{"id":4814,"date":"2023-10-20T11:00:08","date_gmt":"2023-10-20T02:00:08","guid":{"rendered":"https:\/\/wp.standage.co.jp\/?p=4814"},"modified":"2026-02-06T13:56:54","modified_gmt":"2026-02-06T04:56:54","slug":"20231020_1","status":"publish","type":"post","link":"https:\/\/wp.standage.co.jp\/us\/2023\/10\/20\/20231020_1\/","title":{"rendered":"What are the barriers to exporting for SMEs and the secrets to success, as learned through export support for companies in Kanazawa, Ishikawa Prefecture?"},"content":{"rendered":"

STANDAGE Releases Report on "Japanese Cultural Exports"<\/strong><\/p>\n

 <\/p>\n

STANDAGE Co., Ltd. (Head office: Minato-ku, Tokyo, CEO: Akinori Adachi, hereinafter referred to as Standage), which operates the one-stop trade support service "DigiTrad", has released a report on "Japanese Cultural Exports".<\/p>\n

 <\/p>\n

\u25a01\uff5cCurrent situation of Japanese small and medium-sized enterprises not making much progress in exports<\/strong><\/p>\n

With the domestic market expected to shrink due to a declining population and other factors, the number of small and medium-sized enterprises dealing in Japanese food ingredients aiming to enter overseas markets is increasing year by year. The government is also implementing various measures to increase exports, and in 2020 the Ministry of Agriculture, Forestry and Fisheries compiled the "Implementation Strategy for Expansion of Exports of Agricultural, Forestry and Fishery Products and Food," setting a goal of increasing the export value of agricultural, forestry and fishery products to 2 trillion yen by 2025 and 5 trillion yen by 2050. Thanks to these efforts, exports have been on a gradual upward trend, despite a temporary decline due to the COVID-19 pandemic.<\/p>\n

 <\/p>\n

However, when looking at the export volume of small and medium-sized enterprises in urban and rural areas, the disparity is still widening. According to a survey*1 conducted by Standage targeting 100 managers and executives of small and medium-sized manufacturing companies (with 100 to 300 employees) that have not expanded overseas, only 18.01 TP3T companies have increased their desire to expand exports and expand overseas in response to recent trends such as the weak yen, high resource prices, and rising prices.<\/p>\n

 <\/p>\n

\"\"<\/p>\n

 <\/p>\n

Reasons given for being reluctant\/conservative about exports include "not being confident that our products will sell overseas" and "not having the personnel we can trust," which shows that there are high hurdles to expanding overseas.<\/p>\n

 <\/p>\n

\"\"<\/p>\n

 <\/p>\n

\u25a02 | Signs of a boom in "overseas exports" from Kanazawa City, Ishikawa Prefecture<\/strong><\/p>\n

In response to the current situation where exports by Japanese small and medium-sized enterprises are not progressing, Standage is providing trade support packages for small and medium-sized enterprises in order to contribute to regional revitalization throughout Japan. In particular, we are focusing on the Hokuriku region, and in 2022 we partnered with Hokuriku Bank to begin export support.<\/p>\n

 <\/p>\n

While promoting export support initiatives in the Hokuriku region, we have noticed a strong desire to export among young business owners in Kanazawa City, Ishikawa Prefecture. Local companies producing Kanazawa Bocha tea, frozen sushi, lacquerware, and more have stepped up to expand their overseas sales channels by using Standage's trade packages.<\/p>\n

 <\/p>\n

Kanazawa is an area with a strong inbound tourism base, and the Junior Chamber International (JCI) has a strong sense of unity. There is strong cooperation among business owners in their 40s and 50s who are considering business succession, and there is a strong desire to take on new challenges in the context of "From Kanazawa to the world."<\/p>\n

 <\/p>\n

\u25a03 | What are the barriers to exporting from Hokuriku (Kanazawa)?<\/strong><\/p>\n

At the same time, issues have also come to light.<\/p>\n

According to a survey*2 conducted by Standage targeting 100 managers and executives of small and medium-sized manufacturing companies (with 100-300 employees) who have experience exporting overseas at their own companies, more than half of the respondents found it difficult to export overseas at their own companies.<\/p>\n

