trumpf corporation - kanagawa prefecture · trumpf corporation after 36 years in japan, 8 sales...

TRUMPF CORPORATIONAfter 36 years in Japan, 8 sales offices are established to offer nation-wide services

“Except risk of exchange rate fluctuations and

earthquakes, everything in Japan is OK,” says

company’s president, Hartmut Pannen. He has lived in

Japan for more than 20 years. So, we asked him why

and the following are his reply to the reasons.

Attracted by the size of the Japanese machine tool market

which was the second largest in the world, we launched our

business in Japan 1977. By establishing an office in Japan, we

expected that we could precisely monitor Japanese customers’

needs and take advantages over our competitors in view of

development.

Moreover, we had focused on the world’ largest two machine

tool makers located in Germany and Japan. We were able to

identify what German company was doing in Germany, and to

develop our own models to compete against our competitor.

Likewise, in coping with Japanese competitors, we needed to

develop our models to beat them. We, therefore, thought that

to establish an office in Japan was essential.

After the business launch in Japan, we faced difficulty in renting

an office. A lease contract is written in Japanese and it is often

the case that unlike the global standard, the rights of a tenant

are very weak. Additionally, it is necessary to pay the security

deposit, and the rent rises whenever the contract is renewed.

Confronting with these Japanese real estate practices, we felt

that it would be difficult to develop a long-term business plan in

Japan.

However, the German Industry Park (GIP), where our

Japan office is at now, uses a contract written in English

and employs a property management system similar to

German’s. Additionally, introducing sufficient measures against

earthquakes which consider Japan’s weak point, the facility

is designed to withstand quakes from an earthquake and

also equipped with safety systems, including in-house power

generator when to run at the time of power failure.

The success of our Japan business is due not only to our

higher-level technologies, but also to the excellence of

Japanese staff members. Although our group consists of 50

companies in the world, Japanese employees are outstanding

by keeping the highest motivation. Also, Japan’s work

atmosphere and corporate culture are genuinely superb.

Compared with the third year sales after opening the

Japan office, our current sales have smoothly increased to

approximately 20-fold. Our future target is not only to sell

German machine tools, but also to make and develop those

in Japan. Actually, we have tried to do so for these 30 years,

although there was a hiatus at one time.

Thus, we have realized that it is a difficult

challenge. By utilizing the capabilities of

our staff not only from the manufacturing

and development sections, but also from

the automation, tooling, and software

sect ions, we would l ike to focus our

efforts on manufacturing and

development, thereby

striving to double our

s a l e s a n d m a r k e t

share.

Entrance of TRUMPF TruMatic 6000 fiber, the company’s latest model

Mr. Hartmut Pannen, President, Representative Director

❻ TRUMPF CORPORATION

Japanese market size is more attractive than anything else

Future target: manufacture and development in Japan

Our success is due to the excellence of Japanese staff

Address 〒226-0006 1-18-2 Hakusan, Midori-ku, Yokohama, Kanagawa

T　E　L +81-45-931-5710 F　A　X +81-45-931-5714

Established November, 1977 Capital 100 million yen

No. of employees 130 Headquarters Germany

Business Import and sale of laser oscillators and sheet metal fabrication equipment, and related services

Representative Hartmut Pannen, President, Representative Director

Contact [email protected]

U　R　L http://www.jp.trumpf.com

Company overview

GIP commemorative plate

Kanagawa was selected as one of our options for establishing an office in Japan because of the friendly, interactive, long-term relationship between Kanagawa and Baden-Württemberg State in Germany where our German head office is located. Kanagawa costs less than Tokyo. Since our customers were dotted across Japan, there was no need to stick to Tokyo. We eventually concluded that Shin-Yokohama would be an ideal, as there was a Shinkansen station close by, which would provide us with good access to the customers throughout Japan, and TÜV Rheinland, an international certification service provider, has its Japan office in that area.In 1987, 10 years after our Japan business began, we moved to GIP. It was immediately after GIP opening. A major reason we selected GIP was that there were no buildings in Shin-Yokohama spacious enough to have a showroom for the customers to observe our large machinery besides an office. In addition, our company owner was deeply involved in constructing GIP, a symbolic building accommodating many German companies.

