As an island country, Japan is located in the east of Asia and the northwest of the Pacific Ocean. Due to its unique geographical location, Japan plays a pivotal role in the global economy. As the world’s third largest economy, Japan is an economic powerhouse in the Asia-Pacific region and one of the leaders in global technological innovation and advanced manufacturing. Its strategic geographical location makes it an important hub connecting Asia and America, and it occupies an important position in international trade.

Japan’s gross domestic product (GDP) has long been among the highest in the world. By 2023, Japan’s GDP will be approximately $4.2 trillion. However, Japan’s economic growth has slowed in recent years and it faces a series of challenges. In 2023, Japan’s economic growth rate is about 1.3%, which is relatively stable but moderate. This growth trend reflects the maturity of the Japanese economy, but also highlights the structural problems it faces, such as an aging population and deflationary pressure.

In response to the slowdown in economic growth, the Japanese government has implemented a series of economic policies, the most well-known of which is “Abenomics”. This policy is named after former Prime Minister Shinzo Abe and mainly includes three “arrows”: bold monetary easing, flexible fiscal policy, and a growth strategy to stimulate private investment. Although Abenomics has achieved certain results in boosting the economy and getting rid of deflation, its long-term effects remain to be seen. In recent years, the Japanese government has continued to implement active economic policies, including digital transformation and green growth strategies, aiming to improve productivity and create new economic growth points.

The Japanese economy faces both challenges and opportunities. On the one hand, problems such as an aging population and labor shortages put pressure on economic growth; on the other hand, Japan still maintains strong competitiveness in high-tech, precision manufacturing, service industry innovation and other fields. For companies interested in entering the Japanese market, it is crucial to understand these macroeconomic trends and policy directions, which will help formulate more precise market strategies.

In general, although the growth of the Japanese market has slowed down, it is still the third largest economy in the world, with a mature consumer market, advanced technology and strict quality standards. For Chinese companies, the Japanese market is both a challenge and a huge opportunity. A deep understanding of Japan’s economic status, policy trends and market characteristics will help companies gain an advantage in this highly developed but highly competitive market.

Population structure analysis

Japan’s population structure is undergoing profound changes, which not only affects the social outlook, but also has a profound impact on the direction of economic development. As of 2024, Japan’s total population is about 123 million, showing a continuous downward trend. In terms of population distribution, the three major metropolitan areas of Tokyo, Osaka and Nagoya gather nearly half of the country’s population, while the continuous loss of population in local areas has exacerbated the imbalance of regional development.

The aging problem has become one of the most prominent features of Japanese society. The proportion of the population over 65 years old has exceeded 29%, and this proportion is expected to be close to 40% by 2050. Such a serious aging has had a huge impact on the healthcare industry. On the one hand, the surge in medical demand has promoted the application of innovative technologies such as telemedicine and AI-assisted diagnosis; on the other hand, the increasingly serious shortage of nursing staff has prompted the government to relax the policy of introducing foreign nursing staff.

Along with the aging population, there is an explosive growth in the demand for the elderly care industry. The size of Japan’s elderly care market is expected to reach 15 trillion yen by 2025. There are huge business opportunities in the sub-sectors of smart elderly care, home care services, and special housing for the elderly. At the same time, financial products, travel services, education and training for the elderly are also showing a diversified development trend, providing a broad market space for innovative companies.

The low birth rate is the other side of Japan’s population crisis. In 2023, Japan’s birth rate dropped to 1.26, far below the population replacement level. This trend has a multifaceted impact on the economy: the labor shortage has intensified, the domestic demand market has shrunk, and the social security system has come under pressure. To meet this challenge, the Japanese government has introduced a series of policies to encourage childbirth, such as increasing childcare subsidies and expanding childcare services, but the effects remain to be seen.

