STANDAGE Co., Ltd. (Headquarters: Minato-ku, Tokyo; Representative Director & CEO: Akinori Adachi) has conducted a survey targeting 103 managers and executives of small and medium-sized manufacturing companies (100 to less than 300 employees) that are facing challenges in expanding sales. The survey addresses the challenges faced by small and medium-sized manufacturing companies in terms of increasing sales.

• 01 | The top external factors contributing to sluggish sales growth are: 1st place: "Stagnation of demand in the domestic market" (49.51 TP3T), 2nd place: "Intensified price competition" (38.81 TP3T).
• 02 | 50.5% of managers and executives of small and medium-sized manufacturing companies responded that they are "implementing/considering" developing overseas sales channels.
• 03 | The most common challenge in considering and implementing overseas market development is "a shortage of personnel capable of handling overseas sales," at 56.51 TP3T.

Survey Overview

• Survey Name: Survey on the Current Situation of Challenges in Sales Expansion for Small and Medium-Sized Manufacturing Companies
• Survey method: Online survey planned by "Risapee®," a research data marketing service provided by IDEATECH
• Survey period: April 21, 2025 - April 28, 2025
• Valid responses: 103 managers and executives of small and medium-sized manufacturing companies (100 to less than 300 employees) who are facing challenges in expanding sales.

 

*To arrive at a total of 100%, some values have been rounded. Therefore, there may be slight differences from the actual calculated value.

 

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■The top external factors contributing to sluggish sales growth are: 1st place "Stagnation of demand in the domestic market," and 2nd place "Intensified price competition."

　"Q1. What do you think are the external factors causing your company's sales to stagnate? (Multiple answers allowed)"When asked (n=103),"Stagnation of domestic market demand" was cited at 49.51 TP3T, "Intensified price competition" at 38.81 TP3T, and "Rising procurement costs for raw materials and parts" at 37.91 TP3T.The answer was:

・Stagnation in domestic market demand: 49.5%

- Intensified price competition: 38.8%

- Rising procurement costs for raw materials and parts: 37.9%

Difficulty in acquiring new customers: 35.9%

- Opportunity cost due to labor shortage: 29.1%

- Decrease in orders from existing customers: 28.2%

• Rise of competitors: 15.5%

- Impact of exchange rate fluctuations: 14.6%

・Other: 0.0%

• No external factors: 2.9%

・I don't know/cannot answer: 1.9%

 

■ External factors such as "short product lifecycles" and "declining demand" are also contributing factors.

　For those who answered anything other than "There are no external factors" or "I don't know/cannot answer" in Q1,"Q2. Please tell us if there are any other external factors besides those you answered in Q1 that are causing your sales to stagnate. (Open-ended response)"When asked (n=98),"Short product lifecycle" and "decline in demand"We received 57 responses, including those mentioned above.

<Free answers, excerpts>

• The product lifecycle is short.

- Low brand recognition.

- Reduction in public works due to austerity measures.

- The economic slowdown in China.

- Decrease in capital investment.

- A decline in demand.

- Decline in domestic purchasing power.

 

■Internal challenges in expanding sales: 1st place: "Shortage and training of sales personnel," 2nd place: "Lack of resources for developing new businesses and new products"

　"Q3. What internal challenges does your company face in order to increase sales? (Multiple answers allowed)"When asked (n=103),"Shortage and training of sales personnel" was cited as 45.61 TP3T, "Lack of resources for developing new businesses and new products" as 35.01 TP3T, and "Lack of differentiation of our own products and services" as 31.11 TP3T.The answer was:

- Shortage and training of sales personnel: 45.6%

- Lack of resources for developing new businesses and new products: 35.0%

- Insufficient differentiation of the company's products and services: 31.1%

Lack of marketing expertise: 22.3%

• Low brand strength and recognition: 22.3%

- Delays in promoting digitalization and DX within the company: 21.4%

- Insufficient investment funds for expanding sales channels: 17.5%

Lack of digital marketing skills and knowledge: 17.5%

Difficulty in formulating and executing medium- to long-term strategies: 16.5%

• Slow decision-making and organizational rigidity: 15.5%

- Insufficient efforts to retain and strengthen relationships with existing customers: 14.6%

- Lack of know-how and personnel for overseas expansion: 12.6%

Other: 1.0%

- Cost reduction

• No internal issues: 6.8%

・I don't know/cannot answer: 1.0%

 

■Internal issues include "stagnation of capital investment due to insufficient funds" and "inconsistencies in personnel across departments."

