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S UCCESS IN THE MAKING VI HOW CANADIAN COMPANIES ARE WINNING NEW MARKETS IN JAPAN

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Jetro 99 Book.p65HOW
CANADIAN
COMPANIES
Company Profiles 7 ______________________________________
JETRO Offices in 32 Canada
SUCCESS IN THE MAKING VI
HOW
CANADIAN
COMPANIES
JETRO Canada 1999/2000 2
INTRODUCTION 1999 was an extremely busy year for JETRO and a year of new business opportunities in the Japanese market.
We welcomed to Canada three new members of staff to help Canadian companies take advantage of these opportunities: Mitsuhiko Kushida, Senior Trade Advisor on Agriculture and Agri-Food products based at the Federal Government’s Agriculture and Agri-Food regional office in Guelph, Ontario; Hiroshi Wakabayashi, Senior Trade Advisor on High Tech stationed at the Vancouver office of the Alliance of Manufacturers and Exporters Canada; and Yoshi Ichida, Investment Advisor at JETRO Toronto.
1999 also marked the September visit of Canadian Prime Minister Jean Chrétien to Japan as head of a Team Canada mission consisting of over 260 Canadian business people along with Pierre Pettigrew, Minister for International Trade, and the majority of Canada’s Provincial Premiers and Territorial Leaders. The Team Canada mission visited both Osaka and Tokyo and focussed on eight priority sectors: space and aerospace; electric power and energy; food biotechnology; health; information and communication technologies; building products; environment; and education. This was the largest trade delegation ever to visit Japan and it significantly raised the profile of both Canada in the eyes of the Japanese business community as well as Japan as a partner for Canadians to do business with. JETRO was very active in supporting Team Canada both before and during the mission.
Since the return of the mission, JETRO has been working with both federal and provincial/territorial governments to prepare a number of follow-up activities designed to support the companies that went on the mission and to encourage other companies to consider the Japanese market. Now, it is up to both Canadian and Japanese companies to take advantage of the window of opportunity that has been created by Team Canada.
It is also important for Canadian companies to become aware of and exploit the new business opportunities that are emerging as a result of a Japanese economy in the state of transition. Over the past 15 years, Canadian companies have enjoyed success in the export of manufactured and semi-processed goods to Japan, however developing Canadian exports in high value-added categories is now an urgent priority for both Canada and Japan's private and public sectors, particularly in high- technology and processed food products. Canadian companies will also
JETRO Canada 1999/2000 3
INTRODUCTION
need to look at other mechanisms such as technology transfers, joint ventures, direct investment and third country cooperation to benefit from this maturing of the Canada-Japan economic relationship.
The cost of doing business in Japan has fallen, both in terms of land prices and previously over-valued stocks. Japan has extended market liberalization measures to attract foreign direct investment, eliminating most FDI regulations including restrictions on related domestic manufacturing. Putting all these factors together, it is clear that Japan has become an extremely accessible environment for investment. Recently, for example, Manulife Financial has led the way for Canadian companies by establishing a joint venture with one of their Japanese counterparts, Daihyaku Mutual.
As a result of all this activity in 1999, I look forward to 2000 with optimism and confidence that we can raise the Canada-Japan economic relationship to a new level. I hope that this publication will provide encouragement and good advice on how to enter the Japanese market. The 22 profiles are good examples of how to succeed in Japan and are a testament to the fact that companies of all sizes and in all sorts of industries can find business opportunities in Japan, if they have the right product and are committed. I hope that JETRO can assist you in exploring these opportunities in the Japanese market and I look forward to someday reading about your successes in future editions of this publication.
Nobuhiko Yoshida Executive Director JETRO Toronto
JETRO Canada 1999/2000 4
A HISTORY OF SUCCESS
JETRO Toronto has been making an annual publication called ‘Success in the Making’ since 1995, in cooperation with JETRO Vancouver and JETRO Montreal, in order to introduce the experiences of Canadian companies that have successfully penetrated the Japanese market and have participated in JETRO Programs. We hope to encourage other Canadian companies to enter the Japanese market with these case studies.
Product Category Number Provincial Breakdown
Automotive Parts 1 Ontario – 1 Chemical Products 1 Alberta - 1 Construction/ 58 B.C. – 22 Quebec – 5 Housing Products Alberta – 1 Nova Scotia – 3
Saskatchewan – 1 New Brunswick – 3 Manitoba – 2 Newfoundland – 1 Ontario – 20
Environmental Products 2 Ontario – 1 Nova Scotia – 1 Fashion Products 6 B.C. – 4 Newfoundland – 1
Ontario – 1 Food & 21 B.C. – 7 Quebec – 2 Beverage Products Alberta – 2 Nova Scotia – 3
Saskatchewan – 1 Newfoundland – 1 Ontario – 5
Furniture Products 10 BC – 2 Ontario – 3 Alberta – 3 Quebec – 1 Manitoba – 1
Healthcare Products 17 BC - 1 Ontario – 10 Alberta – 1 Quebec - 3 Manitoba – 2
Industrial Products 2 B.C. – 1 Ontario - 1 Scientific Products 2 Ontario - 2 Technology Products 26 B.C. – 6 Ontario – 14
Alberta – 2 Quebec - 4 Miscellaneous Products 11 BC - 2 Quebec – 3
Alberta - 1 Nova Scotia - 1 Ontario – 4
Total 157 Canada
Outline of the 157 Canadian companies introduced in the publication from 1995 to the end of 1999.
JETRO Canada 1999/2000 5
The companies profiled in the Success in the Making publications represent a wide range of sectors, as well as a variety of experiences, in exporting to the Japanese market.
During the interviews conducted in preparing these profiles, we heard strikingly similar advice from many of the companies. From their statements, we have made the following observations:
· Commitment, preparation and a willingness to travel to Japan are of critical importance.
· Japan can act as an important link to other Asian markets.
· It is imperative to have a top-quality product with distinct appeal.
· Companies should be willing to modify their product design and specifications, if necessary, to suit Japanese consumer requirements and government regulations.
· It is important to choose the right method of distribution and develop a close relationship with your customers. The importance of after-sale service cannot be over-emphasized.
· While the Japanese market will certainly demand a major investment in time and resources, the rewards can be considerable.
· There can be significant benefit in using a combination of JETRO and Canadian Federal and Provincial government services and programs.
· Reports on the Japanese market produced by JETRO and the Japan Division of the Department of Foreign Affairs and International Trade in Ottawa can be extremely helpful in determining if there is a market for your product and, if so, how to approach it.
If you are interested in receiving copies of previous editions, please contact JETRO Toronto.
