Partnering — or Going It Alone?

The crucial question for Japan market entry should not be left up to chance.

Welcome to another edition of Japan Business Secrets, where we decode what really drives success (or failure) in Japanese business – beyond the surface-level etiquette.

This week, we’re zooming in on one of the most critical questions every international brand or startup must answer when entering Japan:

Should you partner with a Japanese company — or go it alone?

If you’re at this stage, you’ve just reached a key decision for your Japan market entry. This is where every successful strategy begins.

In over 20 years helping foreign companies succeed in Japan, I’ve heard the debate countless times:

“Of course we need a local partner. We don’t know Japan well enough.”

Or the opposite:

“No, we’ll do it on our own. We want full control.”

Here’s the truth: Both are correct.

Yes, you want to stay in control — no matter what.
Yes, you need partners to succeed in Japan.

No one breaks into this market without local support.

What Really Matters?

With the risk of sounding clichéd, I’ll state the obvious: succeeding in Japan requires a local presence. Full stop.

You need people on the ground who:

• provide market insight

• cultivate essential connections

• manage accounts proactively

• follow up consistently, and

• build trust over time.

Whether you build your own team or rely on a partner, the goal is the same: stay close to the market.

The Japanese have a phrase for what matters most:
生の声 (nama no koe) – the unfiltered, real voice of the customer.

Sometimes also referred to as お客様の声 (okyakusama no koe) – the customer's voice.

You need people who can hear what’s really being said, interpret what's between the lines, and adjust your approach accordingly.

In the end, whether you go it alone or work through a partner is just a choice of vehicle. What matters is whether it brings you close enough to the market and serve your customers like you would at home.

The Realities of Going it Alone

Going solo gives you control — over pricing, positioning, hiring, and branding. You own the customer relationship. You don’t have to rely on someone else to represent your interests or explain your value.

You also get direct access to feedback. When something’s not working, you hear it first. And when a customer is interested, you’re the one who follows up — not a third party with divided priorities.

But with full control comes full responsibility. Japan’s market moves slowly, relationships take time, and credibility has to be earned. You don’t need a fancy office in Marunouchi, but you do need people — and people cost money. Local hiring, training, and retention are real investments, especially if you want talent who can navigate Japan’s corporate landscape.

There’s no shortcut. If you go it alone, be ready to commit.

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The Benefits of Partnering

For many companies entering Japan, partnering with a local firm is the natural choice. If you choose your partner well, they will utilize their network and get you meetings with real customers faster than you could by yourself. The advantages are obvious: After all, you don’t need to hire and build the entire organization on your own.

The right partners will help you test the ground first by pitching your idea to potential buyers and provide feedback. They will advise you on your messaging and localize marketing material. And then, they will help you get access to potential customers.

Whether you’re in retail or B2B, the goal is the same: to get your product in front of the right people.

• With a limited budget, distributors or agents might offer to feature your product at their trade show booth — giving you early exposure without the cost of setting up your own presence.

• Joint events can also be a good starting point to generate leads.

• I’ve also seen clients team up with market-entry consultants to organize focused roadshows — tightly scheduled meetings with potential buyers, each one a chance to test messaging, gather feedback, and refine the approach.

So partners will ideally provide a list of prospects, sales staff, and industry insights needed to grow faster than going it alone — but partnerships require active management. From my experience working with overseas clients, those with the strongest partner relationships invest significant time and effort into onboarding, training, and ongoing monitoring to ensure their Japanese partner stays on track.

That said, clients have had both positive and negative experiences. Too often, partner selection is left to chance — an introduction at a trade fair or a recommendation from a third party — rather than a rigorous evaluation process.

Types of Partners to Consider

If you decide to work with a partner in Japan, the question quickly becomes: what kind of partner should I look for?

Each type of partner brings different levels of access to the market (reach), and a different degree of shared priorities (alignment). You’ll need both — someone who has the right network of potential clients and is motivated to grow your business.

Here are four common types:

1. Distributors
A very common route into Japan. Distributors purchase your product and resell it with a margin. They understand how to move goods through Japan’s established retail and B2B channels. This model works well for clearly defined, off-the-shelf products like packaged food, industrial parts, or components with standard specs.