Faced with the challenges brought by demographic changes, Japan is gradually adjusting its foreign labor policy. The Immigration Control Act, revised in 2019, added a new “specific skills” visa category, creating conditions for the introduction of foreign labor in more industries. In 2024, Japan further relaxed its policy on the introduction of high-skilled talents and implemented a more open talent attraction plan in key areas such as IT and biomedicine. These policy changes not only provide solutions to alleviate labor shortages, but also create new opportunities for foreign companies to enter the Japanese market.

Japan’s demographic changes are reshaping its socioeconomic landscape. For companies interested in entering the Japanese market, accurately grasping these changing trends and developing products and services suitable for an aging society will be the key to success. At the same time, seeking cooperation with Japanese companies in specific areas to jointly cope with the challenges brought about by demographic changes may also become a viable market entry strategy.

Japanese consumer trends

Consumption trends in Japan are undergoing significant changes, reflecting the country’s unique socioeconomic environment and technological progress. In recent years, the behavioral characteristics of Japanese consumers have shown some obvious changes. First, the concept of quality first is still deeply rooted in the hearts of the people, and consumers are more willing to pay a premium for high-quality products. However, at the same time, affected by slow economic growth and an aging population, price sensitivity is also rising. Data shows that more than 60% of Japanese consumers will change their purchasing decisions due to promotions. In addition, the rise in health awareness has driven the rapid growth of the organic food and health products market. It is expected that by 2025, the size of Japan’s organic food market will reach 250 billion yen.

The development of e-commerce in Japan presents a unique trend. Although Japan is a technologically advanced country, the penetration rate of e-commerce still has room to grow compared with other developed countries. As of 2023, Japan’s e-commerce penetration rate is about 10.5%, lower than 14.5% in the United States and 24.9% in China. However, the growth momentum is strong, and it is expected that by 2025, the size of Japan’s e-commerce market will exceed 30 trillion yen. It is worth noting that mobile shopping is particularly popular in Japan, and the proportion of mobile orders in total orders has exceeded 65%. Cross-border e-commerce is also showing a rapid growth trend, especially the strong demand for products from China.

Japan is experiencing a silent revolution when it comes to mobile payments. Although Japan has long been dominated by cash transactions, the popularity of mobile payments has increased significantly in recent years. The government’s “cashless society” initiative and the COVID-19 pandemic have accelerated this trend. By 2023, about 45% of Japanese consumers will regularly use mobile payments, a significant increase from 28% in 2019. Major mobile payment platforms include Line Pay, PayPay, and Rakuten Pay. It is expected that by 2025, Japan’s mobile payment transaction volume will reach 120 trillion yen, with a compound annual growth rate of about 25%.

Although the development of the sharing economy in Japan started late, it is expanding rapidly. The Japanese government actively promotes the development of the sharing economy, viewing it as an important way to stimulate economic growth and solve social problems. As of 2023, the size of Japan’s sharing economy market will reach approximately 2.5 trillion yen, and it is expected to grow to 3.8 trillion yen by 2025. Shared accommodation, shared office space and shared mobility (such as shared bicycles and electric scooters) are the fastest growing areas. However, the strict regulatory environment remains the main factor restricting the development of some sharing economy services (such as online ride-hailing).

In general, Japan’s consumption trends are moving towards a more digital, convenient and diversified direction. Although traditional consumption habits still exist, new technologies and new business models are rapidly changing Japan’s consumption landscape. For companies that want to enter the Japanese market, a deep understanding of these trends and adjusting strategies according to local conditions will be the key to success.

Technological innovation and digitalization

As one of the world’s technological powers, Japan has always been at the forefront of the world in terms of technological innovation and digitalization. In recent years, the Japanese government and business sectors have been actively promoting the development and application of advanced technologies such as artificial intelligence, 5G networks and the Internet of Things to cope with social challenges such as an aging population and labor shortages, while also enhancing international competitiveness.

