November 20, 2024

Why Japanese Food and Beverage Importers Start Small (And How to Align Your Goals)

Discover how to align with Japanese importers, address their risks, and secure lasting partnerships.

When entering the Japanese market, many Western food and beverage brands ask:

 

"How much of our product can you sell in the next couple of years?"

 

The typical response from Japanese importers?

 

"Let’s start with a pallet. Then we’ll see where it goes."

 

This cautious approach often surprises the exporters. The reality is that importers are traders, not brand investors. Even if they see potential in your product, they won’t take on extra risk without support.

 

Why Do Importers Start Small?

Japanese importers put a strong focus on managing risks and ensuring profitability. Before scaling up, they aim to:

  • Minimize financial risk: They need to see clear demand before committing to larger orders.
  • Test market fit: They evaluate whether your product can succeed in Japan’s competitive landscape.

Without confidence in your product’s potential, importers will limit their initial commitment.

 

Common Mistakes to Avoid

Many brands face challenges with Japanese importers due to misaligned expectations. Here’s what not to do:

  • Don’t push for ambitious targets only you care about: Importers prefer steady, manageable growth overtaking on large commitments.
  • Don’t expect your product to get priority without support: With many brands competing for attention, yours won’t stand out unless you provide the backing they need.

 

How to Gain Importers’ Commitment

To align your goals with your importer’s priorities, focus on these steps:

  1. Identify local sales and marketing opportunities
    Clearly define the opportunities you want to target, whether by preparing in advance or working with your partners to uncover them together.
  2. Understand the market risks your distributor faces
    Acknowledge the challenges importers face during negotiations and show a willingness to cooperate in addressing them.
  3. Provide the support needed to drive commitment
    Offer resources like sales and marketing materials, in-store promotional content, and co-funded campaigns. You can even agree on a refund for test batches—a common practice among domestic suppliers.

 

Conclusion

Importers start small because they need confidence in your product’s success. You can build trust and secure their commitment by understanding their perspective, avoiding common mistakes, and offering proactive support.

The more support you provide, the bigger the targets you can achieve together. In Japan’s competitive food and beverage market, collaboration is the key to growth.

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