 <\/p>\n

\"\"<\/p>\n

 <\/p>\n

In addition to issues with logistics, such as quality control, and the difficulty of dealing with the buyers after matching, many also seem to be concerned about the rising costs and lack of human resources involved in overseas sales and logistics management.<\/p>\n

 <\/p>\n

\"\"<\/p>\n

 <\/p>\n

 <\/p>\n

In fact, although export volume across Japan has been gradually increasing, the export value and share from airports and ports in the four Hokuriku prefectures is not large, at 3.6 billion yen (0.3%) as of 2021.<\/p>\n

 <\/p>\n

Although Hokuriku has many specialty products that can be exported overseas, the region's characteristic of producing many small items is cited as the reason why exports have not increased. Exports of agricultural, forestry, and fishery products and food from the Hokuriku region require small-lot freight transport to ports and airports on the Pacific coast, which is a challenge unique to the Hokuriku region and different from that faced by major metropolitan areas with well-developed logistics systems.<\/p>\n

 <\/p>\n

\u25a04\uff5cA "specialty product-focused" trade package service born from the export needs of Hokuriku sake breweries<\/strong><\/p>\n

To solve the above problems, Standage has developed a package plan specialized for exporting local specialty products. This plan is based on our package service "Digitrad", which handles all aspects of trade creation from market development to contracts, negotiations, settlements, and logistics in order to promote the entry of small and medium-sized enterprises into the export industry.<\/p>\n

 <\/p>\n

While following in the footsteps of Digitrad's functions and systems that allow for "complete" trade, we are able to reduce initial costs by limiting contracts to businesses that meet our criteria for "regional specialty products." We have also built a logistics network from scratch that will enable small-lot door-to-door transport by temperature-controlled air freight, a first in Japan, and are working on this as a project subsidized by the Ministry of Agriculture, Forestry and Fisheries.<\/p>\n

 <\/p>\n

The specialty product-focused trade package plan has been extremely well-received, and is currently being implemented by over 20 companies nationwide, most of which are sake breweries. This specialty product-focused service was born out of a need from sake breweries in the Hokuriku region, who had issues with quality control and batches when exporting. Sake is mainly sold to high-end restaurants and hotels in Europe, and this logistics network has attracted attention from companies in the Hokuriku region and throughout the country dealing in regional specialty products (seafood, vegetables, meat, etc.). It is particularly compatible with Hokuriku, which has a wealth of world-class seafood.<\/p>\n

In May 2023, we held sake tasting events in Paris and London. Because we have partner companies in the area, we continue to follow up after the event and encourage continued orders and increased order volume. First, we plan to sell sake to restaurants overseas and establish an export route, and then distribute local specialty foods there as well, with the aim of delivering the flavors and food culture of Hokuriku and all of Japan to the world.<\/p>\n

 <\/p>\n

\u25a05 | What is important to contribute to regional revitalization, learned through export support<\/strong><\/p>\n

Until now, if you wanted to "trade," you had to develop sales channels, negotiate with buyers, sign contracts, complete payment procedures, and even manage logistics.<\/p>\n

 <\/p>\n

If you try to tackle this in-house, you will incur costs such as securing personnel capable of overseas sales and preparing trade practice tools. It would be difficult for small and medium-sized enterprises with limited resources to handle trade practices and negotiate contracts with overseas companies on their own. If we take over that part of the process, about half of the cost can be covered by subsidies, and we will purchase some of the remaining half of the products domestically in advance, so you can start trading with less initial outlay and peace of mind.<\/p>\n

 <\/p>\n

Rather than just selling the products of individual companies, especially in the case of specialty products, if you export the concept as a "culture," "technology," or "specialty" unique to Japan or a region, it will be possible for the product to be properly recognized overseas, and domestic companies that are the sellers will be able to send their products overseas with confidence and peace of mind.<\/p>\n

 <\/p>\n

We hear from many small and medium-sized enterprises that even when they receive inquiries from overseas buyers thanks to support from the government and other organizations, they don't know how to respond.<\/p>\n

The same survey*2 also revealed that 56.0% companies found it difficult to "negotiate with buyers" when exporting overseas on their own.<\/p>\n

