It’s my privilege every year to lecture participants at the Japan Market Expansion Competition (JMEC), where The Carter Group is proud to be a gold sponsor. The session is designed to help teams preparing business plans—but the lessons apply to anyone considering entering the Japanese market.
Market research is the foundation of good decision-making. It slows you down, yes—but for the right reasons. Done well, it can spark ideas, reveal blind spots, and prevent costly mistakes. Here are some of the highlights from this year’s lecture.
It’s my privilege every year to lecture participants at the Japan Market Expansion Competition (JMEC), where The Carter Group is proud to be a gold sponsor. The session is designed to help teams preparing business plans—but the lessons apply to anyone considering entering the Japanese market.
Market research is the foundation of good decision-making. It slows you down, yes—but for the right reasons. Done well, it can spark ideas, reveal blind spots, and prevent costly mistakes. Here are some of the highlights from this year’s lecture.
Why Companies Sometimes Ignore Research
Despite its value, businesses sometimes skip research—or fail to act on it. Why?
- It slows things down. Proper research requires planning, resources, and coordination.
- It feels expensive. Even small projects can run $20–30k, and larger ones into the millions.
- It challenges convictions. Leaders often feel threatened when research contradicts their assumptions.
- It feels unnecessary. “We already know the market,” is a common refrain—but rarely true.
“Research isn’t just about facts—it helps us see the environment differently, revealing opportunities we hadn’t thought of.”
Exploration vs. Measurement
A critical distinction in research is between exploration and measurement.
- Exploration: unstructured observation, secondary data, and qualitative conversations. This is about sparking ideas, not proving them.
- Measurement: structured surveys and quantitative analysis. This is about sizing, validating, and justifying decisions.
Too often, people rush to questionnaires before they even know what to measure. In the early stages, exploration is far more powerful.
Secondary Research: What’s Already Out There
Secondary research—information collected by others—is the cheapest and easiest starting point.
Useful sources include:
- Industry reports (e.g., Euromonitor)
- Company annual reports
- Government statistics
- Industry associations
- Academic theses and papers
- Japanese-language news and trade publications
Watch out for:
- Outdated data (many sources are 5+ years old)
- Vague or mismatched categories
- Questionable surveys found online
The goal isn’t to answer every question, but to frame hypotheses and give you a feel for the market.
Hypotheses: The Currency of Progress
Research rarely hands you the full picture. Instead, it allows you to form hypotheses—informed guesses you can test.
Examples:
- “Consumers want bigger phone screens.”
- “People won’t pay ¥200,000 for a flagship smartphone.”
- “Men in Japan are increasingly spending on grooming.”
Hypotheses keep progress moving even when facts are incomplete.
Qualitative vs. Quantitative Research
Qualitative (“Qual”)
- What it is: Conversations, interviews, focus groups, observation.
- Purpose: Exploration. Understand motivations, language, decision dynamics.
- Strength: Sparks ideas, uncovers emotions and cultural nuances.
- Caveat: Shouldn’t be used to measure prevalence.
Example: In Japanese homes, consumers often use multiple gentle cleaning products for different surfaces. A harsh “all-in-one” cleaner feels caustic or even frightening. That’s a powerful cultural insight a survey alone would miss.
Quantitative (“Quant”)
- What it is: Surveys, structured questionnaires, statistical analysis.
- Purpose: Measurement. Test ideas, size markets, validate decisions.
- Strength: Adds credibility and precision.
- Caveat: Bad surveys (small or biased samples) undermine credibility.
Quant is best used after qual—when you already know what you want to measure.
Practical Tips for Primary Research
- Build rapport. Whether in interviews or focus groups, human warmth matters.
- Keep questionnaires short. Must-know > nice-to-know > can-do-without.
- Pilot test. Try it on colleagues or family to check clarity.
- Guarantee confidentiality. Especially if recording interviews.
- Be transparent. Always disclose limitations (sample size, bias, method).
“Tell your story straight. Credibility comes not from pretending your data is perfect, but from being open about what it does and doesn’t mean.”
Cultural Considerations in Japan
- Rating scales: Japanese respondents often rate closer to the midpoint than Western respondents—even if satisfaction levels are similar. Adjust accordingly.
- Common sense is cultural: What feels obvious to a Japanese consumer may not to a foreign one.
- Distribution and regulation: Japan’s distribution networks and product-claim restrictions often reshape go-to-market strategies.
Q&A Highlights
- Where to start? Google, industry associations, and asking interviewees for competitor names.
- Etiquette? Be respectful; people aren’t obliged to help.
- Sample sizes? Sometimes small is enough—if there are only 10 buyers, survey all 10.
- Incentives? Small payments, vouchers, or even charity donations can improve participation.
- Do you always need a survey? No. Sometimes observation and interviews are more effective.
Final Thought
Market research is not just a box-ticking exercise. Done right, it is the spark of ideas, the test of assumptions, and the foundation of strategy.
For JMEC participants, the lesson is about writing better business plans. For companies entering Japan, the lesson is about survival and success in one of the world’s most complex markets.
“If you’re serious about entering Japan, serious market research is not optional—it’s essential.”