LESSONS DRAWN FROM THE SUCCESS STORIES
JETRO Canada 1999/2000 6
Construction/Housing Products York Overseas ............................................................. 8
Environmental Products Environmental Disposal Concepts ............................... 9
Food & Beverage Products Open Window Bakery ............................................... 10
Furniture Products Clapham's Beeswax ................................................... 11 Pacific Rim Cabinets ................................................. 12
Healthcare Products BHM Medical .......................................................... 13 Bi-op ........................................................................ 14 Health Craft ............................................................. 15 Instantel .................................................................... 16 Motus ....................................................................... 17 Techno-Scientific ...................................................... 18
Industrial Products Escalator Handrail Company .................................... 19
Scientific Products Qubit Systems ........................................................... 20 Phoenix Biomedical .................................................. 21
Technology Products Kyber Pass ................................................................. 22 Prologic .................................................................... 23
Miscellaneous Products Canadian Stained Glass ............................................. 24 Canadian Warm Buddy ............................................ 25 Champion Petfoods .................................................. 26 Northern Gifts .......................................................... 27 Pedigree Perfection .................................................... 28
INDEX OF COMPANY PROFILES BY PRODUCT CATEGORY
JETRO Canada 1999/2000 7
The ABC Group, with its head office located in Toronto, is a privately owned plastic components and systems manufacturer, serving the international automotive market. It has in excess of 30 manufacturing, development and sales facilities worldwide including Canada, U.S., Mexico, Brazil, Spain, UK, and Japan. It is the largest automotive and industrial blow molder in North America. Recognized as an innovator and integrator of components and systems, the ABC Group designs, develops and manufactures plastic components, as well as designing and developing their own blow molding equipment and tooling. Developing specialty materials to meet customers' requirements is also an integral part of their technology.
With the progression of globalization in the automotive industry, however, more North American vehicle developments are being completed in Japan and Japanese OEMs are centralizing their development for global models. As a result, the ABC Group realized that if it was to participate in these early stages of vehicle development with OEM engineers, it was critical that the company establish a presence in Japan.
Signing technical agreements, a joint venture, M&A, or establishing a 100% owned subsidiary in Japan were the options available to the ABC Group. The first three options would have been easier to start because they would have involved Japanese partners that could handle the legal, administrative, managerial and staffing issues that had to be considered. On the other hand, setting up a fully owned subsidiary would assure direct communication with customers in Japan. The ABC Group decided to go with this last option, mainly because of the firm's unique technology and the contacts that it had previously established with Japanese OEMs.
It has been several months since the ABC Group Japan was established and it has seen an increase in business of approximately 50% with one particular customer, which has its main R&D operations in Japan. It has also succeeded in introducing its safety related products to those engineers at OEMs in Japan who have direct responsibility for these products. These successes could not have been achieved if the ABC Group had not shown its market commitment by establishing a manufacturing presence in Japan.
JETRO has been providing the necessary information in a timely manner at every stage of the process. According to the ABC Group JETRO's help made it easier for them to determine what options were available and to consider the direction that was most suitable. Since it decided to move forward without Japanese partners, the ABC Group said that information and advice from JETRO's Investment Advisor was extremely useful.
Contact Info: 110 Ronson Dr. Rexdale, ON M9W 1B6 Phone: (416) 246-0530 Fax: (416) 246-1997
Contact: Kuni Amano, Business Manager, Asia/Japanese Business
Established: 1974
Employees: 3,000
Export Sales to Japan: n/a
Products: CVJ Boots, Steering Boots, Air Intake Sys- tems, Multi-layer Blow Molded Fuel Systems, and Interior and Exterior Products
JETRO Services: Investment Advisor
YORK OVERSEAS LTD.
"JETRO is one of the best marketing information centres for the inter- national trader," said York Overseas President, Junichi Sato. "They supplied a great deal of information that was necessary for our company in our approach to a new field in Japan. The use of their library and the information that we received from their offices was valuable."
York Overseas Ltd. has been exporting plastic materials including win- dows, doors, food containers, and building hardware to Japan over the last three years, but Sato is no novice when it comes to exporting to Japan. "I was born in Japan and have been trading in the international market for 25 years," said Sato. "I've established a lot of strong relation- ships through my business involvement in many industries.”
Even with his past experience, Sato believes that JETRO was an integral part of their success in Japan. "Their service worked so effectively for us," said Sato, "that I believe that we wouldn't have had much success without their assistance. We mainly used their library and requested their Toronto office to collect more detailed information from their Japanese offices. The information, that they provided, had an effect on our business performance."
Sato believes that a number of Canadian companies could make great contacts with Japanese customers, however they don't because they have misunderstandings of how Japanese business standards and customs work. Trying to force North American business standards on Japanese customers causes them to step back. As a result many Canadian business people complain that business with Japan is too complicated and diffi- cult because the Japanese demands are too strict.
There are a few suggestions that Sato would give to companies thinking of exporting to Japan. "The first thing that companies should do is study Japanese regulations completely," said Sato. "JETRO has informa- tion in their offices that will go over the different specifications that the product must meet compared to Canadian standards. My second suggestion to Canadian companies is to not force North American business customs and negotiation styles onto their Japanese customers. Japanese companies will develop an immediate hesitation towards a company that pushes too hard, which will lead to guaranteed communi- cation troubles. The final thing that I would emphasis is to establish your own quality control system in accordance with Japanese specifica- tions as closely as possible."
Contact Info: 151 Esna Park Dr. Unit 16 Markham, ON L3R 3B1 Phone: (905) 305-7441 Fax: (905) 477-4025 [email protected]
Contact: Junichi Sato, President
Products: PVC Windows Materials
JETRO Services: Market Research
JETRO Canada 1999/2000 9
ENVIRONMENTAL DISPOSAL CONCEPTS INC.
The Japanese market is different than the North American market because potential distributors and importers as well as consumers are more demanding than their North American counterparts. For example, they need to know more detail about the product before they can start to do business and everything must be spelt out clear and concise.
These are the thoughts of Dana Emmerson of Environmental Disposal Concepts, a company based in Nova Scotia that produces a unit that crushes fluorescent lights. "The environmental and production standards in Japan are completely different than they are in North America," said Emmerson. "The tube crushing unit had to go through some cosmetic changes before it could be sold in Japan."
Mr. Emmerson became interested in Japan after being recommended to JETRO by the Nova Scotia Government's Department of the Environment. Then JETRO met with Emmerson and invited him to participate on the Export to Japan Study Program in 1999. Through this program he was able to go to Japan to meet with potential partners and, as a result, was able to sign a contract with a Japanese distributor.
"Our product is a portable fluorescent light crushing unit," said Emmerson. "The device takes burnt out fluorescent lights and crushes them into an easy to dispose of substance. It also has an active system that filters out the mercury from the tube."
Emmerson has found that there are a number of ways that will make life easier when trading with Japan. "They are what I call the three P's," said Emmerson, "persistence, patience, and punctuality. If you follow these rules you should be able to find success when dealing with Japan. An emphasis must be especially put on being punctual. When you are dealing with a client that is half a world away, it is very important to let them know that you've received their correspondence within a reasonable timeframe."
Contact Info: 18 Lylewood Dr. Sackville, NS B4C 3J1 Phone: (902) 468-5658 Fax: (902) 468-4623 www.bulbeater.com
Contact: Dana Emmerson, President
Products: Fluorescent Light Tube Crushing Unit
JETRO Services: Export to Japan Study Program (EJSP)
JETRO Canada 1999/2000 10
OPEN WINDOW BAKERY
Contact Info: 1125 Finch Ave. West Downsview, ON M3J 2E8 Phone: (416) 665-8241 Fax: (416) 665-9528 www.owbakery.com
Contact: Gail Agasi, VP and CEO
Established: 1957
Employees: 200
Products: Bagels
JETRO Services: Market Research
Bagels are a product that Canadians love. They can be found in most grocery stores and on most breakfast menus. But how does a Canadian company that produces fresh food actually export to Japan?
