Entrance to the US market (suggestions mainly for food-related companies): Success strategies for Japanese companies

The American market is one of the most attractive business environments in the world. However, Japanese companies entering this market face unique challenges and competition. To succeed, a strategic approach is required. In this article, we explore specific strategies for Japanese companies to succeed in the American market.

Understanding the US food market

Characteristics of the American food market

The American food market is one of the most diverse and huge in the world. Consumer tastes vary greatly depending on region, ethnicity, and lifestyle, which presents a great opportunity for Japanese companies, but also requires a high level of market understanding and localization strategies .

Differences in culture and values

American consumers place great importance on the following food values:

• Transparency

• Safety

• Health-consciousness

• Brand Story

Storytelling is particularly important, and brands that can clearly explain "why this product has value" are chosen.

High quality, which is a strength of Japanese companies, is a major weapon, but it is essential to localize the way of communicating in accordance with American values .

American Food Consumer Preferences: Storytelling and Value Demonstration Are Key

American consumers are particularly sensitive to four things:

1. Quality

This is an area where the strengths of Japanese companies can be most effectively utilized, such as safety, transparency of raw materials, and clean manufacturing processes.

2. Convenience

People want convenience that suits their lifestyle, such as ready-to-eat, easy cooking, and ease of online purchase.

3. Price

In America, price is not just a number; what's important is whether the product tells a story that justifies the price .

example:

• Why is this product high quality?

• What are the production areas, manufacturing methods, and cultural backgrounds?

• What are the health benefits and functionality?

By clearly communicating these points, you can create a sense of satisfaction with the price.

4. The Importance of Certifications

In the US market, the following certifications are very effective in explicitly communicating the value of food products:

• Kosher

• Non-GMO

• Gluten-free

• Organic (USDA Organic)

• Vegan / Plant-based

These are a sign of trust for consumers and a powerful weapon, especially for new entrants.

Strategies for success

To succeed in the American food market, you need three things:

1. Thorough market research

• Consumer interviews (verification of taste, packaging, and price)

• Competitive product analysis (shelf placement, price range, brand strategy)

• Retail buyer needs survey

American consumers have different values than Japanese consumers, so it is essential to gather primary information locally .

2. Localization of brand packaging

• Optimization of English and nutritional information labeling

• Design copy suited to American culture

• Taste adjustments to suit regional tastes

• Telling stories about Japanese food culture, production areas, and craftsmanship in a way that Americans can understand

• Kosher / Non-GMO / Gluten-free certification

In the American market, packaging is the first salesman , and localized brand expression is essential for success.

3. Entering the local commercial distribution network and selecting an American partner: "Selecting an American partner (Navigator) who is familiar with the American commercial distribution network."

The food distribution chain in the United States is complex and involves the following players:

• major retail chains

• Natural supermarket

• Asian food chain

• Major food wholesaler/distributor

• Restaurant chains

• E-commerce platforms (Amazon, Instacart, etc.)

To enter these trade channels, it is essential to have a US partner who is familiar with local business practices, negotiation culture, and buyer evaluation criteria .

Case Study: Learning the Essence of Success from Kikkoman and Ajinomoto

Kikkoman: Thorough localization x penetration into mainstream distribution

Kikkoman is the most famous example of a Japanese food company successfully entering the US market.

1. Local production creates an "American brand"

• Local production began in Wisconsin in the 1970s

• Localized raw material procurement, manufacturing, and quality control

• Earning trust through "Made in USA"

  
  

2. Infiltration into American cuisine

• Redefining soy sauce as an all-purpose seasoning for American cuisine, rather than an Asian ingredient

• Suggested uses for steaks, BBQ, salads, etc.

• Expanding awareness through collaboration with chefs and restaurants

  
  

3. Entering mainstream distribution

• Direct transactions with major supermarkets

• Partnerships with restaurant chains

• Building trusting relationships with local buyers

  
  

This is a prime example of success achieved through both localization and a commercial distribution network .

Ajinomoto: Localized product development x mainstream market expansion

Ajinomoto is expanding its presence in the American market, focusing on frozen and processed foods.

1. Product development tailored to American eating habits

• Frozen dumplings (Gyoza)

• Ready-to-eat Asian food

• Health-conscious product line

Frozen dumplings in particular have been widely accepted by American households and are leading the category.

2. Localization of packaging and branding

• Optimization of English and nutritional information labeling

• Copy design that resonates with Americans

• Clearly promote health benefits and convenience

  
  

3. Entering the mainstream distribution network

• Partnership with a major food wholesaler

• Shelf allocation at national supermarket chains

• Supplying ingredients to restaurant chains

  
  

The key to success was localized product development and the use of a distribution network .

Summary: How to succeed in the American food market

To succeed in the American food market, three things are essential:

• Deep understanding of the market

• Localization of brand and packaging (clarification of story, certification, and value)

• Entering the local trade flow (selecting a US partner)

Furthermore, our mainstream US network has the power to greatly accelerate Japanese companies' entry into and expansion of their businesses in the US.

Let's work together to achieve success in the American market

As we've seen, the American market offers great opportunities for Japanese companies. However, cultural understanding, a strategic approach, and sustainable growth are essential to success. By conducting market research, localizing your brand, and building a strong network, you can achieve success in the American market. As a next step, we recommend developing a concrete strategy and putting it into action.

The value our "US mainstream network" can provide

We have a strong network in the major American food distribution network (mainstream), which is a major strength that complements the areas where Japanese companies struggle the most.

1. Direct connections with major retailers and wholesalers

• National supermarket chain

• Major natural supermarket

• Asian food chain

• Major food wholesaler/distributor

This provides strong support for shelf selection and ensuring initial distribution .

2. Deep relationships with local food buyers

American buyers value trusted referrals and proven track records, and our network allows us to create business opportunities with key players who are usually difficult to reach .

3. Support for the implementation of local marketing and sales strategies

• Tasting event planning

• Collaboration with influencers

• In-store promotion

• Online sales strategies (Amazon, Instacart, etc.)

We accompany food companies through the implementation phase to help them succeed in the US.