8 important considerations brands should understand before launching in Japan.

When the US home improvement retailer Home Depot attempted to enter the Japanese market in the 1990s, it failed to gain traction due to intense competition from local retailers and cultural differences. And when UK supermarket giant Tesco attempted to enter the Japanese market in 2003, it failed to gain a foothold and eventually withdrew from the market in 2011.

These examples demonstrate that foreign brands must understand the local market and consumer preferences to be successful in Japan. Brands must also be willing to make the necessary adaptations and investments to succeed in this highly competitive market.

Japanese consumers have unique cultural and societal influences that differentiate them from consumers in Western countries like the United States and the United Kingdom.

Brands looking to succeed in the Japanese market should consider these differences when developing their marketing and product strategies. Here are some key differences:

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Brand loyalty: Japanese consumers are often highly loyal to specific brands and may be more likely to purchase products from established brands they trust.

Attention to detail: Japanese consumers are known for their attention to detail and appreciate well-designed and well-crafted products. They also place a premium on functionality and practicality.

Quality expectations: Japanese consumers have high expectations for quality and place a premium on well-made and durable products.

Technical sophistication: Japanese consumers are known for their technical sophistication and are often early adopters of new technology and products.

Environmentalism: Japanese consumers are increasingly environmentally conscious and may be more likely to purchase environmentally friendly products.

Retail culture: Retail culture in Japan is different from that in Western countries, with a strong emphasis on in-store experiences and customer service.

Fashion and beauty: Japanese consumers place a strong emphasis on fashion and beauty, and they are known for their unique and eclectic sense of style.

Below are eight important considerations brands should research and understand before launching their product or service into the Japanese market.

1. Cultural sensitivity: Understanding Japanese cultural norms and customs is crucial for a successful product launch.

Cultural sensitivity is an important consideration for brands looking to bring a product into Japan, as cultural norms and values play a significant role in shaping consumer behavior.

Brands should take the time to understand the local culture and customs and tailor their offerings accordingly.

Here are some key points to consider when it comes to cultural sensitivity in the Japanese market:

Respect for tradition: Japan has a rich cultural heritage and tradition, and brands should respect and be mindful of these cultural values.
Attention to detail: Japanese consumers have high expectations for detail and quality in products, packaging, and marketing materials. Brands should ensure that their offerings meet these expectations.
Honorific language: In Japan, it is important to use appropriate honorific language when communicating with consumers, especially in advertising and marketing materials.
Social customs: Understanding and respecting social customs, such as gift-giving, is important in building relationships with customers.
Sensitivity to local customs: Brands should be sensitive to local customs, such as the preference for modesty in dress and advertising, and avoid causing offense.

2. Local regulations: Familiarizing with the local laws and regulations regarding product labeling, packaging, and marketing materials.

Local regulations are important for brands looking to bring a product into Japan as they impact product labeling, packaging, and marketing materials.

Brands must comply with local regulations when bringing a product into Japan. This helps avoid legal and financial issues and ensures that the product is well received by the market.

Here are some key points to consider when it comes to local regulations in the Japanese market:

Product labeling: Labeling requirements in Japan are stringent, and brands should ensure that their products meet all the required regulations, including health and safety standards, labeling information, and warnings.
Packaging regulations: Packaging regulations in Japan are also strict, and brands should ensure that their packaging is compliant with local standards and regulations.
Marketing materials: Marketing materials such as advertisements and promotional materials should also comply with local regulations, including guidelines on product claims, testimonials, and endorsements.
Import restrictions: Brands should also be aware of import restrictions on certain products, including food, pharmaceuticals, and chemicals.
Environmental regulations: Japan has strict environmental regulations, and brands should ensure that their products and manufacturing processes meet these standards.

3. Distribution channels: Identifying and partnering with the right distribution channels in Japan is crucial.

Identifying and partnering with the right distribution channels is crucial for brands looking to bring a product into Japan as it affects the reach and success of the product in the market.

Choosing the proper distribution channels is critical to the success of a product in the Japanese market. Brands should carefully consider their options and build strong relationships with their distribution partners to ensure the product reaches the right customers.

Here are some key points to consider when it comes to distribution channels in the Japanese market:

Retail landscape: Japan has a complex retail landscape, with a mix of large chain stores, specialty stores, and online retailers. Brands should understand the different channels and choose the most suitable ones for their product.
Wholesale vs. Direct Sales: Brands should consider selling their products directly to consumers or through a wholesale distribution channel. Direct sales may offer more control over pricing and product positioning, but wholesale distribution can provide a wider reach and lower costs.
Importance of relationships: In Japan, relationships play a crucial role in business, and brands should take the time to build strong relationships with distribution partners.
E-commerce: Online retail is becoming increasingly important in Japan, and brands should consider an e-commerce strategy as part of their distribution plan.

4. Consumer behavior: Understanding Japanese consumers’ unique buying habits and preferences can help a brand tailor its offerings accordingly.

Understanding consumer behavior is crucial for brands looking to bring a product into Japan, as it can impact product positioning, marketing, and sales.

Brands should research consumer preferences, trends, and buying habits to ensure that their product offerings resonate with the local market.

