting up payment structures to handle orders from their prospective Japanese clientele. They thought it would be just like in the U.S, accept credit cards and that would be enough. Not so. Although credits cards are gaining more popularity in Japan, they are nowhere near as prevalent as they are in the U.S.
And what about logistics like taxes, different payment options that are specific to Japan like postal accounts as opposed to checking accounts in the states?
They had not considered the customer service aspect either. How would returns of merchandise be handled or other issues that arose with products? Initially maybe this could be handled from the U.S. but with no one in the company able to speak Japanese what would happen if there was a serious issue from the beginning?
They were really just focused on the potential money to be made without thought of the work they would have to put in before they even entered the market and sold anything.
It is a common error that many make when dealing with Japan or any foreign market.
I am not saying that all of these things all had to be decided on and implemented from the start. A phased approach is fine. Start slow and build. But they things had to at least be on the radar and had to be considered with a plan of action in place for implementation and there were somethings that absolutely had to be in place at the start.
In the end, after telling them this, they admitted that a company they were using had pretty much told them the same things especially about their unrealistic time-line. They didn't or didn't want to believe them so they were looking for someone to tell them differently. I couldn't. That would be setting them up for failure.
The Japanese market is possible to crack. But you have to do the work needed to ensure your success from the start.
- Perform due diligence
- Have some sort of plan in place or at least an outline of one
- Have a reasonable time line for entry
- Listen to the experts, especially if you have no experience of the foreign market you want to enter
- Be realistic in your expectations
If you do it right, it will be worth it. Good Luck!
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