JAPANESE
E-COMMERCE RETAILGUIDEBOOK
A handbook for Nordic entrants to the Japanese eCommerce market

FOREWORD
Although the impact of Covid-19 has made 2021 a difficult year for the retail industry inJapan, it has also seen rapid growth of the e-commerce market.
Before the pandemic, Japanese consumers tended to prefer a relatively physical shopping
experience at specialty stores and department stores. In physical stores, consumers canreceive the full benefits of Japanese hospitality or “omotenashi”. Since 2020, the declarationof multiple states of emergencies due to Covid-19 has restricted the physical shopping
experience, and this led more consumers to shop online.
Previously, it was extremely difficult to enter and succeed in the Japanese market without
having a local distributor/agent or incorporation in Japan. A large amount of investment
was required to meet the particular demands of Japanese retailers. Nowadays, with the righte-commerce business set-up and a local partner, it is feasible for companies to enter theJapanese market and approach millions of consumers.
On the other hand, although the size of the retail market in Japan is attractive, it is highly
competitive. The key to success is not only the selection and setup of the online store
business model, but also the understanding of market localization and Japanese consumers'
online shopping characteristics.
This Japanese e-commerce retail guidebook provides the necessary information of
preparations, business models, marketing and branding for Nordic companies to enter andsucceed in the Japanese market through online stores. We stand ready to assist Nordic
companies every step of the way.

Laura Kopilow
Haruki Tsuji
Niklas Karvonen
Advisor, Consumer Business
Project Manager
Community Director
Business Finland Tokyo
Business Sweden Tokyo Nordic Innovation House Tokyo
laura.kopilow@businessfinland.fi

haruki.tsuji@business-sweden.se

niklas@nordicinnovationhouse.com

Joakim Larsson
Consultant
Business Sweden Tokyo

Kasper Thim
Consultant
Business Sweden Tokyojoakim.larsson@business-sweden.se

kasper.thim@business-sweden.se

2 (32)

CONTENTINTRODUCTION ................................................................................................................... 4
MODEL AND PLATFORM ..................................................................................................... 6
E-COMMERCE PLATFORMS......................................................................................... 6
CHOOSING A FULFILMENT MODEL ........................................................................... 9
LOCALIZATION............................................................................................................. 12
BRANDING AND MARKETING ........................................................................................... 14
BUILDING A NORDIC BRAND IN JAPAN ................................................................... 14
PRICING STRATEGY..................................................................................................... 17
MARKETING CHANNELS ............................................................................................ 18
REGULATORY ...................................................................................................................... 21
TRADEMARK AND DESIGN RIGHTS .......................................................................... 21
IMPORT REGULATIONS & VAT ................................................................................. 22
NORDIC SUCCESS CASES .................................................................................................. 25
BABYBJÖRN ................................................................................................................. 25
LAPUAN KANKURIT .................................................................................................... 27
ORREFORS KOSTA BODA ........................................................................................... 29
ACKNOWLEDGEMENTS .................................................................................................... 30
APPENDIX ............................................................................................................................ 31

3 (32)

INTRODUCTION
The E-commerce market in Japan has more than doubled over the last decade, reaching 19
trillion JPY (~150 billion EUR) in 2020, making it the fourth largest e-commerce market in
the world after China, the US, and the UK. 93% of the Japanese population use the internet,
and during the year of 2020, 69% of the population purchased something via online channels
at least once a month.
Mobile shopping is still lagging other markets at roughly 25% of total purchases – thoughmany shoppers start their research on mobile, most still prefer to finalize the purchase via a
computer browser. In terms of product categories, the category dominating Japanese ECommerce sales is Media product purchases with over 30% of total value. This is followed
by Apparel at ~13%, Food at ~11%, and accessories and consumer electronics at ~4% each.
E-commerce has been growing especially quickly during the period of 2020-2021, as theCovid-19 pandemic kept many Japanese people at home during State-of-emergency
measures in most Japanese cities and regions. Japanese retailers, who had long beensomewhat lagging in adoption of online sales channels, were forced to quickly adapt to an
online-first reality. This shook up the market significantly, increasing its size but also thelevel of competition from Japanese actors.

1: Japanese E-commerce growth in trillion JPY, 2013-2020 (METI Data) - Services (mainly travel, events)
decreased significantly in 2020, but was offset by a marked increase in merchandise purchases

Though the Japanese population generally skews older than many other developed markets,with a median age of 48.4 (compared to an EU median of 43.7), the share of the population
shopping on online channels has historically been slightly younger. However, the share ofolder consumers buying online increased significantly during 2020-2021 as pandemic
measures forced shoppers of all ages onto online channels, and many of them now say they
will continue shopping online even after the end of state-of-emergency measures.

4 (32)

Japanese consumers generally lean towards the purchase of fewer, high-quality items overmass consumption of cheap goods. Urban living in small spaces puts storage space at apremium for most, discouraging spontaneous purchases of low-cost items. This is especiallytrue for durable goods, and for older consumer segments. Whilst disposable incomes are notas high as they were 20 years ago, owing to low economic and wage growth and an increased
tax burden, Japan is still one of the world’s largest markets for luxury goods and apparel.
The expectation for very high quality also extends beyond the product itself into all aspectsof a purchase, such as excellent customer service, quick and convenient shipping options,and even high-quality packaging materials.

2: Breakdown of the top product categories for Japanese E-Commerce spending (2020)

This does not, however, mean that there is no room for mass-market items, especially for
consumable goods such as cosmetics. This is also evidenced by the prevalence of 100-yen(1$) stores throughout the country, selling a wide range of consumables at very competitive
prices. Younger consumers specifically are trending towards cheaper purchases, driven by
low incomes, part-time employment and stagnant wage growth.
Culturally, Japanese consumers are further defined by the traits of high risk-aversion,
avoidance of uncertainty and conformity to the wider social group. Trust in unknown and/or
foreign brands is low, with consumers valuing the perceived safety that comes with making
a purchase from an established local brand with a long-standing history in the market. They
will also often spend significant time and effort into research before making a final
purchasing decision – especially so for a higher-value item – consulting third-party
comparison sites such as kakaku.com as well as independent product reviews and detailed
product information. Recommendations and customer reviews are highly influential, andsuccessful brands spend a lot of effort making sure to build, and display, favorable customer
ratings and reviews. Preference for conformity also shows in common practice of showcasingcertain products as “best” or “recommended” choices, abating customers’ fear of making an“incorrect” decision when faced with too much freedom of choice.

