Introduction.
With the expansion of the global market, the number of Japanese companies considering overseas expansion is increasing every year. However, since overseas sales activities are conducted under different business practices, regulations, and cultural backgrounds from those in Japan, it is extremely important to develop strategies and plans in advance. The key to success is not simply expanding sales channels, but developing a sales strategy that meets local needs and building a sustainable business model while building relationships of trust.
This article will explain in detail the basic concepts in overseas sales, practical negotiation techniques, follow-up, and key points of communication with the locals.
Importance of gathering correct information and local research
To succeed in overseas markets, it is first essential to gather accurate information. However, it is noticeable that many companies rely solely on information provided by government-supported organizations and fail to grasp local trends, regulatory realities, and buyer psychology.
In particular, the following information should be carefully collected
Price range and sales channels for similar products in the local market
Latest import regulations and legislation (easing or new regulations)
Target buyers' willingness to purchase and annual budget
Local business practices and negotiation culture
Companies without local offices generally utilize outsourcing to local partner companies or to sole proprietors residing in the area. Ideally, if possible, a system should be set up to collect realistic information through local subsidiaries.
Clarify targets in overseas sales
Before sales activities can begin, it is necessary to clearly define "who you are selling to." This is a fundamental element of the overall sales strategy, and improving target resolution will also improve sales efficiency.
D2C (Direct to Consumer)
B2C (Business to Consumer)
B2B2C (Business to Business to Consumer)
B2B (Business to Business)
For example, even in B2B, the approach and pricing differ greatly depending on whether the customer is a "wholesaler" or a "retailer," a "local store" or a "Japanese supermarket.
In particular, there are the following differences in terms of price
Wholesalers: discounts are required in certain quantities
Retailers: required to pay for shelf space and provide samples
Antenna stores: Consignment sales are the norm, and in some cases royalties are charged.
Thus, depending on the nature of the target audience, the terms of the sales contract will vary greatly. Therefore, it is important to clarify "who to sell to" in the initial sales phase.
Different business rules from Japan for overseas sales
Contracts, delivery dates, return conditions, and sense of lead time differ greatly between Japan and other countries. The following points should be noted:
- Contract culture: All agreements are based on written agreements, not oral agreements.
- Delivery time and sense of schedule: More leeway is required than in Japan.
- Price negotiation: the asking price is generally based on the assumption that the price will be negotiated down from the beginning.
- Return rules: cooling-off is strongly protected, especially in Europe
- Transportation risk sharing: Clear terms and conditions based on Incoterms (FOB, CIF, etc.) must be presented.
Proceeding with business negotiations without understanding these differences may lead to problems and loss of trust later.
Importance of understanding the psychology of the other party in overseas sales and negotiations
Successful business negotiations require the ability to read the other party's position and psychology. Especially in the first transaction, the following concerns may be raised by the other party:
Can it really be sold?
What is the digestibility?
Is there promotional support?
Do you provide promotional materials and POP in local languages?
What are the sales results and reviews in Japan?
In addition, the probability of success in business negotiations is increased by approaching buyers based on an understanding of the annual allocation of buyer budgets and the busy and quiet periods of the market (e.g., vacation season in France, exhibition season in Germany, etc.).
The approach of proposing test marketing and creating a sales record first in small lots is also very effective.
Follow-up after overseas sales
Follow-up after business negotiations must be done more carefully than in Japan. In many cases, it takes time for the other party's internal approval or decision-making process to be completed, so it is important to re-contact the other party at the appropriate time.
- Progress checks via email (proposed timeline)
- Sending additional materials and samples
- Online Meeting Setup
- Invitations to local events and exhibitions
It is important to build relationships from a medium- to long-term perspective and to make people think, "I can trust this company.
Overseas sales, in the end, the phone is the key.
No matter how much digitalization has progressed, the telephone is still an extremely important tool in overseas sales. There are many cases in which there is no response by e-mail, or no reply for more than a month.
The more important a business meeting is, the more you need to pack it in over the phone.
In such cases, it is essential to provide support in the local language. Since English is not spoken in some countries and industries, the use of interpreters and bilingual staff is required. It is also good manners to call during the other party's business hours, taking into consideration differences in time zones.
Perspectives on Continuous Improvement in Overseas Sales
It is important to be willing to continuously improve your sales activities, and not to make them a one-time event. Review the following points on a regular basis:
- Review of prospect acquisition methods
- Analyze closing rates and identify bottlenecks
- Analysis of trends in target markets (price competition, legal changes, etc.)
- Update sales tools (proposals and price lists)
By incorporating not only quantitative KPIs, but also feedback from local representatives, we can link this to the next sales strategy.
summary
Overseas sales is not just a "selling activity," but a job that requires designing strategies rooted in the local market and building long-term relationships of trust. Information gathering, target clarification, cross-cultural understanding, negotiation skills, follow-up, and courteous phone calls. When all of these elements are combined, overseas business can take off for the first time.
The secret to success is "how to communicate Japan's strengths from the local perspective. The first step toward true overseas expansion is to conduct overseas sales activities that accurately convey the quality and sincerity that only Japanese companies can offer.