Market Multiplication - A US State Trade Office View
In my work as a trade specialist for the State of Washington, I work with software and information technology companies who seek to enter the Japanese market and expand their business here. My job is to help them succeed.
by Tim Tuttle Some call organizations like our office "multipliers" - we seek to amplify and focus the efforts of individual companies in the Japanese market. I try to do this by leveraging the contacts, resources and knowledge that my state has built up over the 12 years that we have had an office in Japan. Although we are here to primarily service US companies, most foreign companies have access to similar trade promoting offices. US Commercial Service For US companies, the Commercial Services, also known overseas as the Foreign Commercial Service, or FCS, is your business assistant within the US federal government. While its parent, the Department of Commerce, focuses on trade issues and policy, the CS is there to help individual companies. There are CS offices in the US Embassy in Tokyo, as well as in the consulates in Osaka, Nagoya, Sapporo, Fukuoka and Naha. Its Commercial Officers can provide market research and one-on-one business counseling, match companies with Japanese partners and, on a fee basis, make appointments for business travelers. The CS sponsors dozens of trade shows, seminars and similar events in Japan yearly. The CS is bullish on high-tech. Its latest "industrial best prospects" for US exporters to Japan (http://www.csjapan.doc.gov/market/best.html) names electronic components, computers and peripherals, and computer software as the top three fields best poised to succeed in Japan. Edward Yagi, First Secretary, Commercial Attache, and Unit Chief of the Information Technology Unit, shares that enthusiasm: "Despite the problems, the outlook for IT markets is very positive. Japan is experiencing a surge in demand for PCs, computer networking hardware, and multimedia and Internet-related systems. Demand for PCs, PC servers and client server solutions is growing by about 30% annually. Although still behind the US in networking, Japan is rapidly catching up as evidenced by the recent rapid growth in Internet users: an estimated 20 million by 2000, up from 2 million in 1994 and 7 million in 1997." "Telecom is even better: in the twelve months ending September 1996, cellular telephone service revenue grew 130%, ISDN services 82%, leased line services 88%, and cable TV subscriptions increased by 11%. We think the annual telecom market is now about USD 100 billion for telecom services and USD 30 billion for equipment. Investments in the telecom infrastructure sector from 1995 to 1996 increased 18.5 percent to USD 40 billion - and this rate of growth is forecast to continue for several years." Other CS resources The US Trade Center (Tokyo, Ikebukuro Sunshine City): Many companies have taken part in CS-sponsored events at the Trade Center, but if you haven't, it's a reasonably-priced venue for US firms to hold private exhibitions or other events. The facilities boast modern AV equipment and a staff to arrange event setup, hospitality services, interpreters, etc. Most importantly, the CS is open to suggestions for official events that would make use of the Trade Center - if the appropriate show or technical seminar to display your wares isn't happening in Japan, ask the CS whether they will do it. The American Business Information Centers (ABIC): The ABICs are commercial reference libraries within the Embassy in Tokyo and Consulate in Osaka. Like the JETRO library, it's a good place to look up information on your market in Japan. Web site: The CS Web site offers a wealth of information and links to help your business in Japan. related service is the US Trade Center Online, which for an annual $450 fee gets you a Japanese-language Web page made by the CS. Visit http://www. csjapan.doc.govfordetails. State Offices State offices vary in resources and missions; the typical office has a small staff handling a wide variety of duties from agricultural trade problems and Japanese manufacturing investments to tourism inquiries and visits by dignitaries. While there's no guarantee they can help you specifically with questions about the software industry, they can likely answer questions related to business trips, trade shows or office setup in Japan. The American State Office Association (ASOA) in Tokyo has 33 state and local government members. More detailed ASOA member information may be found at their web site at http://www.venture-web.or.jp/asoa/. ACCJ The American Chamber of Commerce in Japan celebrates its 50th anniversary this year as a major representative of US business interests in Japan. The ACCJ has more than 2800 members from over 1000 companies, of which 50% are American, 35% Japanese, and 15% from other countries. Among the ACCJ's forty-plus committees and subcommittees are the High Technology Committee, E-Commerce Subcommittee and Software Subcommittee. Michael Alfant, President of Fusion Systems Japan Inc. and head of the High Technology Committee, invites all interested members to take part in activities. "Key benefits of participation include the dissemination of local technical information in English, which can otherwise be very hard to get in Japan, and the ability to participate in local bodies setting technical standards." American Electronics Association With over 3200 member firms around the globe, the American Electronics Association is the largest US trade organization serving the electronics and IT industries. The AEA opened its Japan Office in 1984 to provide administrative and coordinating functions for the AEA Industry Committee, a self-help group for the hundreds of US high-tech companies operating in Japan. The AEA Japan Office's mission is to represent US interests in trade issues, to help members develop product marketing and distribution channels, and to increase members' business presence in Japan. The Japan Executive Committee Chairman of the AEA is Michael Hegedus (Vice President Asia, Siecor International) who is especially active in promoting the success of American high-tech companies operating in Japan. Sean Hackett, Director of Japan Market Development, notes, "We rely upon experienced executives within our membership, like Mr. Hegedus, to share experiences about doing business in Japan with new market entrants so they can avoid making costly business mistakes in Japan." Other membership benefits include close coordination with the Office of the USTR, the US Embassy and the Japanese government during trade negotiations and participation in Japanese government shingikai (affording AEA Japan members the unique opportunity to shape the evolution of standards in Japan): members can also participate in trade shows co-sponsored by the AEA a special program to bring US telecommunications firms together with major Japanese buyers; and initiatives aimed at supporting members' local recruitment efforts. But perhaps the single biggest AEA benefit is the extensive network of relationships the Japan Office maintains. Says Mr. Hackett, "Our staff are on the front line every day, talking to key people in industry and government, both Japanese and American. Face-to-face communication with top leaders is what allows us to assist in a full range of roles, from helping small firms with market-entry questions to representing the entire American high-tech industry in larger trade-related issues." Timm Tuttle (tt@gol.com) manages the High-Technology Trade Program at the Washington State Japan Representative Office, assisting Washington state firms in fields such as software, telecommunications, biomedical and environmental technology. The office's website is at http://www2.gol.com/tt/ .
|