 <\/p>\n

\"\"<\/p>\n

 <\/p>\n

To support exports as a continuous business, it is important not to just introduce buyers and then end the process, but to also take care of follow-ups such as overseas local sales and further promotion after an inquiry has been made, and to provide support and accompany the company on a broad scale rather than a point-by-point basis. Going forward, we would like to continue to see things from the perspective of companies that are bearers of culture and technology, consider forms of support that meet their needs, and continue our efforts that will also lead to regional revitalization.<\/p>\n

 <\/p>\n

*1 Survey overview: Survey on the actual situation regarding overseas expansion of manufacturing industries<\/p>\n

Survey method: Online survey<\/p>\n

Survey period: September 27, 2023 to October 3, 2023<\/p>\n

Valid responses: 100 managers and executives of small and medium-sized manufacturing companies (with 100 to 300 employees) that have not expanded overseas<\/p>\n

 <\/p>\n

*2 Survey overview: Survey on the status of overseas exports in the manufacturing industry<\/p>\n

Survey method: Online survey<\/p>\n

Survey period: September 28, 2023 to October 11, 2023<\/p>\n

Valid responses: 100 managers and executives of small and medium-sized manufacturing companies (with 100-300 employees) who have experience exporting overseas (without using external support services)<\/p>\n

 <\/p>\n

\u25a0About the "DigiTrad" trading package plan<\/strong><\/p>\n

\"\"<\/p>\n

 <\/p>\n

"DigiTrad" is a comprehensive trade package service developed exclusively by Standage that provides a one-stop service covering everything from sales channel development to negotiations, contracts, settlements, and administrative procedures related to logistics and customs clearance.<\/p>\n

 <\/p>\n

Due to the rapid depreciation of the yen in the second half of 2010 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.<\/p>\n

Digitrad was created as a package service to handle all aspects of trade, from market development to contracts, negotiations, payments, and logistics, to enable Japanese manufacturers, who face these challenges, to expand overseas more freely and easily.<\/p>\n

 <\/p>\n

Rather than being limited to systematizing some operations or providing consulting, this is a service that can "handle" the entire flow of trade. As of the end of August 2011, the number of companies that have adopted this service has reached a total of 100.<\/p>\n

(For more information, click here:https:\/\/boueki.standage.co.jp\/digitrad\/<\/a>)<\/p>\n

 <\/p>\n

\u25a0About STANDAGE<\/strong><\/p>\n

Founded in March 2017. With a vision of "creating a world where all countries have equal access to all goods," the company is developing a new trade settlement system that utilizes blockchain to enable the safe, secure, and inexpensive simultaneous exchange of "goods" and "money" regardless of region or country. The company sees its main market as emerging countries, especially in Africa, and has established bases in four African countries, including Nigeria, to carry out trade business with Africa. It is not limited to the trade settlement field; it develops and provides systems that realize digital transformation for the entire trade system, including market development, ordering, and international logistics, while also working to support exports by small and medium-sized enterprises in order to increase the number of new domestic trade players.<\/p>\n

Company name: STANDAGE Co., Ltd.<\/p>\n

Established: March 2017<\/p>\n

Representative: President and CEO Akinori Adachi<\/p>\n

Capital: 608,568,500 yen (including capital reserve of 302,782,500 yen)<\/p>\n

URL:https:\/\/standage.co.jp\/<\/a><\/p>","protected":false},"excerpt":{"rendered":"

STANDAGE Publishes Report on "Exporting Japanese Culture" STANDAGE Co., Ltd. (Headquarters: Minato-ku, Tokyo; Representative Director: Akinori Adachi; hereinafter referred to as STANDAGE), which operates the one-stop support service for trade operations "Digitrad," has released a report on "Exporting Japanese Culture." Continue reading What are the barriers to exporting for SMEs and the secrets to success, as learned through export support for companies in Kanazawa, Ishikawa Prefecture?<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":4816,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[46],"tags":[],"acf":{"en_news":{"custom_css":"","en_title":"What are the obstacles and key to success for small and medium-sized companies in exporting, as learned through export support for companies in Kanazawa, Ishikawa Prefecture?","content":"