"We had just purchased a blast freezer, an appliance that freezes the bagels when they are still raw for the purpose of shipping," said Gail Agasi, VP & CEO, Open Window Bakery. "One of the purposes of the new blast freezer was to allow us to export some of our products, while keeping them fresh. We were looking into new markets and Japan was a natural fit."
Some Open Window Bakery representatives went to Japan as a group with around 40 other companies as part of a trade mission sponsored by the Canadian Embassy. They traveled to different cities and were able to meet potential business partners at events put on by the Embassy. JETRO helped Open Window Bakery with their initial research by giving them background information with names and possible contacts.
"We started exporting to Japan in 1997," said Agasi. "From the start we knew that Japan was a unique market that some companies have to adjust to when exporting there. Advice I would give a company would be to have patience as things may not happen right away and a company can't be discouraged if sales may be less than expected at the beginning. A company should do their homework about Japan, find out about their corporate culture, and how they conduct business."
Like most companies Open Window Bakery ran into some challenges when exporting their product to Japan. "There were some product changes," said Agasi, "but the most interesting dilemma that we faced was what to charge for our product. Since bagels are a brand new product to the Japanese market, we had nothing to gauge our prices against in trying to find what we should charge for them."
Business has been small during Open Window Bakery's first couple of years in Japan, but also satisfactory, because sales are continuing to gradually grow. "Japan is a market that we are planning on being a part of for a very long time," said Agasi, "and as an added bonus we've had interest from other Far Eastern countries because they've tried our bagels in Japan."
JETRO Canada 1999/2000 11
CLAPHAM'S BEESWAX
Contact Info: 324 Le Feuvre Rd. Matsqui, BC V4X 1A2 Phone: (604) 856-2085 Fax: (604) 856-5501 [email protected] www.claphams.com
Contact: Roger Clapham, Co-Owner
JETRO Services: Import Product Specialist Program Market Research Seminars
"You don't mess with the Japanese market," states Roger Clapham, co- owner of Clapham's Beeswax. "You are entitled to take one of three positions: I might be interested, or I might not - I haven't decided yet; I've thought it over and am not interested; and yes I am interested. The last choice must not be arrived at lightly, because once that decision has been made, you've got to see it through."
Clapham's Beeswax began exporting to Japan in 1994 after JETRO assisted them in attending a trade show in Japan which produced a good match between Clapham and a Japanese exporter/importer. Clapham is still in contact with the JETRO Vancouver office, using their services and programs including their exporting to Japan seminars.
Trading with Japan creates unique challenges for all companies, and Clapham's Beeswax was no different. "The Japanese market differs from all other markets, period," said Clapham. "Japanese service is legendary, as is their quality control, so close attention must be given to every detail of the product with packaging and presentation which is ten times more important than in North America." By using JETRO's well-stocked libraries and help from their staff, Clapham's Beeswax was able to find information, which was invaluable in their efforts to export to Japan.
The business market is different, relationships and social obligations, which may not be at the top of a businessman's agenda in North America, are very important in Japan. "It will take at least a year of negotiations to arrange your first sale," said Clapham, "but you shouldn't get discouraged because of this, it's the norm."
Clapham's Beeswax, co-owned by Roger and his wife Anne, has been producing Clapham's Beeswax Polish® and similar products since 1986, and will be introducing their second product to Japan, edible wood finish for salad bowls, over the next few months. Clapham makes regular visits to Japan and is in constant contact with his distributor. He has even written his own guide to exporting to Japan.
JETRO Canada 1999/2000 12
PACIFIC RIM CABINETS
Pacific Rim Cabinets was established by Bill Dewinetz because he wanted to supply products and provide a service that would completely satisfy the Japanese consumer.
"Pacific Rim Cabinets supplies a North American looking product built to Japanese standards and specifications," said Pacific Rim Cabinets President, Bill Dewinetz. "Unlike other North American exporters who make only minor modifications to their products, our products are made exclusively for the Japanese market and do not comply with North American kitchen dimensions."
Dewinetz believes that JETRO has played a large part in their success in Japan. "They are so active in giving companies access to trade shows in Japan," said Dewinetz. The Japan Home Show, The Better Living Show in Tokyo, The West Japan Total Living Show, and The Osaka Total Construction Fair are just a few of the events that Pacific Rim Cabinets has attended with the support of JETRO.
With over 30 years in the cabinet industry, including the last 12 spent specializing in export of kitchens to Japan, Bill Dewinetz knows his way around the Japanese market. "It is important, when dealing with the Japanese market, to give them details they can understand," said Dewinetz. "JETRO can help any business which is trying to start out because they have a library in every office that gives insight into handling the Japanese market. The Japanese have been doing business the same way for 100s of years and many people believe that they can take North American styles and force them on the Japanese market, but that style of marketing will not work. JETRO has produced information that will help people understand the Japanese market".
"There are three pieces of advice that I would give to a company considering exporting their products to Japan," said Dewinetz. "First off, get a handle on who you are trying to export to and how you will succeed in your goals. Secondly, be patient, you must be confident that your company will still be there for years to come, because if you are not confident it will be difficult to convince buyers to have confidence in your product. And thirdly, know who you are and follow your goals. If you follow all these pieces of advice, your company should become a success in whatever you set out before it."
Contact Info: 1-464 Fraser View Place Annacis Island Business Park Delta, BC V3M 6H4 Phone: (604) 515-7377 Fax: (604) 515-7387 [email protected] www.pacrimcab.com
Contact: Bill Dewinetz, President
Products: Cabinets
JETRO Canada 1999/2000 13
BHM MEDICAL
Contact Info: 2001 rue Tanguay Mogog, QC J1X 5Y5 Phone: (819) 868-0441 Fax: (819) 868-2249 [email protected] www.bhm-medical.com
Contact: Christian De Grâce, Executive VP
Established: 1991
Employees: 30
Annual Sales: $6-7 Million
Export Sales to Japan: $142,000 (Aug. '99 to Jan. '00) ($325,000 anticipated for next year)
Products: Mobile Patient Lifts
JETRO Services: Import Fair: Health Care '99
Since the year that it started, BHM Medical has established itself as a leader in the design and innovation of patient lift systems. The patient lifts that BHM Medical produce are mobile to move patients from their beds to wheelchairs or bath and make it easier for them to move around their homes.
1999 was the first year that BHM Medical began exporting to Japan. "A delegation from Japan came to Quebec in 1997. From attending meetings with the delegation we were able to see that Japan would be a good market for our company," said Christian De Grâce, Executive VP at BHM Medical.
De Grâce had meetings with JETRO to discuss opportunities to attend one of their sponsored events in Japan. "We attended the Health Care '99 trade fair in the spring of 1999," said De Grâce, "and spent two weeks in Japan. From that we were able to speak with potential distributors about our product and to form business partnerships from our visit."
BHM Medical has found it quite easy to secure partnerships with Japanese firms. "It's basically business as usual," said De Grâce. "The individuals in the marketplace are very serious about our product and how they secure our business. Compared to other markets that we export to, like Germany and France, Japan has been as cooperative and business-like."
