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Forbes
25-07-2025
- Business
- Forbes
Dispelling Japan Market-Entry Myths: B2B Lessons From B2C Companies
Rebecca Takada, Founder of Outfoxr, is a strategist & author specializing in market expansion, revenue growth, and global business strategy. Nearly 20 years after starting my career in Tokyo helping a small systems development firm expand into the megamarket of New York City, I've divided my time between both major cities, helping brands from all over the globe enter each market. In my current role as founder and principal consultant at Outfoxr, I advise companies seeking to expand into both markets without making the same mistakes that have haunted other brands. My insights stem from formal case studies and candid, street-level conversations with consumers and industry professionals. For B2B brands, there's a lot we can learn from the mistakes and successes of our B2C counterparts. Fortunately, there is no shortage of case studies of foreign brands attempting to break into the Japanese market that we can draw guidance from. Three pairs of entrants, each operating in the same broad sector, illustrate how sharply outcomes diverge when the consumer, cultural and regulatory fabric is either honored or ignored. They're stories that make myths of some well-intended advice on Japan market entry. 'Local partners are key.' Having a local partner didn't help Walmart, which chose acquisition over green-field growth. They bought a stake in Seiyu in 2002 and spent two decades attempting to graft its everyday-low-price DNA onto the existing mid-market grocer. Margin pressure, brand confusion and an inability to localize assortment finally led the American parent to divest its last 15% stake in March 2025, marking a full exit from Japan. With Walmart's massive market cap and the benefits of economies of scale, it'd be lazy to dismiss the local partner, Seiyu, as the issue or the big-box concept as ill-fitted to the market. But then there's rival Costco's success, whose slow-build playbook offers a stark contrast. Costco opened its first Japanese warehouse in 1999. Twenty-six years on, the company operates 36 locations, and customers waited up to five hours to get into a new Okinawa location last year. The membership model clicked because it centered on price transparency, bulk sizing that appealed to multigenerational households and stores situated along suburban expressways where large parking lots are an advantage rather than an anomaly. The lesson is that format fit and site economics matter more than simply partnering with a local company and transplanting a global scale. 'Omotenashi, Anshin, Anzen are musts.' "Omotenashi," the Japanese concept of hospitality that aims to anticipate customer needs, is undoubtedly one of the culture's strong points. It's the extra mile in service that we used to tag brands and effuse about on Twitter back in the day. "Anshin" and "anzen," also core to what the Japanese demand of their society, reflect 'peace of mind' and 'safety' respectively. Brands must take these concepts to heart in their customer experience efforts and in how they conduct business with Japanese professionals. However, there's a lot more to localizing to the market than these three admirable but generic concepts. Take coffee culture, for example: Starbucks entered Japan in 1996 and has grown to almost 2,000 stores, fueled by seasonal beverages that create social-media rituals and partnerships, such as its 10-million-follower LINE loyalty card. Starbucks already had a culture of omotenashi, which was core to Howard Schultz's differentiation strategy for the chain. Its embrace of omotenashi, the expectation that staff anticipate needs, has made cafés aspirational gathering spots worldwide. This didn't require the brand to alter its service standards significantly, and the baked-in omotenashi, combined with the brand's global star power, lent Starbucks the air of anshin and anzen to local customers. Dunkin' took the opposite tack. It launched earlier, in 1970, but maintained a U.S.-style focus on grab-and-go doughnuts and filter coffee, paying scant attention to local flavors and never cultivated a premium café ambiance. Sales withered, and by 1998, all civilian outlets had closed, leaving only a handful on U.S. military bases. Consumers ultimately rewarded the brand that adapted product ritual and service theatre to Japanese tastes, and abandoned the one that assumed a universal appetite for speed over experience. 'You have to localize content.' Yes, you do. It's not even up for debate. However, localizing—or worse, simply translating content into the local language—isn't enough to succeed. Business success has always been rooted in how a vendor can elevate a customer's image or lifestyle. 'Be customer-first and demonstrate value,' as we always say. Streaming shows how content strategy can tilt the field even when both players are digital natives. Netflix crossed the 10-million-subscriber mark in Japan at the end of 2024 after years of underwriting local anime, crime dramas and reality series that travel well across Asia. Hulu Japan, acquired by Nippon TV in 2014, counts roughly 3 million paying customers, a fraction of Netflix's base, according to industry estimates. Analysts point to the difference in exclusive originals: Netflix positions Japanese creators on a global stage and releases episodes simultaneously worldwide, while Hulu leans on catch-up television and a thinner slate of tent-pole originals. Localization isn't enough in a market that prizes fresh storytelling, so the service willing to invest ahead of demand secured both subscriber growth and cultural relevance. The takeaway for B2B corporate communications and content teams is that success demands original local content and champion-building. Conclusion Across these case studies, a clear thread emerges: Success depends on matching hard data with cultural nuance, and then telling that story consistently to regulators, employees and consumers. If you misread demand signals or underinvest in local adaptation, you will likely ultimately cede narrative control. For communications professionals counseling foreign leadership teams, the mandate is to pressure-test every element, including format, flavor, regulation and content, against Japanese expectations and to craft messages that prove the company has done its homework before the first customer ever walks through the door. Forbes Communications Council is an invitation-only community for executives in successful public relations, media strategy, creative and advertising agencies. Do I qualify?
