Everyone knows that Japan’s high internet penetration rates, economic size, and strong consumer spending make it a more attractive destination for foreign expansion than China, Korea, or almost any nation in Southeast Asia. Unfortunately, its equally well-known barriers to entry – a notoriously difficult language and “Galapagos syndrome” – can make it seem impenetrable. Over the next several weeks, Tech in Asia will show you how to take your company into Japan.
Most market expansion guides would start by explaining basic actions like registering your company or finding office space. Those are very real concerns but we’re going to address them in the future. More than properly filled out paperwork, a company in a strange land needs local supporters – people who can guide them through the business landscape or even take the extra step of joining the team.
So, how do you find allies and employees in Japan?
Learning who is who
First, be prepared to dedicate some serious time to Japan. After preparing and analyzing reams of data, you probably want to just hit the ground running. You can try, but it’s highly likely you’re going to find that you ran in the wrong direction and now need to expend twice the energy to course correct.
Take several trips to Japan for one to two weeks at a time. Tokyo will likely be your home base. With few exceptions like the strong medtech scene in Osaka, key industry players are probably based in the nation’s capital.
Cold calling them is not the worst idea, but it’s better to make a connection via a trusted third party. Dig into your existing contacts, there are probably a few people who can link you with the people you need to know in Japan. If the well seems to have run dry, LinkedIn is a good resource for finding discussion groups or individuals pertinent to your work.
Japan is not one of LinkedIn’s strongest countries but there are still plenty of entrepreneurs, venture capitalists, and other interesting folks listed. There is also a higher percentage of English speakers registered, which means you don’t have to waste time fumbling through interpreters or Google Translate.
If you can time your trip around industry events, you can save a lot of time. Conferences bring your industry peers into the same room for one purpose – networking. Your growing contact list will be able to point out some must-attend events and a simple Google search will turn up some others.
See: After helping Skype and Box, Itochu Technology Ventures wants your startup to win in Japan
Startup events are also well worth attending. Check the calendar for Japan’s biggest conferences, the semi-annual Infinity Ventures Summit, TechCrunch Disrupt Tokyo, and Tech in Asia’s own Startup Asia. You can also find smaller events in Tokyo via the open Facebook group Tokyo Startup Events. You might be a star in your home country, but in Japan you’ll essentially be just another startup. Meeting your peers will give you a good sense of how they perceive the top firms and how they are trying to distinguish themselves.
By that same token, you’ll want to review the investment portfolio of prominent venture capital firms like Globis Capital, Incubate Fund, and CyberAgent Ventures. Taking a look through the client list of startup incubators, accelerators, and supporters like Open Network Lab, Samurai Incubate, or Tohmatsu Venture Support will also help you understand who is out there.
Another place to look is Btrax. The company specializes in market entry services and offers advice for free to startups. Some tips might surprise you. “There is even no need for registering a corporation until you start making serious money from the market,” says Brandon Hill, the company’s founder and CEO. More on that in a future article.
Finding out who cares
The constant networking serves two main purposes. One, if you ask the right questions, you can start to learn about the quirks of the Japanese market and how you can navigate them. Localizing your product will almost certainly be necessary in order to make your prospective new customers happy. Two, you can find future business partners and people who will be excited about the opportunities that your company offers.
As exciting as it is to get user insights and positive feedback from potential clients, you won’t be able to execute any of your plans without meeting some hardy souls who want to join your team and the roller coaster.
There is a wealth of resources available for finding staff. Wantedly is widely used by area startups to find new employees who have the right skills and culture fit. Justa exclusively focuses on startup recruiting. BizReach has a strong reputation for executive search, but it has recently branched out into job searches for younger people as well.
If you don’t want to make a big commitment, Jeek and Career Baito are well-regarded intern sourcing services.
Don’t sweat the language, that’s not the hard part
Without strong Japanese skills, how much of this can you do? Pretty much all of it.
If your product is strong, you will get meetings with Japanese companies, even if your counterparts do not have a thorough grasp of English. Business is business and most Japanese companies will find a way to make the meeting work. Of course, you can also take the extra effort to bring along an interpreter if you see fit.
This might seem like a slight headache but it is only temporary. Once you hire your first bilingual employee or intern, language problems will essentially go away. Japan’s low English proficiency can be frustrating, but it should not be an excuse for avoiding the market.
Your real challenge is making sure your product can delight consumers in Japan just as in your home country. The clock is reset to zero and you’ll need to start the climb back up to one yet again.
Next time: Registering your company, registering yourself
The definitive guide to entering Japan, part 1: Allies and employees
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