/
Last month, I facilitated a panel discussion with representatives from three successful French startups—Back Market, Lumapps, and Botify—who have made waves in the Japanese market. The conversation was packed with useful insights into the challenges and opportunities of launching B2B and B2B2C businesses in Japan. Based on our discussion, here are five key insights to consider when launching a B2B startup in Japan.
1. Get access to decision-makers.
One of the biggest challenges in Japan for B2B startups is getting your product or service in front of the right people. Teams may show interest and nod politely during meetings, but they are often reluctant to take the risk of presenting your solution to their superiors unless your credentials are impeccable — which, for non-domestic startups, is unlikely.
As Andrea from Botify highlighted, it's essential to identify and connect directly with decision-makers to avoid getting stuck in endless team discussions without any real progress. Her advice: hiring a local sales partner or inviting executives from your headquarters can help penetrate higher levels of the corporate hierarchy and ensure your message reaches the real decision-makers.
2. Chase local case studies like your life depends on it.
Japanese businesses place an extremely high value on local references. If you have global case studies, no matter how impressive, they won't carry the same weight as local ones would.
Thierry from Lumapps and Valerian from Back Market emphasized the necessity of investing in building local case studies, even if it means offering significant discounts or complimentary support. Consider these early investments as essential marketing expenses that will pay off by establishing credibility and trust in the market. Additionally, because of the market's homogeneity, once you have your first cases, the process of acquiring new customers is highly replicable and efficient.
3. Get down to details.
Thierry from Lumapps and Andrea from Botify both noted that value-based selling alone doesn't work well in Japan. Japanese clients often require detailed explanations and a thorough understanding of your product's functionality and benefits. Prospective customers will expect you to dive into the specifics, covering every possible detail and scenario. Be prepared to provide comprehensive information and support to address all their concerns.
4. Localize your UI, with care.
Outsiders are often shocked at how information-dense, and visually different, Japanese websites can be. Valerian from Back Market shared that while it's important to understand local codes, simply overloading your interface for the sake of it can be counterproductive. Interestingly, when Back Market A/B tested their original UI against a busier version, they found that the information density negatively impacted user behavior. Their original clean and simple interface worked well with Japanese users.
The web is increasingly global, and Japanese consumers are accustomed to Western codes. Think of Google for example, which maintains the same clean and straightforward design across all its global markets, including Japan.
While some localization is necessary, reducing it to making your product visually more dense, isn’t the best approach. User testing can help you find the appropriate balance of usability and aesthetics, global and local codes, and the right level of information density.
5. Know when to play the Gaijin card.
In some situations, foreign founders can be at an advantage. Playing the "Gaijin card" as we call it, can sometimes excuse minor cultural missteps and even make certain shortcomings more forgivable. It can enable you to be more direct and assertive in your approach, as Japanese business culture tends to be consensus-based and non-confrontational. As a foreigner, you might be granted a bit more leeway to push for decisions, which can be useful in driving sales and making decisive pitches. Make sure to balance this with enough local adaptation to build trust and credibility.
Launching a startup in Japan may seem daunting, but with the right approach, it can be incredibly rewarding. By understanding the unique aspects of the Japanese market and strategically navigating them, you can turn challenges into opportunities.
I'd like to extend a big thank you to our panelists from Back Market, Lumapps, and Botify for sharing their valuable insights. Also, special thanks to the French Tech team for their support in making this panel possible. Here's to your success in the Japanese market—let's make it happen!