　For those who answered anything other than "There are no internal issues" or "I don't know/cannot answer" in Q3,"Q4. In addition to the answers given in Q3, please feel free to tell us about any other internal challenges you are facing in order to expand sales. (Open-ended response)"When asked (n=95),"Stagnation of capital investment due to insufficient funds" and "Inconsistency in personnel across departments"We received 52 responses, including those mentioned above.

 

<Free answers, excerpts>

・Stagnation of capital investment due to insufficient funds.

Opportunity cost.

- Management decisions are slow, and the management team is unable to present a strategy.

• Delays in new product development.

- Inconsistent levels of personnel across departments.

- The transmission of skills.

- The company does OEM manufacturing and therefore does not have its own brand.

 

■53.4% implements "acquiring new customers" as a sales expansion measure.

　"Q5. Please tell us specifically what measures your company is currently taking to increase sales. (Multiple answers allowed)"When asked (n=103),"Acquiring new customers" was 53.41 TP3T, "Developing new products and services" was 45.61 TP3T, and "Increasing and training sales personnel" was 32.01 TP3T.The answer was:

• Acquiring new customers: 53.4%

• Development of new products and services: 45.6%

- Increasing and training sales personnel: 32.0%

• Review of pricing strategy: 29.1%

- Strengthening cross-selling and upselling to existing customers: 22.3%

- Strengthening our own branding: 22.3%

- Participation in exhibitions, seminars, etc.: 22.3%

• Diversification of sales channels: 21.4%

• Expansion into overseas markets: 20.4%

• Business partnerships and alliances with other companies: 15.5%

• Strengthening digital marketing: 14.6%

Business expansion through M&A (mergers and acquisitions): 7.8%

・Other: 0.0%

- Nothing in particular: 4.9%

・I don't know/cannot answer: 1.0%

 

■ 50% of managers and executives of small and medium-sized manufacturing companies responded that they are "implementing/considering" developing overseas sales channels.

　"Q6. Is your company considering developing overseas sales channels?"When asked (n=103),"Already implementing" received 20.41 TP3T, "Considering" received 17.51 TP3T, and "Somewhat considering" received 12.61 TP3T.The answer was:

• Already implemented: 20.4%

• Under consideration: 17.5%

・Somewhat under consideration: 12.6%

- Not really considered: 16.5%

- Not considered at all: 30.1%

・I don't know/cannot answer: 2.9%

 

■The most common challenge in considering and implementing overseas market development is "a shortage of personnel capable of handling overseas sales," cited by 56.51 TP3T respondents.

For those who answered anything other than "I haven't considered it at all" or "I don't know/cannot answer" in Q6,"Q7. What are the specific challenges you face when considering and implementing overseas market development? (Multiple answers allowed)"When asked (n=69),"Shortage of personnel capable of handling overseas sales" was cited as a challenge at 56.51 TP3T, "Difficulty in finding and selecting local partners" at 37.71 TP3T, and "Dealing with differences in local business practices and culture" at 31.91 TP3T.The answer was:

- Shortage of personnel capable of handling overseas sales: 56.5%

Difficulty in finding and selecting local partners: 37.7%

- Dealing with differences in local business practices and culture: 31.9%

Language barrier: 26.1%

Lack of knowledge in overall strategic planning and sales channel selection: 24.6%

• Development and improvement of products and services for overseas markets: 23.2%

Lack of expertise in overseas marketing: 18.8%

- The complexity of export procedures and compliance with various regulations: 17.4%

• Logistics costs and delivery time management issues: 17.4%

- Establishment of after-sales service system: 17.4%

• Exchange rate risk mitigation: 15.9%

・Insufficient funds: 13.0%

・Other: 0.0%

• No particular challenges or obstacles: 4.3%

・I don't know/cannot answer: 5.8%

 

■ External support services for increasing sales: 9.71 TP3T "Already using them," 42.71 TP3T "Interested."

　"Q8. Are you interested in utilizing external support services to increase sales?"When asked (n=103),"Already using it" received 9.71 TP3T, "Strong interest" received 12.61 TP3T, and "Somewhat interested" received 30.11 TP3T.The answer was:

• Already in use: 9.7%

• Strong interest: 12.6%

- Somewhat interested: 30.1%

・Not very interested: 24.3%

・No interest at all: 15.5%

・I don't know/cannot answer: 7.8%

 

■ Regarding services that support sales expansion, there is a demand for "comprehensive support for the practical aspects necessary for developing overseas sales channels" and "advisors who are well-versed in their own industry."