5 (32)

PLATFORM AND MODEL
E-commerce platform and model of fulfillment are the first aspects that needs to beconsidered when deciding to enter the Japanese e-commerce market. A new brand entering
have a lot of options for how to go about getting their goods or services to the Japanese
consumers. On the surface the decisions can seem straight forward, but it is worth taking
time to get to grips with the specific aspects, potentials strengths and weaknesses, and how
these decisions fit in with a company’s strategy, capabilities, and end goal.
Covid-19 saw a rapid change in the e-commerce market landscape with many brands putting
greater emphasis on D2C models through e-commerce to capture consumers interests
without the need to go through more traditional channels. The changing landscape havelowered barriers of entry especially for international brands. D2C in Japan can be done
through major platforms, smaller niche sites, or an own website thus allowing for greater
connection to the end user, a flexibility in pricing, and greater adaptability what aspects aredone in-house or externally. Even so, Japan remains a traditional landscape where
wholesalers, retailers, and physical stores have strong position with consumers and D2Conly models are still in its infancy. Therefore, a brand looking to enter through e-commerce
exclusively need to understand that the Japanese market will come with additional
challenges in reaching the target audience and potentially a need to spend extra on
marketing to compensate and achieve a foothold to build on long term.

E-COMMERCE PLATFORMS

The Japanese e-commerce market is a mature market where larger players dominate thelandscape. The largest platforms for e-commerce are Rakuten, Amazon, and Yahoo shopping.
Estimates vary, but these three websites cover around 50% of the Japanese e-commercemarket with Rakuten and Amazon at a combined roughly 40% and Yahoo at around 9%.
Outside of these major platforms several local players
25.7%
exist, especially in niche categories with brands
aiming for a specific segment or demography. One
notable site to be aware of is Zozotown which has
12.3%
been solidified as a major player when it comes to
8.7%
fashion. Other local players include AU Pay, a website
3.4%
connected with local phone operator KDDI, andQoo10, an eBay-affiliated platform focused on usergenerated reviews and the surrounding community.
For cosmetics there is @cosme, a cosmetics retailchain & e-commerce site, that not only does sales but
also is a social & blogging website related to cosmetics. No matter the platform the key tothese platforms is understanding how they work as tool for promoting a brand and how to
fit them into an overall strategy for market entry. Setting up on Rakuten, Amazon, and Yahooat once offers the largest market coverage but most likely would stretch resources too thinfor smaller companies. Having a final goal of full market penetration is good but as a firststep going with a limited selection in platforms in combination with an own site is likely
6 (32)

better for establishing the brand long-term. The different major players all come withslightly different focus that is outlined below.

AmazonAmazon is more focused on the product and offering a large variety at the lowest price.
Like Rakuten, Amazon also offers Amazon brand registry which enables the creation of astore front to manage goods and brand image. However, this feature is much less pushed
on the site. For example, a customer searching for a brand name will be presented with alist of items first rather than the individual store. This means that even if your brand has apresence, a customer searching for it will still be presented with other cheaper options ofrelated brands. On the plus side, Amazon is connected globally so a merchant familiar with
its offering in one country will have an easier time understanding and using the platform
here. Amazon also offers cross-border fulfillment worldwide, but it is important that longer
delivery times can lead to poor ratings or lower item rankings. Merchants with local
fulfilment or fulfillment done by Amazon are more likely to get prioritization on the page oflisted items that appears when a customer does a search. In addition, other merchants on
Amazon frequently offers discounts meaning that it’s easy to end up in a price war.
Premium brands or brands that wants to avoid discounts are recommended to utilize
Amazon with limited capability.
RakutenRakuten aims both towards consumers and other retailers. Its key feature is the ability tocreate miniature online “stores” wherein each selling company can setup its own brand page.
On these stores, a brand can create its own visual identity and aim for greater conversion.
However, currently Rakuten has over 50,000 competing stores meaning that it is very easy
for even strong performing brands to get lost in the massive noise of constant new products
and deals. As a platform it is also greatly focused on the point ecosystem as a kind of discount.
Customers will typically receive 1% of total purchase value in Rakuten points and thispercentage can increase through several interlinked Rakuten services. For example, if a user
pays with a Rakuten credit card the ratio can go up to 3.5%. 1 point is then worth 1 JPY in
Rakuten affiliated stores. To get started on Rakuten a merchant needs to apply for andregister as a seller account with a local bank account and this is mainly done through partnercompanies. Cross-border e-commerce without a partner on Rakuten is only possible from aselect number of countries where Rakuten has a local office, currently Canada, China, France,
Germany, Hong Kong, Taiwan, the UK, and the US. Therefore, for a Nordic brand planning
to use this platform it is recommended to look towards local fulfillment.
Yahoo!
Yahoo is also centered around stores for merchants to build and have greater control of thebrand’s image. However, while it does offer a variety of goods it is mainly known for fashion.
To get setup on Yahoo, registration with a local bank account and phone number is needed,
but unlike Rakuten or Amazon it lacks English support so setup without a Japanese speakeror partner is not advised. With the additional steps needed and the language barrier
necessitating a local partner Yahoo is typically not recommended as a first entry into theJapanese e-commerce market.

7 (32)

No matter what strategy is chosen it is important to know that these sites are well saturated
marketplaces. Therefore, it is advised to consider how and why they will be used whenplanning the market entry strategy. Consider what role they will play in establishing thebrand image on the market and what purpose they will serve outside of just pure sales as
while these platforms can be used to grow the fanbase it can be a big challenge. Getting
established on these sites is a great first step to reaching the Japanese public, but it is also
very easy to get lost in the immense price war or frequent discount/point campaigns.
Furthermore, depending on the type of brand, being on these sites might clash with thecertain value a brand wants to portray.
For the practical details, please see the links below, offering in detail how to setup on
Rakuten and Amazon in English.
Other options and own website
Outside of the big players as mentioned above there are several category specific sites thatoffer a greater chance of reaching specific customers of your brand. These sites are
however even less adapted for international brands to easily set up and start selling so are
best utilized in collaboration with a partner or in later stages of the market entry.
One area that is worth considering are the number of Nordic focused e-commerce
platforms that exist, some of the biggest including Scope, Hokuo no Kurashi, and Kozlife.
They are less clustered, familiar with handling Nordic brands, and offer good opportunities
for displaying the brand. Furthermore, these websites already cater to a customer basewith an interest in the Nordic lifestyle and Nordic brands image meaning that there areless barriers in converting an interested customer to a purchasing customer.

