Small and medium-sized companies looking to penetrate the Japanese market, especially the food industry, should take a hard look at the country's rules and regulations and use trading firms to make their initial foray.
Japan, one of Asia's most prized export markets, is also one of the toughest nuts to crack. Stringent rules and regulations take time and resources that some smaller firms simply cannot afford. It is tough to get through in the initial stage, but once there the returns are worth all the effort. The rules and regulations changed very often in Japan and therefore food exporters to the country needed to keep themselves abreast of the changes. The recent changes that have been implemented are things such as hazards either from new agricultural chemicals, new additives or from global supply sources.
Japan is a prosperous country that must import a large amount of food to feed its 128-million population. The average Japanese household is estimated to have more than RM360,000 in savings and a disposable income of about RM13,600 per month. This provides a huge opportunity as long as a supplier can gain the trust of Japanese consumers.
It is necessary to go through trading firms if you are to enter the Japanese market. Many firms continue to encounter obstacles when exporting to Japan, including heavy restrictions on the ways the food is cooked and processed imposed due to fears of contamination. There cannot be any kind of foreign body in any of the consignment, as even a single foreign body - be it flies, bees, additives or any other thing - would mean that the entire consignment would be rejected. Microorganism specifications comprised the bulk of violations.
Another way to penetrate the market is to get locals spreading news of the product through word of mouth.
Asean's importance is self-evident; it has a population of 570 million, is rich in resources and is conveniently located near Japan, China, India and many other important markets. Asean is poised to become a major hub of production, feeding Asian and global markets.
Product labelling is another key aspect, where exporters must disclose all relevant information on the packaging. These include any health risks, such as allergies the product may cause.
(excerpt: mckinsey, nov 02 2006)
Japan, one of Asia's most prized export markets, is also one of the toughest nuts to crack. Stringent rules and regulations take time and resources that some smaller firms simply cannot afford. It is tough to get through in the initial stage, but once there the returns are worth all the effort. The rules and regulations changed very often in Japan and therefore food exporters to the country needed to keep themselves abreast of the changes. The recent changes that have been implemented are things such as hazards either from new agricultural chemicals, new additives or from global supply sources.
Japan is a prosperous country that must import a large amount of food to feed its 128-million population. The average Japanese household is estimated to have more than RM360,000 in savings and a disposable income of about RM13,600 per month. This provides a huge opportunity as long as a supplier can gain the trust of Japanese consumers.
It is necessary to go through trading firms if you are to enter the Japanese market. Many firms continue to encounter obstacles when exporting to Japan, including heavy restrictions on the ways the food is cooked and processed imposed due to fears of contamination. There cannot be any kind of foreign body in any of the consignment, as even a single foreign body - be it flies, bees, additives or any other thing - would mean that the entire consignment would be rejected. Microorganism specifications comprised the bulk of violations.
Another way to penetrate the market is to get locals spreading news of the product through word of mouth.
Asean's importance is self-evident; it has a population of 570 million, is rich in resources and is conveniently located near Japan, China, India and many other important markets. Asean is poised to become a major hub of production, feeding Asian and global markets.
Product labelling is another key aspect, where exporters must disclose all relevant information on the packaging. These include any health risks, such as allergies the product may cause.
(excerpt: mckinsey, nov 02 2006)
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