If your current agent or distributor is handling competing range of products, parts or services as yours, it is time to reconsider the appointment.   E.J.Spence offers you an alternative solution.

It is quite ridiculous that some foreign companies are appointing a Japanese agent or a distributor that is dealing with the products, parts and/or services which are competitive to yours.   Such agent or distributor always says “we have the customers” and “we know how to do business in this market”.   They may grow your business to some certain level of sales, which is benefit to your company, however such sales are always under their control.   As they are also held responsible for sales of competing products, parts and services, their top concern is “How much can we earn out of all the products, parts and services that we have contracts with”.   There is no reason for them to focus on one foreign company that they made contract to deal with their products, parts and services.

When a foreign company makes claims for the poor sales, they get perturbed, and promote the share of sales and demote the sales of other companies.

They may have been providing their one corner of the office and have allocated the shared-staff to a foreign company, but the growth of business is always within the limit of growth of the agent or distributor.

 

To gain more success from the Japanese market beyond the capacity of the current agent or distributor, the company retains two options.   Find another agent or distributor.   Or establish the subsidiary company or the branch office in Japan.   But the former choice will be another repetition of the same story.