In addition to the platform strategy establishing a local Japanese page is recommended asconsumers will want to find additional information on a brand or service in the local
language. Furthermore, a local website is a good place to build the brands image and serves
as a focus point in the customer journey where you can have greater control of the localized
message. It is important to note that a local page means not just translating productinformation, but also considering how to localize the story, visuals, and brand image.
Finally, no matter if on a platform or through a brands own site, it is important to rememberthat traditional e-commerce aspects like returns, warranty, after sales support etc. are going
8 (32)

to be expected and will be important in building trust with a Japanese consumer that is used
to high standards. This and how to localize is further expanded upon in the localization
chapter.
Regarding the administration for establishing a local website, there are three options. They
are international domain (.com/jp), 2nd degree local domain (.jp), and top local
domain(co.jp). An international domain is the quickest option and most used by brands that
don’t have any local presence. This is because to register a 2 nd degree domain (.jp) a
permanent address in Japan is needed and for a top local domain (co.jp) a company must
be registered in Japan. The cost of a .jp domain is about 31 Euro (4,000 JPY) in the first year
and for a co.jp domain it is about 78 Euro (10,000 JPY) the first year. To apply for a local
domain an application is sent, in Japanese, to a company that offers registration services. Be
aware that exact prices will vary depending on which company is used to register a suchdomains.
More information on the application process can be found on the Japan Registry Services
homepage. It is also possible to find a list of companies that offer web registration (Only inJapanese).
A top local domain is typically recommended as it is seen as more trustworthy to Japaneseusers and makes it easier to build a presence. However, for smaller companies looking toenter the market it might be better to wait until a customer base has been established as it
requires a local contact to handle the registration and adds to the initial investment needed.
In essence, choosing to establish an international domain vs a local domain comes down toresources vs time. International domains are the easiest way to enter the market, but
Japanese customers might be hesitant to purchase from an unknown brands international
website or if the localization is lacking.

CHOOSING A FULFILMENT MODEL

After deciding on an e-commerce platform, the largest decision to be made in planning iswhich model to use to supply the goods to the Japanese consumers. Depending on the model
there are varying degrees of investment and time required for implementation. Japan has apopulation of 126 million and is roughly the size of Germany, but customers still expect quick
delivery (next day or within 2-3 days). The model that is most suitable for internationalmerchants depends on the goals for market entry, timeline, and budget available.
Additionally, the model used can also affect how the brand is perceived in the market.
In principle there are three models commonly used, each with their own strengths anddrawbacks. They are as follows.
Cross-border fulfilment
This option means to have set up a localized sales page and carry out shipping from awarehouse outside of Japan on an order-by-order basis. It eliminates the costs associatedwith warehousing and makes it easier to sell certain products, like food and supplements,that would require special import clearances. However, it will increase both delivery time
and the cost of the good. Therefore, it is vital to communicate this to the end consumer when
they order. There is also a limiting factor on which major platforms support this model.

9 (32)

The cross-border e-commerce market a saw slight stagnation (3.24B Euro in 2019 to 2.95B
Euro in 2020) due to the logistical challenges and closing of borders associated with the
pandemic. Furthermore, this option only makes up about 3% of the total market.
Nevertheless, cross-border e-commerce is expected to grow at a CAGR of 3.7% between
2020-25.
The cross-border model is the quickest to set-up but is not recommended for most brands
as it is limiting when it comes to large-scale business. Furthermore, achieving success andmarket penetration with this model is difficult since, as stated above, it is a minor share of
the overall market size and even then, it is easy to get lost in the noise. Finally, while putting
your brand on a major e-commerce platform or own website that allows for cross-border isstarting point not having a partner that understands the market needs and consumer
patterns will likely lead to potentially costly mistakes in marketing or product selection that
greater increases the risk of failure.
Local fulfilment
This option means working with a local partner to handle some part of import, warehousing,and shipping to fulfill customer orders locally. It brings additional costs in warehousing fees
and the potential partner taking a cut of the profit but allows for large scale import andstrategizing. Furthermore, it makes it possible to both deliver goods and accept returns
quickly. Since consumers expect fast delivery times and high after sales service support, local
fulfillment is commonly recommended to new brands. To achieve success with this model itis key to find a good partner that will handle the brand properly. Bear in mind that such asearch will add extra time in taking the product to market and finding the right partner can
be a challenge at times but spending this extra time prior to market entry will likely lead togreat chance of long-term success.
Local incorporation
This means setting up a local entity or subsidiary to handle all or some part of the Japanesebusiness by incorporating, hiring local staff, and potentially renting an office location. This
option brings personnel costs, rent, tax duties, and local warehouse fees meaning that it
requires the highest investment, but it also allows for the greatest control of a brand’s
position in the market. The local incorporation model is most common after some test
sales or initial entry with partner has been done as it requires the largest investment. With
that said it is worth considering if a large-scale entry is already planned.

10 (32)

A summary of the pros and cons can be seen below.

Cross-borderLocalfulfilment

Incorporation

Tax & Tariff free up to
129 Euro (16,666 JPY)
Eliminates costs related
to local warehouse.
Quickest option

Longer delivery times.
Shipping fees increase theprice.
Limits the types of fresh andfrozen food that can be sold

Quicker delivery times.
Allows for large scale
import and planning.
Easier to build trust with
consumers.

Larger investment costneeded.
Longer run-up needed
Challenge in finding the rightpartner

Allows for full control ofstrategy.
Best for closest relation
to market and insights.

Largest investment
cost needed.
Longest time needed.

The logistical aspects of shipping and selling to Japan are many and can be complex tonavigate. The different models vary in who is handling the aspects from customers firstseeing the brand, to making a purchase and then carrying the goods from the warehouse.
There are four major aspects in this area to consider. First is, where is the fulfillment done
from. I.e., is shipping done to the consumer from a warehouse outside of Japan or locally.
Next, if needed, who is handling the import and customs procedures. Going beyond physicallogistics, comes the matter of the platform used and how to run it. Finally, to spread thebrand, marketing is a must and using a local agency will aid with navigating the intricaciesof the Japanese market. A summary of the aspects can be seen below.
Warehouse

ImportPlatformMarketingInternationalNA

Own pageAmazonRakutenJP agent

Japan

Partner

Own pageAmazonRakutenOther

JP agent

Japan

Partner
Local staff

Own pageAmazonRakutenOther

JP agent
Local staff

Cross-borderLocalfulfilment

Incorporation

11 (32)

LOCALIZATION

Localizing products or content for the Japanese market is notoriously tricky to get right. On
the surface, there is the Japanese language, with its multiple alphabets and thousands upon
thousands of characters, but beyond that, there are also the thorny domains of cultural
expectations, tone, and varying levels of formality. Today’s machine translation technology
has some way to go in producing accurate Japanese text considering all these aspects, sohiring a professional translator is a minimum requirement for localization of marketing
materials, product copy and websites. This is also true for other aspects of the marketingstrategy, such as SEO keywords and SNS hashtags, which risk becoming ineffective if directlytranslated without an understanding of local trends and behaviours.
The next step beyond direct translation of the information already present in the main
website or marketing materials is also adapting which content and product information isprovided in the first place. As previously mentioned, many Japanese consumers have astrong preference for doing their research and comparing several products before making apurchase, and so enabling and rewarding this behaviour can be very effective in creating
more trust in and desire for the product.
Specific information appreciated by Japanese audiences include:• Numerous and detailed pictures and diagrams, showing both the product itself, its
origin (Nordic connotation) and its use.
• Information explaining not only the benefits brought by the product but also how it
is produced - which technologies, materials and methods are used.
• Information on who the product is intended for, who usually buys it, including staged(or real) pictures of relatable people using the product, to appeal to consumers’ desire
for conforming to the group.
• User satisfaction statistics and prominently featured testimonials and reviews from
relatable users.
• Detailed information about the company history, heritage, presence and intentions
for the Japanese market, and other related information to create trust and a closer
relationship with the company behind the brand.
• Detailed and clear information on policies related to shipping, returns, payments,
special offers etc.
• Information on how the product has been (or already is) adapted to fit the needs ofJapanese consumers and their circumstances.
As a result of this desire for extensive and detailed information, Japanese websites are often
perceived by outsiders as crowded and messy. To some extent, this is unavoidable, but for
Nordic brands who want to build on a Nordic image of simplicity and elegance, it’s importantto find a good balance between providing the information required whilst maintaining aclean layout – perhaps providing more detailed information in clearly indicated attachments
and click-throughs rather than directly on the main page.