Although we sell machine tools all over the world, some products for the Japanese market are different from our universal specs. What makes the Japanese market very special is that in Japan it is necessary to make even a small change to adapt our products to the unique Japanese standards. In Japan, there are many large manufacturers, which are proud of playing a leading quality role in Asia, and Japanese engineers tend to create their own rules.In addition, component manufacturers also make various

There are a plenty of renting facilities for foreign companies in Kanagawa.One example is GIP(German Industry Park) which Trumpf has involved in construction and has been renting it since establishment.

improvements in response to customer’s requests. There is no country in the world that can surpass Japan in making demanding requests. It is expected that Japan will continue creating its own strict rules due to its fastidious care about quality rather than just accepting the global standard. We are confident that we can accommodate such rules.A good example of this is our warranty system in Japan. Customers in Japan have some anxieties that after purchasing imported machines, it would cost a lot if something went wrong with the machine. To relieve this anxiety, we have initiated five-year free warranty system, which is not available for our group except Japan.As for the comparison of Japanese and German corporate cultures, both countries have the cultures in meeting deadlines and promises, and achieving set targets. However, when it comes to discussion, there is a difference. Japanese respect harmony with others when a participant in a discussion often tries to obtain agreement from others. While, in Germany, even if they put the same goal, people insist on their own opinions, and the discussion tends to become very heated.

Japan has a high standard of public safety, a well-established legal system, and a sound financial system. If you wish to promote businesses in Japan, this country is a very safe choice.When transfer to Japan, many German business people move to Japan with their family. In Kanagawa, there is a German school, which helps such families maintain comfortable life.

Renting facility (Feature of GIP)

❻ TRUMPF CORPORATION

Japanese market size is incredibly attractive

German school in Kanagawa helps family maintain a comfortable life

Moved into the GIP after 10 years of business in Japan

Combination Equipment maintenance support Specility network

・Combine necessary functions to proceed

R&D, production, management, distribution,

and sales

・Technical support for moving in

・Support for administrative procedure

・Administrative netwark with Kanagawa

prefecture and Yokohama city

・Suppot from German Chamber of

Commerce & Industry

Renting facility Support for moving-in Support for business activity

German Industry Park (GIP)

Kanagawa's fascinating point

Market

Humanresources

Cost

Internationality

Livingenvironment

Access

Company's opinionKanagawa is a very good place to live, blessed with nature, faces the sea and rich in greenery and has many commercial & entertainment facilities. Moreover, there are districts appropriate for doing business, such as Yokohama. Kanagawa is truly a place with good harmony between life and business.

Employee's impression

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Oxford Immunotec K.KWider recognition of the product a year after the launch of the business in Japan

In Japan, more than 20,000 persons annually develop

tuberculosis (TB), and approximately 2,000 persons die.

Moreover, it is said that there are many people in Japan

who do not develop TB but are latently infected. TB is

not a thing of the past; it is still one of the most serious

diseases today.

In June 2012, Oxford Immunotec was established and

launched the sales of T-SPOT®.TB , a blood test kit

to diagnose TB, in Japan. An interview is, therefore,

set with Michitaka Nakao, Managing Director of the

company. He talks about the current situation of the

one-year-old company.

In Japan, a Tuberculin test has been long the means to

diagnose TB infection. However, this method requires

examinees to visit their medical institutions again a few days

after their tests in order to check the test results. Another

problem is that some people react to BCG vaccine even

though they are actually not infected with TB. T-SPOT®.TB

is a solution to these challenges and provides another option

to considerably reduce the burden test site incurs from TB

diagnosis.

