Marketing your products and services
Market entry
The economic difficulties faced by Japan since the 1990s have forced Japan’s processed food industry to review their traditional operational methods and to seek a new competitive advantage, including overseas supply. Recent trends have seen firms bow to the pressures of the high cost of local production and are now seeking sub-contractors or relocation of production offshore.
While there are a number of competitors seeking to gain access to the Japanese processed food market, Australia is still well placed to build on current business levels with Japan.
Many Australian companies have achieved success in Japan by understanding the market, supplying required product information for obtaining an import approval by Japanese government authorities, having products that are unique and competitive, and working with good partners.
Australia’s geographical location is beneficial for conducting business in Japan. Australian companies may take advantage of counter-seasonal production, similar time zones and frequent flights direct to major Japanese business centres such as Tokyo and Osaka.
This is an extremely competitive sector so it is advisable to do the following:
- Draw up a comprehensive export-marketing plan covering target segment, your own strengths and weaknesses, external threats and opportunities.
- Find the right partner (importer or distributor) and establish the foundations for a long-term relationship with them.
- Ensure that you exercise the most stringent quality control on your product, especially in terms of product safety.
- Ensure that you can supply to the market in consistent quantities.
Potential buyers of your products include:
- Existing importers or distributors for the product
- Japanese food manufacturers supplying domestic brands to retailers and to the food service industry
- Japanese food service industry
- Supermarkets as suppliers of their own private labels
Japanese purchasers appreciate approaches that are well researched and have an understanding of the situation and competition in Japan, as well as an appreciation for the competitive nature of the market. Australia has a very good image in the minds of consumers as a ‘clean and green’ country, and as such, can benefit from strategic marketing underpinned with this belief.
The Japanese processed food market is very sophisticated – catering for increasingly quality and price conscious consumers. The population is also ageing and becoming more health-conscious, which is leading to increased potential for products stressing health benefits and demonstrable lower chemical and or organic status.
Suppliers like to be informed of the origins of their business partner in order to assess production capability. This is especially true for products with traceability and organic products. It is advised that you prepare detailed information sheets about company owners and top-level staff to prove consistency and continuity of stable management and quality control practices.
It is important that any contracts and business documents are fully understood by both sides as it is sometimes challenging for those unfamiliar with the environment to communicate effectively with Japanese companies.
Although e-commerce in the areas of business-to-business (B2B) and business-to-customer (B2C) is still in the development stage, its use is accelerating rapidly.
It may be worthwhile exploring the possibility of marketing your products via the Internet but it is largely dependent on the products. In doing so, it is of paramount importance that English and Japanese services are provided (for both B2B and B2C). There are a number of different ways to set up an exporting online system, but Japanese consumers may find it difficult to trust a company they are not familiar with.
Distribution channels
The traditional distribution channels for processed food are multi-layered and relatively complex with personal, historical and financial relations playing their part in the decision making process.
There is a trend to simplifying the channels of distribution, and bypassing the bigger trading companies, in order to import directly from the suppliers. Each product in the food and beverage industry has its own specialised wholesaler. You will need to investigate the market, competition, regulations, and available channels to determine the best route to distribute your products.
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