I think a big difference between Japan and many smaller markets is you are going to have local competitors in almost every sector that have some sort of buy in.
Even if you win on a feature matrix in theory (and is your feature matrix actually tailored to a local market!), the general sort of "well, local companies will be more responsive to our needs" is going to be very present.
Obviously people use Microsoft products for example but Microsoft has a _huge_ presence in Japan to support that. I have been on the receiving end of SaaS's trying to roll out their Japan sales strategy, and all the ones that got a nice and strong footing basically hired loads of local sales talent to do it.
Obviously Europe has a lot of fragmented business process things, but I think that many smaller European companies will be pretty habituated to buying services from outside the country because... well, there's no Salesforce Dot Com alternative based in Italy for example
(There are several SFDC alternatives in Japan)
Anyways the short thing is "buying services from abroad" is a perceived risk for Japanese enterprises because they will often not have to confront that issue, because the local market is "healthy"[0].
[0]: People will whine about the Japanese options being worse, but the options are at least there.
There is always that one person who writes that Europe is many countries. Yea, we know. But European countries also collectively represent themselves to the world through EU. Look at how Europe talks about the Greenland issue. It’s always a collective.
I've been working in Japan as a product manager/engineer for a few years. The market is indeed quite different from other parts of the world. It's hard to build trust and get sales in Japan, but once you do, your customers tend to stick with you for a very long time (sometimes decades or even longer - not in IT of course). Simply localizing your app is far from enough. You'll need a sales team, preferably composed of Japanese people, based in Japan. And you'll need to be patient.
The same (want to see docs first, decide thoroughly, risk aversion, etc.) is true for Europe. We just are nearer in terms of sales, so we were greeted early with aggressive US marketing tactics, so it is ignored and wondered about why we don‘t just buy the damn thing.
One thing I agree with the Japanese on is that documentation is king! One major reason I decline various software demos or testing opportunities is the lack of proper documentation or screenshots. Maybe it's because I am from SEA; I tend to hesitate to confront people or ask questions, especially during a demo.
It is interesting to see how the Japanese market validates the idea of sharing information instead of hiding it. I get annoyed when companies hide their features behind a contact form because I just want to do my own due diligence. Giving people the information they need to research independently seems like a much better way to sell software.
I run a successful SaaS biz in Japan. Its possible, but its waaay hard. The article is right in principle. Unless you are 110% all in on localizing and hiring lots of local staff, to the extent that you will give up priorities in other markets, its not worth trying. Otherwise its a waste of blood and treasure—a local player will eat your lunch.
A consultant like Nihonium or whatever wont be able to help you really. Like any good consultant, they will be there to tell you things you already know. The motivation to do it needs to come fundamentally from your own company.
And even after doing all that, VCs will still undervalue your company vs a similarly sized US company.
I'm still pre-launch, but I've attended (and presented at) a couple conferences / industry events for my SaaS in Japan. You can get a lot of traction by getting out there and actually talking to people. Networking is important (probably this is the same anywhere?) and talking to other presenters is as important as talking to potential customers, because you can get that relationship going for mutual benefit.
The "download service documents here" (something like サービス資料ダウンロード) call to action part is true. But everything else sounds like a marketing fluff for the company in the article. Like yes, the process is longer, but it's mostly due to risk-aversiveness of most of the companies.
Local payment methods seem to be a really huge thing. For instance, I'm told that in India most people want to use Google Pay, and even street vendors have QR codes at their stalls. If anyone can weigh in on that I'd love to hear about it.
Working in that area in Japan. I think I can provide some answers.
Payment: CC are mostly used for BtoC but if you are a BtoB SaaS you want invoice and a local presence (ie no tax or currency shenanigans for your customer).
Hand on sales: Don't expect customers to sign up for a free plan and convert. Your conversion rate will be close to 0. Mostly scammers. Instead: Contact form, Cold call, go out to events, lots of drinking.
Regarding language: Many people do not speak English. I think that surprises some, but Japan is big and you can live forever happily only speaking Japanese. So if you don't support Japanese it's a complete no go.
