How can Chinese brands take root in the Japanese market? A conversation with Xidao Consulting, ROMOSS, and Hesheng

As Japanese consumers' awareness of Chinese brands improves, opportunities for brands in the Japanese market are gradually increasing. This article emphasizes the importance of in-depth understanding of local culture and consumer needs, and proposes strategies for success in the Japanese market, including localized marketing and cooperation with local companies, providing valuable insights and practical suggestions for Chinese brands that want to enter the Japanese market.

As the most classic and benchmark market in Asia, the Japanese market is now also one of the popular choices for many companies going overseas.

However, the difficulty in entering the Japanese market, which seems to be close to and similar to ours, lies in "similar cultural habits vs. very different consumer behaviors." Therefore, how to "take root" in the Japanese market and advance the process from "0 to 1" has become the first question that many companies that want to expand into Japan think about.

Based on this, we at Morketing Global, together with Japan's leading consulting firm Xidao Consulting, and at the same time, we held a multi-dimensional dialogue with ROMOSS and DREO, which have mature experience in overseas layout, to discuss, share, and analyze the Japanese market from all aspects.

"Japanese consumers' views on Chinese brands have changed. They believe that Chinese brands' products are not only reasonably priced but also have excellent designs. Against this background, this is an opportunity for many Chinese brands to enter the Japanese market" - Kunihiro Koreeda, Chairman and General Manager of China Region, CDI Global Partner.

“Before localization, companies should go to the target country in person, whether visiting first-line stores or future cooperative customers, and conduct on-site inspections.” - Yao Nan, CMO of ROMOSS.

"We need to be very fast, not only in production, but also in flexibility, responsiveness and agility. This means we have to be brave enough to try and make mistakes, truly understand consumer needs, and try more localized strategies." - Olivia Xu Chang, DREO

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The following is a transcript of the conversation, edited by Morketing Global:

1. The mature Japanese market is a classic "highland" in Southeast Asia

Morketing Global Zeng Qiao: Welcome to CDI Global Partner China Chairman and General Manager Kunihiro Koreeda, ROMOSS CMO Yao Nan and DREO and Product Marketing Director Olivia Xu Chang. Please introduce yourselves first.

CDI (CDI) Kunihiro Koreeda: Since its establishment in Japan 40 years ago, CDI has expanded to Southeast Asia and plans to expand its business to India this year. In Japan, there were many European and American strategic consulting firms in the past (in the 1980s). Although they were good at formulating strategies, implementation was more critical, which was also the reason for the establishment of our company.

One of our main businesses is to assist Japanese companies to expand into the Chinese market and Southeast Asia. In 2008, we established a branch in Shanghai and set up offices in Thailand, Vietnam, Singapore and Indonesia. Now that Chinese brands are also globalizing, we can also use the resources we have accumulated in the past to help Chinese brands expand into Japan and other overseas markets.

ROMOSS Yao Nan: In fact, ROMOSS is not unfamiliar to many young Chinese people. Many of them have been using it since childhood. Our brand has a history of almost 11 years and has always focused on the charging field. In addition to power banks, we also have charging heads, charging cables, outdoor energy storage, and light outdoor series products, and we have been deeply involved in the charging field.

In China, ROMOSS has become a leader in the power bank market. We are also actively expanding in overseas markets, especially in Europe, the United States and Southeast Asia. We have already achieved top level in a single channel.

Olivia Xu Chang, DREO: Compared with the other two companies, DREO may be younger, the company is only 3 years old. From a business perspective, we have focused on global development from the beginning. We are a pure global startup, and our main markets are currently concentrated in Europe and the United States.

Morketing Global Zeng Qiao: In the past two years, the globalization of Chinese brands has become a common phenomenon, and the Japanese market has also been increasingly valued. So, as a Japanese consulting company, how does Xidao Group view the development trend of Chinese companies or Chinese brands in Japan?

Kunihiro Koreeda of CDI: I started this job about ten years ago. At that time, Chinese brands rarely entered the Japanese market, and the main way of entry was through acquisition, such as Haier's acquisition of Sanyo Electric and Midea's acquisition of Toshiba's home appliance business department.