In the application of artificial intelligence and robotics technology, Japan has demonstrated unique advantages and innovations. Unlike other countries, Japan applies AI technology more to physical robots rather than pure software. This approach stems from Japan’s manufacturing tradition and deep understanding of hardware. At present, Japan is a global leader in industrial robots, service robots, and rehabilitation-assisted robots. For example, SoftBank’s Pepper robot has been widely used in many industries such as retail, banking, and healthcare, while the humanoid robot T-HR3 developed by Toyota demonstrates Japan’s outstanding achievements in human-computer interaction technology.

5G network construction and application scenarios are an important part of Japan’s digitalization strategy. The Japanese government has formulated an ambitious 5G popularization plan, aiming to achieve 98% population coverage by the end of 2023. Japanese telecom giants such as NTT DoCoMo, KDDI and SoftBank are actively promoting the commercial deployment of 5G networks. In terms of application scenarios, Japan pays special attention to the application of 5G technology in manufacturing, healthcare and smart cities. For example, in factory automation, Hitachi is using 5G technology to build a “lighthouse factory” to achieve real-time monitoring and optimization of production processes; in the medical field, 5G remote surgery has been piloted in some hospitals to provide high-quality medical services to remote areas.

The penetration of Internet of Things (IoT) technology in various industries in Japan is deepening, and is reshaping traditional industrial chains and business models. The Japanese government has proposed the “Society 5.0” strategy, which aims to create a smarter and more sustainable society through the integration of technologies such as IoT, big data and AI. In the industrial field, Japan has proposed the concept of “Industry 4.1J”, which emphasizes the collaboration between people and machines rather than complete automation. This concept has been widely used in manufacturing industries such as automobiles, electronics and precision instruments. In the agricultural field, the application of IoT technology has helped solve the problem of labor shortage. For example, the vegetable factory system developed by Fujitsu has achieved precise control of crop growth through sensor networks and cloud computing technology. In terms of smart homes, IoT home appliances launched by companies such as Panasonic and Sony have not only improved the convenience of life, but also contributed to energy conservation and emission reduction.

The main challenges Japan faces in its technological innovation and digital transformation include talent shortages, resistance to new technologies from traditional corporate culture, and lagging behind the United States and China in certain areas, such as cloud computing and artificial intelligence algorithms. However, Japan is gradually overcoming these challenges and maintaining its global leadership in specific areas by leveraging its strengths in hardware manufacturing, precision control, and system integration.

In general, Japan’s technological innovation and digitalization process presents unique “Japanese characteristics”: focusing on the balance between technology and humanity, pursuing high quality and refinement, and emphasizing the social value of technology applications. Although this approach may appear to be slow in some aspects, it helps to ensure the sustainability and social acceptance of technological development. For foreign companies that want to enter the Japanese market, understanding and adapting to this innovative culture will be the key to success.

Market analysis of key industries

As the world’s third largest economy, the development trends of Japan’s key industries have a profound impact on the global market. This section will focus on four key areas: automotive industry, electronics and semiconductors, service industry, and green energy, and deeply analyze their market characteristics and development trends.

1. Automobile industry

Japan’s automobile industry has long been a global leader, but it is undergoing a profound transformation in the face of new trends such as electrification and autonomous driving. Traditional giants such as Toyota and Honda are actively making plans to keep up with the competition in the field of new energy vehicles. In 2023, Japan’s pure electric vehicle sales will increase by 35% year-on-year to 74,000 units. Although the growth rate is impressive, there is still room for improvement in global market share. The increase in government support policies and the improvement of charging infrastructure are expected to further stimulate market demand.

In terms of autonomous driving technology, Japanese companies started late but have made rapid progress. Honda has been approved to test L3 autonomous driving vehicles on Japanese roads, and the autonomous taxi project jointly developed by Toyota and SoftBank has also been trial-operated in multiple cities. However, compared with American companies, Japan still has a gap in key technologies such as high-precision maps and AI algorithms. In the future, strengthening industry-university-research cooperation and improving regulations will be the key to promoting the advancement of Japan’s autonomous driving technology.

