What are the advantages of foreigners or foreign companies establishing bases when expanding their business to Japan?
★ Explanation ★
In addition to expanding your business to Japan, by establishing a Japanese corporation or a Japanese branch it will make it easier for you to gain business confidence. What’s more is that since the existence of a Japanese office gives customers and business partners peace of mind and provides the benefit of being able to promote your business faster and more smoothly.
Below we will explain more about the merits of expanding your business to Japan.
1. There is the potential of introducing a product or service that is new to Japan
The possibility of the Japanese market pioneering a service or product that is not yet available to Japan is not low. Although Japan’s domestic demand has begun to slow down, foreign nationals visiting Japan are continuing to increase. Hence, there is an opportunity of offering to customers products and services not in Japan and to grow their home country’s business.
2. There is an existing market where special industries can grow
For example, the pharmaceutical industry is expected to grow in Japan, and it is said that foreign-affiliated pharmaceutical companies are planning to enter the Japanese market. With Japan’s established public health insurance system, it can be assumed that demand for medicines can be expected to grow due to the aging society. Therefore, many foreign-affiliated companies see that demand for pharmaceuticals in Japan is expected to increase in the future, and many companies are considering introducing many types of products.
In the field of service industry, demand for tourism services for foreigners visiting Japan will continue to increase in the future. As the Japanese government is also working to increase the number of foreigners visiting Japan, we are expecting growth of the related service industry. It is also said that there are still many assets in Japan that can be used effectively for real estate, and the number of companies planning to advance into the real estate industry in Japan is also increasing.
The above are just examples, but there are still many industries in Japan that have lots of room for growth.
3. Japan’s business environment
Individual skills of Japanese employees and their high level of ability to perform their duties and the development of laws and accounting standards are highly valued in the international community. For foreign-affiliated companies, such an excellent business environment provides a strong reason for entering Japan.