Import F&B Brand: "We've got so much positive feedback. Why such a small order?"

This situation is common for new F&B brands negotiating with Japanese importers. While the interest seems strong, their initial caution often comes down to risks they may not openly discuss. Understanding these risks is key to building trust and encouraging larger commitments.

Three Common Risks Limiting Importers' Orders

1. Investment Risk

Buying inventory is always a risk, but launching a new brand in Japan’s competitive market typically requires localized strategies and marketing. Distributors are cautious with brands they don’t fully control or understand, as competition can quickly push them out.

2. Scale Risk

Japan’s market is large but often saturated with strong incumbents. A unique brand needs significant upfront investment and brand support to gain traction.

3. Reputation Risk

For large trading houses, reputation is everything. A failed launch or a regulatory issue can have serious consequences, so these importers often take extra time and conduct rigorous due diligence.

What You Can Do to Address These Risks:

To build confidence and pave the way for larger orders:

• Support:
  Show your commitment by investing in localized promotional efforts that make your brand stand out.
• Patience:
  Slow timelines often mean the importer is conducting due diligence or waiting for critical information. Stay engaged and cooperative.
• Commitment:
  Be open to working collaboratively on timelines and investing in sustainable growth. This reassures importers of your long-term intentions.

The Takeaway

Providing support and understanding the importer’s position will help build trust and lead to bigger commitments over time.