Why Localization Is Essential for Product-Led Growth (PLG) To Succeed In Japan

The Japanese market is a lucrative one, with a population of over 125 million people and a GDP of over $5 trillion. However, it is also a complex market with a unique culture and language. For tech companies that use product-led growth (PLG) to drive their business, localization is essential for success in Japan.

PLG is a customer acquisition strategy that focuses on providing value to users through their interactions with a product or service. This can be done through features, content, or support. By providing a great user experience, PLG companies can attract and retain customers without having to rely as much on traditional marketing channels like advertising or search engine marketing (SEM).

Localization is the process of adapting a product or service to a specific market. This includes translating the product into the local language as well as adapting the user interface and marketing materials to the local market and culture. Localization is essential for PLG companies because it allows them to provide a better and more authentic user experience to Japanese customers.

There are a number of reasons why localization is important for PLG companies in Japan. First, the Japanese language is very different from English. There are many nuances in the language that can be difficult to translate accurately. Second, Japanese culture also differs from Western culture. Japanese customers have different expectations when it comes to products and services, including customer support. Third, the Japanese market is very competitive. There are a number of homegrown tech companies in Japan that are established, and it can be difficult for new entrants to stand out.

Localization can help PLG companies overcome some of these challenges and increase their chances for success in Japan. By translating into Japanese and adapting to the local environment and expectations, this will help establish accessibility and credibility, ultimately attracting and retaining customers and growing the business.

A 2023 study by Forrester Research showed that up to 75% of software buyers expected to have sales and marketing materials in their own language, and 67% preferred a localized website. Anecdotally, we have seen up to a 75% increase in monthly active users (MAU) and up to a 200% increase in revenue in our experiences with effective market localization.

If you are a PLG-led company that is looking to enter the Japanese market, localization is essential. By translating your products into Japanese and adapting them to the local culture, you can provide a great user experience for Japanese customers and ultimately grow your business.

Here are some high-level thoughts for localizing your product for the Japanese market:

• Partner with an agency with relevant experience and an in-market presence. This will not only ensure that your translations are accurate and culturally appropriate, but that you also have someone you can trust on the ground.

• Take advantage of translation services and platforms. Most agencies will already be doing this, as it can make the localization process more efficient and cost-effective.

• Test your localized product with Japanese users to fine-tune product-market fit. This will help you identify any potential problems and make sure that your product is meeting the needs of Japanese customers, validating the market for your business in the process.

Get in touch with us today to learn more about the opportunities for market entry in Japan and how we can help. Litmus specializes in providing marketing, consulting, and localization services tailored for the Japanese market.

Disclosure: This article was written with assistance from AI tools.