Currently, this product is used for TB infection screening for

medical staff and also for TB infection tests to be conducted

prior to the treatment of an immunosuppressive therapy for

articular rheumatism and its related patients. This test product

is, therefore, characterized by its wide application even outside

the field of respiratory organs.

Our business is growing steadily. Also, the employment of staff

is progressing smoothly.

As for our future business prospects, we would like to further

develop the current TB infection diagnosis market. In addition,

we would like to ensure that the product is highly recognized

in the fields where TB tests have not yet been fully introduced,

although its implementation is recommended. For instance, a

guideline indicates that TB tests are recommended for patients

in an immunocompromised state, as those patients are prone

to developing TB. Nevertheless, TB tests have not been fully

conducted yet. In this regard, we would like to appeal the

necessity of TB tests. Due to our resource limitation, we had

rather limited promotion activities

so f a r , we wou ld l i ke t o

reinforce this area to ensure

that medical institutions,

which conduct TB tests, will

proactively acknowledge our

product.

T-SPOT®.TB

Mr. Michitaka Nakao, Managing Director

❼ Oxford Immunotec K.K

Attracted by the Japanese market Striving for even wider application

Addres 〒213-0012 Kanagawa Science Park, 3-2-1 Sakado, Takatsu-ku, Kawasaki, Kanagawa

T　E　L +81-44-819-8088 F　A　X +81-44-819-5008

Established June, 2012

Headquarters U.K.

Business Marketing of in-vitro diagnostic tests

Representative Michitaka Nakao, Managing Director


U　R　L http://www.tspot-tb.jp

Company overview

Headquarters in the U.K. Inspection

We emphasized convenient access to Haneda Airport and

the Tokaido Shinkansen to cover the whole Japanese market,

as well as to cover the three key markets in Japan – Tokyo,

Nagoya, and Osaka. When compared with Tokyo, office rents

and other costs are lower in Kanagawa. Moreover, Kanagawa is

the area we can hire superb individuals who possess high-level

expertise and skills but find it difficult to commute to Tokyo.

Another reason why we selected Kanagawa is that Yokohama

is the home of our partner company which assumes

responsibility on safety control and quality control in Japan as

the designated manufacturing and selling partner under the

Pharmaceutical Affairs Law. This enables us to complete our

business, including logistics, within a limited area. This is an

important aspect of our business.

However, experts in the pharmaceutical affairs consulting companies

with know-how on foreign companies, also in the accounting firms,

and in the advertising agencies, are mainly located in Tokyo. This

makes us feel inconvenient as it takes time to travel to Tokyo..

Our business success is largely due to our success in

employing right people. There is an argument that it is difficult

to hire people with good English capability. But, at the same

time, we must be conscious about where English is needed or

not needed. There is a tendency that English is inevitable for

foreign affiliated companies . We believe that in order to excel

with business in Japan, it is necessary to play the role under

the Japanese business practice. Consequently, we did not put

emphasis on English proficiency, except for certain positions.

I was lucky to have an opportunity to work at the U.K.

headquarters before establishing the Japanese subsidiary.

When initiating businesses in Japan, some foreign companies

often employ local country managers in Japan. In such cases,

there is a concern about discrepancies in understanding the

corporate values and communication issues between the

headquarters and branch offices. I feel that it is better to ensure

that country managers spend as much time as possible at their

headquarters to familiarize themselves with the headquarters’

values before beginning to work in Japan. Another option is

to send staff from the headquarters to Japan, free from the

preconceived idea that the representative of a Japanese

company must be Japanese. While it is said that each country

has its own customs, this does not mean that Japan is very

different from other countries.

The living environment of Tokyo is different to Kanagawa’s.

Tokyo is a certainly convenient place, but the area does not

provide the comfort as Kanagawa does. At the same time,

you need to be close enough to Tokyo to carry out effective

business. Kanagawa is rightly placed for this purpose. If you

respect an environment where your employees can work

comfortably, Kanagawa is a very good choice.