2. Electronic products and semiconductors

Japan’s electronics and semiconductor industries were once glorious, and although their global market share has declined, they still maintain advantages in some segments. Sony has a market share of more than 50% in image sensors, and in the field of semiconductor materials, Japanese companies such as Shin-Etsu Chemical and JSR have a market share of more than 70%. However, in the manufacturing of logic chips and memory chips, Japanese companies have fallen behind their competitors in South Korea and Taiwan.

In terms of technological innovation, Japanese companies are actively developing next-generation semiconductor materials and processes. For example, Tokyo Electron has made breakthroughs in the research and development of core components for extreme ultraviolet (EUV) lithography machines, which is expected to break the monopoly of ASML of the Netherlands. In addition, Japanese companies have also demonstrated strong innovation capabilities in emerging fields such as power semiconductors and optical communication chips. In the future, the revival of Japan’s semiconductor industry will rely more on these high-value-added, specialized market segments.

3. Service Industry

Japan’s service industry occupies an important position in the national economy, especially the tourism and catering industries, which have performed well in recent years. In 2019, Japan received 31.88 million foreign tourists, a record high. However, the outbreak of the new crown epidemic has dealt a heavy blow to the tourism industry. With the easing of the global epidemic and the relaxation of border control in Japan, the tourism industry is gradually recovering. In 2023, the number of inbound tourists has recovered to about 70% of the pre-epidemic level, and it is expected to fully recover in 2024.

In the catering industry, Japanese companies have demonstrated strong innovation capabilities during the epidemic. Many restaurants have introduced robot waiters, developed exclusive menus for takeout, and even launched takeout services for high-end cuisine. The concept of “ghost kitchen” has quickly become popular in Japan, meeting consumers’ demand for diversified and high-quality takeout. In addition, innovative cuisine that combines traditional and modern elements continues to attract international attention, injecting new vitality into Japan’s catering industry.

4. Green Energy

Faced with the challenge of global climate change, the Japanese government has set a goal of achieving carbon neutrality by 2050 and promoting the rapid development of green energy. By 2023, renewable energy will account for 22.5% of Japan’s total power generation, doubling from a decade ago. Solar power generation is the fastest growing area, and installed capacity continues to expand thanks to government subsidies and technological advances. Offshore wind power projects are also being actively promoted, and it is expected that 10GW of installed capacity will be added by 2030.

Hydrogen energy is regarded by Japan as one of the key technologies to achieve carbon neutrality. Toyota and other companies have invested heavily in the field of hydrogen fuel cell vehicles and have launched a number of commercial models. In terms of infrastructure, Japan plans to build 1,000 hydrogen refueling stations by 2030 to lay the foundation for the large-scale application of hydrogen energy. In addition, Japan is cooperating with Australia and other countries to explore business models for overseas hydrogen production and maritime transportation to reduce costs and expand scale. The improvement of the hydrogen energy industry chain will create new economic growth points for Japan and help it achieve its environmental protection goals.

Commercial Culture and Consumer Psychology

Japan’s business culture and consumer psychology are important manifestations of its market uniqueness. Understanding these characteristics is crucial for companies that want to enter the Japanese market. Japan’s business interactions and consumer behaviors are deeply rooted in its traditional culture and social values, forming a unique market environment.

In Japan, business etiquette is considered the cornerstone of a successful deal. Japanese business people attach great importance to etiquette, which is reflected in many aspects. First, the exchange of business cards is the first step in establishing a business relationship, which requires two hands to hand over and carefully read the other party’s business card. Secondly, Japanese business meetings usually start and end with a formal bow, and the depth and length of the bow reflect the degree of respect. In addition, Japan’s decision-making process is usually slow and emphasizes collective consensus, which requires foreign companies to have patience and a long-term cooperation mentality. Punctuality is also a key feature of Japanese business culture. Being late for even a few minutes may be regarded as extremely impolite.