02-07-2025
- Business
Trial Completes Acquisition of Seiyu
Tokyo, July 2 (Jiji Press)--Trial Holdings Inc., a Japanese discount store chain, said Wednesday that it has completed the acquisition of supermarket operator Seiyu Co. "We want to build stores that will be beneficial to customers," Trial President Hiroyuki Nagata told a press conference in Tokyo. Based in Fukuoka, a city in southwestern Japan, Trial will open Trial Go small stores near Seiyu stores in the Tokyo metropolitan area, starting as early as this year. The move is designed to help operate Trial Go and Seiyu stores efficiently. Trial Go stores will sell dishes cooked at Seiyu stores. Trial Go and Seiyu stores will sell each other's private-brand products. Hitoshi Narakino, who once served as chairman of Trial Co., a unit of Trial, became Seiyu's president. He replaced Tsuneo Okubo, who became Seiyu vice chairman without the right to represent the company. [Copyright The Jiji Press, Ltd.]
The Mainichi
24-05-2025
- Business
- The Mainichi
What do rice varieties imported to Japan taste like? Appraiser says they're all good
TOKYO -- As rice prices remain high in Japan amid shortages, imported rice has become a more common sight in supermarkets. While it is indeed cheaper than domestic rice, how does it reach store shelves, and how does it taste? Over 10% cheaper than domestic rice Major supermarket chain Seiyu, headquartered in Musashino, Tokyo, began selling "Musubi no Sato," a Taiwanese short-grain rice variety similar to Japanese rice, in 5-kilogram bags from November 2024. As of mid-May 2025, the price was 3,769 yen (about $26) including tax, more than 10% cheaper than the average for domestic rice. Sales have apparently been strong, with a spokesperson commenting, "Amid rising rice and commodity prices, we considered a wide range of options. We decided to offer this product because its flavor and texture are close to those of Japanese rice." The "rice panic," where rice disappeared from store shelves, occurred in the summer of 2024. Shortages persisted even after the harvest season in autumn, and prices remain high despite the government releasing stockpiled rice. According to the agriculture ministry, the average price of rice sold in supermarkets nationwide from May 5 to 11 was 4,268 yen (around $30) per 5 kg, including tax. This was a 54-yen (approx. 40 cents) increase from the previous week and more than twice the price of the same period last year, which was 2,108 yen. Now, relatively inexpensive imported rice has become more prominent in stores. Expansion of private-sector imports The Japanese government imports about 770,000 metric tons of rice annually with zero tariffs under the "minimum access" quota based on the 1993 Uruguay Round of the General Agreement on Tariffs and Trade. Major import partners include the United States, Thailand, Australia and China, with about 100,000 tons designated for staple food use. The rest is used for processed foods like rice crackers or as feedstuff. Although the staple portions often went unsold at government auctions, all of it was successfully auctioned off in fiscal 2024 for the first time in seven years. The Taiwanese rice sold by Seiyu is also sourced through this framework. Recently, beyond the minimum access framework, trading companies among others are increasingly importing rice at a tariff of 341 yen (about $2.40) per kilogram. According to the ministry, private-sector imports expanded from 250 tons in fiscal 2019 to 991 tons in fiscal 2024 as of the end of January 2025. Kobe-based Shinmei Holdings Co., which is Japan's largest rice wholesaler and also counts a sushi chain among its group companies, had not imported rice before but plans to import 20,000 tons of American rice in fiscal 2025 for both business and retail sales. Retail giant Aeon Co., headquartered in Chiba, will also start selling a new product called "Karoyaka," 100% American rice imported outside the minimum access quota, mainly in urban areas starting June 6. It will be priced at 2,894 yen (roughly $20) for 4 kg, including tax. Imports not well accepted during 1993 panic Meanwhile, imported rice reminds many people in Japan of the rice panic of 1993, when the domestic crop failed drastically. At that time, rice from countries like the United States, China and Thailand was urgently imported and appeared on store shelves, but was not accepted well by consumers. Will