Key to success: right person in the right place employment

Importance of developing country managers

Peace of mind – Kanagawa’s most attractive feature

Emphasis on access, partnership, and human resources – behind the decision to begin the business in Kanagawa

Company's opinion

Facing the sea, Kanagawa has a bright and advanced image. Kanagawa is a comfortable place to live and work. The prefecture offers a life well balanced.


Preparation for business launch in Kanagawa

Renting an office at IBSC (***) Tokyo

Searching for available real estate

Establishment of Japan subsidiary

Briefing Press releasConsultation about domestic issues

at the Kanagawa Prefectural

Institute of Public Health

Collaboration of Kanagawa

prefecture, Kawasaki city

and JETRO Yokohama

Provision of informationThe information on

available real estate in

Kanagawa

One-stop serviceFree consultation by

licensed tax accountants and

administrative scriveners, etc.

❼ Oxford Immunotec K.K

Kanagawa prefecture, Kawasaki city (*) and JETRO (**) Yokohama provided various supports and the information on available real estate in Kanagawa at the preparing stage for launching the business in Japan.

* Kanagawa prefectural and Kawasaki municipal governments, ** the Japan External Trade Organization, *** the Invest Japan Business Support Center

Support from public organizations

Market

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SuperElectronics Japan Co., Ltd.Promoting offshore development in China and solving shortage of IT engineers in Japan

“Offshore development in IT industry means IT

service trade” said Mr. Yoshimasa Zou who is the

representative director of SuperElectronics Japan

Co., Ltd., DLSE’s subsidiary in Japan and the founder

of Dalian SuperElectronics Co., Ltd. (DLSE) which

was established in 2004 in Dalian, China. He talked

about Japanese IT industry; such as Japan which is

experiencing a declining birthrate will face a shortage of

IT engineers in the future and this will create the need of

more foreign engineers than now.

In 2007, we opened DLSE’s Japan branch in Yokohama to

promote our IT businesses to Japanese companies. In 2011,

to further expand our business, we founded a Japanese

subsidiary. This smoothed out the process of contracts and

visa acquisition for Chinese engineers to visit Japan. Although

we were initially worried about many things including various

contracts and employee’s social insurance, we were later

relieved to know that since there were clear legal standards

in Japan, we did not have to worry about any at all when to

comply with the relevant laws.

The two cores of our company are offshore development

and maintenance service. In the offshore

deve lopmen t , we d i v i de a sys tem

development into two flows; one flow is

in Japan and the other in China. This

will minimize the time and cost. First,

DLSE’s engineers visit Japan to work

with the customers at either plants

or shops to define requirements and

make an outline design (*1). We, then,

conduct a detailed design, programming,

and tests in China. This makes us secure

necessary engineers at a lower

cost in China. Last ly, we

de l iver and re lease our

developed system to the

Japanese customers. In

maintenance service, our

emp loyees s ta t ioned

at our customers add

system functions for

changes to meet the

relevant laws.

When we launched our businesses in Japan, we had three or

four employees. Since then, we have steadily grown up in sales

and the number of employees. Our group’s current target is to

manage weak yen. Since Japanese customers want to avoid

any exchange risks, payments are done by Japanese yen.

Thus, DLSE is to cover weak yen’s exchange loss. To solve

this, DLSE is reviewing our operations to upgrade productivity.

In coping with Japan’s graying society and declining birthrate,

we have two future targets to achieve in Japan. One is to

contribute to the aging society through IT technology. We

would like to, for example, provide products and services

to support senior citizens in their daily life by sending an

emergency message or remotely monitoring conditions when in

emergency.

The other is to solve the shortage of IT engineers in Japan and

this is to cope with the declining birthrate. We think Japan will

need to use more foreign engineers. In this respect, we want

to invite many excellent Chinese engineers to Japan to solve

the IT engineer shortage in Japan. And this will also provide

opportunities for Chinese engineers to demonstrate their

capabilities in Japan.

Mr. Yoshimasa Zou, Representative Director

❽ Super Electronics Japan Co., Ltd.