Japanese consumers are known for their “quality first” philosophy. This pursuit of perfection has a profound impact on Japan’s product development and service standards. Japanese consumers are willing to pay a premium for high-quality products, and they expect products to be not only functional, but also nearly perfect in details and packaging. This quality orientation is not limited to luxury goods, but is also prevalent in everyday items. For example, the quality and freshness of food in Japanese convenience stores far exceeds that of similar stores in other countries. Companies that can meet the high quality requirements of Japanese consumers often win market recognition and loyalty.

In terms of brand loyalty, Japanese consumers show a strong preference for local brands. This tendency is partly due to trust in the quality of domestic products and partly due to identification with local culture. Many Japanese brands such as Toyota, Sony, and Uniqlo dominate the domestic market. However, this does not mean that foreign brands cannot succeed in Japan. In fact, some foreign brands have successfully integrated into the Japanese market and won the trust of consumers through long-term cultivation and localization strategies. For example, Starbucks successfully entered the Japanese coffee market by providing unique products that suit Japanese tastes and creating a comfortable “third space” concept.

Understanding and respecting these business culture characteristics and consumer psychology is the key to a company’s success in the Japanese market. Foreign companies need to adjust their business strategies, focus on product quality and service details, and gradually win the trust and loyalty of Japanese consumers through continuous brand building and localization efforts. In Japan, building business relationships and brand recognition is a long process that requires patience and continuous investment.

Regulatory Environment and Market Access

Japan’s regulatory environment and market access policies have been evolving to adapt to changes in the globalized economy and domestic demand. In recent years, the Japanese government has taken a series of measures to attract foreign investment, while also maintaining strict regulation in certain key areas. Understanding these policy changes and regulatory features is crucial for companies looking to enter the Japanese market.

1. Changes in foreign investment access policies

The Japanese government has significantly relaxed its foreign investment access policy in recent years, aiming to promote economic growth and international competitiveness. The revised Foreign Remittances Act in 2020 further simplified the approval process for foreign investors and lowered the investment threshold. Especially in the fields of high technology and innovation, Japan is actively attracting foreign companies and capital. However, sensitive industries involving national security are still strictly controlled. It is worth noting that in some areas (such as telecommunications and energy), there are still restrictions on foreign shareholdings, and investors need to pay special attention to the latest changes in these regulations.

2. Characteristics of key industry supervision

The financial services industry has always been one of the most strictly regulated areas in Japan. As the main regulator, the Financial Services Agency (FSA) has been committed to balancing financial innovation and risk management in recent years. For example, in the field of financial technology, Japan has adopted a “regulatory sandbox” approach, allowing companies to test innovative products in a controlled environment.

The healthcare industry is another heavily regulated sector. Although the approval process for drugs and medical devices is strict, the Japanese government is working to speed up the time it takes to bring innovative products to market. For example, the “Sakura Track” system introduced in 2014 is designed to speed up the approval of innovative medical technologies.

Regulation in the e-commerce and digital platform sectors is being strengthened. The 2020 Act on Improving Transparency and Fairness of Certain Digital Platforms requires large digital platform providers to increase operational transparency, which has a direct impact on cross-border e-commerce companies.

3. Current status of intellectual property protection

Japan has a world-leading intellectual property protection system, which is particularly important for technology-intensive companies. Although the patent application process is complicated, it is highly efficient. It is worth noting that Japan adopts the “first-to-file principle”, which means that even if you are not the inventor, the first person to apply for a patent may obtain the patent right.

Trademark protection is also highly valued in Japan. However, foreign companies should be aware that in Japan, trademark rights are based on registration rather than use. This means that even if a brand is well-known in other countries, it may still face the risk of trademark infringement if it is not registered in Japan.

The scope of copyright protection in Japan is very broad, covering literature, music, art and other fields. In recent years, the Japanese government has stepped up its crackdown on online piracy, especially in the fields of animation and video games.