In other words, don't bother from outside of Japan unless the SaaS has been fully translated into Japanese? That's what I'm getting from this response. Is that true?
Those QR codes are for a payment method called UPI that is managed by a conglomerate of banks (NPCI), with the blessings of the Reserve bank. Google Pay, PhonePe etc are apps that are interoperable and allow P2P or P2B payments by scanning a code. The payments are instantaneous and free; at least for P2P scenarios. Anyone with a bank account can sign up for any of the UPI apps and generate a QR code using which they can accept payments from anyone and this drastically reduces the effort it takes to join the digital payments economy.
> I don't like the idea of having a partner or co-founder because I have put in 100% effort while others might not contribute equally.
I get it – I’ve felt the same when I was looking for a cofounder too. It’s tricky to find a person that’s passionate about the same thing as you are. But I think it’s still worth it to be looking for one.
Of course, you can also hire a marketing guy, or just ask around to see if you can barter (e.g. help them with something IT instead). But I think having a cofounder is still great for motivation – if you do find the right person, that is.
Great insights on selling SaaS in Japan! I found the emphasis on documentation being "king" particularly valuable, especially how it helps those who hesitate to ask questions during live demos. It’s a good reminder that GTM strategies must be tailored to specific cultural and regional nuances.
As if the european market didn't consist of dozens of languages, legislations, cultures and histories.
> When should a SaaS company consider reaching out to Nihonium?
Aah, that's what the article is about
Even if you win on a feature matrix in theory (and is your feature matrix actually tailored to a local market!), the general sort of "well, local companies will be more responsive to our needs" is going to be very present.
Obviously people use Microsoft products for example but Microsoft has a _huge_ presence in Japan to support that. I have been on the receiving end of SaaS's trying to roll out their Japan sales strategy, and all the ones that got a nice and strong footing basically hired loads of local sales talent to do it.
Obviously Europe has a lot of fragmented business process things, but I think that many smaller European companies will be pretty habituated to buying services from outside the country because... well, there's no Salesforce Dot Com alternative based in Italy for example
(There are several SFDC alternatives in Japan)
Anyways the short thing is "buying services from abroad" is a perceived risk for Japanese enterprises because they will often not have to confront that issue, because the local market is "healthy"[0].
[0]: People will whine about the Japanese options being worse, but the options are at least there.
Not really. They just use whatever the Americans give them. What are they gonna do anyways? Europe is a captive market. (As is the third world.)
A consultant like Nihonium or whatever wont be able to help you really. Like any good consultant, they will be there to tell you things you already know. The motivation to do it needs to come fundamentally from your own company.
And even after doing all that, VCs will still undervalue your company vs a similarly sized US company.
Local payment methods seem to be a really huge thing. For instance, I'm told that in India most people want to use Google Pay, and even street vendors have QR codes at their stalls. If anyone can weigh in on that I'd love to hear about it.
Payment: CC are mostly used for BtoC but if you are a BtoB SaaS you want invoice and a local presence (ie no tax or currency shenanigans for your customer).
Hand on sales: Don't expect customers to sign up for a free plan and convert. Your conversion rate will be close to 0. Mostly scammers. Instead: Contact form, Cold call, go out to events, lots of drinking.
Regarding language: Many people do not speak English. I think that surprises some, but Japan is big and you can live forever happily only speaking Japanese. So if you don't support Japanese it's a complete no go.
Brutal! Is that true even for Japanese companies with a traditional sales force?
More like noone speaks English, plainly put
In no-trust society like India, where fake note, torn notes, fake coins can strike anyone. UPI is blessing to most.
You don't even need a middleman. Your regular bank app also directly supports UPI payments.
I get it – I’ve felt the same when I was looking for a cofounder too. It’s tricky to find a person that’s passionate about the same thing as you are. But I think it’s still worth it to be looking for one.
Of course, you can also hire a marketing guy, or just ask around to see if you can barter (e.g. help them with something IT instead). But I think having a cofounder is still great for motivation – if you do find the right person, that is.
https://stripe.com/sessions/2025/scaling-vertical-saas