Established a Japan subsidiary to expand businesses

Future Targets: Supporting Japanese senior citizens and solving the shortage of engineers

Two cores: offshore development and maintenance service

Address 〒231-0063 805, Daiici-Sokuryo-Sakuragicho Bldg., 1-18 Hanasaki-cho, Naka-ku, Yokohama, Kanagawa

T　E　L +81-45-261-7903 F　A　X +81-3-6203-8384

Established September, 2011 Capital 10 million yen

No. of employees 29 Headquarters China

BusinessSystem development, maintenance service, offshore development, and localization of Japanese software products into Chinese

Representative Yoshimasa Zou, Representative Director


U　R　L http://www.dlse.com.cn/jp

Company overview

*1 Basic flow of offshore development


❽ Super Electronics Japan Co., Ltd.

Visit headquarters in Liaoning Province, China

Establishment of Japan branch

Renting an office at IBSC (***) Kanagawa

Application for subsidy

Company's opinionEmployee's impression

Briefing Delivery of subsidyProvision of information on

prefecture’s support project and

IBSC Kanagawa from Kanagawa

prefecture’s Dalian office

Yokohama city delivered

subsidy for office rent

One-stop serviceIntroduction of licensed experts, such

as licensed tax accountants, judicial

scriveners and etc. Provision of information

on procedure of branch registration

Press releaseCollaboration of

Kanagawa prefecture,

Yokohama city and

JETRO (****) Yokohama

Entrance and office of Dalian Super Electronics Co., Ltd. (DLSE)

Market

Humanresources

Cost

Internationality

Livingenvironment

Access

In this prefecture, you can retain the best work-life balance.

Information by Kanagawa prefecture’s Dalian office was provided before launching the business in Japan. One-stop service was provided by Kanagawa prefecture (*) when to make a Japan subsidiary. Yokohama city’s (**) subsidy for an office rent was used when the subsidiary in Japan was established.


When thinking of making our office in Japan, we got to know

Yokohama through Kanagawa prefectural Dalian office

promotion. Yokohama’s convenient access and foreigner

friendly environments are attractive as it takes only 30 minutes

to the metropolitan area and has Chinatown. But, what has

attracted me the most is that Yokohama is similar to Dalian.

Both have ports and ocean. And the cityscapes are alike.

If you think of launching a business in Japan, I recommend

you collect information from the relevant local government and

JETRO. You can, then, consult with them about any concerns.

By receiving support from these public organizations, you can

find the way how to proceed and promote your business plan.

You can then minimize any risks when to start your business in

Japan.

Although many companies in Dalian have launched businesses

in Japan, our company is highly evaluated as our business is

steadily growing and our employee retention rate is high. We

respect our employees, as indicated by our employee stock

ownership plan. Under the plan, employees who meet specific

conditions can buy company stocks with lesser price. Through

this plan, we want our employees to have a dream with the

company.

Although Japan and China maintain kanji culture, there are big

difference in its ideas and services. In business, for example,

punctuality is respected in Japan. It is no good to come too

early or too late. You must come at the designated place only

a few minutes earlier than the appointed time, while Chinese

are not as punctual as Japanese. But they are becoming more

punctual than before. In Japan, it is necessary to make a

reservation for almost everything, such as a business meeting,

a drinking party, and a restaurant. While, in China, there is no

custom of making reservations and actually it is often the case

that nothing has been set until the last moment.

Kanagawa has Yokohama, an international and port city.

Moreover, Kanagawa boasts a beautiful natural environment.

You can work in the urban area on weekdays and visit the

suburban area, such as Shonan and hot spring areas, on

weekends. In this respect, foreign people can live comfortably.