Five years ago, Chinese brands began to slowly enter the Japanese market, such as Huawei, Xiaomi, Anker Innovations, BYD and some headphone brands, as well as cosmetics brands such as Huaxizi and Perfect Diary.

There are two reasons behind this. First, Chinese brands are now very competitive. Second, the prejudice against Chinese brands in Japan, especially among the younger generation of consumers, has almost disappeared. 15 years ago, people might think that Chinese brands were cheap but of poor quality. Now the situation is completely different. Japanese consumers' views on Chinese brands have also changed. They believe that Chinese brands are not only reasonably priced, but also have excellent designs. Therefore, for many Chinese brands, this is an opportunity to enter the Japanese market.

Morketing Global Zeng Qiao: Under the above trend, what advantages or opportunities do Chinese brands have in the Japanese market compared to brands from other countries?

CDI: Chinese brands have several obvious advantages. One is that they have richer marketing; the second is that they are good at using data; the third is that Chinese brands act very quickly. These advantages allow each Chinese brand to continuously improve itself. Chinese companies are also actively embracing the Internet and digital transformation, which is difficult for brands from many other countries to match.

On the other hand, Chinese products are now very excellent, not only in design, but especially in 3C (consumer electronics), such as power banks and other electronic products, which are very good for Japanese consumers.

In contrast, Korean cosmetics are very popular in the Japanese market, but this is due to the penetration of Korean TV dramas and other cultural products. In addition, American or European brands have a long history and a lot of marketing investment. Chinese brands have more obvious advantages in marketing, data utilization and rapid response to the market.

Morketing Global Zeng Qiao: Japan is a popular overseas market. Does ROMOSS have any plans to expand into Japan? What do you think of the value and opportunities of the Japanese market? What are your considerations?

Yao Nan of ROMOSS: The potential of the Japanese market is huge, because its per capita consumption capacity and population are both world-class, which means that Japan is a very promising market. We are also actively planning, including recruiting teams and deepening local insights and consumer insights. Although we are still in the early preparation stage, we are very determined to make this market a focus of our global market layout.

Moreover, from a strategic perspective, the Japanese market is a mature and developed country. Its 3C electronic consumer products are of very high quality and have a sense of design. For Chinese companies like us, it is more of a learning experience and a mutual promotion to become a high-quality market.

For example, in Japan, we can compete with local brands or Korean brands, which will improve the overall quality, design and experience of our products. In a broader sense, this will be of great help to the global market and products. Moreover, I believe that products that have been proven in the Japanese market will also be recognized when they are radiated to Southeast Asia or other countries.

From a business perspective, Japan is a country with very strong per capita spending power, and consumers have high demands for product quality and experience. We are confident in providing such products to local consumers, so this also determines whether we should enter this market, and the answer must be yes. We will definitely invest resources and manpower to take over this market.

Olivia Xu Chang, DREO: We have great respect for the Japanese market, both from a business and strategic perspective.

First of all, we attach great importance to channel strategy, the combination of online and offline channels, brand communication and cultural integration.

Secondly, the consumer demands of each market are unique. Japanese consumers have seen very strong consumer electronics brands, and may have higher requirements for products than other markets.

Japanese consumers have very high requirements for product quality, innovation and technology. Japan is a market that we find very challenging but exciting. If we can meet the needs of Japanese consumers, our products will have strong competitiveness and influence in the global market, especially in markets with similar Asian culture. Extending to the scene perspective, we can find that the Japanese market is different from other markets in terms of space utilization and intelligent needs, which will also allow us to discover new innovations and opportunities in the Japanese market.

Yao Nan of ROMOSS: Both of us seem to think that the Japanese market is about having feelings first and then talking about bread. In fact, under normal circumstances, when we go overseas, we quickly expand channels to increase sales, but when it comes to the Japanese market, we first talk about how this market can help the enterprise, brand, and product level, and then talk about how to obtain more commercial benefits.

Morketing Global Zeng Qiao: Is it a bit like taking over the market? For example, after taking over, you can better operate in various markets around the world.

