We are your Japan navigators.
We guide building materials companies through Japan’s unique business, regulatory and cultural landscape, from point of entry to destination.
Our focus: grow your sales, every step of the way.
Selling products in unfamiliar Japanese markets is not easy...
I know. I’ve been doing it for almost 30 years.
I will help you get started or get better results from your current Japanese sales organization.
My specialty is building and construction materials and services, and I have proven experience in meeting numerous kinds of business challenges in Japan as well as other Asian markets.
Eric De Groot
Principal/Owner
De Groot Trade Associates
Japan is the third largest building materials market in the world. It’s also one of the toughest to navigate.
Let De Groot Trade Associates be your guide.
Insight
An understanding of the needs, motivations and concerns of customers in Japan, Korea and other regional markets.
Perspective
A deep appreciation of the challenges facing North American and European manufacturers in achieving profitable sales in Asian markets.
Fluency
Full Japanese speaking, reading and writing skills.
Experience
First-hand knowledge of the distribution channels,
regulatory environment, pricing, value chains, logistics, financing, HR and organizational structures required for marketing building materials in Japan.
Expertise
A detailed knowledge of the steps required to establish business entities in Japan.
Case Studies
30 Years of Sales Successes
Streamlining Supply Chain Increases EBITA More than 30%
Situation
A two-billion Euro flooring company was experiencing little to no growth. With profits declining after almost 10 years in Japan, they needed to find a better way into the market.
Solution
We eliminated the steps in distribution chain, established local and regional (Shanghai) inventory, and expanded direct demand generation. We also upgraded the company’s office status from being a representative to a branch of a foreign entity, which permitted invoicing directly to customers at the next level in distribution chain.
Finally, we established a more cost-effective 3PL warehouse and delivery system, developed a direct marketing channel to end-users and designers, and expanded the sales force. Existing channel sales were preserved through careful negotiations with legacy distributors.
Result
Within the first full year of the new model, the company’s EBITA increased by more than 30%.
New Distribution Channel Improves Revenue and Profits
Situation
A Canadian insulation company had become captured and overly dependent on their primary Japanese distributor.
Solution
A major new distribution channel was established, while maintaining the primary distributor's existing sales volumes. We pushed through three price increases over two years and launched an intensive year long process to recruit and train 18 regional direct customers on installation and sales techniques.
Result
Sustained revenue and EBITA improvement.
New Legal Entity Status Enables Direct Selling
Situation
A European floor covering company wanted to sell directly in Japan; not just conduct sales and marketing promotion. They needed a simple and tax efficient corporate structure.
Solution
We upgraded their Japan presence from representative office to a branch of the Netherlands head office.
Result
Company was able to conduct their first direct sales in Japan and saving considerable tax and entity administration costs.
Association Office Creates Significant Lasting Value for Members
Situation
A Canadian wood products exporters association needed to proactively approach potential customers for their members in Japan.
Solution
We established a Japan office for the association and created a system of trade missions, trade show participation and an on-line inquiry system in the late 1990s that is still in use today by the same association.
Result
Association member companies reported sales increase of over $13M annually.
Coordination Between R&D and Japanese Regulators Prevents Major Disruption to Sales
Situation
Regulatory changes were introduced potentially causing major disruption to sales of Canadian insulation manufacturer.
Solution
In close coordination with Canadian headquarters R&D and QC we engineered the vital and very complicated Japanese accreditation required to ensure business continuity. The Canadian factory obtained Japan Industrial Standards accreditation, only the second factory outside Japan in the spray foam insulation industry to obtain such accreditation.
Result
Preserved over $5 million in annual sales.
Product Launch Bypasses Distribution Channel to Create $1M market
Situation
A $500M US/Canadian spray foam insulation company wanted to introduce a new product into a very price competitive market in Japan, with no room for distributor margins. Existing distributors saw no viable business case given market prices, and refused to import and distribute the product.
Solution
Through careful planning with a global third party logistics provider we devised a profitable direct sales model that took product from the Canadian factory direct to customers in Japan. Inventory was maintained in 3PL facilities in Japan, with invoicing, sales and customer support offered by Japanese subsidiary of head office with minimal staffing and overhead.
Result
A new, profitable direct market of $1M at healthy margins became accessible to the manufacturer, with no disruption to existing distribution channels.
Latest Articles