Use a support from public organizations

Sharing the Kanji culture but featuring different aspects

Kanagawa’s attractive features: well-balanced work and living environment and international mindset

Promotion from Kanagawa prefectural office in Dalian

* Kanagawa prefectural government, ** Yokohama municipal government, *** the Invest Japan Business Support Center, **** the Japan External Trade Organization

Ⅲ．

Asia

HIHO METAL JAPAN CO., LTD.Using high quality products to pursue business expansion with Japanese companies

Covering a wide range of processes from mine

development, refining of nonferrous metals, and

product ion of raw mater ia ls to product ion of

intermediate materials such as alloys and manufacturing

of aluminum wheels, the Hiho Group maintains

aluminum export performance No. 1 in Korea. In 2012,

the group established Hiho Metal Japan. Mr. Kim Kwang-

ok, Managing Director at the company, described how

the business in Japan has been changed after the

establishment.

I have long worked as a sales representative toward major

Japanese automakers. Before founding our subsidiary in Japan,

we used a trading firm to export our products. After establishing

the subsidiary, however, we began a direct business with the

customers. I feel this has improved efficiency, and enhanced

customer trust in us. So, establishing the subsidiary in Japan

made us deepen business ties with the current customers and

start new sales activities.

Japanese automakers operate their plants on a global basis.

Our group makes our products in Korea and China with sales

offices in Japan, USA, and Europe. This enables us to provide

our products stably on a global basis.

Aluminum wheel in general has

cost structure that mater ia l

cost covers more than half of

the entire cost. However, our

integrated production, covering

from raw materials to finished

products, provides us with cost

control capabilities.

In the automobile industry, parts orders for mass productions

are usually placed about two or three years before sales

release. Accordingly, we expect that our sales in the next

fiscal year will be twice as much as that of this year. There is

certainly a concern about rapid yen depreciation starting this

year. But, we can minimize this negative effect on our profit by

fulfilling our function as a trading firm.

In fact, we are suffering from yen depreciation. Since, however,

we would like to maximize the advantages of establishing a

business base in Japan, we want to focus on sales activities to

develop new customers. Our goal is to start new businesses

with, at least, two major automakers in Japan.

Hiho Metal aluminum wheels used by major automakers in Japan, U.S.A., and Europe

Mr. Kim Kwang-ok, Managing Director

❾ HIHO METAL JAPAN CO., LTD.

Aiming to deepen business ties with current customers and develop new customers

Aiming to create new businesses with major Japanese automakers

Our strengths: global services and cost control thru integrated production

Address 〒231-0001 WBC, 6th floor, Yokohama World Porters 2-2-1 Shinkou, Naka-ku, Yokohama, Kanagawa

T　E　L +81-45-263-9642 F　A　X +81-45-263-9643

Established October, 2012 Capital 25 million yen

No. of employees 2 Headquarters Korea

Business Sales and technical support on aluminum wheels for cars

Representative Kim Kwang-ok, Managing Director


U　R　L http://www.hihometal.com/

Company overview

Plant in China and its full view

Although Kanagawa is not the largest aluminum wheel market

in Japan as Tokyo and Aichi are larger than Kanagawa, we

have decided to place our Japan office in Kanagawa and this is

due to the convenient access to our main customer.

We deliver our products on a global basis, so we often need

to visit our local customers for business negotiations. They

have many of their offices in Kanagawa though, others have

those outside of Kanagawa and we need well-developed public

transportation system to visit such customers. So, we have

decided to launch our office in Kanagawa.

Focusing on reducing miscellaneous work for establishing

an office in Japan, we decided to rent an office at Yokohama

World Business Support Center (WBC), an incubation center

established by the Yokohama municipal government for foreign

companies. At that center, we could receive various office-

related services.

Without having enough knowledge and support from others,

it would be tough to launch a business in Japan from scratch.

Our company started out Japanese businesses in 2004. Since

then, I

made many visits to this country during the last 10 years in

order to continue doing businesses with Japanese companies.

This experience was very beneficial when to establish a

subsidiary in Japan.

If you had a plan to open a business in Japan, I would

recommend that you look for an advice f rom publ ic

organizations. In fact, I was able to solve many problems by

consulting such organizations.

