Market Overview

Why Japan Now? Japan boasts the largest and most diverse economy in Asia, and is second only to the U.S. on the world's economic stage. The U.S. sends more exports to Japan than it does to any other overseas destination. Thousands of U.S. companies have established successful operations in Japan and even more export to Japan on a regular basis. The Japanese economy has pulled out of its economic slump of the last decade and is showing clear signs of an emerging recovery. U.S. exports to Japan have risen steadily over the last several years, and exchange rates continue to favor U.S. exporters.

More Deregulation Than Ever Before In the mid-80's the Japanese market was often characterized as being excessively regulated and a difficult market to penetrate. Several factors have contributed to the easing of these regulations and to a more open economy. Changes brought through technology and the Internet, restructuring within the Japanese economy and bilateral negotiations, have opened the Japanese market in many sectors where U.S. companies are globally competitive — telecommunications, medical equipment and pharmaceuticals, energy (including power generation and transmission equipment), information technology, insurance, and financial services. As a result of the Economic Partnership for Growth, launched by President Bush and Prime Minister Koizumi in June 2001, the U.S. and Japanese governments continue to exchange reform recommendations on key sectors every fall. Now more than ever, Japan deserves a second look.

Highlights of the Japanese market:

• Asia's trendsetter
• Returning to growth economy
• Second-highest GDP in the world
• Second-highest purchasing power and consumption levels in the world after the U.S.
• Efficient, state-of-the-art transportation and communications systems
• Households with computers:
  Japan 65.7%
  U.S.A. 61.8%
• Households with internet access:
  Japan 88.1%
  U.S. 54.6%
• Cellular telephone subscribers:
  Japan 85.1%
  U.S. 54.6%

Japan at a Glance

A.	Population	127.7 million
B.	Land Area	377,864 sq. km. (145,902 Sq. mi.);slightly smaller than California
C.	Capital	Tokyo
D.	Other Major Cities	Yokohama, Osaka, Kobe, Kyoto, Nagoya, Sapporo, Fukuoka
E.	Government Type	Constitutional monarchy with a parliamentary government
F.	Language	Japanese
G.	Primary Industries	machinery and equipment, metals and metal products, textiles, automobiles, chemicals, electrical and electronic equipment
H.	GDP (2007)	$4.9 trillion
I.	GDP per capita in U.S. dollars (2007)	$33,100
J.	Real GDP growth rate (2007)	2.8%
K.	Consumer Price Increase Rates (2007)	0.4 %
L.	Unemployment Rate (2007)	3.9%
M.	Total Imports(2007)	$621.1 billion
N.	Total Exports (2007)	$712.7 billion
O.	Major Import Suppliers (as % of M.)	China 20.8 %, U.S. 11.6 %, Saudi Arabia 5.7%, UAE 5.2%, South Korea 4.4 %, Indonesia 4.2 %, Taiwan 3.2%, Germany 3.1%, Thailand 2.9%
P.	Major Export Markets (as % of N.)	China 20.7%, U.S. 20.4 %, South Korea 7.8 %, Taiwan 6.3 %, Thailand 3.6%, Germany 3.2 %, Singapore 3.1%
Q.	Top 10 Imports (Japan from world)	crude oil, textile articles, electronic components, computers, LNG, fishes and shells, audio and visual apparatus, nonferrous metals, optical instruments, petroleum products
R.	Top 10 Exports (Japan to world)	automobiles, electronic components, automobile parts, steel, optical instruments, prime motors, imaging equipment, organic compound, electrical apparatus, computer parts
S.	Imports from U.S. (2007)	$62.7 billion
T.	Exports to U.S. (2007)	$145.5 billion
U.	Top 10 U.S. Exports Japan	computer and electronic products, transportation equipment, chemicals, machinery, agricultural products, food products, beverages and tobacco products, electrical equipment and component, fabricated metal products, marine products
V.	Top 10 Japanese Exports to U.S.	transportation equipment, computer and electronic products, machinery, chemicals, electrical equipment and component, fabricated metal products, plastics and rubber products, primary metal manufacturing, nonmetallic mineral products, paper