Olivia Xu Chang from DREO: Yes, but it is not necessarily easier to operate. It should be said that Japan is a more classic market because all the classic brands come from Japan.

CDI: Actually, many Japanese companies have been acquired by Chinese companies, such as Toshiba and Sanyo Electric. For Japanese consumers, most of the imported home appliances are Chinese brands, such as Haier and Midea. The scale of Midea has even exceeded that of Panasonic. So, when people mention that they have a good impression of Japanese companies, Japanese consumers also have a good impression of Chinese brands.

2. Same cultural habits, but very different consumption behaviors?

Morketing Global Zeng Qiao: Regarding Japan’s strong consumption capacity, can Koreeda share with us the level of per capita consumption capacity in Japan?

CDI: On average, it is about twice that of China, probably about the same as Shanghai and Beijing. But China is very large, and there are rural areas, so China has the concept of sinking market, but Japan does not.

For example, people in my hometown can afford Sony TVs or Toshiba products. They have sufficient purchasing power and most of them have only graduated from high school. The overall situation is very average, which is completely different from China.

Morketing Global Zeng Qiao: In China, women’s spending power has risen in the past two years, while men’s spending on pets is not as high. Is the same situation in the Japanese market?

CDI: Yes, Japan has been like this for a long time, especially after the epidemic was lifted. Many men will hand over their salary cards, which are about 30,000 yen per month, or about 1,500 yuan in pocket money. Women still control the economy. Therefore, women have a very high influence on decision-making when buying a house or a car.

Yao Nan of ROMOSS: In fact, women have a great influence on car purchases in China. For example, various car brands are now also making arrangements on female-oriented platforms, such as Xiaohongshu. Although men make the decision to buy cars, men generally will not buy them if their wives say that the car is uncomfortable or too ugly.

Morketing Global Zeng Qiao: The growing influence of female consumption is indeed a similar trend in the Japanese and Chinese markets. Does this mean that cosmetics brands have an advantage in expanding to Japan?

CDI Consulting (CDI) Kunihiro Koreeda: There are more than 20 Chinese brands entering Japan, and they are all cosmetics. On the one hand, Japanese and Chinese consumers are not easy to change their skin care products; on the other hand, Chinese-style makeup has been very popular among young Japanese women in the past two years.

Yao Nan from ROMOSS: Are the 20-odd Chinese cosmetics brands that Mr. Koreeda mentioned brands like Huaxizi that were already very successful in China?

CDI Consulting (CDI) Kunihiro Koreeda: Not necessarily. There are some companies that are not well-known in China, but they are doing very well in the Japanese market.

Morketing Global Zeng Qiao: In addition to beauty and 3C, what other categories are suitable for the Japanese market?

Kunihiro Koreeda of CDI: Japan is a very mature market, and there are opportunities in every industry and track. Moreover, consumers have very diverse aesthetic tastes, and they like unique products that others don't know about. If Chinese brands can provide truly attractive features, they may be able to impress Japanese consumers.

Regarding the high loyalty of Japanese consumers, it can be said that they are loyal, but it can also be said that they are not loyal. If they like a brand, they tend to buy it for a long time. But one thing is different from Chinese consumers. Chinese consumers may pursue popularity and popularity more and like those well-known brands, but Japanese consumers are more inclined to discover those brands that are not well-known to the public but of high quality. They enjoy this uniqueness.

In general, the Japanese market is already very mature. If consumers are convinced by the product, they are willing to try new things, so the Japanese market has a lot of diversity.

It is worth noting that for food and beverage and other catering-related industries, entering the Japanese market will be difficult, but not impossible. For example, Haidilao has been successful in the Japanese market, although they have a limited number of stores. This may be related to culture. Japan does not have a hot pot culture.

3. Faced with the situation of "not adapting to the local environment", how should Japan's online and offline channels be arranged?

Morketing Global Zeng Qiao: For Chinese brands that want to expand into Japan, what preparations do they need to make and what challenges do they need to face before entering Japan?

CDI: Online channels are a better choice in the early stages of entering the Japanese market. This is because Chinese brands have strong online operating capabilities. For example, Anker’s user base is mainly male, so it is on the Amazon platform. ROMOSS’s users are mainly female, so it can choose Rakuten. Rakuten is the second largest e-commerce platform in Japan, and its users are mainly female.