De Grâce successfully found a Japanese distributor for BHM Medical at Health Care '99 and invited Shinko Sangyo Co. Ltd. of Osaka to visit their facilities in Magog where an agreement was signed. Within only four months of the trade fair, BHM Medical was in business with its first significant export sales to Japan.
"The Japanese can be very demanding," said De Grâce. "You can't let yourself settle for less or compromise your product or reputation. If you follow this bit of advice and your product is a quality one, there should be no reason why you can't succeed in Japan."
JETRO Canada 1999/2000 14
BI-OP INC.
"When dealing with a client in the Japanese market your personalities must be almost the same to get the total trust of the client," said Raynald Henry from Bi-Op. "In Japan, the product may be one of the important aspects that brings potential partners together, but it's their confidence in you that solidifies the deal."
Henry has been exporting his orthotic devices to Japan for two years. "Our product reduces pain that people have in their feet," said Henry. "The device straightens the foot with the alignment of the body. We build the products here, but the process begins in Japan. The job is basically done as a regular prescription from their doctor. The patient takes a physical exam where they get a cast done of the foot. The cast is then sent to Canada where the orthotic device is made and sent back to Japan."
The first exhibit that Henry attended in Japan was JETRO's Import Fair: Health Care '99 in the spring of that year. He believes that trade shows are very helpful because they enable you to establish personal contacts with the right people in the marketplace. Henry originally became interested in Japan after meeting someone experienced in exporting there at a seminar in New York. At the JETRO show in March, he was able to connect with potential distributors.
Success has come easier for Bi-Op in Japan, as opposed to the United States, because their product is really unique in the Japanese market. "We have a quality product," said Henry. "In Japan they have embraced it because they realize that it is something special."
Bi-Op has been so successful in Japan that they are in the process of trying to secure a franchise there. "By securing a franchise with another lab in Japan," said Henry, "we will be able to expand on our operations in that market while cutting back on shipping and time costs to the patient."
Contact Info: 30 chemin du Golf Ouest St. Charles, SCB Joliette, QC J6E 8X6 Phone: (450) 752-2467 Fax: (450) 755-4969 www.bi-op.com
Contact: Raynald Henry, President
Products: Orthotic Device
JETRO Canada 1999/2000 15
HEALTHCRAFT PRODUCTS INC.
Contact Info: 411 - 1230 Old Innes Rd. Ottawa, ON K1B 3V3 Phone: (613) 744-3001 Fax: (613) 744-3008 [email protected] www.healthcraftproducts.com
Contact: John O'Brien, Vice President
Established: 1994
Employees: 7
Products: Superpole Family, Advantage Rail, Smart Rail
JETRO Services: Senior Trade Advisor Import Business News Market Research
Japan's emerging market for healthcare products led to HealthCraft Products' initial interest in exporting to that country.
"Due to increased funding into healthcare from the Japanese Government, we believed that there would be a potential market for our product in Japan," said John O'Brien, vice-president, HeathCraft Products. "A competitor of ours was doing good business in Japan, but had to withdraw due to technical reasons, so we knew the market was there, we just had to find the right partner to help export our products.
A number of false starts is what initially welcomed HealthCraft Products to Japan, so they decided that, if the company was to have a future in Japan, they would need some help, which led to them contacting JETRO.
"After our initial troubles, JETRO was able to give us quality business leads that we could use in Japan," said O'Brien. "We just needed help finding a company that would be a good match in distributing our product."
JETRO helped HealthCraft Products introduce their Superpole system to the Japanese market through healthcare shows and its Import Business News. "We were able to find a distributor, Shingu Shoko Ltd. of Otaru, Hokkaido, and used JETRO's information resources to find background information about the company." Now Shingu Shoko sells their products aggressively to nursing-care shops and showrooms, nursing-care facilities, hospitals and healthcare companies. It has also incorporated them in a model housing project it has developed which is specifically designed for elderly occupants.
HealthCraft Products discovered that to become successful in Japan they had to adapt their product. The Superpole did not work in all Japanese homes because of the different style of architecture there. The ceilings and "tatami" floors found in many Japanese homes are completely different to the structure of houses in North America. "There is not much structure or support in the average Japanese house," said O'Brien, "so the Advantage Rail was produced with the Japanese market in mind."
During its first two years, HealthCraft has found some success in the Japanese market and plans to increase its exposure there. "The most important piece of advice that I can give a company thinking about exporting to Japan is to remain patient," said O'Brien. "Treat the whole process as a learning experience and don't be disappointed if your company does not show immediate returns."
"It's also important to talk to dealers, find out the names of prospective distributors and then take a trip to Japan to meet them and choose the distributor that best matches your company."
JETRO Canada 1999/2000 16
INSTANTEL INC.
By using JETRO's new 'Cyber Showcase' web-based system, Instantel Inc. is able to promote its Wander Protection System to possible clients in Japan without having to travel halfway around the world.
"JETRO acquired a demonstration model of the Wander Protection System and was able to take it to Japan on its Import Product Specialist Program and exhibit it in a special healthcare tradeshow in Tokyo at the end of 1998," said Aurel Lebel, sales manager, long-term care at Instantel Inc.
"After having our product showcased at JETRO's New Imports Showcase booth, the Wander Protection System was listed on the 'Cyber Showcase' web site, which gives potential Japanese importers the opportunity to read about the product. Their web site is useful because it allows importers to find out background information about a product, so it produces only serious consumers."
Instantel's WatchMate product line enables caregivers to monitor Alzheimer residents in health care facilities who may have a tendency to wander away from safe areas. "The system eliminates the need for other forms of restraint and allows the resident safer freedom of movement," states Lebel. "The Wander Protection System sounds an alarm to alert staff when a wanderer approaches a protected area. The wanderer wears a small transmitter approximately the size of a man's sport watch."
Instantel had initially become interested in Japan when they attended a JETRO conference in the early 1990's. The product was found to have the frequency capabilities that met with Japanese regulations, so the product could be sold in Japan.
"The Japanese market is growing because families in Japan are becoming more North Americanized," said Lebel. "In Japanese culture the elderly are in the most part taken care of by members of the immediate family in the home, but that is becoming less common. With family-size shrinking and both parents being part of the work-force, there is an increasing need for nursing and care-giving residences."
Contact Info: 309 Legget Dr. Kanata, ON K2K 3A3 Phone: (613) 592-4642 Fax: (613) 592-4296 [email protected] www.instantel.com
Contact: Aurel Lebel, Sales Manager, Long-term Care
Established: 1982
Employees: 55
Products: Wander Protection System
JETRO Canada 1999/2000 17
MOTUS INC.
Contact Info: 39 Nanton Blvd. Winnipeg, MB R3P 0N1 Phone: (204) 489-8280 Fax: (204) 489-0450 www.motus.mb.ca
Contact: Greg Klassen, President
Products: Ergonomic Handles
JETRO Services: Senior Trade Advisor Import Business News
After a couple of years of some hits and misses while trying to export to Japan, Motus Inc. finally achieved some success after they appeared in the Import Business News in 1998, a monthly bulletin of new products put together by the Senior Trade Advisors and distributed throughout Japan.
"Being showcased in the Import Business News produced several contacts for us," said Motus Inc. founder, Greg Klassen. Soon orders started to be placed and Motus was given the exposure it needed to find a distributor in Japan.
