Localisation is not just a process; it's an art. An art that involves adapting a product or service to cater to the nuances of a specific locale. In the realm of international business, no place exemplifies the necessity of localisation quite like Japan.
For foreign companies striving to make a mark in the Japanese market, merely translating content or offering a famous product doesn’t cut it. Understanding and imbibing the local culture, values, and expectations is pivotal to success. This is where the essence of localisation comes into play, ensuring that your brand speaks the language and echoes Japanese values.
Market Landscape: Navigating Consumer Dynamics during Japan Market Entry
“Japanese consumers are discerning, loyal, and place a premium on quality and authenticity.” We hear this all the time, but is it necessarily true? The empirical data suggests otherwise. 4 key points to consider:
一： Brand Loyalty: Rethinking Conventional Wisdom
In his groundbreaking work on marketing, "How Brands Grow", Byron Sharp famously said, "If you want loyalty, get a dog." This sentiment highlights a profound shift from the traditional notions of brand loyalty. Rather than relying on a small group of devoted customers, Sharp emphasised the importance of continuously attracting a broader range of consumers to maintain brand growth.
"If you want loyalty, get a dog."
In the context of the Japanese market, this principle remains crucial. While Japanese consumers might appear to tend towards loyalty once trust is established, it's equally vital for brands to appeal to potential new consumers constantly. Relying solely on a core group of loyal customers may not guarantee sustainable growth in such a dynamic market.
To succeed in Japan, it's about striking the right balance: nurturing the trust of existing customers while continuously casting a wider net to attract and win over potential new ones. After all, in the vast ocean of the Japanese market, relying on a single fishing rod won't suffice; one needs a broad net to capture the vast array of opportunities.
二： Quality and Mental Availability: Reassessing Price Perceptions in Japan
Drawing from empirical marketing theories, it's evident that mental availability and distinctive brand assets are pivotal in driving brand choice. The Japanese market, known for its discerning consumer base, provides an illustrative example of this dynamic.
While pricing strategies and pricing models for market entry must be considered, a brand's perceived quality and salience often hold more sway in the Japanese consumer's decision-making process. Brands that consistently make themselves mentally available — through memorable marketing, distinctiveness, and consistent cues — and underscore their commitment to quality, longevity, and enhanced user experience tend to secure a more prominent position in the consumer's mind.
a brand's perceived quality and salience often hold more sway in the Japanese consumer's decision-making process.
Therefore, the point here is not just about a singular preference for "quality over price" but the intersection of brand salience and perceived quality. In Japan, a market where consumers are inundated with choices, the brands that master this delicate balance stand out and achieve lasting resonance.
三： Digital Presence and Brand Salience: The Interplay in Modern Consumer Engagement
The principles of brand salience emphasise the importance of a brand being top-of-mind or easily recalled in buying situations. In the context of today's digital era, this becomes especially pertinent.
Given the exponential growth of the digital populace, there's been a marked shift in consumer behaviour towards online shopping and digital interactions. Yet, it's about more than just having a digital presence. The thriving brands ensure a harmonious integration of online and offline touch points, enhancing their mental availability across diverse consumer environments.
it's about more than just having a digital presence.
Empirical marketing insights suggest that brand success often hinges on digital presence and the seamless orchestration of experiences across both digital and physical realms in an increasingly digital world. Those brands that achieve this synthesis are poised to enhance their salience and, consequently, their appeal to the modern consumer.
四： Authenticity and Brand Equity: Crafting a Distinctive Resonance in the Japanese Market
There is some consensus that brand authenticity significantly influences consumer perceptions and, by extension, brand choice.
In the Japanese market, authenticity is more important, where cultural nuances and consumer expectations are uniquely intertwined. Rather than replicating local brands, the emphasis is on balancing a brand's inherent values and integrating local cultural sensibilities.
for foreign brands to succeed in Japan, it's not just about localised adaptation.
The thought process here, grounded in brand equity principles, suggests that for foreign brands to succeed in Japan, it's not just about localised adaptation. It's about crafting and maintaining an authentic brand narrative that resonates globally and locally. Brands that achieve this delicate balance may amplify their equity among Japanese consumers better than other brands that fail to maintain authenticity.
While Japan presents many opportunities, the key to unlocking them lies in understanding and embracing the local cultural and market nuances. Localisation is about more than changing your brand and presenting it in a manner that's both genuine and relatable.
Ready to learn how to launch, integrate and scale your business in Japan?
Download our intro deck and contact ULPA today to understand how we will help your company learn the rules of business in Japan, and then redefine those rules.
Let The Adventure Begin.
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