For those who answered "Already using," "Strongly interested," or "Somewhat interested" in Q8,"Q9. What functions and features do you look for in a service that supports sales growth? (Multiple answers allowed)"When asked (n=54),"They provide comprehensive support for the practical aspects necessary for developing overseas sales channels (export, translation, local partner development, etc.)" received 33.31 TP3T, "They assign an advisor who is well-versed in your industry" received 31.51 TP3T, and "They offer individual consulting from experts" received 29.61 TP3T.The answer was:

- Provides comprehensive support for all practical aspects of developing overseas sales channels (export, translation, local partner development, etc.): 33.3%

- You will be assigned an advisor who is well-versed in your industry: 31.5%

• Individual consultations with experts are available: 29.6%

• Data-driven market analysis reports are provided regularly: 27.8%

- Supports the development of specific sales strategies: 27.8%

• Branding support is available to highlight the strengths of your own products and services: 25.9%

- Support is provided (hands-on) to help achieve sales targets: 24.1%

- Support is provided for creating sales tools and marketing materials: 20.4%

• Success stories and industry best practices are shared: 20.4%

• We have training programs for our sales representatives: 18.5%

• Opportunities to match with new customers are provided: 18.5%

• Provides concrete support for implementing digital marketing: 18.5%

• The fee structure is performance-based (success-based): 14.8%

・Other: 0.0%

- Nothing in particular: 1.9%

・I don't know/cannot answer: 1.9%

 

■ There are also calls for "extensive support to compensate for the shortage of personnel and expertise" and "dynamic support using AI."

　For those who answered anything other than "Nothing in particular" or "I don't know/cannot answer" in Q9,"Q10. In addition to the answers given in Q9, please feel free to tell us if there are any other functions or features you would like to see in a service that supports sales growth. (Open-ended response)"When asked (n=52),"Extensive support that compensates for our lack of personnel and expertise" and "Dynamic support powered by AI"We received 35 responses, including these.

 

<Free answers, excerpts>

- You can receive proposals tailored to your company, rather than generic ones.

• Excellent support that compensates for our company's shortage of personnel and expertise.

• Human resource development and retention.

• Disclosure of information.

- Flexible and prompt response to changes in product specifications.

• Dynamic support provided by AI.

 

■ Summary

This time, we conducted a survey on the challenges of increasing sales in small and medium-sized manufacturing companies (with 100 to less than 300 employees) targeting 103 business owners and executives who are facing challenges in expanding sales.

 

The biggest reason for the sluggish sales growth of small and medium-sized manufacturers is "stagnant demand in the domestic market" (49.5%), and it is becoming clear that growth strategies dependent on a single market are no longer viable. In fact, factors such as "intensified price competition" (38.8%) and "rising procurement costs for raw materials and parts" (37.9%) are cited as reasons for the stagnant sales, and it can be said that improvement measures that are merely extensions of the past will not be enough to overcome these challenges.

 

The structural challenges and their contributing factors facing small and medium-sized manufacturing companies have been clarified, and the result that 50.5% companies have already implemented or are considering "developing overseas sales channels" is evidence that SMEs are definitely beginning to focus on overseas markets. However, at the same time, the "shortage of personnel capable of handling overseas sales" (56.5%) is the main obstacle, and it seems that many companies are hesitant to take the plunge.

 

Against this backdrop, interest in services that provide one-stop support from strategy planning to sales channel development is rapidly increasing among small and medium-sized manufacturers considering overseas expansion. To achieve sustainable growth, actively developing global markets while leveraging comprehensive external support, centered on one's own strengths, may be one viable strategy.

 

■Handle all your trade needs with us | Trade agency service "Omakase Trade"

STANDAGE will support you with all the tasks necessary for successful overseas expansion.

We provide one-stop support for all your trade operations, from developing sales channels to arranging logistics.

 

Due to the recent sustained depreciation of the yen and the government's efforts to expand exports, Japan's overall export volume has been on a gradual upward trend. However, when looking at the export volume of small and medium-sized enterprises in urban and rural areas, the gap is still widening.

 

To enable small and medium-sized manufacturers throughout Japan to expand overseas more freely and easily, we offer a package service that handles everything from market development and contract negotiation to payment and logistics, providing a complete "leave it to us" trade creation process. As of February 2025, the number of companies using our service has reached approximately 300.

For more information:https://standage.co.jp/service/omakase/

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■Company Profile

Company name: STANDAGE Co., Ltd.

Established: March 7, 2017

Representative: Akira Adachi, President and CEO

Address: Sumitomo Fudosan Landmark Plaza 3F, 1-6-7 Shibakoen, Minato-ku, Tokyo 105-0011, Japan

Business Description: Development and provision of a digital trade platform based on blockchain and AI technologies.

URL:https://standage.co.jp/