*U.S. Exports to Japan in 2006 by 3-digit NAICS (North American Industry Classification System) Codes U.S. Exports to Japan in 2006

*U.S. Exports to Japan from 2001 to 2005 by 5-Digit End-Use Code U.S. Exports to Japan from 2001 to 2005

Doing Business in Japan

Market Entry Strategy

Many U.S. companies that are serious about entering the Japanese market can benefit by finding a reputable, well-connected agent or distributor to represent them in the market. In addition, it is extremely important to cultivate business contacts through frequent personal visits. Commercial Service Japan can help you find these types of agents, as well as direct buyers, through our Gold Key and Platinum Key programs.

Japanese attach a high degree of importance to personal relationships, and these take time to establish and nurture. Patience and repeated follow-up are required to clinch a deal. Unless you possess excellent Japanese language skills, foreign business executives should be accompanied by a professional interpreter, as many Japanese executives and decisionmakers do not speak English. For more information on doing business in Japan, click here, or consult your nearest Commercial Service office.

Best U.S. Export Prospects

• Computer Software
• Cosmetics & Toiletries
• Education & Training Services
• Electronic Components
• Medical Equipment 
• Pharmaceuticals 
• Telecommunications Equipment
• Travel & Tourism

Success Story

CS/Japan Produces Results for U.S. Companies

During the last year alone, CS/Japan has helped U.S. companies attain more than 300 specific export successes throughout Japan. These export sales have come from all over the United States, and from a diverse array of industry sectors. One U.S. exporter got a lift from CS/Japan when they received assistance that helped them provide elevators to one of Japan's most famous automobile companies. Another successful U.S. service provider was able to support a local municipality for their water remediation project. Still another of America's small exporters provided windows to numerous Japanese home builders. America's fashion industry also sewed up success in the Japanese market this year with the help of CS/Japan. Advocacy played a key role as well when CS/Japan stepped in to secure the release and use of electronic components by one of Japan's electrical utilities. Finally, CS/Japan actively built success from the ground up when we supported America's architects by helping them win contracts to design both public and private buildings in Japan. There are many more examples, but these few help illustrate the positive results that can come from partnership with the Commercial Service Japan.

Market Research

-Imports of Building Products to Japan (monthly)
-Housing Starts in Japan (monthly)
-Broadband
-Golf Products in Northern Japan
-Japan Water and Wastewater Industry Overview
-Veterinary Products
-Japan, Octopus market
-Japan Analytical Instruments Market
-Japan Motorcycle Market
-Japan: Electronic Components
-Outbound Travel Market
-E-commerce
-Japan: Continuing Education Market
-Market of the Western Japan for Products & Services for Senior Citizens
-Business Aviation in Japan
-Japan Soil Remediation
-Japan Business Continuity Planning Market
-Japan Regulations to Address Global Warming - Opportunities for US Companies
-Japan: Mobile Telecommunication Industry
-New Developments in the Healthcare Industry
-Japan: Cosmetics Market Overview
-Machine Tools
-Green Buildings & Homes in Northern Japan
-Medical Biotechnology
-Men's Wear
-Japan: Jewelry Market

For complete report and for more market research, visit "Market Research Library"

Upcoming Events

For the complete listing of upcoming events, visit our Event Calendar.

Contact us

Commercial Service Japan (CS Japan) has four office locations in Japan's major business centers. Each office has experienced personnel ready to assist you with your business needs in Japan. For inquiries concerning Fukuoka, please contact Commercial Service Osaka-Kobe and for inquiries concerning Naha, please contact Commercial Service Tokyo.  

U.S. Commercial Service Tokyo
U.S. Commercial Service Osaka-Kobe
U.S. Commercial Service Nagoya
U.S. Commercial Service  Sapporo

For contact information, please visit here.