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| Why should I consider exporting to Japan? |
| Japan is a vibrant, prosperous country, and has the world's second largest economy. With a population of over 127 million, Japanese consumers spend hundreds of billions of dollars on food, clothing, travel, entertainment and a wide variety of other consumer goods and services each year. The potential is substantial, and with our professional and experienced team TK Organics can provide your company a full export package, to reduce your risk of exporting to a new area, without affecting your bottom line. |
| How big is the market opportunity in Japan? |
| The market opportunity for each product varies,
however with over 1,680,000 wholesale and retail establishments, annual
sales value of commodities of 548 trillion yen, 45 million dwellings
and approximately 1/3 of the world's savings, the size of the market
is substantial.
According to the Ministry of the Environment, the value of the environmental market in 2000 was 41 trillion yen and it is estimated that the market will reach 103 trillion yen by 2025. Furthermore, according to the Ministry of Economy, Trade and Industry's Health Service Industry Creation Study Group Report, the 2001 health market was valued at 12 trillion yen and it is estimated that it will expand to 20 trillion yen by 2010. The Organic market in Japan is worth 3.3 Billion USD, increasing
at a rate of 21% annually. Australia's largest export market for
organic products is by far Japan, which accounts for 33.59% of all
organic exports |
| How long does it take to develop business in Japan? |
| It really depends on the product and your commitment to quality, service, and support. Japanese plan for long term business relationships, therefore tend to move slower in the beginning as they build relationships and study the opportunity thoroughly. Once they are comfortable and an agreement made your business should develop more rapidly. As Japan has many differences in culture and way of doing business, the success of any product ultimately depends on flexibility to meet the Japanese market. |
| Once I appoint TK Organics can I leave it to you to sell our products? |
| TK Organics will liaise with you regularly, and work closely with you, providing market research, translation and development of suitable marketing materials, any re-labeling requirements, identifying distributors or buyers, customer negotiations, handling, export paperwork and logistics, sales development and promotion, etc, depending on what you require. However as Japan is a competitive market you will need to gain some understanding of the customers market through us and be flexible & willing to provide support information on your products and work together to develop sales growth. |
| What kind of distribution strategy do you recommend for Japan? |
| There are a variety of distribution options for Japan including specialty retail stores, department stores, catalogue, internet, TV shopping etc. We can advise you on which channels would be most suitable and cost effective for your products, and develop a strategy. |
| Should we export our full range of products? |
| We do not export all products from every company as some products may not be suitable for Japanese market. It may better to focus on a few products that would be most popular in Japan. Please contact us for a free consultation for advice on whether your products are suitable for export, and how we can help you. |
| Is there a quick way to get our products into Japan? |
| Building solid long term business relationships, being prepared, and committed to providing quality service and support, is the best way to build solid lasting business in Japan. |
| I have a friend in Japan who I could send some samples to, will this work? |
| The best chance of success is for someone with experience and networks in the Industry to handle your products and avoid the exporting pitfalls. |
| What about the market opportunity for organics in other parts of Asia? |
| Taiwan - The land mass of Taiwan
is a third the size of Tasmania and yet has a population of 22 million
comprised of Taiwanese 84%, mainland Chinese 14%, and other indigenous
minority groups 2%. Taiwan has a dynamic capitalist economy with a
Gross Domestic Product (GDP) of US$12,700 per capita. The country
has a substantial trade surplus and its foreign reserves are the world's
third largest. Taiwan is an interesting market. While it is ethnically Chinese, it is significantly different from mainland China in terms of lifestyle, attitudes, culture and to some extent eating style. Taiwan has been slow to join the global organic movement and is largely reliant on imported organic products. However, despite its slow start, consumer demand for organic products in Taiwan is increasing with a 75% increase in the retail value of the market in the four years from 1999-2003. The Taiwan government estimates that the organic market was valued at approximately US$44.5 million in 2003 compared with 23.7 million in 1999 (Phipps, 2005). In 2000, 90% of imported organic products to the Taiwan market were sourced from the US. As the industry begins to cement itself and consumer demand for organic products increases, the opportunities for Australia to supply the market and increase its market share appear to be significant. It would appear that it would be a good opportunity for Australia to enter this emerging market now in order to establish itself in the long-term. Southeast Asia / East Asia - The Southeast Asian markets including Singapore, Hong Kong and increasingly Malaysia, will be significant markets although much smaller than the others mentioned. Singapore only accounts for 1.37% of Australia's total organic exports. While Singapore has a small population, it is almost totally reliant on imported foods and because of Australia's proximity it has traditionally been a major supplier of conventional fresh produce, China - In the longer term China will become a
major market for organic foods. As the country continues to develop
economically, and with the emergence of highly affluent consumers,
there will be growing demand for certain organic products that are
unavailable locally. Australia may be able to seek out niches for
certain other organic products. The best prospects for China are
likely to be processed organic foods. |
| Resources: Export Potential for Organics - opportunities and barriers June 2006 by RIRDC Census of Commerce by METI Japanese Market report 2006 by JETRO |
| Contact TK Organics today for the best advice on your export project! |
|
PO Box 306, Southport
BC, QLD 4215 Australia. Phone / Fax : +61 7 55378810 Copyright (C) 2006 tk organics |