Japanese Distribution Channels: Traditions, Customs and Evolution

If one assumes that Gross National Product proportionally represents market size, then Japan is now the third richest single market in the world. Because of the internal homogeneity of this market, once a foreign company successfully enters, the potential for future growth is tremendous. However, foreign businesses encounter both visible and invisible barriers. The Japanese government's sophisticated and sometimes unsophisticated regulatory policies toward foreign business entry are well known. In addition, there are the invisible barriers deeply imbedded in the socio‐cultural market and business system of the country. These two types of barriers often hinder the successful entry of foreign capital and commodities into the Japanese market.