Previously, we explored the strategic overview of entering the Japanese market. Today, let’s zoom in closer to the field and address some tactical missteps that, though seemingly minor, can become costly errors in the mid to long term. These are common pitfalls that we have repeatedly seen create challenges and delays—issues that could have easily been avoided with foresight and timely adjustments.
1- Ignoring the Importance of Relationship Building
In Japan, business is personal. Relationships are the foundation of successful partnerships. A pushy or impatient attitude can burn bridges faster than any product defect. The Japanese concepts of uchi (insider) and soto (outsider) shape every interaction—from the behavior and manners to adopt to the grammar and verbs used when interacting with others. Preserving wa (harmony) within the group is crucial. Respecting hierarchy, even if those in certain positions aren’t the ultimate decision-makers, and maintaining politeness—even when faced with frustration—are essential behaviors. Someone who doesn't care for harmony will never become an insider and risks isolating themselves from the group.
Short-tempered Western managers who underestimate the importance of was can undo months of progress in a single meeting. In Japan, individuals exhibiting this behavior are often labeled tanki ("short-tempered") and are seen as unreliable when it comes to responsibilities. It’s vital to work with individuals who can act as cultural “airbags,” absorbing potential misunderstandings and reframing messages in a way that preserves relationships. Long-term success is built not just on deals but on friendships and trust.
2- Underestimating the Language Barrier
Even in 2024, the language barrier remains significant—especially when dealing with technical teams. It’s common for Japanese technicians not to speak fluent English. To successfully promote your technology, answer technical questions accurately, and inspire trust for significant investments in time and resources, overcoming this barrier is key. Technical understanding requires clear communication, which often means having local technical language support to ensure everyone is on the same page.
3- Not Adjusting the Offer to Local Needs
Japan’s industrial standards and requirements can differ significantly from those in Europe or the U.S. Whether it's adjusting parameters like concentration, purity, or voltage, or obtaining local certifications, you must be prepared for these differences. Industries like automotive, medical care, and electronics are particularly strict about standards and regulations, making flexibility and adaptability crucial. Ignoring these adjustments is a recipe for failure. As a result, conducting thorough market research and collecting VOCs (Voice of Customers) is extremely important.
4- Pushing a Solution Not Solving an Identified Need
We’ve touched on this in previous articles. Bringing technology to market without a clear application and expecting distributors or OEMs to figure out its use is risky—and rarely works. It’s crucial to present a well-defined solution to an existing problem. The Japanese market values clarity, practicality, and purpose. If you can't clearly articulate why a potential partner should care about your technology, including its applications and market segments, don’t expect them to expend resources figuring it out.
5- Sample Pricing: Finding the Sweet Spot
Sampling isn’t where you make money—it’s the gateway to customer evaluation. The goal is to minimize friction. If your sample pricing is too high, budget constraints, procedural complexity, and intimidating interactions with higher-ups to get expense approval (often the buchou, or division head) create unnecessary barriers. On the flip side, offering free samples may reduce perceived value and suggest desperation. Moreover, free samples lack accountability since there’s no formal approval process; without anyone to follow up internally, like the kachou (team head) or buchou, the evaluation is easily delayed or neglected. When a customer pays for something, even a modest amount, they are more likely to follow through with evaluation.
Avoiding these tactical mistakes can make the difference between a smooth market entry and a costly one. Understanding pricing, having a clear problem-solution fit, respecting relationship nuances, adjusting to local needs, and managing language barriers are all critical to establishing yourself in Japan. Entering this market is about building relationships that last—not just winning deals.
The Sun Nano Advantage: Fast-Tracking Your Market Entry
Sun Nano’s global team of experienced business developers, with local reach across 11 countries, offers a key advantage for DeepTech and advanced materials companies. One of the most notable benefits of working with Sun Nano is the time-to-market acceleration. While traditional in-house sales teams or distributors require months to become effective, Sun Nano’s team can begin delivering results within weeks. The team is experienced in managing the complexities of the Japanese market, reducing the learning curve and helping companies achieve quick market penetration.
With a customer intimacy built through years of industry experience and a strong global network, Sun Nano bridges the gap between technical teams and the commercial world. Their expertise spans various industries, including flexible electronics, displays, healthcare, and automotive, making them well-positioned to assist companies at different stages of their market entry journey.
Sun Nano: Your Partner in Japan
Entering the Japanese market is a complex process that requires careful alignment of strategy with the readiness of your technology. With Sun Nano’s expertise and deep understanding of local market dynamics, companies can fast-track their market entry, build critical partnerships, and achieve long-term success. By leveraging Sun Nano’s tailored services and strategic support, your company can navigate the unique challenges of the Japanese market and seize the opportunities it offers.
Ludovic Ferrigno, our partner at Sun Nano in Tokyo, Japan, specializes in business development for advanced materials and deep tech ventures, particularly in printed electronics, nano-materials, and specialty chemicals. With 22 years of professional life in Japan, he offers expertise in local networking, market entry strategies, and technical support, leveraging his background in companies like Nikon Essilor, Solvay, and Mitsubishi Chemicals. His focus includes industries such as PCB manufacturing, optical coatings, automotive, and IoT. Ludovic can help startups build a footprint in Japan through local collaborations and sales growth strategies.
For more information, visit Sun Nano's website.
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