In general, Japan’s regulatory environment is moving towards a more open and transparent direction, but companies still need to pay close attention to the specific regulations of each industry. Understanding and complying with these rules is not only a compliance requirement, but also the key to success in the Japanese market. For companies planning to enter the Japanese market, in-depth research on relevant regulations and seeking professional legal and consulting services will greatly increase the chances of success.

Opportunities and challenges in the Japanese market

As the world’s third largest economy, the Japanese market is full of opportunities and challenges for Chinese companies. Understanding these opportunities and challenges is crucial for companies to successfully enter and gain a foothold in the Japanese market.

In terms of the opportunity analysis for Chinese companies, first of all, Japan’s high-quality demand provides an opportunity for China’s manufacturing industry to upgrade. Japanese consumers’ high requirements for product quality can promote Chinese companies to improve their own product and service standards. Secondly, the silver economy brought about by Japan’s aging population has opened up new markets for China’s medical, elderly care, health care and other related industries. In addition, Japan faces a labor shortage in certain areas, which provides Chinese companies with opportunities for talent export and technical cooperation, especially in high-tech fields such as IT and artificial intelligence.

However, there are also many obstacles to entering the Japanese market. Language and cultural barriers are the primary challenges. The popularity of Japanese and Japan’s unique business culture may bring communication and operational difficulties to Chinese companies. Secondly, the entry threshold of the Japanese market is high, especially in the fields of food and medical care, which need to meet strict quality standards and regulatory requirements. Furthermore, Japanese consumers are more loyal to local brands, and Chinese companies need to make more efforts to establish brand awareness and trust. Finally, Japan’s business environment is relatively conservative, and its acceptance of emerging business models may not be as high as that of the Chinese market, which may limit the development of some innovative Chinese companies.

In terms of cross-cultural operations, Chinese companies need to pay special attention to several aspects. First, they must fully understand and respect Japanese business etiquette, such as business card exchange, meeting etiquette and other details need to be paid special attention. Secondly, the decision-making process should reflect the “harmony” culture, that is, the pursuit of consensus and coordination, and avoid direct conflicts. Furthermore, Japanese companies value long-term cooperative relationships, and Chinese companies need to be patient and not expect to achieve great success in the short term. In addition, product localization is also key, not only in terms of language translation, but also in terms of taking into account the preferences and usage habits of Japanese consumers. Finally, establishing a localization team and hiring employees familiar with Japanese culture can help companies better integrate into the Japanese market.

In general, the Japanese market is a market full of challenges but with great potential for Chinese companies. By deeply understanding the market characteristics, formulating appropriate strategies, and continuously learning and adapting to the Japanese business culture, Chinese companies are fully likely to find their place in this highly developed market and achieve sustainable development.

Future Outlook

The Japanese market is facing unprecedented changes, which brings new opportunities and challenges to companies. We will explore the future development trends of the Japanese market from three perspectives: demographic changes, digital transformation, and sustainable development strategies.

1. New opportunities brought by changes in population structure

Japan’s demographic structure is undergoing significant changes, which has brought new business opportunities to many industries. With the advent of an aging society, the silver economy will become a huge market. Health care, elderly care services, and aging-friendly product design are all expected to usher in rapid growth. At the same time, in order to cope with labor shortages, Japan is gradually relaxing its foreign labor policies, which creates opportunities for international talent imports and cross-cultural management. In addition, the trend of declining birth rates has also promoted educational innovation and the development of child-related industries, such as high-quality early childhood education services and the children’s products market. If companies can accurately grasp the shift in demand brought about by these demographic changes, they will be able to gain an advantage in the Japanese market.

2. The potential of digital transformation

Japan’s digital transformation is accelerating, which provides broad space for technological innovation and efficiency improvement. In the post-epidemic era, the demand for digital solutions such as remote work, online education and e-commerce has surged. The promotion of 5G technology will further promote the application of the Internet of Things (IoT), artificial intelligence (AI) and big data in various industries. The “Society 5.0” strategy proposed by the Japanese government aims to solve social problems through digital technology, which will bring huge development opportunities in smart cities, autonomous driving, telemedicine and other fields. Enterprises should pay close attention to these technological trends and actively explore digital innovation to improve their competitiveness and open up new market space.

