In the midst of globalization, it is becoming commonplace for new businesses to set up shop in foreign markets. Entering into the global arena is increasingly accessible due to lower international barriers facilitated by the internet and other developing technologies. Japan offers a unique and exciting backdrop to perform business. No company should seek to enter the Japanese market without a thorough understanding of the economic landscape and nuances of their business culture.
Here are 5 advantages of doing business in Japan:
To start a business in Japan, you must first understand your consumer audience. Both men and women in Japan are extremely educated. Japanese consumers can easily discern the cost benefits of a certain product over a lesser performing model. This makes Japan the perfect testing ground for new products.
Set up shop quickly
The Japanese government has a strong desire to support start-up businesses. Because of this, in 2003 they lowered the required funding to open a business from 10 million yen (roughly 90,000 USD) to just 1 yen (roughly 90% of 1 USD). This change in regulations makes it possible in theory for startups in Japan to introduce and open a business in as little as 14 days.
Highly educated workforce.
In the same token that Japanese consumers are highly educated, their workforce is extremely learned as well. There are over 600 universities in Japan, which speaks to the extraordinary value placed on education in Japanese culture. With this level of education comes the understanding of the importance of the advancement of the collective. Japanese workers are highly devoted to the companies that they work for and strive toward the success of the group over the success of the individual. Their workforce adheres to pillars of further developing expertise, increasing knowledge, and attention to detail.
World’s third-largest economy.
Just behind the United States and China, Japan has the third largest economy globally and makes up about 6% of total Gross Domestic Product. Having been called the “gateway to the Asian market” Japan’s 127 million citizens drive a market-oriented economy, allowing for abundant business ventures and opportunities.
Well established infrastructure.
Japan wouldn’t be able to compete as a global player if they didn’t have a highly developed infrastructure. With telecommunication technologies, well-built roads, highways, factories, airports and harbors, Japan has positioned itself to play a pivotal role in the international marketplace.
Now more than ever, venturing into foreign markets is an increasingly viable option. Taking measures to start a business in Japan can lead to many exciting opportunities for your company. Being the third largest economy in the world, the Japanese market offers a quick business launch, a highly educated population, and a well-established infrastructure that is built around facilitating global commerce. These attributes are what makes Japan a strong competitor in the international marketplace, and a worthwhile realm to expand your business.