Here are some key points to consider when it comes to consumer behavior in the Japanese market:

Brand loyalty: Japanese consumers tend to be highly loyal to brands and often make purchasing decisions based on brand reputation and quality.
Quality over price: Japanese consumers place a high value on quality and are often willing to pay a premium for products that meet their expectations.
Attention to detail: Japanese consumers are known for their attention to detail, and they appreciate well-designed and well-made products.
Health and wellness: Health and wellness are important concerns for Japanese consumers, and brands should consider these needs when developing their products.
Trends: Keep up-to-date with the latest consumer trends in Japan, as they can change quickly and impact consumer preferences.
Advertising: Advertising and marketing strategies should be tailored to meet the needs and preferences of Japanese consumers.

5. Language: Communication in the local language is key, and translated materials should be culturally appropriate and high-quality.

Language is an important consideration for brands looking to bring a product into Japan as it impacts product labeling, packaging, marketing, and customer service.

Brands should ensure that they communicate effectively with customers, use the appropriate language, and adapt their products to meet local preferences. This can build trust and credibility with Japanese consumers and ensure a successful product launch.

Here are some key points to consider when it comes to language in the Japanese market:

Official language: Japanese is the official language of Japan and is widely spoken by the population. Brands should ensure that their product labeling, packaging, and marketing materials are translated accurately into Japanese.
Localisation: Brands should also consider localisation, which means adapting the product to meet the cultural and linguistic norms of the local market. This can include changing product names, packaging design, and marketing materials to reflect local preferences.
Customer service: Brands should ensure that they have a customer service team that can communicate effectively with Japanese customers in their language.
Language skills: Brands should invest in language training for employees working in the Japanese market to ensure effective communication and a smooth transition.

6. Product adaptions: Packaging size, product specifications, and ingredients may need to be adapted for the Japanese market.

Product adaptation is the process of modifying a product to meet the specific needs and preferences of a local market and is an important consideration for brands looking to bring a product into Japan.

Brands should take the time to understand local consumer preferences and requirements and make the necessary adaptations to ensure that their products meet local needs and regulations. This can build trust and credibility with Japanese consumers and increase their chances of success in the market.

Here are some key points to consider when it comes to product adaptation in the Japanese market:

Cultural differences: Brands should be mindful of cultural differences in Japan and how they may impact product design and features. For example, products may need to be modified to fit smaller living spaces or meet local safety regulations.
Consumer preferences: Brands should conduct market research to understand local consumer preferences and make necessary product adaptions to meet their needs. For example, local consumers may prefer different colors, sizes, or materials.
Technical requirements: Brands should ensure that their products meet the technical requirements in Japan, including certifications and regulatory approvals.
Local suppliers: Brands may need to source local suppliers for raw materials or components to ensure that the product is manufactured in compliance with local regulations.
After-sales support: Brands should also consider after-sales support when making product adaptations, as local consumers may have different expectations for customer service and repair services.

7. Quality expectations: Japanese consumers have high expectations for product quality, so brands need to ensure that their offerings meet these expectations.

Quality expectations are critical for brands looking to bring a product into Japan, as they can significantly impact product success.

Brands should ensure that their products meet Japanese consumers’ high standards, focus on building a positive brand image, and provide excellent after-sales support to meet customer needs. This can help to build trust and credibility with Japanese consumers and increase their chances of success in the market.

Here are some key points to consider when it comes to quality expectations in the Japanese market:

High standards: Japanese consumers have a high expectation for quality, and they place a premium on products that are well-made and durable. Brands should ensure that their products meet these quality standards to succeed in the market.
Attention to detail: Japanese consumers are known for their attention to detail, and they appreciate well-designed and well-crafted products. Brands should focus on ensuring that their products are of the highest quality, emphasizing attention to detail.
Brand reputation: Quality expectations are closely tied to brand reputation in Japan, and consumers will often make purchasing decisions based on a brand’s reputation for quality. Brands should focus on building a positive brand image to increase their chances of success in the market.
After-sales support: Quality expectations also extend to after-sales support, and Japanese consumers expect that their products will be repaired or replaced if they fail. Brands should have a robust after-sales support system to meet these expectations.

8. Marketing strategies: Developing a marketing strategy that resonates with Japanese consumers is important, including considering local social media and influencer marketing.

Marketing strategies are an important consideration for brands looking to bring a product into Japan, as they can significantly impact product success.

Brands should take the time to understand local consumer behavior and cultural differences and tailor their marketing strategies accordingly. This can help to build brand awareness and reach the right target audience, increasing the chances of success in the market.

Here are some key points to consider when it comes to marketing strategies in the Japanese market:

Cultural differences: Brands should be mindful of cultural differences in Japan and tailor their marketing strategies accordingly. For example, marketing materials may need to be modified to reflect local preferences and cultural norms.
Consumer behavior: Brands should conduct market research to understand local consumer behavior, including purchasing habits and preferred marketing channels. This information can be used to inform the development of a targeted marketing strategy.
Local media: Brands should consider using local media, such as television, newspapers, and magazines, to reach their target audience in Japan.
Digital marketing: Digital marketing is becoming increasingly important in Japan, and brands should consider using digital channels, such as social media, email marketing, and search engine optimization (SEO), to reach their target audience.
Influencer marketing: Influencer marketing is also becoming popular in Japan, and brands may consider partnering with local influencers to reach their target audience.

Market research can help companies and their brands understand the unique business landscape in Japan. For more information on how to develop a successful market entry strategy for Japan, read our blog, How to Develop a Market Entry Strategy in Japan

If you are interested in Kadence’s market research capabilities in Japan, download our agency credentials document here or submit a Request for Proposal here.