Exporting to Japan
The strengths of the luxury market for those hoping to export to Japan
(Source : Michel Chevalier at the ‘Journée du luxe’ conference, held on 7th December 2010 in Paris, UBIFRANCE)
For 10 years, this market has suffered from a permanent crisis in the luxury industry without any upturns in sales. In terms of accessories, this market represents 30% of the global market. ‘Japanese women are the consumers of luxury brands, with an emphasis on big global brands'. Brands that have ‘ a history of traditional savoir-faire' can find an opening in this market.
Japanese men are refined and are beginning to become interested in luxury products and, in particular, products linked to the world of sport (golf….).
For those who hope to export to this market in Japan, it is important to choose the right distributor and organise your ‘supply chain' with the corresponding logistics chain. Shop-in-shops (corners) are abundant in department stores that sell luxury products. For those who would like to export to Japan by opening their own stores in order to manage the entire fashion value chain, it is imperative to draw up commercial contracts with 10 year rent deposits refunded without interest .
Creating a subsidiary is only of interest to large brands that have been present on this market for 20 years. Very small companies that are part of our Fashion Networking and entrust us with their logistics chain on this market can find, through our Export management service, either a distributor or choose a joint venture with a local distributor.
Our clients that wish to export to Japan should also know that Japan has over 300 shops and shopping centres.
Accounts receivable management and debt recovery in Japan
For those who wish to export to Japan where the logistic chain doesn't stop at Ex-Works sales or the port of embarkation, supply chain management must include adequate document processing.
Many creditors use courier dispatch systems for the overdue debt recovery , the content of which is certified. For outstanding or soon to be outstanding balances, couriers whose content is certified by qualified agents who notify the debtor of the content of the dispute in question are used. The post office also certifies the name, address of the sender, the name and address of the addressee as well as the courier send date (Source: Guide recouvrement de créances by Marianne Dickstein).
The dispatch of such correspondence merits notification. Failure by the debtor to respond to this correspondence, the creditor will be forced to begin legal proceedings.
For those who wish to recover outstanding balances in Japan, there is no specific legislation to regulate the amiable recovery of outstanding balances; creditors base themselves on this existing legal mechanism.
The normal debt recovery procedure brought before a Japanese court is long and expensive, given than all documents must be translated into Japanese, which is the only language accepted in courts . Except in isolated cases, most disputes are resolved by a transaction and therefore it is essential that the creditor take into consideration the quality of the proof that they hold hence the importance of a rigorous documenting of the logistics chain.
The use of notarised certificates is an important point in Japan, because a notarised document disposes of the same legal force as a specific ruling , hence why it is beneficial to proceed with contract certification carried out by a notary (Source Marianne Dickstein Recouvrement de créances).