Motus Inc., who produce and market an ergonomic add-on handle used on rakes and shovels, have not experienced some of the problems that other companies have had when exporting to Japan. "The handle is environmentally-friendly and a back-saver because it puts less strain on the back and hands when the user is performing yard-work with the tool," said Klassen. This has resulted in great interest in Motus' product in the Japanese market.
The only problems that Motus experienced when exporting to Japan were a few communication difficulties with some correspondence when dealing with customers. "We've exported to many different countries, so we looked at Japan as just another market," said Klassen. "The Japanese have been very interested and exporting to Japan hasn't been any more difficult than dealing, for example, with any European country".
"JETRO gave us the opportunity to have Motus introduced to a whole new market," said Klassen. "They also helped us send out literature and samples to prospective distributors in Japan."
Klassen believes that there is one thing to remember about exporting your product to Japan. "Don't be fearful, don't take the concerns of others too seriously. Use outside resources, like JETRO, but remember if your product is a quality one and you're not intimidated by it, then attack the Japanese market head on and I'm sure that your product will be a successful one."
JETRO Canada 1999/2000 18
TECHNO-SCIENTIFIC
Techno-Scientific manufactures a healthcare device called the Sonic Cane. The Sonic Cane is a mobility-assisting device that is used by visually impaired persons, and has been available in the Japanese market since the beginning of 1999. Mirek Macecek, president of Techno- Scientific, is now looking to expand his unique product further into the Japanese Healthcare industry.
"The market is so rich in Japan," said Macecek. "Their culture has an emphasis on taking care of the older generations and, since that is one of our target markets, our product is a great fit. The Sonic Cane makes day-to-day life easier for seniors and the visually impaired because it helps them with staying mobile."
On the recommendation of Ontario Exports Inc., JETRO approached Macecek to see if Techno-Scientific would like to participate on its Import Product Specialist Program. "They brought a sample product and our brochures to healthcare shows in Japan," said Macecek. "They acted as if they were an extended arm of Techno-Scientific at these trade shows"
From JETRO's help at these shows Techno-Scientific was able to get leads on potential business opportunities and distributors in Japan. "We were also able to use their library for researching distributing agents and finding out about Japanese business customs," said Macecek.
The downturn in the Japanese economy and a few other challenges slowed down the sales of the Sonic Cane in Japan. "We, like everyone, felt a pinch when the Japanese economy collapsed," said Macecek. "People all-of-a-sudden weren't terribly interested in ordering or testing a new product. But now that the economy seems to have seen the bottom and is on its way back up, response to the Sonic Cane has been more positive.
"Due to the fact that Japan is a significantly more congested country than Canada, adjustments had to be made to the range of the Sonic Cane to make it more practical in Japan," said Macecek. "The device also had to be set at a lower range to compensate for the more densely populated society that is generally found in Japan compared to Canada."
"The Japanese consumer is very faithful to Japanese products," said Macecek. "But a company should definitely try, because they might never know who may be interested in their product."
Contact Info: 231 Millway Ave. Concord, ON L4K 3W7 Phone: (905) 760-1745 [email protected]
Contact: Mirek Macecek, President
Products: Sonic Cane
JETRO Canada 1999/2000 19
Contact: Patrick Bothwell, Head of Eastern Division
Established: 1977
Export Sales to Japan: Less than 1%
Products: Escalator Handrails
JETRO Services: Business Support Centre Investment Advisor
"If you've been on an escalator, you've probably used our product," exclaims Patrick Bothwell, head of the Eastern Division of the Escalator Handrail Company. Bothwell's company has a 40% global share of the escalator handrail market, yet didn't start distributing to Japan until early 1999.
"We wanted to expand our share of the global market," said Bothwell, "and Japan has more escalators than any other country in the world."
JETRO helped with Escalator Handrail Company's expansion to Japan by providing information through their Investment Advisor and giving them the free use of an office at one of their six Business Support Centres in Japan while they were preparing to set up an office of their own. "I had previously lived in Japan for seven years," said Bothwell, "so I was able to help the company with the necessary background, but JETRO really came through by letting us use an office for two months."
"Japan has a significantly tighter supply chain than most other countries in the world," said Bothwell. "Consumers are more inclined to use products that are made in Japan and integrated within their own country, so setting up an office in Japan just made sense."
A number of Japanese companies own subsidiaries that make their own rubber, steel, etc, so in the past if they needed anything they would just build it themselves. "This worked in the past," said Bothwell, "but with the global economy shrinking, companies are beginning to realize that their own companies are charging them too much for items that they can get more reasonably elsewhere."
"One of the biggest barriers in exporting to Japan is having a local presence," said Bothwell. "The Japanese like being able to pick up the phone and talk to someone about their product, which becomes more difficult when the office is half-way around the world."
"An important thing to remember about Japan is to do your own thing," said Bothwell. "Of course JETRO will be able to help you, but equally important is to find someone from your country that speaks Japanese, so that he or she can represent you in Japan."
ESCALATOR HANDRAIL COMPANY
QUBIT SYSTEMS INC.
When dealing with Japan, a company may have to wait for a relationship to establish before the actual business of exporting products takes place.
These are the thoughts of Robin Wynne-Edwards, vice president of operations for Qubit Systems Inc. "We had been actively looking into exporting to Japan for almost two years before we found the distributor that was right for us," said Wynne-Edwards. "It takes significantly more time to establish a business relationship with Japanese companies than it does in other countries."
Qubit Systems has always known that their business had an international focus. They currently export to 45 countries and Japan is such a large market that it seemed the move to begin exporting to Japan was a good fit. It was then that Qubit Systems decided it would be a good idea to contact JETRO.
JETRO help by placing Qubit Systems Inc.'s product information in its Import Business News. Then they came to Kingston, Qubit's home base, as part of their Local Roots Program and scheduled a meeting with a Senior Trade Advisor to discuss Qubit's bid to find a distributor in Japan. Eventually, Qubit was able to find a distributor that was a good match for their company, an Osaka-based importer of scientific instruments called Isis Co. Ltd.
"Recent advances in sensor technology have made it possible to monitor atmospheric gases and biological processes with an accuracy and affordability that were inconceivable only a few years ago," stated Wynne-Edwards. "At Qubit Systems Inc. we have incorporated these technologies into a range of high quality, integrated products for teaching and research in the biological sciences."
Qubit Systems was founded as a spin-off company from Queen's University. Qubit's name stands for 'Queen's University Biological Instrumentation and Technology.' Qubit operates within the Kingston community and retains links with the university to test its products.
Contact Info: 134 Albert St. Kingston, ON K7L 3V2 Phone: (613) 549-3199 Fax: (613) 549-3198 [email protected] www.qubitsystems.com
Contact: Robin Wynne-Edwards, VP Operations
Established: 1995
Employees: 12
Products: Instruments for measuring atmospheric gases
JETRO Services: Senior Trade Advisor Import Business News Local Roots Program
JETRO Canada 1999/2000 21
PHOENIX BIOMEDICAL PRODUCTS INC.