There is also Lefen, which has improved its brand positioning by cooperating with high-end Japanese women's magazines, and then gradually began to popularize offline channels. In fact, retailers in offline channels are very cautious and generally will not buy brands that are not famous and have no performance in Japan. In addition to sales, cooperation with famous magazines can also be regarded as endorsement.

Japan also has many pop-up stores that can provide services that allow consumers to experience products. By observing daily customer traffic and purchases, performance can be gradually accumulated to expand the brand's offline channels. In Japan, there is also a dedicated product development team that can develop and improve products for the Japanese market.

For brands that want to enter the Japanese market, such as ROMOSS, the most important thing is the product itself. So consider offline channels first, and then layout online channels, so that development will be smoother. If you always focus on online channels, it will be difficult to break through offline channels in the future.

DREO Olivia Xu Chang: Mr. Koreeda, what do you think are the one or two most important things a brand should do in the early stages of development?

CDI: I think the most important thing is brand positioning. The market environment in China and Japan is different, so brands may need to adjust their positioning strategies. For example, Huaxizi is positioned as a high-end brand in the Japanese market, and its price is similar to that of Dior.

The LeFen mentioned above is also very successful. Perhaps it is seen as a cheap alternative to Dyson in the Chinese market, but this is not the case in the Japanese market. Although Dyson is slightly more expensive than LeFen, Dyson is aimed at male consumers, while LeFen is prettier and cuter, targeting female consumers.

Yao Nan of ROMOSS: When talking about Lefen’s entry into Japan, I am very curious about what kind of brand story it told Japanese consumers. Will it emphasize that it is a Chinese brand?

CDI: I have never seen them call themselves Chinese brands, and many consumers do not know which country Lifen is from. High-tech brands are more targeted at male consumers, but Lifen is high-tech and also focuses on satisfying the emotional needs of female consumers.

In the Japanese market, targeting the gaps in market positioning allows marketers to discover and use this space to adjust their brand positioning. The key to changing brand positioning is the brand story, and new stories can be told in Japan.

I just said that the advantage of Chinese brands lies in "speed". However, in the early stages of a brand, you should be cautious when choosing brand positioning. Although the Japanese market is large, its population is only one-tenth of China's. Therefore, once the brand image is damaged, it will be difficult to recover.

Morketing Global Zeng Qiao: Entering the Japanese market requires a brand story, so what kind of brand story is suitable for telling in Japan?

Kunihiro Koreeda of CDI: Focusing on product development is the key, just like ROMOSS has been focusing on charging technology. We just talked about focusing on products rather than sales. This concept is very popular in Japan, especially for brands with poor packaging but great contents, like MUJI. Because the packaging is too good, it is easy to feel cheated.

Therefore, it is better to start the brand story with products or technologies.

Morketing Global Zeng Qiao: Will brands entering Japan face some “pain periods” and “inadaptability issues” that need to be overcome?

Kunihiro Koreeda of CDI: There will be many problems. I think China has a very developed e-commerce environment, including Tmall, Taobao, Douyin and other e-commerce platforms. If a brand is successful online, it can naturally develop offline. But Japan does not have this. Japan's online and offline connections are relatively backward, so developing offline channels in Japan requires establishing a team dedicated to offline channels to handle logistics, promotions, price adjustments and other issues.

Maybe everyone in China uses big data to judge and make decisions, but the environment in Japan is a bit like the situation in China 11 or 16 years ago. I think Chinese companies no longer need market surveys, and can directly look at consumer data on the Internet, but Japan still needs to conduct market surveys because there is almost no offline information or the scale is too small, so the integration of online and offline is a very important and most troublesome issue in the Japanese market.

Yao Nan of Romas: I think the primary challenge of entering a new market often does not come from the organization or the people. It is like when a person goes abroad for the first time and faces a strange country, he may feel scared and terrified. This emotion stems from the unfamiliarity with the local culture and human environment.