12 (32)

3: Comparing Japanese (Rakuten) and UK product page for an Orrefors product

Aside from website and marketing content, other localization considerations include local
payment options, delivery, and customer service. For payments, whilst credit cards are thedominant payment method for online purchases at over two-thirds of transactions, certain
customers (especially older and very young demographics) will appreciate alternative
payment modes such as mobile/digital wallets (PayPay, LINE Pay, Rakuten Pay etc.), banktransfers, pay-on-delivery or pay-in-convenience-store. These options can be more difficult
to set up than card payments but should be seen as mandatory to provide in the longer-term
for brands serious about the market. The same goes for delivery options – whereas
consumers will understand that some foreign items will require longer delivery times(especially if shipped cross-border), brands able to offer next-day or even same-day
deliveries will be in a much stronger position to compete with local offerings.
Finally, Japanese expectations on customer service are very high, with the rule of thumb for
customer service in Japan being “you will always need to do more than you think”. Offering
local, Japanese language customer service is a basic expectation for any brand looking tocreate the trust and loyalty required to succeed in the market, whether that is through own
employees or a local partner. Also be aware that Japanese customers are harsh reviewers –compared to other markets, they are more likely to leave a negative review after having a badexperience with a brand, but less likely to leave positive feedback. This, combined withreviews being highly trusted, can quickly become very damaging to a newly introduced brandwith a lacking service experience.
In summary, the most important thing for brands to avoid when entering the Japanesemarket is to be seen as doing it half-heartedly. Starting out with imperfect translations,
missing payment options, and sub-par customer service can damage trust in the brandpermanently, even if these aspects are later improved. Instead, brands should work withlocal partners to make sure to get things as right as they can possibly be from day one, thencontinue improving and adapting from there.

13 (32)

BRANDING AND MARKETING
Just as important as choice of business model and solving operational questions is thequestion of how a Nordic brand should communicate with potential customers in Japan.
Local culture, customs and expectations are in many cases very different to what entrants
may be used to from their home markets. Yet understanding these aspects can be thedifference between a long and successful presence and a swift exit from the Japanese market.
In this section, we are thus highlighting some key aspects and considerations for Nordic
brands who are looking to build their brand and market their products successfully to a
Japanese audience.

BUILDING A NORDIC BRAND IN JAPANAs a result of cultural factors previously mentioned, building a strong brand in Japan andgaining the trust of Japanese consumers is a long-term project. The Japanese market andmedia landscape still reflect the country’s long history of relative isolation, based on both
cultural- and language barriers. International brand recognition is therefore of limited value
for all but the largest players – with most companies having to more or less start from scratchwhen introducing their brand in Japan. The investment required in terms of initial
marketing costs should not be underestimated – a marketing spend of ~10% of targetedrevenue can be used as a general rule of thumb for a new brand introduction. However, those
who spend the time and investment required to find and engage an audience in Japan willfind themselves amply rewarded by loyal customers, more than willing to pay a premium forproducts they really enjoy.
As such, it’s very important for Nordic brands to have a well-developed and localized
marketing plan before entering the Japanese market. Offering a new product in the Japanesemarketplace whilst hoping to rely on international brand recognition to drive sales will rarely
be a successful approach. Trying to apply an unmodified global marketing strategy which
has worked in other geographies is likely to miss the mark in terms of messaging, marketing
channels and cultural expectations. At a basic level, a Japanese marketing strategy needs tooutline the targeted consumer segment and characteristics, market positioning relative tomajor competitors, which marketing channels will be used and how, and which narrative or
message is being conveyed through those channels.
Whilst Japanese consumers recognize Nordic products as high-quality, and “nordicness”
should definitely be an important part of the narrative for most Nordic entrants, it cannot
be relied upon in itself as the whole story. Indeed, in the Japanese way of thinking, the twoconcepts of “The Brand” and “The Corporation” are much more closely related than would
be the case for a European consumer. Forming a connection to a brand in Japan also
necessarily means forming a connection to, and establishing trust in, a corporate entity. As
such, communicating in detail about the history, philosophy and intention behind a brandbecomes a very important messaging tool.
This is especially true for foreign brands looking to build some level of trust with a Japaneseaudience. If potential customers get the impression that a company is not serious about
14 (32)

doing long-term business in the market, but only looking to make quick profits, they will nottrust that company to sell a quality product. On the other hand, however, offering a more
personal level of insight into the company itself can help build trust even for new entrants.
This can be done through personal interactions on social media platforms or websites, or
through direct communication or statements by corporate management showing
seriousness or long-term commitment to the market.

4: This 2016 Ad from Japanese Ice-cream company Akagi Nyugyo shows employees bowing in apology forhaving to raise the price for their most popular product from 60 to 70 yen

Overall, the general impression of Nordic brands in Japan is strongly positive. Whilst mostJapanese will struggle to voice specific impressions for individual Nordic countries (instead
conceptualizing them as a whole under the umbrella of “北 欧” – “Hokuō”, lit. “North
Europe”), the Nordics as a whole are strongly associated with good design, high quality, aclean, elegant esthetic, nature and natural products, health and healthiness, and a goodlifestyle. However, brands should also be aware of the difference between an origin with a“premium” image (such as the Nordics) compared to one with a “luxury” connotation (suchas France or Switzerland). Whilst
simplicity is a key element to the appeal ofmany Nordic products, it can sometimes
also be difficult to justify a very high pricefor a simple product. This means that
Nordic brands wanting to enter Luxury(or to a lesser extent Mass-market)
segments should likely not focus asheavily on their origin as those aiming forpremium markets, as the Nordic brandimage may not be as clearly associatedwith luxury qualities in the minds of target
consumers.
The product categories most strongly
associated with the Nordics are furnitureand interior design products (owing muchto the strong brand image of IKEA as well

5: Illustrating the space in the marketing segmentation
hierarchy most strongly associated with a Nordic
brand image

15 (32)

as the recent popularity of “Japandi” minimalist design concepts), and to a lesser extent also
food, textiles and clothes, and literature.
There is also some association between Nordic products and values of responsibility,
sustainability, nature- and environmental friendliness (along with other ethical values suchas gender equality, animal-welfare etc.), though this is also true for Europe more generally.
These values have historically not driven large price premiums in Japan, where awarenessand engagement with environmental issues has long been lower than in other developed
markets. However, this disparity has started to change in recent years, with Japanese
consumers increasingly willing to pay higher prices for more environmentally friendly
products, and marketing a product as sustainable, natural, or organic is becoming a valid
strategy to motivate a premium price point.