Contact Info: 7085 Tomken Rd. Mississauga, ON L5S 1R7 Phone: (905) 670-8299 Fax: (905) 670-0195
Contact: Ezzat Iskander, President
Products: Petri Dishes
JETRO Services: Import Fair: Health Care '99
"The Japanese market cannot be ignored," said president of Phoenix Biomedical, Ezzat Iskander. "If a company is looking to export their product anywhere in the world then they must think about sending products to Japan."
Iskander has always been interested in exporting Phoenix Biomedical's petri dishes, used for microbiology, to Japan since his company was first established in 1980. "The market is so huge that it only makes sense to export there," said Iskander, who first began exporting to Japan 10 years ago.
A participant of a couple of JETRO Trade Shows, Iskander has become very familiar with the Japanese consumer and the challenges that may be faced when dealing with them. "They are very finicky," said Iskander. "Packaging, labeling, and specific requirements are quite important to the Japanese."
"The JETRO trade shows that we attended have been very helpful," continued Iskander. "They make the world smaller by bringing people who have the same interests together. They are also a good opportunity to renew old acquaintances, produce meetings with the consumers, and connect people who should be in business together."
In his years of attending trade shows, Iskander has found that just meeting a potential customer doesn't mean that they will become one. It takes months and sometimes years to get someone's business. "It can become a very long process," said Iskander. "I've just completed my first sale with a company in Japan that I've been talking to for seven years. You must stay at it and never become discouraged. When trading with Japan you first must succeed in developing a partnership with a potential customer before you can gain their business.”
"The monetary success that I've had in Japan is relatively insignificant," explained Iskander, "but meeting the high standard of quality demanded in the Japanese market has propelled the quality and service of Phoenix Biomedical’s products forward and I believe that is what our success should be based upon. As we increase our exports, money will become more relevant, but as it stands right now, any monetary gain is gauged more as a prize."
JETRO Canada 1999/2000 22
KyberPASS has been exporting to Japan since the beginning of 1999. They became interested in Japan because it is one of the world's largest computer/software markets, therefore making it the most intriguing nation for one of North America's largest software security providers to begin exporting to.
They started by attending World PC Expo in Japan as part of JETRO's Software Import Product Specialist Program in 1999. They also attended Canadian Embassy/Consulate-hosted e-commerce events in Osaka and Tokyo.
"Support that you receive from organizations like JETRO and the Department of Foreign Affairs and International Trade (DFAIT) is invaluable," said KyberPASS, Vice-President, Sales & Marketing, David Lynch. "Without them we would not have had the immediate success that we achieved in Japan, but success at the beginning of your exporting endeavor isn't always measured with dollars and cents. The majority of your success in the first couple of years is in reaching the right partners and the creation of a relationship with these partners. This is especially important when you are marketing a product in a relatively immature technology industry."
Lynch has found that Japan and Canada are two very different countries when it comes to marketing and distributing a product.
"On-top-of being very different culturally, understanding Japanese business culture may also come as a challenge to most individuals," said Lynch. "The Japanese view of industry, sales, and relationships are completely different to what you we are used to in North America. In Japan, it is very important to develop proper channels when trying to secure your market share. JETRO gives you the background that you will require to become successful in Japan."
KyberPASS intends to expand further into Japan over the immediate future by adding a third master re-seller for their product and creating a KyberPASS office in Japan. "We used the resources that JETRO provided to get into Japan," said Lynch, "but actually becoming successful is up to you."
Contact Info: 1 Antares Dr. Nepean, ON K2E 8C4 Phone: 1-800-845-1140 Fax: (613) 727-5414 [email protected] www.kyberpass.com
Contact: David Lynch, VP Sales & Marketing
Established: 1995
Employees: 40
Products: Security Software
KYBERPASS
JETRO Canada 1999/2000 23
Contact Info: 13571 Commerce Parkway, Ste. 200 Richmond, BC V6V 2R2 Phone: (604) 278-6470 Fax: (604) 214-4900 [email protected] www.prologiccorp.com
Contact: Rob Murray, Managing Director - Asia Pacific
Established: 1984
Employees: 200
Products: E-commerce Products
JETRO Services: Seminars
Founded in 1984, Prologic Corporation is a leading developer of advanced e-banking solutions for the financial industry. Prologic has been exporting to Japan for six years after being introduced to a distribution company in Japan, Nomura Research Institute.
"There are tonnes of differences between the Japanese marketplace and every other market in the world," said Prologic, Managing Director - Asia Pacific, Rob Murray. "The business structure of corporations and the distribution of products are unique in the Japanese market. A Japanese company is significantly more multi-tiered than a North American one so it takes time for business decisions to be made."
Prologic also faced other challenges when exporting to Japan such as meeting quality expectations, communication as well as time zone and distance differences. But even though the Japanese market can be a hard one to get used to and initially crack, Murray believes that it still remains a very important one especially to a company in the IT industry.
He also believes that the services JETRO provides are quite useful and that a company starting to export to Japan should visit one of their offices or attend one of their seminars, which he described as "incredibly informative."
In terms of success, the Japanese market has been Prologic's most successful one. "We hold a 90% share of the entire Japanese market," said Murray, "and we plan on being even more aggressive and hitting it even harder in the future."
"For a company to survive in Japan they must be patient, have a quality product and must put an emphasis on building relationships with partners in Japan," advised Murray.
PROLOGIC CORPORATION
JETRO Canada 1999/2000 24
In Japan there are many cultural and professional differences. One difference that Michele Morin has had a good laugh over is the amount of correspondence that she receives that is addressed to Mr. Morin. "I guess they're just used to dealing with men on a professional level over dealing with women," said Morin.
Although she is quite new to the Japanese market, Morin says that she is in reliable hands because she has gone through the JETRO office in Toronto.
"I've been in business for over 20 years so I've had numerous experiences exporting to other countries like the US," said Morin, "but Japan is very different to the US."
Morin originally got in touch with JETRO after she saw an advertisement in the Canadian Gift & Tableware Association Newsletter. She then visited their Toronto office, brought them samples and was signed up for her first show in Japan, Ambiente '99, through the Import Product Specialist Program.
"JETRO made it very easy to have my products in the show," said Morin. "We provided the material and the pieces that we wanted to showcase and JETRO did the rest, including shipping the samples to Japan. They set up the material and were our representatives at the show."
Canadian Stained Glass had 10 inquiries from that show, has two sales in process and is looking forward to increasing exports to Japan.
"I was asked at a seminar about my experience with JETRO and exporting to Japan," said Morin, "and I told the person that when you start considering exporting to Japan you should definitely speak to a JETRO representative and when you decide that the time is right you should go through JETRO."
Contact Info: 2775 Dundas St. W. Toronto, ON M6P 1Y4 Phone: (416) 763-6275 Fax: (416) 763-5689 www.canadastainedglass.com
Contact: Michele Morin, Major Accounts Representative
Established: 1979
Employees: 25
Products: Hang in the window stained glass
JETRO Services: Import Product Specialist Program
CANADA STAINED GLASS LTD.
JETRO Canada 1999/2000 25
CANADIAN WARM BUDDY COMPANY
"Canadian Warm Buddy Company makes packs and stuffed animals that are used for aroma therapy," said Karen McKee, owner of Warm Buddy Company. "Our products are packets that are filled with materials that create a relaxing and soothing feeling when heated and applied to the body".
