STANDAGE Co., Ltd. (Minato-ku, Tokyo; President and CEO: Akinori Adachi; hereinafter referred to as STANDAGE), a company that develops and provides digital trade platforms, has officially launched its "DiGiTRAD" (formerly "DiGiTRAD") service, a platform that provides end-to-end services for trade operations, from market development to payment and logistics.With a persistent population decline and a weak yen leading to a drop in domestic demand, an increasing number of Japanese companies are prioritizing the expansion of new sales channels. However, the need for specialized knowledge and language skills in international trade, as well as the complexities of payment and logistics systems, presents a major barrier to entry for small and medium-sized enterprises (SMEs)."DigiTrad" is the only platform in Japan that provides a one-stop solution for trade, from market development and negotiation to settlement and delivery of goods. (22 years)5We began making proposals to companies this month, and the number of companies that have adopted our service has already exceeded several dozen in Japan. 202212On the moon100We aim to expand its adoption within the company.

 

▶The background of the development of "DigiTrad"

Japan's total population peaked at approximately 127 million in 2008 and has been steadily declining ever since. According to a survey conducted by the National Land Council in 2011 (*1), the total population is projected to fall below 100 million by 2050, and the working-age population is expected to decrease by approximately 40% compared to 2008.
With a gradual decline in domestic demand inevitable, an increasing number of companies, regardless of size or industry, are prioritizing external demand and developing new sales channels.

However, of the approximately 3.6 million small and medium-sized enterprises in Japan, only 35,000 companies, or a mere 1%, are actually able to conduct business with overseas companies (*2).
This is because they face challenges unique to small and medium-sized enterprises, such as a lack of global talent or local staff, making market research and securing sales channels impossible, and a lack of expertise regarding the complex procedures and systems of international trade.

"DigiTrad" was developed as a platform to solve all of these challenges in order to support small and medium-sized enterprises (SMEs) looking to expand overseas. It allows for the completion of all procedures related to sales channel development, inter-company negotiations, payment, and logistics in one place.

*1 Reference: Summary of the interim report on the "Long-Term Outlook for National Land" (Long-Term Outlook Committee, National Land Council Planning Subcommittee, February 21, 2011)
*2 Reference: Small and Medium Enterprise Agency (https://www.chusho.meti.go.jp/pamflet/hakusyo/2020/chusho/b1_3_1.html) and Teikoku Databank (https://www.tdb.co.jp/report/watching/press/pdf/p161102.pdf)

▶Overview and Features

"DigiTrad" is a platform developed by Standage that provides a one-stop service for everything from developing sales channels to negotiations, contracts, payments, and administrative procedures related to logistics and customs clearance.

Our service is unique in Japan because it allows you to "outsource" the entire process of trade, not just the digital transformation of certain systems or consulting.

Its most distinctive feature is its proprietary payment system, which utilizes blockchain and cryptocurrencies, and which began operation in 2019 after receiving approval from the Financial Services Agency.

While emerging economies, particularly in Africa, are attracting attention as new markets for businesses, unlike developed countries with well-established international networks, inter-company settlements conducted through banks can take several days to several weeks from transfer to receipt. Furthermore, transfers often have to go through multiple banks, resulting in higher fees. In addition, small and medium-sized enterprises (SMEs) must bear the risk of uncollected accounts receivable themselves.

DigiTrad's payment system allows for remittances to be completed in about 5 minutes, with remittance fees less than half of those charged by banks. Furthermore, it employs US Dollar Coin, a cryptocurrency with a value equivalent to the US dollar. By creating a virtual "digital vault" on the blockchain and ensuring payment is made with the mutual agreement of both parties, the risk of non-payment is significantly reduced.

Standage will continue to support the overseas expansion of small and medium-sized enterprises, contributing to the revitalization of the Japanese economy, which is facing a decline in domestic demand due to a low birthrate and aging population, as well as a persistently weak yen. At the same time, we will support the realization of a society where all companies around the world, regardless of size, can be connected through trade.