6: An example of "Japandi" style, focusing on simplicity, soft or neutral colors, natural materials, and awarm and comforting atmosphereThis positive attitude is a great base for Nordic brands to build upon, but as mentioned,
brands should be careful to strike the right balance between highlighting their Nordic roots
whilst also adapting their products and messages for the local market. Specifically, themessages of “this product comes from the Nordics” and “this product works in the Nordics,
for Nordic consumers” will be received very differently. Whilst Japanese consumers
appreciate knowing about a brand’s history and origins, they also want to be assured thatthe product they are buying is adapted and will fit their personal needs. This is increasingly
true the more “personal” a product is, with examples of highly personal products being food,beauty- and health-related products, apparel and so on. Foreign-made products cancertainly carry an air of exclusivity end exoticism but are also sometimes perceived to be“Too powerful”, “Too loud”, “Too strong” and so on. Assuring buyers that your product will
work for “Japanese skin”, “Japanese sizes”, “Japanese living conditions” etc. will be an
important factor in gaining their trust especially in these more “personal” product categories.
Finally, Nordic entrants should understand the overall approach and goals of marketing inJapan and how it can differ from that in western environments. Marketing in Japan isfamous for being different and difficult to understand for foreign viewers, with much ofadvertising seeming inappropriately “cute”, “silly”, or detached from the product or service
being advertised. Even the most serious of organizations can be represented by cartoon
16 (32)

mascots and nursery-rhyme jingles. This schism between western and Japanese marketing
approaches stems from a fundamental difference in philosophy, with marketers in Japanfavouring “soft-sell” tactics, compared to the “hard-sell” approaches more common
elsewhere.

7: Japanese Finance Ministry mascot "Koko-chan" convincing young people to invest in government bonds,
with a jingle including the words “both your heart and your principal will be protected forever”.

Whereas hard-sell marketing focuses on the product, with forceful and often hyperbolic
messaging, soft-sell communication instead strives to create a more long-term, positive
emotional connection between a brand and its intended audience. It focuses less on any
specific product and more on entertainment, visual style, and the overall brand story. Whilst
it is less direct, this style of marketing has proven effective in building trust and loyalty withJapanese consumers, and as such has become extensively used in the Japanese market. This
choice of marketing style is also likely to be one of the reasons for why Japanese audiences
overall have a more positive attitude towards advertising, and are more likely to engage withmarketing messages, than their western counterparts. As a foreign brand, whilst it’s notnecessarily ideal to imitate the Japanese marketing style fully, these aspects can be useful tokeep in mind when designing a local marketing strategy.

PRICING STRATEGYAs previously mentioned, Japanese consumers exhibit a strong preference for locally madeproducts, which are perceived as trustworthy and high quality. For any foreign brand to becompetitive in the Japanese market, it’s therefore not enough to be perceived as “just as good”
as the local competition. To gain an edge, brands will need to position themselves as either…
1. Significantly cheaper than local offerings
2. Unique, completely different from available local offerings
3. Very high quality, exclusive or exotic, often with a strong association to the country-oforigin (such as Swiss watches, German cars, French fashion…)
Whilst there are of course examples of Nordic brands succeeding in the Japanese market foreach strategy, Nordic products and the Nordic brand image in general is most often suited
to a premium offering, leaning on a perception of uniqueness, exoticness and/or high quality.
Mass-market categories generally see very high levels of competition in Japan, and new
17 (32)

entrants into these segments will face harsh opposition from the low-price offerings ofexisting discount stores and importers.
In some cases, we’ve seen a few Nordic brands attempt to market themselves as a premium
brand in Japan even though they were a mass-market player in their home market, hoping
to build on a premium Nordic image to justify a higher price abroad. This strategy is mostoften unsuccessful, as Japanese customers are too savvy and will do their research before
making a purchase from a new, unknown brand name.
Lastly, as in all export cases, brands must keep in mind the price gap between different
markets. Whilst Japanese consumers may be more wary of private imports than most, being
hesitant to go without the safety nets provided by extras such as customer support, return
options, and Japanese-language instruction manuals, any price differences between markets
in excess of ~30% (in either direction) will still encourage private importers to undercut
prices in the local market.

MARKETING CHANNELSIn terms of Marketing channels, Japan, as many other markets, has experienced a long-term
shift away from traditional channels towards digital advertising channels. Digital marketing
represented 36% of Japanese marketing spend in 2020, making it the largest category, aheadof Television ads (27%), Promotional media (Events, flyers, transit, and outdoor
advertising etc. – 27%) and Newspapers/Magazines (8%). The largest subcategory within
digital marketing is Search-engine marketing (SEM).

8: Breakdown of advertising channels in Japan, based on total spend (2020)

The growth of digital marketing in Japan makes sense also from a cultural perspective –even though Japanese consumers generally exhibit low trust, their confidence in Social
Media and Search Engines has long been higher than in other developed markets.
Conformity to the social group is valued, and personal recommendations carry a large weightin purchasing decisions, driving influencer marketing to become an especially powerfulstrategy to drive sales and build brand recognition.
Whilst the recent dominance of digital marketing channels is not unique to Japan, thespecific landscape of Japanese digital platforms does differ from other markets in somerespects. For instance, Google is not the only player in the Search engine market – Yahoo!
18 (32)

search and Bing together control over 20% of searches (up to 25% for mobile devices),
meaning they can’t be ignored for a SEM strategy. And whilst the usual suspects of Facebook,
Instagram and YouTube are certainly present in the social marketing landscape, they shareit with more Japanese-specific platforms such as the messaging app LINE, which is themost-used networking and messaging platform in Japan in terms of monthly active users.

9: Top Social Networking Platforms in Japan (by of monthly active users, millions)

As previously mentioned, Influencer marketing can be a very powerful tool for brandbuilding when used correctly. Brands will have to be very careful both in who they engage,and how they do it – ensuring complete honesty and transparency to avoid any feelings ofdeception in the targeted audience, which is viewed especially negatively in Japan. Most
commonly, smaller brands will use influencer agencies which in turn have contacts to a large
number of (often smaller) influencers, which can then be approached to receive and mention
products. Though they are fewer, the followers of smaller influencers tend to be moreengaged with their posts and content, meaning that engaging several small influencers canoften be more effective than a single, more popular profile. Also, brands should make sure
to only engage influencers who are truly aligned with their brand image and messaging –influencer promotions that don’t feel like a natural fit for the product will not be productive
regardless of how many consumers are reached, and in a worst case can be actively harmful.

