Why Japan Market Entry Fails More Often Than It Should

Japanese distribution deals often start with high hopes and end with quiet failure. The real issue? A lack of evaluating your market-entry partner. It's time to fix that.

Jun 24, 2025

Entering Japan through a local partner sounds like a smart move — and often is. But without the right preparation and structure, what begins with promise can lead to months spent in endless discussions.

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

In a recent post, I looked at one of the big decisions every company faces when entering Japan: Partner or go it alone. If you're still weighing the pros and cons of each path, I recommend starting there.

But if you're already leaning toward finding a local partner — distributor, agent, importer, or licensee — then this post is for you.

Because here’s the reality:
Many partnerships in Japan don’t fail immediately. They fail slowly

“It All Started Well. Now We’re Stuck”

Every other week, I hear from a COO who tells me the same thing:

“We signed with a Japanese distributor two years ago. At first, we saw things moving. But now? We’re spinning in circles.”

Others will tell me:

“We don’t know what’s really happening on the ground in Japan. Now we’re locked into a relationship with no future. How do we get out?”

It’s frustrating. And expensive. By the time they ask for help, the brand’s already losing traction. They might have lost two years of their time trying to find a way into the market.

So what went wrong?

The Partner Isn’t the Problem — The Process Is

In most cases, the partner isn’t the problem — it’s the approach.

The overseas company didn’t run a proper evaluation, didn’t set expectations, and didn’t prepare the partner to succeed.

There was no onboarding.
No real training.
No shared roadmap.

The partner was chosen based on a conversation, not a process — and then left to figure things out alone.

Trade Fair Conversations Are Not a Strategy

Here’s the pattern I see too often:

A Japanese trading firm connects with an overseas brand at a trade fair. The two managers start a conversation about the opportunities in Japan. Over the next few months, they’ll have one or two online meetings, and eventually a distribution agreement is signed.

The overseas team is excited. The partner is onboard. The brand is “in Japan.”

But then the real work begins — and that’s where it often stalls.

Because once the contract is signed, the overseas team leans back. They expect the partner to run the show locally, so they check in once a quarter, maybe visit Japan once a year.

The Japanese Perspective

Meanwhile, on the ground, the Japanese partner had their own expectations.

The relationship began because one of their key customers had shown interest — a serious inquiry that prompted them to reach out to the overseas supplier in the first place. They saw potential. But as time went on, communication slowed.

They sent technical questions and requests for follow-up information, but often didn’t get clear answers. The overseas team seemed unresponsive, too busy, or didn’t bother taking the questions seriously.

What they would hear from the overseas sales director was:

“What do you need all these details for right now? Can’t we figure this out once you get the order?”

The Japanese project manager didn’t insist. He politely asked his client for patience. And slowly but surely the inquiry went cold.

From the Japanese side, it looked like the overseas supplier wasn’t serious — or wasn’t ready. And with no clear next step, the opportunity faded, as so many do in Japan.

You Need More Than a Friendly Introduction

What started with goodwill and interest fizzled out — not because either side lacked good intentions, but because there was no structure and no strategy to turn the opportunities on the Japanese market into actual results.

This is the pattern I see again and again:
A chance meeting. Good chemistry. A handshake deal.

But without clear roles, shared goals, and a roadmap, both sides quietly lose momentum.

Ask Better Questions Before You Commit

Before you commit to a market-entry partner, you need to go deeper.

You need to ask the right questions. You need to do your homework: validate whether your product fits the Japanese market, define what kind of partner you really need — and be honest about what you are willing to invest.

That means:

Doing real market research to understand what Japanese customers expect
Using a structured evaluation framework to assess potential partners
Bringing in on-the-ground expertise to guide the process and get the collaboration going

Because success in Japan doesn’t come from luck — it takes upfront work and staying actively involved in building the relationship, one email, one meeting at a time.

Marrying Without Dating? Do Your Due Diligence First

You’re not going for an M&A — but make no mistake: committing to a partner in Japan is a multi-year decision.

That’s how your Japanese counterpart sees it. Once the contract is signed, they assume the relationship is basically… forever. It’s like getting married.

And yet, many overseas companies say yes after just a few meetings — without digging deeper. That’s where things go wrong. Because it’s not about finding someone who’s enthusiastic right now.

It’s about finding the right market-entry partner that has:

✅ Access to the right channels and decision-makers
✅ Skills to navigate Japan’s complex business landscape
✅ Grit to keep pushing when motivation fades or results are slow

In other words: not just a partner who’s interested — but one who can actually deliver.

Coming Up Next

In the next issue, I’ll share something I have never shared before: my Japan Partner Assessment — a multi-question framework I use with clients to guide them through this process. So they get full clarity on what they are looking for before committing to a market-entry partner in Japan.

These aren’t generic questions. They’re designed to reveal what polite conversations often hide: whether your potential partner has the access, the skills, and the grit to actually build your business in Japan.

Because once you commit, you’re in — and getting out isn’t easy.

Make sure you're subscribed, and don’t miss it.

Talk soon.

Pascal Gudorf

— Helping you unlock your full potential in Japan