Kanagawa has Shinkansen and also is close to Haneda

airport. These make us easy travel to home and abroad. When

compared with Tokyo, Kanagawa’s traffic network is less

complicated, so I feel less stress when to transfer alone. Also,

since many foreign business people live in Kanagawa, there

are English kindergartens and international schools for their

children. In this respect, foreign families can enjoy their life

without worry.

Kanagawa has many other attractive features; such as many

good sightseeing and entertainment spots where you and your

family can enjoy visiting on weekends. Minato-Mirai district,

where my office is located, is another fascinating spot even for

many Japanese to work and live.

Since this area is close to Tokyo metropolitan area, our

employee commutes from Tokyo. We have no difficulty

securing excellent staff, although the costs for office rental and

other business necessities are lower than in Tokyo.


❾ HIHO METAL JAPAN CO., LTD.

Renting an office at WBC for quick business launch in Japan

Excellant trafic accessibility and internationality are Kanagawa's attractive points

Our base in Yokohama for convenient access to our main customer

Company's opinion

Kanagawa is a good environment for working and also living. There are many fun places where we visit with our families.


Consideration on business launch in Kanagawa

Renting an office at WBC

Renting an office at IBSC Kanagawa

Establishment of Japan subsidiary

Briefing Press releaseExplanation on prefecture’s investment

environment, publ ic organizat ions’

support systems by Kanagawa prefecture,

Yokohama city and JETRO Yokohama

Collaboration of

Kanagawa prefecture,

Yokohama city and

JETRO Yokohama

One-stop serviceFree consultation by　

licensed tax accountants

and administrative

scriveners, etc.

Opening supportVarious supports

relevant to renting and

establishing an office

Kanagawa prefecture, Yokohama city (*) and JETRO (**) Yokohama provided briefings at the preparing stage for launching the business in Japan. Various relevant supports were conducted while moving into WBC from IBSC (***) Kanagawa.

* Kanagawa prefectural and Yokohama municipal governments, ** the Japan External Trade Organization, *** the Invest Japan Business Support Center


Market

Humanresources

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Mamirobot Japan Co., Ltd.Breaking into the Japanese market with Korea’s No. 1 hit product

After a U.S. made robot vacuum cleaner was released

to the Japanese market in 2004, robot vacuum cleaners

have quickly become very popular, and their sales have

been growing dramatically. According to a survey by

Seed Planning, Inc., a market research & consulting

company, it is estimated that sales will be more than

double in the next six years. This promising market has

inevitably lured many companies, both Japanese and

foreign. Mamirobot Japan, a Japanese subsidiary of

a Korean robot vacuum cleaner manufacturer, is one

of them. The subsidiary’s president, Mr. Hwang Joung

Wan, talks about their current business as three years

has passed after their establishment in 2010.

Our group develops and markets robot vacuum cleaners to

target the world market. Our product “Mamirobot PPORO” is

Korea’s best selling robot vacuum cleaner available online. The

product also has become a hit in 10 countries including the U.S.

and Germany, selling 50,000 units a year. The product features

the world’s first wet cleaning function, enabling users to do

vacuum cleaning and wet wiping a floor at the same time. The

product also comes with a handy cleaner, another convenient

feature that allows you to easily clean window frames and

every corner of a house.

We decided to step into the Japanese market based upon

the idea that if we could achieve success in the challenging

Japanese home appliance market, our

products would be accepted by any

other country. Our goal is to attract

Japanese cus tomers who a re

demanding not only the quality of the

products, but also its service.

We have been smoothly expanding sales channels since we

stepped into the Japanese market. Most home appliance

volume sales retailers are now carrying our products. Our

products are also offered through TV shopping as well as

online shopping, especially via company’s website. Along

with the expansion of sales channels, our sales in the fiscal

year 2012 made year-on-year increase of 40%. Also, the

number of employees, which was two when this subsidiary was

established, has increased to four.

Our next goal is to improve the quality of customer services.