They often lack the manpower, technical expertise, or time to support high-touch sales that require explanation, customization, or integration. If your product needs education or hands-on support, don’t expect them to fill that gap — unless you provide it.

2. Agencies
Agencies or agents act on your behalf but don’t take on inventory risk. They may support sales, marketing, or customer service — often under your brand name. This gives you more control over positioning, but results vary widely depending on how closely you manage the relationship. When you’re one of many clients, priorities can easily drift.

From what I’ve seen, commissions range anywhere from 2% to 30%, depending on the complexity, price points and volumes of the product and the level of involvement. Local agents can work well for offers that require explanation, trust, or technical support — but only if you stay engaged and aligned. Passive partnerships rarely deliver.

3. Shōsha (trading companies)
Shōsha — whether large general trading houses or smaller specialized firms — are a powerful gateway into Japan’s market. They bring access, credibility, and deep deal-making experience across a broad range of areas: commodities, industrial machinery, consumer goods, and even large infrastructure or mobility projects. Many will open doors and arrange meetings, and some go further by actively pushing deals forward and managing risks that legal teams overseas often won’t accept.

From my perspective, shōsha operate on their own timeline and according to their own priorities. If your product or project doesn’t closely align with their strategic focus, their interest can quickly fade. I’ve seen firsthand how experiences with shōsha vary widely, so it’s critical to understand their incentives and how they fit your business goals before fully relying on them.

4. Independent experts / market-entry consultants
Sometimes, the smartest initial move is to engage a well-connected individual on the ground—someone with firsthand experience in your industry and deep knowledge of the Japanese market. This could be a former executive, advisor, or independent consultant who understands the nuances of local business culture and customer expectations. Their role is to help you test the waters, gather authentic feedback from real customers, and provide market insights that are difficult to capture from overseas.

Working with an independent expert offers a relatively low-risk way to start your market entry. While they won’t build your entire operation or scale your business alone, they provide crucial hands-on guidance and open doors to valuable contacts. Their expertise can save you costly missteps early on and help you make more informed, strategic decisions about your approach in Japan.

What to Expect from Local Partners in Japan

Having guided clients through numerous partnerships with shōsha executives, agents, and distributors, I’ve seen firsthand what these relationships truly entail.

In the case of shōsha (trading companies), their representatives will reliably present your product professionally and open doors to key contacts. Many will assume significant risks on your behalf — often accepting contract terms that legal teams in the US or Europe would hesitate to approve — helping to advance deals that might otherwise stall.

However, when customer concerns or conflicts arise, shōsha seldom advocate forcefully for your interests. Their primary focus is preserving harmony with their long-standing domestic partners.

Agents operate independently, working on commission. While attractive terms can motivate them, in many cases clients find agents will not consistently go beyond the minimum effort required to secure a sale.

Distributors sit between you and the market. If demand exists, they will supply your product at the request of their customers, but they generally won’t actively promote it.

From my experience, when priorities conflict, local partners almost always prioritize protecting their existing relationships. Your company is important, but rarely their top priority.

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So, What Does This Leave us With?

Going it alone gives you full control — but it demands deep investment in people, time, and market insight. Partnering can open doors faster, but only if you stay engaged, set expectations early, and manage the relationship actively.

In some of the most successful cases I’ve supported, companies found a middle path: they partnered locally, but brought in someone they trusted — a former executive, a seasoned advisor — to stay close to the action. Someone fluent in Japanese business culture and the priorities of HQ. Someone who made sure nothing got lost in translation.

Progress in Japan doesn’t happen by accident — it happens when someone is on the ground:

• Translating expectations across cultures

• Following up consistently and building trust over time

• Surfacing the real voice of the customer

• Ensuring signals reach the right decision-makers

• Acting fully in your company’s interest — not just their own

That’s what turns a strategic plan into signed contracts, stronger relationships, and real results.

If you’re exploring your first steps into Japan, or already working with a local partner but feel things aren’t moving, reach out. Sometimes one conversation can change how you approach the entire market.

Talk soon.
Pascal Gudorf

— Helping you unlock your full potential in Japan