So the first step must be to find a team that understands local consumers and channel localization, to help us create marketing content, brand packaging and product insights that can resonate. Including the retail experience just mentioned, especially for brands that mainly rely on offline stores, every detail, including the shopping guide’s gestures, words, smiles, etc., will affect the brand’s image in the minds of consumers. So localization is the key. We now talk about going overseas and being born to be global. I think it is more about "I want to become a glocal", with both global strategies and product layouts, as well as this kind of localized organization, team and consumer insights to support you to live better in the local area.

Morketing Global Zeng Qiao: Offline channels may be more important than online channels in the Japanese market? If you enter the Japanese market, how should you develop offline channels, and how should you combine online and offline channels?

CDI: You still need to accumulate performance first, and then communicate with channel partners. Of course, it is better to have a dedicated operation team, such as cooperating with an outsourcing company or building a team yourself.

However, although outsourcing brand operations can simplify processes and make brands easier to manage, this approach also has its disadvantages, especially in the Japanese market. Outsourcing may lead to an increase in the sense of distance between Chinese brands and Japanese consumers, thereby affecting the brand's in-depth understanding and improvement of the local market.

Therefore, I suggest that brands that are determined to expand into the Japanese market should establish their own offline team after achieving a certain degree of success online, and then integrate online and offline resources.

Morketing Global Zeng Qiao: Do ​​you think there are any very successful cases of Chinese brands setting up offline channels in Japan?

CDI: There is a health food brand that is very successful in the Japanese market. In fact, food itself is a difficult product to operate because it involves food safety. Our development plan for it is to open an online store to test Japanese consumers' preferences and functional needs for health products. After obtaining this information, we will cooperate with a drugstore chain - because drugstores focus on the health status of customers, they can provide simple data and accurately recommend suitable health foods to specific consumer groups. Now this brand has gradually become popular among elderly consumers.

Therefore, when going to Japan, you can build your own team to develop offline channels, or you can try to cooperate exclusively with local retail stores and focus on To B business.

Yao Nan, ROMOSS: For the Japanese market, what are the different types of offline channels? What are the needs or benefits of each channel for 3C or mobile phone accessories?

Kunihiro Koreeda of CDI: ROMOSS has more opportunities to target female consumers in Japan because there is Anker in Japan currently. Its strategy is to be online on Amazon and offline in large home appliance chain stores, which is a bit like Suning.com in China, so ROMOSS can target female white-collar workers in cities.

There is an interesting data. The survey shows the average weight of bags of Japanese white-collar women, which is generally around 3 kilograms and contains a lot of things. If ROMOSS develops some cute, beautiful and lightweight products for this group, it will be very popular.

I have also searched specifically, and most of the power banks on Amazon are functional ones. Even if there are lightweight products, they are mainly black. There are very few cute products, such as ROMOSS mini energy bars, which are completely missing. Therefore, this kind of product will be very competitive in Japan.

If we enter the offline channel later, we can expand in offline collection stores. This kind of store has some cute cosmetics and stationery products, and ROMOSS's products are very design-oriented and very suitable for this offline scene.

Olivia Xu Chang from DREO: Japan has a silver economy, a very high aging population, a stay-at-home economy, and an increase in single people. These trends will continue in the next 3-5 years. What are your considerations and strategies for their impact on channels and brand positioning online and offline?

CDI: Yes, in Japan, people aged 65 and above account for about 35% of the total population, about one in three people is elderly, and there are more and more single people. However, people aged 60 and above are more receptive to technology than they were 30 years ago. They are used to online shopping and using smart devices, and they don’t want to be labeled as “elderly”, so there is no need to worry about this.

Moreover, the Japanese market has some particularities, especially the elderly care market. Japan's pension insurance quota is very high, and many elderly people will choose to enter nursing homes when they reach 75 or 80 years old. Therefore, nursing homes are the main part of the elderly market. For example, Hesheng has smart home products, and it can also consider To B channels.

One of my clients is a nursing home company. They have more than 100 nursing homes in Japan, but they are troubled about how to manage the elderly, especially those with dementia who forget and cannot control themselves. How should such elderly be managed? The caregivers are all young people, but there are fewer and fewer young people in Japan, so they need to improve efficiency, which will generate many functional requirements.