the Reiwa-era rice crisis lead to a similar situation? "They're all sending good rice," says Hideyuki Suzuki, chairperson of the Japanese Association of Rice Taste Appraisers, headquartered in Osaka. The association annually holds the "International Contest on Rice Taste Evaluation" to compare the taste of newly harvested rice, with about 5,000 entries in the 26th edition in fiscal 2024. Suzuki, who has appraised rice from countries including the United States, Australia, China, South Korea, Thailand and Vietnam, in addition to Japan, emphasizes, "Rice from each production region has its own characteristics." Japan is known for its short-grain Japonica variety, characterized by its stickiness. It has a thick "umami layer" on the surface, making it shine when cooked. It retains moisture, so it doesn't harden over time, making it ideal for eating plain, Suzuki says. Short-grain varieties from China and Taiwan have almost the same characteristics as Japanese rice. In contrast, short-grain rice from South Korea has a lighter flavor, apparently making it easier to eat with rice bowls with toppings as the broth soaks into the rice. Long-grain varieties from Thailand and China have less moisture, making them suitable for pilafs and curries. They are also delicious when made into risotto with the core of the grain slightly undercooked. Medium-grain varieties, common in the United States and Australia, have a certain chewiness. Suzuki advises, "It's not that they're 'hard,' but they're ideal for those who want to enjoy the 'grainy' texture." Choosing based on more than just price According to the agriculture ministry, domestic demand for staple rice from July 2023 to June 2024 was 7.05 million tons. While staple rice from the minimum access quota accounts for about 100,000 tons annually, imported rice remains a small portion but may become more familiar in the future. Suzuki explains, "We always eat the world's best rice, which is Japanese, but we may be entering an era where rice from around the world becomes available. Instead of buying just because it's cheap, we should be wise in choosing, such as by having the knowledge to cook according to each rice variety's characteristics."
Japan Times
20-04-2025
- Business
- Japan Times
Japanese retailers trying to overcome soaring rice prices
The historic surge in rice prices in Japan has led retailers to seek alternatives, using less expensive ingredients like barley and noodles in bento meal boxes to curb prices and retain customers. Some retailers are expanding the sale of lower-priced foreign rice. In March, convenience store chain Lawson started selling the "Okazudon!" series of bento products, which contain less rice but more spaghetti and side dishes in order to reduce costs while securing volume. Due to the soaring rice prices, "the process from product development to sales has become more than twice as difficult as last year," President Sadanobu Takemasu has said. Natural Lawson stores, targeting health-conscious consumers, began to mix mochimugi chewy barley into rice for all chilled bento products, replacing a blend of rice and minor grains previously used in the products. Barley is less expensive than rice and is good for adding volume. The company is considering using mochimugi also in products sold at regular Lawson stores. Among supermarket chains, Seiyu last November began to sell Taiwanese rice for ¥2,797 per 5 kilogram. The price has risen to ¥3,229 because of higher procurement costs, but the product is still lower-priced than general domestic rice. The Taiwanese rice "sells out as soon as it appears on the shelves, and some stores suffer continued shortages," an official said. In April, Aeon began selling the Nisui no Takumi brand of rice, a blend of 80% U.S.-grown produce and 20% domestic produce. The price is ¥3,002 per 4 kg. The blend tastes "as good as domestic rice," a shopper said.
Wall Street Journal
05-03-2025
- Business
- Wall Street Journal
KKR, Walmart to Sell Japan Supermarket Chain Seiyu for $2.5 Billion
KKR KKR -9.19%decrease; red down pointing triangle and Walmart WMT -2.68%decrease; red down pointing triangle have agreed to sell Japanese supermarket chain Seiyu for about $2.5 billion to Japanese retailer Trial Holdings. The U.S. investment company plans to sell its 85% stake in Seiyu, with the U.S. retail giant selling the remaining 15% stake to Trial, the companies said Wednesday.
