Why Japan should be an Attractive Destination for Western Software Businesses
Japan is sometimes regarded as a mysterious and insular country with a unique culture and a highly nuanced language. However, for foreign software business startups, Japan can be considered an attractive market for a number of reasons.
Technologically-savvy and commercialized
First and foremost, Japan is a technologically advanced country with a high penetration of internet and mobile usage. According to data from Statista, Japan has a mobile broadband penetration rate of over 90%, which is among the highest in the world. This high level of technology adoption means that there is a large and sophisticated market for software products and services in Japan for both consumers and business customers alike.
Japan also has a strong economy and is a hub for international business. Japan is the third-largest economy in the world and a member of the G7 group of advanced economies. The country is home to many world-class companies, including technology giants renowned for the quality of their hardware products, like Sony, Canon, and Toshiba.
As an extension, this provides a supportive business environment for foreign software startups looking to enter the Japanese market.
The country and its culture have a strong focus on quality and innovation with the customer in mind. Japanese companies are known for their attention to detail and commitment to continuous improvement. This focus on quality is evident in the country's manufacturing industry, which is renowned for its precision and reliability. This same mindset can be applied to the development of software products, and foreign startups can benefit from the expertise and know-how of the Japanese market in this area.
In addition to these advantages, Japan also offers a number of incentives for new businesses looking to enter the market. For example, the Japanese government has implemented a number of initiatives to support the growth of the country's technology industry, including the acceleration of digital transformation, the establishment of special economic zones, and the provision of funding for research and development.
There are also a number of organizations and support networks in place to help foreign businesses navigate the Japanese market. For example, the Japan External Trade Organization (JETRO) offers a range of services to support foreign companies looking to enter the Japanese market, including market research, business matching, and legal advice.
Nuanced culture in terms of business and language
Despite these advantages, it is important for foreign software businesses looking to enter the Japanese market to be aware of some of the challenges they may face.
For example, the Japanese language is often regarded as a barrier, both in terms of localization and doing business, in addition to the fact that the business culture in Japan can be quite different from that of other countries in the importance it places on relationships and diplomacy.
It is important for western businesses to adopt a longer-term view when entering the market. This needs to be reflected in research, in the planning of necessary investments, and when seeking out the support and advice of organizations like JETRO in order to overcome these challenges.
Japan should be considered an attractive market for foreign software startups due to its technologically advanced population, strong economy, focus on quality and innovation, and supportive business environment.
While there may be challenges to entering the Japanese market, the potential rewards make it a market worth considering for any foreign software business looking to expand.
Reach out to us today to learn more about the opportunities in Japan and what we here at Litmus can provide in terms of marketing, business consulting, and localization services.
Disclosure: This article was written with assistance from AI tools.