Hesheng can fully cooperate with such companies to develop some smart home appliances, then cultivate brand power and then enter the To C market.

4. Taking 3C products as a starting point, how to expand into the global market

Morketing Global Zeng Qiao: Can you briefly talk about the globalization trend of Chinese 3C companies?

CDI: From the perspective of Japanese companies, Chinese brands are a strong competitor, especially in the Southeast Asian market. This market is very important to Japanese companies, and they have a high market share here. Some brands even have a market share of more than 90% in Southeast Asia. But recently, Chinese brands have become more and more present in the Southeast Asian market. For example, large Chinese brand advertisements can be seen in major subway stations in Thailand, which makes Japanese companies feel threatened and under pressure.

Because the strongest point of Chinese brands is their speed of action. They enter the market quickly and pounce on it, just like ROMOSS’s strategy in the Philippines. They act very quickly.

Yao Nan of ROMOSS: When it comes to the Philippines, we actually also use the traffic platform - the local TikTok for content marketing and traffic acquisition, such as localized live broadcasting. So I think Chinese companies are very sharp, knowing which platforms have traffic dividends, and quickly deploy, integrate products and supply chains, and maximize investment in sales.

Olivia Xu Chang, DREO: We found that through the layout on new media platforms such as TikTok, more young consumers, especially those aged 18 to 35, began to pay attention to and choose our products. This shows that consumers in the young market have become more rational. They not only value cost-effectiveness, but also pay attention to product quality and functionality.

In the long run, we still need to embrace young consumers, first focus on quality and price, then on cost-effectiveness, and make long-term plans.

Morketing Global Zeng Qiao: What are the current characteristics of 3C consumption?

Yao Nan, Romas: When I was discussing the changes in current consumer characteristics with my colleagues, we said that the global economic downturn has had an impact on consumer behavior, especially young people, who have become more cautious in their consumption attitudes. They are now more thoughtful and consider the practical use and urgency of the product. Japan may also have a more cautious consumption attitude.

Therefore, for 3C products, we need to attract them through differentiation, such as designing trendy appearance that suits their aesthetics, and providing practical and non-redundant functions. Product integration is also a trend, such as a power bank that can charge mobile phones, watches and headphones at the same time. This multi-functional integrated product is very attractive to young consumers who pursue simplicity and cost-effectiveness.

In general, consumers are not stopping consumption, but we need to provide more convincing and competitive products to meet their needs.

Olivia Xu Chang, DREO: We are still focusing on polishing our products and technologies. Of course, the channel of direct communication with consumers is still very important for the brand, so we are adapting to the rapid development of new media platforms on the one hand, and also communicating directly with consumers through APP. Our APP has about 500,000 active users, who can also communicate in the forum, and will also follow up on consumer feedback on some social media platforms in a timely manner, iterate products together, and make this brand more in line with their needs.

Morketing Global Zeng Qiao: What consumption characteristics does the Japanese market have in the 3C field?

Kunihiro Koreeda of CDI: Japanese consumers and Chinese consumers are similar, especially young consumers who pay more attention to the product's functionality, emotional value, convenience in daily life, and whether it can be used in a variety of life scenarios. This is consistent with the trend of young consumers around the world.

For example, when ROMOSS entered the Japanese market, if I were a Japanese consumer, I would wonder what kind of brand, history, and product features ROMOSS is. It would be best if I could get the real thing to see and understand the details before buying. As I just mentioned, interacting with consumers is also a good way, but it is not yet popular in Japan.

Morketing Global Zeng Qiao: In which market does ROMOSS do the best in localization? Do you have your own methodology for the underlying logic of localized operations overseas? Can you share it?

Yao Nan of ROMOSS: Let’s first talk about the Philippine market where we are doing well. We have long been among the top three in terms of sales in the Philippine market. There are three things we are doing well.

First, we closely grasp the love of young Filipino consumers for Korean and East Asian culture. Therefore, the marketing content of our products conforms to the aesthetic standards of Southeast Asia, giving people a fresh and fashionable feeling, or a very Instagram style.