3. Impact of sustainable development strategy

Sustainable development has become a consensus in Japanese society and the business community, which will have a profound impact on the future market landscape. The Japanese government has pledged to achieve carbon neutrality by 2050, a goal that is driving the transformation of the energy structure and the innovation of clean technologies. Renewable energy, electric vehicles, green buildings and other fields will usher in major development opportunities. At the same time, the concept of circular economy is changing production and consumption patterns, promoting the development of related industries such as environmentally friendly materials and waste recycling. In addition, Japanese consumers’ growing demand for sustainable products provides brands with an opportunity to differentiate themselves through environmental protection concepts. Companies should incorporate sustainable development into their core strategies, which can not only meet regulatory requirements, but also win the trust and support of consumers.

Summary and suggestions

1. Key success factors for entering the Japanese market

Although the Japanese market is full of opportunities, it also presents many challenges. To succeed in this highly mature and competitive market, companies need to pay attention to the following key factors:

First of all, quality is the primary principle for entering the Japanese market. Japanese consumers have extremely high requirements for the quality of products and services, and companies must ensure that their products meet or even exceed the standards of Japanese local brands. This includes not only the quality of the product itself, but also various aspects such as packaging design and after-sales service.

Secondly, localization strategy is crucial. This not only refers to the localization of products, but also includes a deep understanding of Japanese culture, consumer preferences and business habits. Successful companies often invest a lot of resources in market research and adjust their products and marketing strategies based on the research results.

Third, establish reliable local partnerships. Japan’s business network is often relatively closed, and establishing good partnerships with local companies, distributors or agents can help foreign companies open up the market faster and obtain valuable local resources and channel support.

Fourth, long-term thinking. The Japanese market values ​​long-term and stable business relationships. Companies need to prepare for long-term investment rather than expecting huge returns in the short term. Patiently cultivating brand image and gradually building trust is the only way to gain a foothold in the Japanese market.

Finally, technological innovation and differentiation strategies are also the magic weapon for success. Japanese consumers have a strong interest in new technologies and innovative products, and companies that can provide unique value propositions are more likely to attract consumers’ attention and stand out from the competition.

2. Strategic recommendations for Chinese companies

Based on the characteristics of the Japanese market and the advantages of Chinese companies, the following are some specific strategic suggestions:

First, Chinese companies should make full use of their advantages in manufacturing and the Internet. For example, in the fields of e-commerce and mobile payments, Chinese companies can introduce mature domestic business models and technological innovations into the Japanese market, but they need to be careful to adapt to local user habits and regulatory environment.

Secondly, in view of the characteristics of Japan’s aging society, Chinese companies can focus on related industries such as elderly care, medical care, and smart home. These fields have huge market potential in Japan, and China’s development experience in smart hardware and health technology can well meet the needs of the Japanese market.

Third, focus on brand building and quality improvement. Chinese companies should invest resources to create a professional and reliable brand image and gradually change the stereotype of “Made in China” among Japanese consumers. This requires continuous efforts in product quality, design and after-sales service.

Fourth, actively seek cooperation opportunities with Japanese companies. Through joint ventures, mergers and acquisitions or strategic alliances, Chinese companies can quickly obtain local resources, channels and market awareness. Especially in some traditional industries, cooperation with Japanese companies can achieve complementary advantages.

Fifth, attach importance to local talent. Recruiting and training a team of talents who are familiar with the Japanese market and understand local culture is crucial for the localization operation of the company. At the same time, we should also pay attention to cross-cultural training for Chinese employees to improve the overall collaboration efficiency of the team.

Finally, Chinese companies should pay close attention to policy changes and market trends in Japan. The Japanese government is relaxing restrictions on foreign investment in certain areas, such as the elderly care industry and certain financial services. Grasping policy opportunities in a timely manner can help companies seize market opportunities.