Doing Business in Japan - North Carolina Department of Commerce

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Dec 5, 2012 (4 years and 6 months ago)

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1

Doing Business in Japan

2010 Road Show Presentation

Presented by Sumio Shibata

State of North Carolina Japan Office



2

Population


Japan 127
million


Tokyo Metropolitan

Area : 33 million


Osaka Metropolitan

Area : 21 million


Greater Nagoya :


15 million


Fukuoka : 5 million


Hokkaido : 5 million

KANSAI

3


Ties to the U.S.


Japan is the United
State’s 4th largest Export
Market, after Canada,
Mexico and China.


Second largest foreign
investor in the U. S., with
more than $230 billion
invested, second only to
U. K.


The U. S.
-
Japan alliance
is a cornerstone of U. S.
security interests in Asia
and is fundamental to
regional stability and
prosperity.


(Source: U.S. Commercial Service / 2010 Country Commercial Guide)


4

Japanese Subsidiaries in the Piedmont Triad
Region (Manufacturers only)

5

クリスピー・クリーム

in Tokyo

NC Investment in Japan

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1,404
1,715
1,913
2,008
2,279
4,049
4,168
4,489
5,328
5,850
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Plastics
Oil Seeds/Grain/Seed, Fruit
Inorganic Chemicals
Meat
Pharmaceutical Products
Electric Machinery
Cereals
Industrial Machinery, incl. Computers
Aircraft, Spacecraft, And Parts
Optical, Medical Instruments
*
Total Export : $ 51 billion (2008 : 65 billion)

Unit : $ 1 million

Source : WISERTrade

Top 10 U.S. Exports to Japan


(2009)

7

NC Exports to Japan (2010)


NC is 10th among all
US states for exports
to Japan


$1.5 billion in NC
exports to Japan


Japan is 4
th

largest
market for NC
exports

(HondaJet at GSO)

(Source : SMARTrade)

8

Emerging Sectors for NC Export


1) Biotechnology



2) Nanotechnology



3)
Renewable

Green) Energy




4) Senior Market

9

1) Biotechnology/Pharmaceuticals
in Japan


Market size of Biotech
industry : $24.3 billion in
2008 (+27.9% over 2007)


Leading sub
-
sector :
medical biotech $6.85
billion
(Source : Fuji Keizai)



<High growth potential>


Therapeutic antibodies


Molecularly targeted


cancer therapies


Japanese pharmaceutical
companies eagerly seek
new drug candidates and
pipeline identified or
developed by US biotech
companies to be further
developed into new drugs




(Source : U.S. Commercial Service)

10

Biotechnology
/Pharmaceuticals


(cont

d.)

Key market segments for
Biotech


Medical Care


Food


Bio Tool & Information


(Bioimaging analysis
equip., DNA Chips,
Protein/Gene Analysis
Equip)


Environment & Energy

11

1) Biotechnology/
Pharmaceuticals


World second largest consumer
of pharmaceuticals


American pharmaceutical firms
have a market share of almost
20%


Japan’s aging population is
generating increased demand
for pharmaceutical treatments
for
cardiovascular

problems,
metabolic
,
gastrointestinal
,
CNS
.
Generic drugs

have
good potential

12

2)
Nanotechnology


METI

s Strategic Technology
Roadmap 2009 designated
Nanotech as one of most
important fields(*) in science
and technology to promote R
& D investment in the public
& private sectors.



(*) Life Science, Information
& Communications,
Environmental Sciences,
Energy and etc.


(The Ministry of Economy, Trade, and Industry)



13

2015 (billion of US$)
25
33
49
72
0
20
40
60
80
Measurement
Instruments
Medical
Applications
Energy/Environment
Electronics
Nanotechnology
(cont’d)


Market :

$60 billion in 2010 (estimated)




$230 billion by 2015




Market Segment :


Electronics, Energy/Environment, Medical
Applications, Measurement Instruments



(Source : Nomura Research Institute)

14

Seven
-
Eleven Eyes 20,000
Green

Stores Worldwide In 5 Years



LED

technology for signs and
lighting, generate electricity from
solar power
, and feature
hot
-
water
systems

utilizing waste heat from
air conditioners. Some will even
have
rechargers for electric
vehicles

.