Second, we invited a large number of Korean QLQCs to do street photography in fashionable locations, such as coffee shops and internet celebrity streets in Seoul, to radiate our product content to the consumer groups in Southeast Asia and build the internationalization of the brand at the brand level or cognitive level.

Third, create a local live broadcast room on TikTok and broadcast live in the local language.

These are also the three key factors to our success.

Although Chinese companies often mention localization when going overseas, not many of them can actually do it. I think to achieve localization, you first need to go deep into the target country or get in touch with local consumers. For example, the information of the drugstore and cosmetics brand mentioned earlier is obtained from the shopping guides in first-tier drugstores, which is more real and valuable than searching for data or industry analysis reports online. Because the shopping guides face consumers directly and can collect various specific issues, I think first-hand information is very valuable.

At the same time, I suggest that before localization, companies should personally go to the target country, whether visiting first-line stores or future cooperative customers, and conduct on-site inspections. Whether it is a small mom-and-pop store or a large customer or real consumer, you should have in-depth exchanges with them and ask questions to understand their needs and feedback, so as to get the so-called localized answers, rather than just looking at industry data and analyzing the overall market situation.

I must first go to the target market and communicate deeply with consumers, and then think about how my products and marketing can match local consumer needs.

Olivia Xu Chang, DREO: Mr. Yao and I agree that despite the reduction in market certainty, brands still need to return to the essence: understanding what consumers really need. This means providing products that consumers actually want, rather than forcing them to use things they don’t need. Both product development and marketing should be closely aligned with consumer needs.

In fact, some methodologies are old hat, but listening to market needs is indeed very important. After three or four years of sales, our products have been undergoing micro-iterations, but no complex functions have been added, because this is the original market demand. We also found that it is very important to have a deep understanding of the local market. For example, when we were developing kitchen appliances, although we innovated many interesting functions and received a great response at the beginning, we later made innovations in beef and found that the market response was not as expected.

Because we have the inherent impression that European and American consumers eat steak every day, but later we found that this is not the case. After communicating with consumers, we learned that American families cannot afford such good steak every day as we imagined. At the same time, there are also needs from vegetarians and other dietary consumers.

Similarly, if our products enter the Japanese market, we will also make micro-innovations based on the relatively light and simple eating habits of Japanese consumers. We will incorporate their dietary structure into our products, and in terms of communication strategy, we also need to explore points that can really impress consumers.

Overall, it seems that we face challenges every day, but what is more important is to return to the essence of things and integrate them into our daily habits. New discoveries may be made in these explorations.

Morketing Global Zeng Qiao: Do ​​you think these key successful experiences can be replicated in the Japanese market?

Yao Nan from ROMOSS: You can give it a try, it shouldn't be bad. Because Mr. Zhi said that Japanese consumers attach great importance to offline experience, and it is the same in Southeast Asia. For example, large shopping malls in Jakarta, the capital of Indonesia, are always crowded because the local climate is hot and the malls offer free air conditioning. This is different from the situation of young people in China who stay at home. They prefer to go shopping with friends. This shopping habit is very similar to the retail format in Japan.

Morketing Global Zeng Qiao: Hesheng Innovation has done very well in the European and American markets. Have you encountered any problems in entering overseas markets?

Olivia Xu Chang from DREO: Fans and heaters have achieved some results in the past three years, but the so-called problems seem to happen every day. From a marketing perspective, I feel that the "certainty" is getting lower and lower.

In the process of going global, we are faced with more and more categories. From mass consumer goods such as mobile phones and traditional consumer electronics five years ago, we could predict the approximate results through several certain platforms and channels. However, in recent years, there are more and more diverse products, and these products face different consumer demands, which leads to increased market uncertainty. Therefore, we need to quickly adapt to new market changes while maintaining long-term brand building, such as TikTok's overseas expansion, emerging platforms, and the decision-making needs of diverse consumers.

We need to be very fast, not only in production, but also in flexibility, responsiveness and agility, which means we have to be brave enough to try and make mistakes, truly understand consumer needs, and try more localized strategies.