10: IKEA Harajuku partnering with Virtual Influencer “Imma” to display a virtual showroom – a screen
showed a live view of Imma relaxing in her virtual IKEA-furnished living room over the space of three days

19 (32)

For smaller, foreign brands operating through e-commerce, Digital marketing should andwill constitute a vast majority of marketing efforts. However, non-digital marketingstrategies are still popular in Japan, and can be effective in certain cases as long as they areused with a clear purpose and target audience in mind.
The most important such strategy for those looking to establish a stronger connection with
the Japanese market would be Pop-up stores and local events. These are a great way to let
Japanese consumers touch and experience the brands’ products physically, which cansignificantly strengthen brand interest and drive sales without the need for a permanent
physical presence in a retail store.
For certain segments, such as older consumers, B2B buyers, and middle-aged consumers insegments like technology and beauty products, advertising in print newspapers or magazines
could be effective. TV advertisements are also good for reaching older age groups but are
expensive to both produce/localize and air, and for all but the oldest customer segments
video advertisements on digital platforms such as YouTube or Instagram will be a better
alternative. Finally, advertisements on public transportation (metro, buses) have huge reachacross all age groups in Japan but are also expensive and so mostly relevant to larger brands
who already have a significant presence in the market.

20 (32)

REGULATORYThe regulatory landscape in Japan has taken several strides in simplifying the process andaligning with world standards meaning that it has become easier for international brands
to enter the market and establish a presence. Even so, regulations and laws will differ, andbrands needs to comply with them to be able to be sold inside of Japan. Proper
understanding of the differences prior to exporting will avoid headaches and ensure asmoother market entry for all involved parties.

TRADEMARK AND DESIGN RIGHTS

When establishing a foothold in Japan, it is recommended to register trademark and design
rights as needed with the Japanese patent office. Japan is a first-to-file jurisdiction whichmeans that the first party to file will be granted the trademark. It is therefore advised toapply as soon as possible when planning your entry into the Japanese market.
Under Japan’s trademark law there are four categories that are categorized as trademarks.
They are as follows
Category

Example1. Trademarks consistingof characters

2. Trademarks consistingof devices/symbols

3. Trademarks consistingof characters anddevices/symbols

4. Three-dimensional
trademarks.
(dolls, spheres andthree-dimensionalsigns)

21 (32)Please note that if a logo or brand is in category 3 the registration will only cover usage inthat configuration. It is therefore needed to register multiple trademarks in category 1 and 2
if the plan is to use the wordmark or the symbol of the brand separately by itself.
Trademark rights expire 10 years after the date of application. To apply for a trademark or
design rights as an international company in Japan the applicant must be either a foreign
individual domiciled/resident in Japan or a foreign legal entity having a place of business inJapan. If the applicant does not have either a permanent address, residence, or office inJapan it is required to appoint a representative, a "Patent Administrator," such as a patent
attorney in Japan for the application. Exact procedures for trademark is outlined on theJapanese Patent office website here and for design right here
Detailed costs associated with both trademark and design rights applications in Japan canbe found in the appendix at the end of this document.
Japan is also a member of the “Madrid agreement for international trademark collaboration”
and “Hague protocol for international design rights collaboration” by the World Intellectual
Property Organization aimed at cross-border referencing. It is therefore possible to apply forJapanese rights through a multi-country application using the WIPO system. This isbeneficial if a company are considering entering multiple Asian markets as one application
will cover multiple markets compared with a traditional application which will only be valid
in the country applied in.

IMPORT REGULATIONS & VAT

The main rule when it comes to import is that the importer, i.e., receiver, of the goods in theimporting country pays for tariffs, VAT, and other fees. The importer is also responsible forimport clearance and abiding to the correct procedures. In this matter, Japan has long been
known for having high tariffs to control import and protect the domestic market.
This was changed when Japan and the EU signed an Economic Partnership Agreement(EPA) that entered into force in February 2019. This partnership aimed to eliminate or
reduce tariffs on most traded goods, streamline guidelines, and align regulatory systems.
Therefore, several common daily goods are now either exempt or seeing gradually reducing
tariffs.

22 (32)

Some common goods are exemplified below
Type

Before 2019

Under EPA (After 2019)

15%

0%

Import system+ tariff
average of 4.3%
Up to 29.8 %0%Decrease to 0% by 2033

Beef

38.5%

Decrease to 9% by 2033

Most textile products

8-11%

0%

Footwear and leather

10-16%

Decrease to 0% by 2033

Cosmetics

0-4.8%

0%

Furniture0%0%Alcoholic beverages
Pork
Hard Cheese

As previously mentioned, the cross-border model allows for import free from VAT and tariffs
no matter the product up to 129 Euro (16,666 JPY). This is because the customer assumes
import responsibility as a private importer. For local fulfilment and incorporation, the tariffburden and clearance will be on the importer i.e., the Japanese partner or local entity.
Importers who want to claim the preferential treatment under EPAs must submit acertificate of origin showing the good qualifies as coming from a preferential country. The
certificate of origin is issued via an application made by the exporter at the time of exportingshowing the goods are from the originating country. The only exception when this is notneeded for preferential treatment is if the goods being imported total value is 1553 Euro
(200,000 JPY) or less.
When exporting to Japan it is important to verify if the EPA applies to a product andtherefore what tariff that product has in addition to understanding if there are any otherregulations. Exact information can be confirmed on the EU market access database. Here it
is possible to check tariff information, general rules, regulations, and how to understand if a
product fulfills the rules of origin criteria. Please note this page is only accessible from inside
the EU. In addition to above page, the EU has published several factsheets and presentations
that give a good overview of various fields.
In addition to the EPA prior to exporting it is beneficial be aware of regulation and laws
relating to certain products to avoid potential delays or hurdles. This will also help as animport partner handling import clearance will ask exporters to prepare or provide certain
documents depending on the product category. Most common daily goods are not subject tospecific regulations, but it pays to be careful and double check especially when it comes tofoods, goods containing chemicals, and electronics. Food is regulated under the foodsanitation law or plant protection act. Importers of food will typically be asked to provide
item information, ingredient lists, food production charts, and details regarding processor
23 (32)

facilities. The Japanese import and investment organization has published a detailed guideoutlining specific details here.
Chemicals fall under the chemical substances control law (CSCL) and here importers will in
addition to being registered as a chemical seller & manufacturer, need to provide chemical
identification numbers, ingredient lists, and in some cases detailed explanation oncompound ratio of chemicals used. The ministry for Manufacturing, Trade, Economics andInfrastructure has published an overview guide of the CSCL here.
For electronics it falls under Electrical Appliances and Materials Safety Act wherein goods
are categorized and applied a so called “PSE mark” as either specified on non-specified
electrical product based on risk associated with product. Classification process details canbe found on the Japan quality assurance organization homepage.
Disclaimer that there is no single answer for all products in one category as regulations mightvary depending on where the product is made, what it contains or how it is used.
Further details on Japanese import laws are available on the customs homepage withEnglish translations of the exact laws relevant available here.
In Japan as of 2022 the VAT is 10% on all consumer goods. VAT is calculated per calendar
year and is added together at the end of year based on yearly amount sold. Companies thathave yearly sales of less than 77,660 Euro (10M JPY) are exempt from VAT duties. To apply
for tax returns, companies should turn to the Japanese Tax Authorities. If sales exceed
77,660 Euro (10M JPY), companies are obligated to pay VAT and, in such case, need toappoint a representative to the Japanese Tax Authorities who is living in Japan for thereporting process.
Anybody importing goods to Japan need to follow Japanese marking laws regulated by thehousehold goods quality labeling act. This sets out what must be displayed regarding thequality, how they should be displayed, and other general information. The Japanese
Governmental Consumer Affairs Agency has summarized detailed information in a
handbook which covers common labeling matters and vocabulary related to major daily
goods.