<\/div>\r\n
~STANDAGE Announces Report on \"Japanese Culture Export~\"<\/b><\/div>\r\n
<\/div>\r\n \r\n
\u00a0(Headquartered in Minato-ku, Tokyo; Akinori Adachi, President; hereinafter referred to as STANDAGE), which offers a one-stop support service for trade operations called \"Digitrad\", has released a report on \"Exporting Japanese Culture\".<\/div>\r\n \r\n
<\/div>\r\n
<\/div>\r\n
\u25a0\uff11\uff5cCurrent lack of progress in exports by Japanese small- and medium-sized enterprises (SMEs)<\/b><\/div>\r\n \r\n
<\/div>\r\n
\u00a0The number of small and medium-sized enterprises (SMEs) dealing with Japanese foodstuffs that aim to expand into overseas markets is increasing every year due to the expected shrinkage of the domestic market against the backdrop of a declining population and other factors. The Ministry of Agriculture, Forestry, and Fisheries (MAFF) has compiled a \"Strategy to Expand Exports of Agricultural, Forestry, Fishery, and Food Products\" in 2020, with the goal of increasing the export value of agricultural, forestry, and fishery products to 2 trillion yen by 2025 and to 5 trillion yen by 2050. As a result of these efforts, despite a temporary decline due to the Pandemic, exports have been rising at a moderate but steady pace.<\/div>\r\n \r\n
<\/div>\r\n
\u00a0The gap, however, is still wide when looking at the export volume of SMEs by urban and rural areas. According to a survey*1 conducted by Standage of 100 managers and executives of small- and medium-sized manufacturing companies (100-300 employees) that have not expanded overseas, only 18.0% of companies have increased their willingness to expand overseas in response to recent trends such as the depreciation of the yen, rising resource prices, and soaring prices.<\/div>\r\n \r\n
<\/div>\r\n
\"\"<\/div>\r\n \r\n
<\/div>\r\n
\u00a0Reasons for being reluctant or conservative about exporting include \"lack of confidence that our products will sell overseas\" and \"lack of human resources that can be fully entrusted,\" indicating that companies feel a high hurdle to overseas expansion.<\/div>\r\n \r\n
<\/div>\r\n\"\"\r\n
<\/div>\r\n
<\/div>\r\n \r\n
\u25a0\uff12\uff5cSigns of a Boost in \"Overseas Exports\" from Kanazawa City, Ishikawa Prefecture<\/b><\/div>\r\n \r\n
<\/div>\r\n
\u00a0In response to the current lack of progress in exports by Japanese SMEs, Standage offers trade support packages for SMEs in order to contribute to regional development throughout Japan. In particular, we are focusing on the Hokuriku region, and in 2022 we have partnered with Hokuriku Bank to begin support export businesses.<\/div>\r\n \r\n
<\/div>\r\n
\u00a0In conducting sales for export support initiatives in the Hokuriku region, we have noticed that young business owners in Kanazawa City are highly motivated to export their products. Kanazawa Bo-cha (stick tea), frozen sushi, lacquerware, and other local companies have raised their hands in rapid succession, and are embarking on expanding overseas sales channels by utilizing Standage's trade packages.<\/div>\r\n \r\n
<\/div>\r\n
\u00a0In addition to the fact that inbound business is quite active, Kanazawa is an area where the JCI (Junior Chamber of Commerce and Industry) has a very strong sense of unity. There is strong cooperation among business owners in their 40s and 50s who are considering business succession, and among them, there is currently a high level of enthusiasm to take on challenges in the context of \"from Kanazawa to the world\".<\/div>\r\n \r\n
<\/div>\r\n
<\/div>\r\n
\u25a0\uff13\uff5cWhat are the obstacles to exporting from Hokuriku (Kanazawa City)?<\/b><\/div>\r\n \r\n
<\/div>\r\n
\u00a0Challenges, however, have also been highlighted.<\/div>\r\n \r\n
<\/div>\r\n
\u00a0According to a Standage survey*2 of 100 managers and executives from small and medium-sized manufacturing companies (100-300 employees) who have exported overseas, more than half of the respondents felt that exporting overseas was a challenging issue for their companies.<\/div>\r\n \r\n
<\/div>\r\n\"\"\r\n
\u00a0In addition to logistical issues such as quality control and the difficulty of dealing with buyers after matchmaking, which \"ends with an introduction,\" it seems that many are also concerned about increased costs and insufficient human resources for overseas sales and logistics management.<\/div>\r\n \r\n
