Japan: The Future Startup Hub of Asia

By StartUp City | Monday, February 15, 2021

Japanese customers are known to be loyal to the brands and products they once chose and to fulfil their standards, and they do not normally turn easily. It can therefore be very necessary and lucrative to be the first driver in the industry.

Fremont, CA: Japanese companies can be very attractive partners for startups. In addition to wealth, they are recognized for their capabilities in integrating mass manufacturing technology for new goods, a wide consumer base and global logistics. With their networks and global scope, a Japanese partner will help startups expand in the US, Asia, and other parts of the world.

Japanese companies are, of course, very familiar with their home market. Some of the traditional obstacles facing startups pursuing rapid growth in Japan include laws, diverse market practises and language barriers. The Japanese partner will help entrepreneurs navigate these obstacles.

Japan is often defined as a single market – the third largest GDP in the world operates with one regulation, one industry and one communication style. Understanding how to manage and work inside this one framework therefore gives access to a wide market.Entry to the Japanese market with a partner already present abroad, such as Silicon Valley, will make entry easier. Another advantage of the Japanese market is that many businesses have very few competitors.

Advantages 

1. Loyalty

Japanese customers are known to be loyal to the brands and products they once chose and to fulfil their standards, and they do not normally turn easily. It can therefore be very necessary and lucrative to be the first driver in the industry.

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2. Top Quality

In Japan, the standards of quality from both consumers and partners are very high. This ensures that if you and your product/service development process in Japan pass the checks, this will help to make the development process a success in other markets as well.

3. Alliance opportunities for open innovation

Japanese MNCs are ready to partner with start-ups on their open innovation initiatives.

4. Business prospects

Especially in the manufacturing and DX sectors.

COVID-19 has accelerated interest in Digital Transformation (DX) through industries due to a shift in behaviour that opens up opportunities for businesses. There are also new tax incentives introduced by the government to partner with smaller businesses and start-ups.

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