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In Europe and North America, machine tools are interpreted more broadly to include
presses and woodworking tools.
Machine tools in Japan may be broadly divided into three main categories:
Output, exports and imports of Japanese machine tools over the past years have been
as follows (note: 1 USD = 112 JPY):
Although there are apparently occasionally major incidents, these are generally
resolved individually by the companies concerned. 60-70% of parts are procured from
external sources. Despite the high cost of the products themselves, margins are
rather thin for Japanese makers due to the fierce international competition and level
of labour costs.
Regarding the outlook for the future, the Japanese machine & tool manufacturers'
considerable technological edge will continue to give them an advantage for the time
being. Growth in sales to the IT industry has run its course, however, and hopes are
pinned on increased sales in the future to overseas automakers and semiconductor
manufacturers.
In 2004, imports of machinery and equipment (yen base) increased 10.2% from the
previous year to ¥15,393.9 billion, while the share of imports of machinery and
equipment in the total imports decreased by 0.2 points to 31.3% from the previous
year. Looking at the type of machinery imported, we see that imports of general
machinery increased 10.0%, electrical equipment increased 12.9%, and transportation
equipment and precision instruments increased 3.1% and 8.4% each from the
previous year.
The share of general machinery in the total imports of machinery and equipment was
33.6%, same with the share in the previous year. The share of electrical equipment
increased 1.1 points from 43.4% to 44.5%. On the other hand, the share of transport
equipment decreased 0.9 points from 13.4% to 12.5%, and precision instruments
decreased share 0.2 points from 9.6% to 9.4%.
Imports in the Machinery Industry (by type, in thousand USD, not including electronics)
Looking at the change of 2004 imports from the year earlier for 5 main countries, it
was unchanged for U.S.A., 23.7% increase for China, 7.5% increase for Taiwan, 11.0%
increase for R. Korea, and 16.2% increase for Germany.
Looking at the share of imports of machinery and equipment by country, the United
States, from which the most machinery had been imported, had seen its share of total
imports exhibit a growing trend from 1996 to 1998. But since 1999 when U.S. share
fell sharply to 33.9%, U.S. share continuously fell to 29.5% in 2000, to 27.7% in 2001,
to 25.7% in 2002, to 22.6% in 2003, and it fell to 20.5% in 2004, and China came to
the top share position with 26.1% in 2004.
By region, the share of North America fell 2.3 points from 23.4% in the previous year
to 21.1%, while the share of Asia increased 2.5 points from 56.4% in the previous year
to 58.5%.
G&S Japan are providing on market entry support and marketing/ sales services for
European companies in Japan. The firm assist enterprises especially from Europe that
do object to market – expand -- start their business operations in Japan.
Japan
We provide professional support for Japan business development:
We are very experienced in the above fields and hold excellent client references. You
are welcome to discuss your Japan business perspectives and objectives with us.
G&S
Japan is the 2nd strongest economy & market worldwide after the USA
GDP by country (in %, billion USD, 2005) Per capita GDP in the G7 countries (USD, 2005)
Years ago, “foreign products” or “imported products” meant “quality products” in Japanese. Today the
situation has slightly changed (as the shares of the Western products has been lowered in the whole
imported products), but the stores are still full of foreign products and foreign brands.
Still, many of the Japanese consider foreign brands more trustable than Japanese, with a few exceptions
such as high-tech appliances. In consumer goods (such as housing, household, life-style, fashion,
cuisine, food, etc) -- as well as in industrial technology (such as machinery, tools, medical devices,
biotechnology, materials, system engineering, environment technology, etc) -- besides other fields … the
Japanese prefer to buy fashionable foreign products or count on sophisticated foreign technology.
Patience counts.
The purpose of your first meeting with your potential client in Japan is to obtain a second meeting. Don't
expect to close a deal without taking many steps to building a relationship. Your potential clients,
customers and business partners in Japan want to know you as a reliable firm, and a reliable individual,
before they will take the step of giving you business.
Persistence pays.
Japanese firms are not likely to make snap decisions on product selection. Expect your business
development to take about 2-3 times longer than it does at home. That is why you will need to focus on
relationship building, along with sales activities.
Performance is paramount.
Products must be delivered as promised, on time, and in accordance with specifications. Late delivery,
improper packing, missed specifications and the alike will cost you your business in Japan easily.
We’d be delighted to lead you & your products into the Japanese
market, a very exiting market with lots of opportunities!