<\/div>\r\n\"\"\r\n
\u00a0As of 2021, exports from airports and ports in the four Hokuriku prefectures amounted to 3.6 billion yen (0.3%), not a large share of Japan's total exports, despite the fact that Japan's overall exports have been rising at a moderate pace.<\/div>\r\n \r\n
<\/div>\r\n
\u00a0Despite the fact that Hokuriku has many specialty products that should be exported overseas, one of the reasons for the lack of growth in export value is the regional characteristic of \"small quantities of many products. Exports of agricultural, forestry, fisheries, and food products from the Hokuriku region require small-lot transportation to ports and airports on the Pacific Ocean side, a problem unique to the Hokuriku region, which differs from metropolitan areas with well-developed logistics systems.<\/div>\r\n \r\n
<\/div>\r\n
<\/div>\r\n
\u25a0\uff14\uff5c\"Specialized on Specialty Products\" Trade Package Service Born from the Exceeding Needs of Export from Hokuriku Sake Breweries<\/b><\/div>\r\n
<\/div>\r\n \r\n
\u00a0To solve the above issues, Standage has developed a package plan specialized for exporting local specialty products. This plan is based on our package service \"Digitrad,\" which provides a one-stop service for trade planning, from sales channel development, contracts and negotiations, settlement, and logistics, in order to promote the entry of SMEs into the export market.<\/div>\r\n \r\n
<\/div>\r\n
\u00a0While following the functions and systems of Digitrad, which allows the entire trade to be undertaken, we have reduced the initial cost by limiting the contract to businesses that meet the criteria we set for \"local specialty products\". A logistics network that enables door-to-door transportation of small lots by temperature-controlled air freight, the first of its kind in Japan, was also built from scratch and is being undertaken as a subsidized project by the Ministry of Agriculture, Forestry and Fisheries of Japan.<\/div>\r\n
<\/div>\r\n \r\n
\u00a0The specialty trade package plan has been extremely well received and is currently being introduced by over 20 companies in Japan, most of which are sake breweries. The Specialty Products Service was born from the needs of sake breweries in the Hokuriku region, who were faced with quality control and lot size issues when exporting sake. Sake is sold mainly to high-end restaurants and hotels in Europe, and this distribution network is attracting attention from companies in Hokuriku and other regional specialty products (seafood, vegetables, meat, etc.) throughout Japan. This affinity is particularly strong in Hokuriku, which has many world-class sea food products.<\/div>\r\n \r\n
<\/div>\r\n
\u00a0In May 2023, we held sake tasting events in Paris and London. Since we have partner companies in the region, we are continuously following up with them after the event to encourage them to continue ordering and increase the volume of orders. First, we would like to sell sake to overseas restaurants and establish an export route, and then we would like to flow regional specialty foods into this route as well to deliver the taste and food culture of Hokuriku and the rest of Japan to the rest of the world.<\/div>\r\n \r\n
<\/div>\r\n
<\/div>\r\n
\u25a0\uff15\uff5cThe important thing to contribute to local development, as we have learned through our export support<\/b><\/div>\r\n \r\n
<\/div>\r\n
\u00a0In the past, when it came to \"trade,\" companies had to develop sales channels, negotiate with buyers to conclude contracts, settle payments, and manage logistics. If they tried to do this on their own, they would have to secure personnel who can handle overseas sales, prepare trading tools, and so on, all of which would be costly. It would be difficult for SMEs with limited resources to conduct trade practices and contract negotiations with foreign countries on their own. If we handle this part on your behalf, you can rest assured that about half of the costs will be covered by subsidies, and we will purchase some of the remaining half of the products domestically first, so you can start trading with less outlay at first.<\/div>\r\n \r\n
<\/div>\r\n