24 (32)NORDIC SUCCESS CASES
To give some more concrete examples of Nordic brands who have succeeded in the Japanese
e-commerce market using the general tactics and guidelines presented so far, this section
will go through the journeys and lessons learned from three Nordic players who have long
been present on the market. These are Swedish baby-products and accessories brand
BabyBjörn, Finnish linen- and wool textiles producer Lapuan Kankurit, and Swedish
Glassware brands Orrefors and Kosta Boda.

BABYBJÖRNBabyBjörn is a Swedish brand selling baby products such as carriers, cots, and bouncers.
They were founded in 1961 and have since won global recognition and several design awards
for their products. They entered the Japanese market around the year 2000 through a local
distributor, who in turn sold BabyBjörn’s products to local physical retailers.
Around 2010, BabyBjörn set up their own Japanese subsidiary to gain more control overtheir market presence, and at the same time, set up their first online sales channels with
Amazon and Rakuten. A few years later, they launched their own, fully controlled online
store at babybjorn.jp. Today, the majority of BabyBjörn’s sales in Japan come from Online
channels – even more so with the impacts of the Covid-19 pandemic and resulting shifts in
shopping behaviours. Third-party platforms such as Rakuten and Amazon still drive amajority of Online sales, but BabyBjörn are trying to shift volumes long-term to their own
site as much as possible as it is preferrable both for higher profitability and increased control
over how the brand is presented to consumers.
For BabyBjörn, combining online and physical sales channels has been a good recipe forsuccess. Each channel plays its own role and targets a different customer segment – withphysical stores creating local credibility as well as opportunities for potential customers toexperience the products and better appreciate their quality, whereas online channels target
those who prefer to do online research, and city-dwellers who may not own cars and thus
prefer to get large items home-delivered. As such the level of cannibalization and overlap
between the channels is low enough to motivate a continued presence in both.
BabyBjörn lean heavily on Nordic values in the branding and marketing – in their case, using
international models, images and video throughout their online presence. They build on
Nordic associations with progressivism and equal parenting, highlighting these values in anentertaining (rather than overly problematizing) way in their marketing and campaigns.
They also play into increasing environmental awareness amongst Japanese consumers
through eco-labelled products.
On the other hand, when talking about their products, BabyBjörn are careful to emphasize
their fit to Japanese needs – highlighting the advantages of placing babies in bouncers rather
than on the floor (as would otherwise be common Japanese practice) or of keeping babies inharnesses rather than in strollers when navigating dense city- and public transport
environments. They also show diagrams specifically highlighting how products have been
adapted in size to fit people of average Japanese height. Finally, they are careful to provide
25 (32)

clear manuals and instruction videos for products in Japanese, and to show adherence toJapanese-specific safety standards and certifications. The information shown on
BabyBjörn’s product sites is essentially the same as for the international version, however
presented in a much more visual way with extensive use of images rather than passages oftext, as this is more appealing to Japanese consumers.

11: Picture-content from BabyBjörn’s Japanese product site, showing how the product has been adaptated forJapanese sizes

As for marketing, BabyBjörn initially relied heavily on Search engine marketing and SEO todrive traffic to their shop sites. Whilst this is still an important component of their marketingstrategy, focus has shifted in recent years towards social media marketing and use of
influencers. For influencers, BabyBjörn identify a large number of smaller influencers in thecorrect segments (recent mothers or mothers-to-be) to post about their child-care
experiences and using BabyBjörn’s products. This strategy has proven very effective indriving both traffic and sales conversions.
One strong recommendation from BabyBjörn when working with local partners and storesis to focus as much as possible on a single exclusive partnership when first entering themarket. There can be a temptation to get products into as many stores as possible, but thisstrategy will often result in no single store having incentives or resources to properly market
the product. In the long term, this is an ineffective method to build brand awareness, andeven worse, may lead to some stores starting to discount excess stock, actively hurting thebrand. Instead, working with a single, larger partner, whilst it may lead to lower initial sales,
creates the necessary preconditions for long-term brand building. For those with enoughresources to seriously invest in the Japanese market, immediately setting up and driving
traffic to a fully owned, proprietary store can even be the most profitable option. However,for most, the exposure which can be gained from appearing on major third-party sites canbe a more reasonable strategy to start driving initial sales. From there, a brand can work to
gradually build and nurture brand awareness, with the aim of converting customer traffic totheir own site in the longer term.

26 (32)LAPUAN KANKURIT

Lapuan Kankurit (LK) is a Finnish textile company founded in 1973 by third-generation
weaver Juha Hjelt and his wife Liisa, but the weaving tradition dates to back to 1917 when
his grandfather started making felt boots. The company is still family run today as the CEO
is their son Esko. It is known for high quality bath linen, scarfs, blankets, and other textile
daily goods.
LK entered Japan in 2008 with test sales carried focused on limited items in Isetan andonline sales through a local interior focused website with strong sales power. The market
entry, development, and representation (and this interview) has been done with a strong
local distributor called Biotope. They oversee the LK brand and carry out sales andmarketing activities such as pop-up store, B2B-event booths, localize the brandmaterials/visuals, and adapt the market development strategy to fit the Japanese market
both offline and online.
LK also started working on developing a Japanese exclusive design with local designer
Suzuki Masaru. Today the brand is established across the country at various interior shop
locations as well as its own flagship store in Omotesando, Tokyo. Furthermore, the brand isavailable on several interior and Nordic focused online shops in addition to having a fullyfledged in-house operated e-commerce site. The Omotesando store is meant to serve as akind of Mecca for fans of the brands to gather and as such pre-covid they regularly held
Finnish focused event such as a Sauna or cooking class event. Online promotion is done
mainly through Instagram as visual image is the most important aspect to show to theJapanese consumer. Here LK also utilizes influencers relevant to the brand image andprefers to do promotion with larger number of smaller accounts as this increases thepotential for good variation while keeping target relevant vs a single large influencer thatmight run the risk of not being a good match. The online and offline placement is aimed towork in synergy by showing consumers one image and focusing them to specific point ofsales. Therefore, it is worth noting that LK is not currently actively pursuing Rakuten or
Amazon as online sales channels for as the brand building power on those sites is lower
compared to more relevant specific category e-commerce sites.
The journey to this stage has been taken gradually through step-by-step expansion in B2C
through collaborations and pop-up stores to increase awareness and B2B via growing
exhibitions at industry events to gain the attention of retailers. The slow and steady approach
was needed as the goal for LK was to not just get quick sales but to build a brand long term
and the key to that process was creating a core fan audience with a deep connection to thebrand first and then try reach a larger audience. Also, the slower process meant that LK could
avoid spreading resources to thin across many marketing platforms and sales channels thus
matching and growing the sales team capability and knowledge alongside the steady increasein sales.