Green technology is seen slashing
store energy consumption by as
much as
30%

and will also cut
greenhouse gas emissions



(Source : Nikkei April 6, 2010)


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4) Senior Market


Average saving of households
of people aged 60
-
69 years
old: $245,000 (after debt)


Average income : $59,000


Comparison of aged population

Percentage of age 65
and older

Japan

19.7(%)



USA 12.3

Average Life Expectancy


Women Men


Japan 86 79


USA 79 76


2000

(Source : JETRO)

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Deflation Makes Older People
Key Consumers


CPI in 2009 :
-
1.2%


Households of
persons aged in 60s :
Net savings of
$230,000.
Consumption rose
1.2% in 2009


Households of persons
aged in 30s : Net debt
of $19,700.
Consumption dropped
1.1% in 2009


(Source : Nikkei April 5, 2010)


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Opportunities for NC Exporters


Aerospace


Computer Software


Electronic
Components


Medical Equipment


Safety & Security


Furniture


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Aerospace


Aerospace industry is
shifting the focus from
Defence (56%) to Civil
(44%) in 2008


Japanese makers such
as Mitstubishi Heavy
Industries, Kawasaki, Fuji
are supplying 35% of
Dream Liner, or 787
content to Boeing
(Fuselage, and etc.)




Best Prospects

:



Aircraft parts and
supplies, Avionics

19

Computer Software


Best Prospects

:




Smartphone
applications, security,
SaaS(*), Smart Grid,
Cloud Computing



(*)Software as a


Service



20

Computer Software
(cont’d)

Key Elements to launching in the
Japanese market :

a) Localization : translation,
testing, customization

b) Support Capability : Japanese
language support is mandatory

c) Products Quality : High quality
control is a very important
consideration for Japanese
users

21

Medical Equipment


Best Prospects

:



For chronic and life
-
style diseases,
medical devices
alleviate pain,
complement lost
functions, improve
quality of life.


22

Safety and Security



Biometric
-
related solutions


Drug/explosive detection
equipment & systems


Personal/container screen
systems


Nuclear/biological/chemical
preparedness equipment
and medicines







Best Prospects

:

23

Furniture


Japan is 3
rd

largest
importer of NC
furniture after Canada,
and Saudi Arabia.



Largest importer of
NC Mattress


2
nd

largest importer of
NC Wood furniture





Best Prospects

:



a)
Compact and high
-
end, medium
-
high
furniture


(Area of average
Japanese house :
900 sqft. Vs. U.S.
house : 2,300 sqft.)

b)
Unique furniture


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Bottom Line


World

s second
largest market


Open business
climate with
transparency and
rule of law


Resources ready to
assist your firm in
entering the market


The Japanese market is one of the most competitive

in the world. But if you find success in Japan, you


can use Japan as gateway to Asia.


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Prepare written company information



Company profile including company history




Profile of president



Sales/Statistics (incl. paid
-
in Capital)




Your objective


Product/Service information





Emphasize positive aspects such as




Uniqueness
, Originality



Domestic Market Successes (Track Record)

Tips for successful entry

Preparation On Paper

before contacting potential partners

Tips

26

Tips for successful entry (cont.

d)


Attitude aimed at success



Communicate in simple English and
quick follow
-
up


Stress uniqueness of Product


Have patience with

Trial and Error




Be flexible


Keep schedules, promises,
commitment is key



Tips

27

Most Common Mistake
Made

by Foreign Partners



Cold calling


prospective buyers in
Japan


The Japanese prefer to do business
with someone only when they have
been properly introduced


Rely on an introduction by a

go
-
between,


such as the North Carolina
Department of Commerce
representative in Tokyo

Tips

28

What can the NCDOC Tokyo
Office do for you?


We work seamlessly with ITD BDMs
(Business Development Managers) to
provide you with


Market research


Basic Translation services


Temporary office space in central downtown
Tokyo location


Trade show assistance


Logistics/lodging assistance



Fast Track


partner search services

29

Where to start?


Contact
International Trade Division
, NC
Department of Commerce


BDMs ( Business Development Managers)




tel. 919
-
733
-
7193

http://www.nccommerce.com/en/BusinessServi
ces/InternationalBusiness/InternationalTrade
Services/




Contact Sumio Shibata, NC Trade
Representative in Tokyo


info@nctokyo.com


tel +81
-
3
-
3435
-
9301

fax +81
-
3
-
3435
-
9303