\u00a0In addition to selling the products of individual companies, exporting the concept of \"culture,\" \"technology,\" and \"specialties\" unique to Japan and its regions, especially in the case of specialty products, will help to gain proper recognition abroad, and will also allow the domestic companies that are the sellers to send their products overseas with confidence.<\/div>\r\n \r\n
<\/div>\r\n
\u00a0We hear from many SMEs that they do not know how to handle an inquiry from an overseas buyer after receiving support from the government or other organizations.<\/div>\r\n \r\n
The same survey*2 shows that as many as 56.0% of companies felt difficulty in \"negotiating with buyers\" when they exported overseas on their own.<\/div>\r\n \r\n
<\/div>\r\n\"\"\r\n
\u00a0In order to support exporting as an ongoing business, it is important to support and accompany the company, not only by introducing buyers, but also by providing follow-up services such as overseas sales and further promotion after an inquiry is made. We will continue to consider ways of providing support that meet the needs of the companies that are the bearers of culture and technology, and we will continue our efforts to contribute to regional development.<\/div>\r\n \r\n
<\/div>\r\n
<\/div>\r\n
\u00a0\u203b1 Survey outline: Survey on the overseas expansion of the manufacturing industry<\/div>\r\n \r\n
Survey method: Internet survey<\/div>\r\n \r\n
Survey period: September 27, 2023 - October 3, 2023<\/div>\r\n \r\n
Valid responses: 100 managers and executives of small- and medium-sized manufacturing companies (100-300 employees) that have not expanded overseas<\/div>\r\n \r\n
<\/div>\r\n
\u00a0\u203b2 Survey outline: Survey on overseas exports by the manufacturing industry<\/div>\r\n \r\n
Survey method: Internet survey<\/div>\r\n \r\n
Survey period: September 28, 2023 - October 11, 2023<\/div>\r\n \r\n
Valid responses: 100 managers and executives of small- and medium-sized manufacturing companies (100-300 employees) who have exported overseas on their own (without using outside support services).<\/div>\r\n \r\n
<\/div>\r\n
<\/div>\r\n
\u25a0One-Stop Trade Plan Digitrad<\/b><\/div>\r\n\"\"\r\n\r\n \r\n
\u00a0\"Digitrad\" is a comprehensive trade package service originally developed by Standage that provides one-stop services from sales channel development to negotiation, contract, settlement, and administrative procedures related to logistics and customs clearance.<\/div>\r\n \r\n
<\/div>\r\n
\u00a0While Japan's overall export volume is expected to show a gradual and steady increase due to the sharp depreciation of the yen in the second half of 2022 and the government's efforts to expand exports, the gap in export volume between urban and regional areas for SMEs is still wide.<\/div>\r\n \r\n
<\/div>\r\n
\u00a0Digitrad is a service that goes beyond the systemization of some operations and consulting or advisory, and can take care of the entire flow of trade. As end of Aug 2023, the number of companies that have adopted our service has reached 100.<\/div>\r\n \r\n
<\/div>\r\n
(For further information, please click here<\/a>)<\/div>\r\n \r\n
<\/div>\r\n
<\/div>\r\n
\u25a0About Us<\/b><\/div>\r\n \r\n
<\/div>\r\n
\u00a0Established in March 2017, with a Nigeria office in December of the same year and local offices in Kenya, South Africa, and Egypt in 2021. Offers Digitrad, a comprehensive digital trade service that completes all trade operations, from matching trade sellers and buyers to settlement, financing, and cargo delivery. Developed a secure, inexpensive, and speedy payment system utilizing blockchain and crypto assets for settlements in emerging countries. By leveraging the functions of a trading company and technology, we aim to develop a society that seamlessly connects small- and medium-sized Japanese companies with the entire world.<\/div>\r\n \r\n
<\/div>\r\n
<\/div>\r\n
\u25c7Official website of \"Digitrad\" service: https:\/\/standage.co.jp\/digitrad<\/a><\/div>\r\n
<\/div>\r\n \r\n
\u00a0Established: March 2017<\/div>\r\n \r\n
\u00a0Representative: Akinori Adachi, President and Representative Director<\/div>\r\n \r\n
\u00a0Capital: 68,568,500 yen (including 327,850,250 yen in capital reserve)<\/div>\r\n \r\n
\u00a0URL: https:\/\/standage.co.jp\/<\/a><\/div>\r\n \r\n
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