How to launch a startup in Japan
Table of contents
Introduction
What explain this article ?
This article provides insights from the French Tech discussion event “How to Launch a Business in Japan” held on April 9th. It summarizes key takeaways from expert speakers and offers personal perspectives on launching a startup in Japan.
Why I joined this event
As a Japanese with a deep connection to French culture after living in Paris for six years, I was intrigued by the French Tech scene. This event addressed crucial questions for French entrepreneurs considering Japan, including motivations for launching, anticipated challenges, and strategies for success.
Guests of this Event
The event featured three speakers, all experts in Japan’s B2B and B2C markets:
- Andrea Lee, Solutions Consultant at Botify
- Valérian Baudouin, Engineering Manager at Back Market Japan
- Thierry Darsin, Representative Director Japan at LumApss
Appoline Daimaru, co-founder of nowthen, moderated the discussion. These speakers boast extensive global experience and have successfully established their products in Japan.
Potential of Japanese market
Comparison to other Asian markets: political stability
Japan is a mature market with many established global companies are present.
Economic Stability: Japan boasts the world’s third-largest economy, but growth is slower compared to emerging markets.
Developed Infrastructure: Japan has a well-established infrastructure for transportation, communication, and financial services.
Saturated Consumer Base: Japanese consumers have a high standard of living with moderate disposable income. They are brand loyal and tend to be more cautious about adopting new products.
Success in Japan can serve as a gateway to expansion into other Asian countries. A win here establishes credibility and strengthens your brand image.
Key of success: Get your loyal customers
- Build strong relationships with Japanese customers. Trust is paramount in Japanese business.
- Secure your first client. Japanese people often buy from those they trust.
- Utilize a local team or qualified freelancers for sales and marketing efforts. Localize your service for the Japanese market.
- Find a skilled business developer, local advisors, and coordinators. Consider freelancers over expensive agencies.
How to get loyality in Japan ?
Be prepared for in-depth negotiations.
Showcase successful local customer cases, particularly those involving large companies.
Provide detailed information about your product, relying on local insights.
My point of view
Building bridges for success
Trust is essential in Japanese business, but French startups can also leverage their creativity and innovation to demonstrate measurable value. Effective communication, aided by bilingual professionals, is key.
By clearly articulating the measurable benefits your solution offers, you’ll resonate with Japanese business minds seeking concrete results. Remember, trust often flourishes after experiencing these positive outcomes.
Effective communication is paramount. While fluency in Japanese is certainly an advantage, partnering with a skilled bilingual professional can bridge the language gap. This ensures your message reaches its target audience with clarity and cultural understanding.
A new startup ecosystem
The notion of Japan’s “closed ecosystem” for startups is a complex one.
While the number of unicorns may be lower compared to China, the Japanese market offers a unique opportunity for French innovation. Think of it as a market hungry for fresh solutions to existing challenges.
The recent government initiatives to bolster the startup ecosystem are encouraging signs.
As of April 2024, Japan’s startup ecosystem is still developing, and it can be challenging for foreign founders.
The Japanese government aims to create 20 unicorns by 2023, but the ecosystem is still evolving.
Securing funding is crucial for rapid growth, and Japan is launching new initiatives to support startups.
The Japan Finance Corporation is expanding its financing program starting in fiscal year 2024.
This program will offer increased loan amounts (from 30 million yen to 72 million yen) for new businesses and those within their first two years of operation, without requiring collateral or a guarantor.
The increased access to funding demonstrates a commitment to fostering growth in this sector.
Conclusion
French startups with a well-defined strategy and a keen understanding of the Japanese market are poised to thrive in this evolving landscape.
In essence, this is not about replacing trust in Japanese business, but rather about complementing it with demonstrable value and a commitment to building long-term partnerships.
French entrepreneurs bring a unique blend of creativity, interpersonal skills, and a focus on measurable results – a powerful combination for success in the Japanese market.