In the Japanese market, we may find some consumer needs that we have never imagined in our overseas experience, such as silver economy and energy storage products. For larger product categories, such as outdoor and energy storage products, we cannot use the "textbooks" given by our previous experience. So what I feel is that the certainty is getting lower and lower, which requires us brand people to adhere to long-termism while being more open and flexible, embracing the characteristics of local culture and industry.

5. How can Chinese companies achieve effective overseas travel?

Morketing Global Zeng Qiao: What suggestions do you have for Chinese brands to go overseas in Japan and truly build a good Japanese market?

Xidao Consulting (CDI) is Zhibangyang: the first is to go deep into the target country and communicate with consumers in a real way; the second is to be patient, because change is very painful, and the companies I helped before also failed because they are not patient and do not want to change themselves; the third is to delegate authority, because if you keep communicating with the headquarters, it will be very slow.

Morketing Global Zeng Qiao: Romans and Hesheng are both relatively senior overseas players. Do you have any experience to share with domestic companies that want to go overseas?

Romes Yao Nan: During the process of going overseas, we have also stepped on pitfalls and accumulated some experience. The first point is that in the face of many countries around the world, each country has its own market dividends, but to distinguish its own key markets, it is necessary to prioritize the target countries. For example, the relatively mature and high consumption rate of the Japanese market, and the super large US market, can be used as a key breakthrough market. There are also some remote markets, Latin America and Brazil markets with less fierce competition, with high economic output and per capita consumption levels, but its e-commerce is not so developed, so many brands are still in the blue ocean.

Second, modern young consumers around the world are increasingly paying attention to the quality of their products, and they are able to identify and appreciate high-quality products. In the past, some Chinese brands may have deceived consumers when they go overseas, but now Chinese companies have become more formal and brand-oriented, and consumers can identify and be willing to pay a premium for high-quality products.

Finally, user operational thinking is also crucial. Consumers cannot be regarded as one-time sales targets to cut leeks, but encourage them to generate content (UGC) and share the experience and creativity of using products. This user participation and content creation can enhance the communication power of the brand and influence more potential consumers. Brands need to build and maintain a long-term user community, continue to operate and deepen their relationship with consumers.

Xidao Consulting (CDI) is Zhibangyang: In contrast, Japanese brands lack UGC. Although they arrive in the international market earlier than Chinese brands, they have little close relationship with customers.

Hesheng (DREO) Olivia Xu Chang: I think everyone’s experience and challenges are unique for mature brands or global expansion entrepreneurs, so I would rather provide entrepreneurs with some ideas to enhance their confidence.

I often heard that when WEB3 is popular, it becomes WEB3, and when AI is popular, it becomes AI, but I think Chinese entrepreneurs and brands have the potential to push any category to the global market. There is no limit. The important thing is that good products should allow more consumers to experience it. As long as you have enough enthusiasm and persist in product quality, any category has the opportunity to successfully go overseas, and even have the opportunity to become the next DJI - DJI has become a great brand by deeply exploring specific needs and adhering to the spirit of craftsmanship.

Now the market and communication channels have become more transparent, and the information differences have decreased, providing opportunities for all brands. Whether through short videos, YouTube or other platforms, brands can communicate with consumers more directly. Therefore, we should jointly build a brand overseas ecosystem.

Yidao Consulting (CDI) is Zhibangyang: I think the purpose of going overseas is crucial to brands. The global market is vast and every region has opportunities, but brands need to clarify their goals: whether to increase sales or increase brand awareness. Different goals will guide brands to choose different markets. If the goal is to develop rapidly, Southeast Asia may be a better choice; if the goal is to build a long-term brand, the Japanese market may be more suitable. When encountering difficulties, if the purpose is ambiguous, the team will easily get lost, so a clear goal is crucial to the team's direction and decision-making.

In addition, understanding consumer needs is important, but cooperation with local companies is equally critical. Each country has its main channels and advertising companies for its market, which are usually willing to work with Chinese brands to provide consumers with new products and new experiences, and brands can also enter the market more effectively, rather than relying on the resources of Chinese companies themselves. So it is also a good way to cooperate with local companies.

Author | Qiu Tianyi Dialogue | Zeng Qiao