27 (32)

12: Localized social media content showing LK goods being used in Japanese daily life

LK did this first by focusing on wool items and the Finnish image of cold nature that isalready established in the Japanese mindset and this was used as a base to show how theitems would fit into a Japanese lifestyle. This was needed as while the Finnish image isalready strong and great tool for new brands wanting to reach a wide audience when entering
Japan, it will only take that new brand so far. Especially for international lifestyle goods andbrands in Japan, once it needs to convert interested customers to purchasing customers LK
stresses there should be an emphasis to show how the Japanese customer can implement it
into their daily life. Therefore, having a good understanding of the end users and their daily
life is extra important for the Japanese market.
Furthermore, LK stresses it is important for newer brands wanting to enter the Japanesemarket to figure out your key item and that the best performer might be different than whatis expected. Being able to carry out some type of initial test sales can give highly valuable
information for figuring out the Japanese consumer and avoid potential failures with large
stock in items that are not suitable for the market. LK also mentions it is also worth to notethat in building the brand, especially when aiming for a more premium image, new brands
should be careful not to oversell as discounting will dilute the image. Finally, emphasisshould be placed on finding a good partner that is willing to plan long-term and work
together in creating the brand image as that is the best recipe for a stable entry.

28 (32)

ORREFORS KOSTA BODA

Orrefors Kosta Boda (hereafter shortened to OKB) is a Swedish glassware corporation
formed in 1990, though many the individual glassworks who are part of the group have asignificantly longer history, with some dating back to the 1800’s. Today they mainly sellglassware and interior design elements under the two brands of Orrefors and Kosta Boda,
and are represented in Japan (and this interview) by a long-term local Japanese partner.
OKB also has a long history in Japan, with a presence dating back to the 1970’s. They havelong promoted their goods in an own gallery in Tokyo as well as through several distributor
partnerships. They started developing their Japanese website in 2011. Though they have also
long been present on both Amazon and Rakuten, OKB are now turning away from thesethird-party sites and are no longer promoting new products on these platforms, citing
problems with controlling pricing of their goods as well as their brand image. Instead, OKBs
own Japanese website is their most important sales channel, especially as sales fromdepartment stores have plummeted during the recent pandemic-related state-of-emergency
declarations.
Reflecting on their long history in the market, OKB remarks that whilst Nordic brands
certainly still have a strong brand image and loyal audience, recent years have seen higher
competition, especially as more Nordic players have targeted Japan to capitalize on
favorable conditions. As such, making it as a Nordic brand in the market is less of a given
now than it was 10 or 20 years ago.
Whilst OKBs products don’t necessarily play into the traditional Nordic associations ofsimplicity and clean design, they are still using their Nordic image as a core part of theirmarketing story to this day, using Japanese consumers’ familiarity with the Nordic idea as a
stepping-in point into the more specific narrative and brand story of OKB and its history.
OKB also highlight the need to understand that what the Japanese customers like about yourbrand may be very different from what customers in other markets appreciate the most. For
OKB, who have been present in the market for a long time, nostalgia from customers whogrew up around OKB products have become one of the key selling points for their products.
As a result, the products which are best sellers in Japan are often completely different fromthose driving the largest volumes in other markets and choosing which products to include
and highlight in the Japanese catalogue is thus an exercise based on both a deep
understanding of the market and many years of experience with selling the products there.
A final tip is, paradoxically, to avoid becoming too popular. Japan is a market especiallyprone to fads and trends, which can lead some products to quickly gain fame, only to thenbecome immediately outdated as their short stint in the spotlight passes over. How to best
manage this tendency for short-lived fads will of course depend on the specific brandstrategy chosen, but for many brands who seek longevity and stable profitability, it can better
to manage a quality group of loyal customers than attempting to grow too wide too fast.

29 (32)ACKNOWLEDGEMENTS
Business Sweden would like to thank everyone who has contributed with their input,
insights and expertise to this report. Specifically, we want to thank everyone who has taken
the time to participate in an interview, including…
•

Haruna McWilliams, Tokyoesque•

Keita Fujiwara, KOTTE&Co (Representing Orrefors Kostaboda)•

Kumiko Ito, Rights&Brands•

Makoto Fukai, BabyBjörn•

Maria Arteaga, DMFA (Digital marketing for Asia)•

Masato Tsukiji, Biotope (Representing Lapuan Kankurit)

30 (32)APPENDIXType
Application
Defensive markapplication

Trademark26€ (¥3,400)+53€ (¥8,600)
per classification
53€ (¥6,800)+134€ (¥17,200)
per classification

DesignApplication
Defensive
mark
application

124€ (¥16,000)※40€ (¥5,100)※※per design in the case ofcollective application for
multiple designs)

Annual fee /Registration fee
Registration fee:
-Payment ofregistration fee by
installments
Renewal fee:
-Payment of
renewal fee by
installments
Defensive markregistration fee:
Defensive markrenewal fee:
Opposition/
Appeal / Trial
Opposition
AppealTrial / Retrial

219€ (¥28,200)
per classification
127€ (¥16,400)
per classification

1-3rd year:
annually,
4-15th year:
annually,66€ (¥8,500)

301€ (¥38,800)
per classification
176€ (¥22,600)
per classification

4-20th year:
annually,※1
4-25th year:
annually,※2※1 For Designs applications
filed on or after April 1, 2007
※2 For Designs applications
filed on or after April 1, 2020

Appeal427€ (¥55,000)

Trial /
Retrial427€ (¥55,000)

131€ (¥16,900)

219 (¥28,200)
per classification
259 (¥33,400)
per classification23€ (¥3,000)+62€ (¥8,000)
per classification
117€ (¥15,000)+311€ (¥40,000)
per classification
117€ (¥15,000)+311€ (¥40,000)
per classification

31 (32)

BUSINESS SWEDEN TOKYO
Roppongi 1-10-3-200, Minato-ku, Tokyo 106-0032, JAPAN
T+81 (0)3 5562 5091
tokyo@business-sweden.se
BUSINESS SWEDEN Box 240, SE-101 24 Stockholm, Sweden
World Trade Center, Klarabergsviadukten 70
T +46 8 588 660 00 F +46 8 588 661 90
info@business-sweden.se

BUSINESS-SWEDEN.COM

LINKEDIN.COM/COMPANY/BUSINESS-SWEDEN

TWITTER.COM/BUSINESSSWEDEN

FACEBOOK.COM/BUSINESSSWEDEN

INSTAGRAM.COM/BUSINESSSWEDEN