Advantages and disadvantages of Entering into Japanese Market

The main advantages and disadvantages of entering into the Japanese market are as follows.

Advantages of Japanese Market

1.Large market size

• One of the world’s highest GDPs
• Presenting a high quality image
• First step to entering into the Asian market

2.Stability of Country and Society

• Well-developed infrastructure
• Low criminal risk
• Law-governed country based on rules

3.Growing Fields

• Drugs and inbound demands are promising
• National industries are fully supported through public-private cooperation
• Robust IT industry

4.High-quality Employees

• High level of compliance
• Abundant highly skilled human resources
• Diligent and dedicated to the organization

Disadvantages of Japanese Market

1.Quality-conscious consumers

• Close attention to quality
• Excessive services
• High quality is the norm

2.Japanese is the main language

• Communicating with business partners
• Difficulties with procedures at government agencies
• Business practices specific to Japan

3.Deep-rooted Bureaucracy

• Delay in going online
• Complex administrative procedures
• Countless permits and licenses

4.Difficulties in recruitment

• Difficulty in securing human resources due to declining birthrate and aging population
• Excessive benefit package
• Shortage of global human resources

Some companies make their success in Japan a stepping stone to expanding into the next Asian country, while others experimentally offer their products and services in the quality-conscious Japanese market. Any country comes with advantages and disadvantages to expanding into a new market. Clarifying your objective of expanding into Japan makes your form of market entry, target region, etc. clear.