In the first of my two-part series, I introduced Tokyo’s startup and innovation ecosystem by sharing the why, and four key stakeholders that you need to know. If you’re now convinced or have been considering the market already anyway, then here’s my sharing of the how revolving around three Cs: consult, culture, commitment.

These are also the key learnings and insights from my recent participation in Invest Tokyo’s flagship programme: Access to Tokyo (A2T) Famtrip 2021. 

Consult the government

For startups in AI, blockchain, robotics, AR/VR, IoT, Fintech, and data related technologies, the Tokyo Metropolitan Government (TMG) provides free consulting services tailored to your company’s needs and requests, to accelerate your expansion into Tokyo and Japan.

Support services include (but are not limited to) market analysis, go to market strategy, identifying potential business partners, and financial forecasting.

Some of the companies that have benefitted from this include San Francisco-based Tellus You Care, New York-based Symphony Communication Services, London-based Revolut, and Singapore-based SWAT Mobility. 

For companies who are thinking about establishing a presence in Tokyo, key considerations could include business development and operations, relocation and residency of some key staff from HQ, as well as the (financial) regulations there.

The Business Development Centre Tokyo (BDCT) provides services ranging from business support, living support, and financial support for foreign companies and entrepreneurs.

Then when you’ve decided to enter the market, the Tokyo One-Stop Business Establishment Centre (TOSBEC) will help foreign companies with corporate administrative procedures, such as incorporation, taxes, social security, and immigration.

Also Read: How this Tokyo-based startup is protecting e-Commerce merchants against fraudulent orders

Know the business culture

As the saying goes, when in Rome, do as the Romans do. When in Tokyo, it is important to assimilate the Japanese way of Business. Here are some important Japanese sayings that represent the traditional culture, which is also common in the business context.

Nagai mono niwa makarero	Loosely translates to “Resistance is futile”, suggesting to go along with the popular decision, or not go against any influence/authority.
Goh ni ireba goh ni shitagae	An expectation to go with the flow of the Japanese way. Conflicts are seen as immature, and a disruption to the group’s harmony.
Nemawashi	A semi-formal decision making process by going behind the scenes to fully understand all the facts, and get everyone to “officially” agree, before signing off
HONNE to TATEMAE	The concept that nobody can express their true feelings and opinions, always preferring to defer to the “model answers”, until the relationship is built on trust and confidence.

As a generalisation, the decision making process with the Japanese is less objective or value-oriented, but more problem-solving oriented. This means that there must be a perfect understanding of the whys, the issues, the facts, and the root cause go through the Nemawashi process before the decision is being made.

Tokyo requires commitment

Every new market requires focus and commitment for your business to succeed there, and Tokyo is no different. In fact, given the comprehensive support from TMG’s programmes, as well as the attractiveness of the market itself, commitment to Tokyo should be relatively easier compared to other new markets that you’d experience.

During a Q&A session with Gen Uehara, Head of Asia Pacific at Symphony, he explained some examples of their commitment to Tokyo, such as

• The localisation of your product is not good-to-have, but a must.
• You must be patient with your go-to-market strategy in Tokyo
• It is recommended to hire a local leader, as opposed to parachuting someone from HQ and expecting him/her to do it all by themselves.
• Striving to be “mainstream” is important, by managing word-of-mouth within your target industry/sector, and public relations with the media strongholds like Nikkei.

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