Five measures to take now to capture inbound demand
summary
Since restrictions on new entry of foreigners were largely lifted on October 11, 2022, many foreign tourists have begun visiting Japan.
The number of foreign visitors to Japan in October was 498,600 , approaching 500,000*1.
Japan's tourism industry is sure to once again see an intensified battle to attract foreign tourists , just as it did before the coronavirus pandemic .
In addition, it is expected that demand for Japanese products and services will increase not only in the tourism industry, but also in B2B business areas such as manufacturing, driven by the weak yen .
This is because , according to the " Foreign Companies Business Status Survey " conducted by JETRO from September to October 2021 *2, 52.6% of foreign companies responded that they plan to strengthen and expand their business operations in Japan in the future .
*1 Source: Japan National Tourism Organization (JNTO), "Number vp manufacturing production email lists of foreign visitors to Japan (estimated value for October 2022)" *2 Source: Survey on the business status of foreign-affiliated companies
So, in this article, I would like to introduce what you should do now to capture inbound demand from overseas and increase sales .
We want to develop new markets in the future to revive our business, which has been hit hard by the coronavirus pandemic.
I understand that inbound demand from overseas is increasing, but I don't know where to start.
If you are a company manager or salesperson, please take a look.
By reading this article,
Why prepare now for increased demand from overseas
Branding measures to be prepared for this purpose
This will help clarify the issues and provide clues for developing new markets.
Please read to the end.
Three reasons why you should prepare for inbound demand from overseas now
Why is it important to strengthen your branding to attract inbound tourists from overseas now? Here are the first three reasons why .
If we leave it alone, foreign companies will take our market share.
The hotel industry is already anticipating a rush of foreign luxury hotels opening in Tokyo, Osaka, Kyoto and other areas from 2023 onwards.
Furthermore, with major companies entering Japan, such as Taiwan's TSMC, with the government supporting the move to locate a semiconductor factory , it is expected that the number of foreign companies entering the Japanese manufacturing industry will accelerate in the future.
If Japanese companies just sit idly by and watch, economic zones will be formed among foreign companies, and Japanese companies will not be able to penetrate those zones.
How Japanese companies can expand their transactions with foreign companies within complex supply chains will be key to the future development of domestic companies.
I believe there are still many blue oceans in niche markets, so if you act quickly, opportunities will arise.
Few small and medium-sized enterprises in Japan are prepared for inbound demand
When looking at the websites of Japanese companies, it is difficult to say that there are many companies, other than listed companies and global corporations, that offer multilingual support or conduct marketing to foreign markets.
Even if you don't currently have demand from overseas, making your website multilingual can create opportunities.
If your competitors have not yet made their websites multilingual, it is definitely an opportunity. Only those who act first will be able to seize the new opportunity.
If you keep an eye on the movements of your domestic competitors and see opportunities to gain first-mover advantage, taking action first will give you an advantage in the market competition.
Demand for foreigners will continue to grow in the future
As was the case in emerging countries in the past, the influx of large foreign manufacturing companies into the country will increase demand for associated materials and parts manufacturers.
As the manufacturing industry becomes more active and transactions between foreign and Japanese companies increase, the number of business people coming to Japan from overseas will increase.
Japan, with its rich tourism industry, is gaining more attention and the number of tourists is on the rise.