"However, what we found out immediately was that Japan does not allow rice to be imported and when your products are basically filled with herbs, grain, and rice, you have to adapt your product to make it available to the market."
McKee's interest in the Japanese market didn't come until JETRO called the Canadian Warm Buddy Company after the Vancouver Gift Show a couple of years ago to see if they would like to participate in the Import Product Specialist Program. "They took samples of our products to the Frankfurt Messe Asia Show '98 (now known as Ambiente) in Tokyo," said McKee. "After that show we received a number of e-mails and faxes from interested parties concerning distribution in Japan. We've been exporting to Japan for about a year now."
The adapting of the product didn't end with changes to the rice. McKee found that she had to re-do brochures and promotional material before any of the products were shown at the trade show in Tokyo.
"The Japanese customer is very polite and I feel that at times there has to be a great deal of reading between the lines to find what they want exactly," said McKee. "There are times when they don't say what is on their minds so you have to anticipate it, without making them feel like you are pushing anything on them." JETRO helped Canadian Warm Buddy with some of these problems, for example, providing information on shipping regulations and packing so that they could finalize orders in Japan.
Contact Info: 3809 Princess Ave. North Vancouver, BC V7N 2E6 Phone: (604) 984-3218 Fax: (604) 984-3218 [email protected]
Contact: Karen McKee, Owner
Annual Sales: n/a
Products: Aroma Therapy Products
JETRO Canada 1999/2000 26
CHAMPION PETFOODS
"Meeting local demands and paying attention to detail is critical to any success in exporting to Japan," said Peter A. Muhlenfeld, coordinator of exports for Champion Petfoods. "The key is understanding the market, therefore anticipating exactly what the consumer wants."
With products being distributed across four continents, Champion Petfoods is no stranger to adapting their products to meet the needs of the country that they are exporting to. JETRO was able to help Cham- pion Petfoods by giving good trade leads information that was valuable to succeed in Japan. "We first became interested in exporting to Japan on a trade visit to Taiwan," said Muhlenfeld. "When we returned we contacted JETRO and they were able to give solid advice to help us move in the direction that we wanted."
"The Japanese market is very similar to other Asian markets, and we've had experience with Taiwan, so the transition was quite easy, but that doesn't mean that there weren't any challenges," explained Muhlenfeld. "The Japanese product required changes to size and shape of the packag- ing, as well as promotional material. The Japanese are looking for products with clean, crisp designs."
Champion Petfoods' commitment to international standards of quality, value, and service, coupled with their dedication to formulation and production of nutritious and affordable foods, have resulted in secure solid growth in Japan.
"We will increase distribution to meet local demands in Japan," said Muhlenfeld. "The products have already been well accepted, so we see a future in Japan for Champion Petfoods."
Champion Petfoods was acknowledged for their exporting efforts when they received the 1994 Canada Export Award. This was the first and only time that this award has been given to a petfood producer.
Contact Info: 9503 - 90 Ave. Morinville, AB T8R 1K7 Phone: (780) 939-6888 Fax: (780) 939-6858 [email protected]
Contact: Peter A. Muhlenfeld, Coordinator of Exports
Established: 1975
Employees: 130-140
Products: Pet Food
JETRO Canada 1999/2000 27
NORTHERN GIFTS
Attending a JETRO trade show in person can create more interest in your company from potential consumers.
Bob MacKerricher has been producing his stuffed animals in a can since 1988 and has been exporting them to Japan in a limited capacity for roughly nine years. In 1994, MacKerricher sent some sample products to a trade show in Japan with the help of a JETRO import promotion program. He didn't get much actual business out of the experience but he learned a valuable lesson and he was determined not to give up on the Japanese market.
Later, another opportunity came for Northern Gifts to showcase their product at the Ambiente '99 show in Japan as part of the Import Product Specialist Program, however this time MacKerricher decided to go to Japan himself. On this program, a JETRO specialist can represent your product in Japan, making it a very cost-effective way to introduce a new product into the Japanese market. However, companies that accompany their product usually attract more interest because they are there to demonstrate and explain their products in person.
"What a difference it made when I went to Japan myself," said MacKerricher. "All the potential business partners that I met were quite impressed that one of the owners would travel with their product to sell it. Once they saw my business card and realized that I was someone who could make deals and talk to them immediately about sales, contracts, and potential distribution partnerships, it made them feel significantly more secure about our product and solidified the fact that we were serious about exporting to Japan."
MacKerricher believes that by him being at Ambiente it indicated that there would be no misunderstandings about his product. Through a translator he was able to answer their very specific questions about his product.
Since his return from Ambiente '99, Northern Gifts' business to Japan has grown very nicely. MacKerricher was able to make four sales while in Japan and has been able to make several more since his return to Canada.
"When you look past the language and parts of the culture, Japan is the same as any other market," said MacKerricher. "My 'canned critters' product appeals to a certain type of person, and that type is found in every country and every culture."
Contact Info: 300 - 4585 Canada Way Burnaby, BC V5G 4L6 Phone: (604) 299-5050 Fax: (604) 299-0808 www.cannedcritters.com
Contact: Bob MacKerricher, President
Products: Stuffed animals in a can
JETRO Services: Import Product Specialist Program
JETRO Canada 1999/2000 28
PEDIGREE PERFECTION
"The consensus is that a dressed dog is a classy dog," said Irving Solomon, secretary/treasurer of Pedigree Perfection, a canine fashion apparel company with offices in Montréal, Québec and Lauderhill, Florida. "We've found that most household canines are imported breeds whose paws are unused to tramping though slush caused by harsh, ice- melting chemicals in the cold of winter."
Pedigree Perfection has been exporting to Japan since 1991, when the Canadian Government helped them to get in touch with JETRO. "We used the JETRO database of potential importers to help us get started in the market place in Japan." said Rhonda Meloro, manager of the manufacturing facility in Montréal.
"The important thing to remember when you are dealing with distributors in another country is to make sure you know who you are dealing with," said Meloro. "Methods of payment for shipments are different when the receiver is half-way around the world. You have to make sure of who you are dealing with, and we require credit cards to secure our merchandise."
Pedigree has their product shipped throughout the United States, Canada, Europe, Australia, and parts of South America. "We're currently lobbying the United Nations to pass a resolution forbidding dogs to go naked," deadpans Solomon. And while that may not be in the future, it is sure that Pedigree is well poised for expansion in Japan into the 21st century.
Contact Info: 4380 Cote des Neiges Montréal, QC H3V 1E6 Phone: (514) 989-8420 Fax: (514) 933-7850 [email protected]
Contact: Rhonda Meloro, Manager
Products: Canine Fashion Apparel
JETRO Canada 1999/2000 29
WHAT IS JETRO?
The Japan External Trade Organization (JETRO) is a non-profit, government-related organization dedicated to promoting mutually beneficial trade and economic relationships between Japan and other nations. Headquartered in Tokyo, JETRO has a network of 38 offices in Japan and 80 overseas offices located in 58 countries.
JETRO has 3 offices in Canada - in Toronto, Montreal and Vancouver. There are also two JETRO Senior Trade Advisors posted in Guelph and Vancouver. JETRO works closely with all levels of government and industry organizations in supporting Canadian companies in their efforts to enter the Japanese market. JETRO's activities in Canada are designed to assist small and medium-sized companies export to and invest in Japan as well as to promote industrial co-operation, strategic alliances and region-to-region trade and business links.
