Japan after the Pandemic

Japan came out from the pandemic in 2023. During these containment years, the local currency Yen has lost its value by 25% against all major currencies. Yet long-awaited restructuring of the business sector has not really happened especially among SMEs and the general production cost remains high. The country has become a cheaper destination for most of the tourists, but the ease of doing business is as mediocre as before.

Despite the insufficient change in the environment, however, more and more businesses want to work with overseas companies. The effect of aging society has become more palpable, and many local operators feel that the domestic market is shrinking. The problem is that most of the SMEs do not have means to venture into overseas market

We believe what Japan has accumulated for many years is still relevant to the world and could make a difference in your business. There are many products and knowhows to be discovered and exploited. Japan needs your inspiration.

Renowned Japanese manufacturing expertise is often supported by manual works of skilled engineers or artisans. Instead of investing heavily on the machinery, many manufacturers have developed a meticulous system of collaboration and quality control.

Here manufacturing is not for volume and the production cost in general remains expensive. Our experiences suggest that, for anything sourced from Japan, viable products for export are almost always high value-added ones. In other words, it is rather difficult to materialise outbound operations of commodity-type products.

The challenges

Small-scale manufactures are likely to prefer to communicate in Japanese. This implies that they are not familiar with cross-border operations. It is quite common to have frequent liaison communication just to understand the scope of project even before talking about product specifications.

Another challenge is to wade through Japan’s complex distribution system. It is common that manufactures outsource storage and logistics functions to regional distributors which take care of shipping. Dealing with such intermediaries requires a lot of local knowledge.

The Categories

• High-End Manufacturing Goods

• Exquisite Traditional Crafts

• Natural Raw Materials

While the news of price hike repeatedly hits the headlines, the profound shift is going on. Many city dwellers discover the allure of tranquil life in a place not far from the metropolis. The developers and local governments react to this trend. Recent geopolitical uncertainty might remind many people that Japan is a stable haven located at the edge of Eurasia continent.

The strength

We originally started as a consulting arm of Kano Legal Office, a solicitor’s office in Osaka which dealt with incorporation, property registration and inheritance.

Although there are no legal restrictions on the ownership of realty by foreigners in Japan, the acquisition can be daunting for outsiders due to unfamiliarity with the procedures, laws, transaction costs and taxes and the language and local customs.

We can also share with you a lot of the local’s insights. Some of our real estate agent partners speak Chinese.

The Categories

• Tailored Expansion Strategies

• Incorporation

• Local Operations in Tokyo and Osaka