Swedish designers go Nippon : An empirical study of small Swedish design firms' entry to Japan

Abstract: Internationalisation is today part of every firm’s reality and impossible to deny. Researchers have developed several models and theories concerning this topic describing firms internationalisation in terms of innovation models, behavioural-, sequential-, and learning processes. However, there is a lack of export research for small firms that are practically oriented towards a specific market. Small firms often lack the resources and time to investigate new markets. We have seen an empirically driven need for research about entry strategies due to a request from a Swedish design company. The Japanese economy is the second largest in the world with a population interested in consumer goods such as design products and services. During the last years, the fascination for western cultures, Swedish design and lifestyle has grown. Due to this, it is interesting for small Swedish design firms to examine the Japanese market. The purpose of the thesis is to empirically examine small Swedish design firms’ internationalisation process to Japan. Appropriate export entry strategies will be evaluated in order to find suitable suggestions for other design firms with similar characteristics that wish to expand to Japan. To fulfil this purpose, a qualitative method with an orientation towards induction was used. Primary data was gathered by interviews with five Swedish design firms with experiences from Japanese market penetration. To approach the Japanese market and entry strategies from another perspective, complementary information and interviews were conducted with for example the manager at Swedish Trade Council Japan, and the founder of the agent association Japan Porten. Internationalisation theories, export entry strategies, and theory about the Japanese market have also been presented. As a result of the theory chapter, research questions rose concerning what international entry strategy this type of companies should use. What entry mode and distribution channels are most appropriate, how should the marketing plan be composed and what other things should to be considered before a Japanese market entry? A cross-analysis was then made contrasting and comparing theory and empirical data in order to reach conclusions. The conclusion gives suggestions about what steps small Swedish design firms should take after they have decided to enter Japan. We have found evidence during this research process that suggests them to use a direct entry mode, contracting an agent or distributor. To get in contact with business partners, the companies can participate in trade fairs or events, promote themselves through magazines, and take help from the Swedish Trade Council. Products should be slightly adjusted to the Japanese market, especially in terms of physical size and packaging materials that has to be flawless and professional. The price can be set higher than in Sweden and the company should position themselves as high quality producers. Swedish design, originality, and handicraft tradition should be promoted. Further, the Japanese business culture has to be respected, where negotiation manners, honesty and politeness should be considered. The companies also have to bear in mind that things take time in Japan and it is important to develop personal life-lasting relationships.