In July 1998, JETRO merged with the Institute of Developing Economies (IDE), Japan's largest institution for regional and economic development research. The merger transforms JETRO into a new organization with comprehensive capabilities in trade/investment promotion and research on economic and related affairs in developing regions.
JETRO Canada 1999/2000 30
OUTLINE OF JETRO PROMOTION PROGRAMS
BUSINESS SUPPORT CENTRES (BSC) To assist foreign business people in launching their marketing efforts in Japan, JETRO maintains Business Support Centers in Tokyo, Yokohama, Nagoya, Osaka, Kobe and Fukuoka. They offer two months of free office space. In addition, the conveniently located centres are staffed with on-site expert consultants who provide business information and advice free of charge.
CYBER SHOWCASE The Cyber Showcase is a computerized database that enables Japanese buyers and foreign sellers to find each other quickly, easily and for free. This on-line product showcase is an effective way to promote a company's building materials products or assistive technology devices in Japan.
EXPORT TO JAPAN STUDY PROGRAM (EJSP) This program invites selected Canadian business people and trade specialists to Japan for a ten-day-long visit designed to provide a first-hand look at Japanese market conditions and trends. In addition to helping arrange individual business appointments in advance, specialized briefings by Japanese business people, importers, manufacturers and other specialists are provided. Tours of local firms and manufacturing facilities can also be arranged.
HOUSING MATERIALS CENTRES Targeted at both Japanese consumers and builders, centres in Tokyo and Osaka exhibit a wide variety of housing fixtures and interior fittings from abroad. Catalogs, pamphlets and other publications cover an even broader range of items. Seminars and consulting are also provided.
IMPORT BUSINESS NEWS (YUNYUU SAIZENSEN) Senior Trade Advisors use this Japanese language monthly publication to introduce promising Canadian products, not yet available in Japan, directly to Japanese importers.
IMPORT FAIRS (HEALTHCARE / ENVIRONMENT) JETRO organizes annual large-scale trade fairs in Japan for foreign products and services with emphasis on two areas with excellent growth potential: health care and environment.
IMPORT PRODUCT SPECIALIST PROGRAM On a periodic basis, Japanese Import Product Specialists are dispatched to Canada to make direct contact with Canadian manufacturers and purchase product samples, which they then represent at specially organized Import Showcases held in conjunction with major industry- specific trade fairs in Japan. The Import Product Specialists are veteran Japanese business people from the private sector selected for their special expertise in specific product areas as well as their experience in dealing with imported products. Last year experts in healthcare, environmental products and software visited Canada. In the past other sectors such as lifestyle and building products have also been targeted.
INVESTMENT ADVISORS At JETRO's Toronto office, two Investment Advisors are always ready to assist Canadian companies with inquiries about investment in Japan, for example, market opportunities, how to set up an office, joint venture partners, taxation practice or accounting.
JETRO Canada 1999/2000 31
LOCAL ROOTS PROGRAM The Local Roots Program was initiated in 1994, as a means of offering JETRO's services to companies located far from the Toronto office. Focusing on a different city each year, the program provides companies with the opportunity to introduce themselves to Japanese- affiliated manufacturers and trading houses in the Toronto area, who may not otherwise hear about them. Once matches are made, free half-hour business appointments are arranged between the two companies in the selected city to discuss potential business opportunities.
MARKET RESEARCH JETRO has a wide variety of market research resources for Canadian companies, from specific sector market reports to a database of potential Japanese importers to directories of trade fairs in Japan. There are also guides to Japanese business culture, videos and regular publications about trends in the Japanese market. Much of this information can be accessed on-line and companies are welcome to send their inquiries to their nearest JETRO office.
REGION TO REGION PROGRAM (LOCAL TO LOCAL) The Region-to-Region Initiatives program was launched in 1996 to support two-way international regional development. Under the program, JETRO works with the regions to determine their mutual needs and objectives, and then offers support for existing and new activities. This is done mainly by conducting surveys, dispatching and receiving missions as well as holding seminars. These efforts, coordinated through JETRO's extensive network of offices worldwide, can play a crucial role in bringing regions together for investment and technical tie-ups, collaborative research and development, overseas procurement by Japanese firms, and investment in Japan by foreign firms.
SEMINARS All the JETRO offices are active in holding seminars to inform Canadian companies about various aspects of the Japanese market and how to do business there.
SENIOR TRADE ADVISORS The function of the Senior Trade Advisors (STA) is to seek out products with potential for export to Japan, provide one-on-one consultations, and introduce promising Canadian products directly to Japanese importers through the publication Import Business News. Presently, there are two Senior Trade Advisors in Canada. One, an expert in agriculture and agri-foods, is stationed at the Federal Government's Agriculture and Agri-Food regional office in Guelph, Ontario; the other, specializing in the high-tech area, is based out of the Vancouver office of the Alliance of Manufacturers and Exporters Canada. Please see next page for contact information.
TECHNO-BUSINESS FORUM This event is designed to explore mutually beneficial partnerships between overseas and Japanese companies, for example joint ventures and technology alliances, especially in the fields of info-tech, multimedia and electronics. Costs of exhibitor booth, accommodation and interpreter services are paid for by JETRO. Also, seminars, presentation meetings, individual follow-up meetings with Japanese companies and field tours to regional markets are arranged.
TECHNOLOGY TIE-UP PROMOTION PROGRAM (TTPP) TTPP is a free Internet-based system that puts companies from around the world in touch with Japanese companies. This program allows you to promote your interests to Japanese companies by registering on the system and also discover the interests of Japanese companies for potential partnering opportunities. The system is available in both English and Japanese versions.
OUTLINE OF JETRO PROMOTION PROGRAMS
JETRO Canada 1999/2000 32
JETRO OFFICES IN CANADA
JETRO Toronto 181 University Avenue, Suite 1600 Toronto, ON M5H 3M7 Phone: 416-861-0000 Fax: 416-861-9666 [email protected] www.canada.jetro.org/toronto/ (JETRO Toronto) www.jetro.go.jp (JETRO Tokyo)
JETRO Montreal 1 Place Ville-Marie Suite 1506 Montreal, PQ H3B 2B5 Phone: 514-879-5617 Fax: 514-879-5618 [email protected] www.canada.jetro.org/montreal/
JETRO Vancouver World Trade Centre 660 999 Canada Place Vancouver, BC V6C 3E1 Phone: 604-684-4174 Fax: 604-684-6877 [email protected] www.canadex.com/jetrovan/
JETRO SENIOR TRADE ADVISORS
Guelph Mr. Mitsuhiko Kushida c/o Agriculture and Agri-Food Canada 174 Stone Rd. West Guelph, Ontario N1G 4S9 Phone: 519-837-5868 Fax: 519-837-9782 [email protected] [email protected]
Vancouver Mr. Hiroshi Wakabayashi c/o The Alliance - Vancouver Bureau Suite 1330, 1100 Melville Street Vancouver, B.C. V6E 4A6 Phone: 604-713-7803 Fax: 604-713-7801 [email protected]
www.canada.jetro.org