We will then promote our products more intensively to large

home appliance volume sales retailers that are not yet carrying

our products, especially when we release new products. We will

also proactively work on making more sales activity to expose

our products on various TV shopping to increase the sales

volume in the end. Japanese consumers tend to think

that U.S.-made robot vacuum cleaners are the best,

but I want to break this prevailing stereotype thinking

by making consumers aware of the advantage on

quality, price, and after-sales service of

our products.

Wide range of colors available for the Mamirobot PPOROMr. Hwang Joung Wan, Branch Manager

Mamirobot PPORO & handy cleaner

Address 〒223-0056 5609 Shin-Yoshida-cho, Kouhoku-ku, Yokohama, Kanagawa

T　E　L +81-45-590-0025 F　A　X +81-45-590-0026

Established July, 2010 Capital 9.2 million yen

No. of employees 4 Headquarters Korea

Business Manufacturing, sales, and retailing of robot vacuum cleaners

Representative Hwang Joung Wan, Branch Manager


U　R　L http://www.mamirobot.co.jp/

Company overview

10 Mamirobot Japan Co., Ltd.

Our goal is to achieve success in the challenging Japanese market

Our next goal is to improve services and increase sales

Smoothly expanding sales channels

●

Mamirobot PPORO at work Hannam Aiteco Building at which the head office is located in Korea

Mamirobot decided to base its Japanese subsidiary in

Kanagawa because Kanagawa is situated close to Tokyo,

Japan’s largest consuming region, making it convenient for

the company to conduct sales activities targeting retailers.

Locating the subsidiary in Tokyo would, needless to say, be

better in terms of efficiency, but maintaining a warehouse to

store products in Tokyo is too costly. Furthermore, Kanagawa

is also advantageous in terms of logistics because our products

are made in Korea and imported via the port of Yokohama.

In this respect, it is important to have our office close to the

port. For Japanese subsidiaries of foreign companies like us,

which import and sell products manufactured abroad, I think

Kanagawa, which is close to large cities and a port, is the best

choice.

Our current issue is the location of the office, which is far

from central Yokohama and even from the nearest station.

These make us difficult to secure human resources. Although

such difficulty still exists, we have devised and introduced a

system that enables the business to run by a small number of

employees.

Kanagawa prefecture, Yokohama city (*) and JETRO (**) provided information at the initial stage when the company was making preparations to enter the Japanese market. One-stop service was used in cooperation with Kanagawa, Yokohama and JETRO when the Japan subsidiary was established.

* Kanagawa prefectural and Yokohama municipal governments ** the Japan External Trade Organization、*** the Invest Japan Business Support Center

When intending to start business in Japan, it is important for

foreign companies to prepare a long-term business plan which

is based on the current market situation and future prospects of

the Japanese market. Japanese preferences and required level

of services may differ from those in the home country.

It is also important to learn Japanese culture. Regarding

management style, for example, Japanese tend to pay attention

to more detailed processes than Koreans and I was sometime

perplexed by this difference.

Kanagawa has advantages in sales; such as population is

large and its location is close to the customers and retailers

with an easy access to various transportations, including

Shinkansen. Another advantage is that Kanagawa has a good

living environment in place with fresher air than in Tokyo.

I just moved to Japan in February this year and had some

trouble with Japanese conversation. So, I am studying

Japanese with my family by going to the Japanese language

classes held by a volunteer teacher. We can meet many other

foreigners there, and these immediate surroundings make us

feel the internationality of Kanagawa.



10 Mamirobot Japan Co., Ltd.

It is important to know not only the market, but also the culture

Kanagawa’s fascinating point is an intimate feeling to internationality

Kanagawa is the best when to think of sales and logistics

Promotion One-stop service Press release

Provision of information by Kanagawa

prefecture, Yokohama city and JETRO

Yokohama Free consultation by judicial

scriveners and licensed tax accountants, etc.

Consu l t ing on the p rocedure o f

company registration and selection of

real estate properties

Consulting by JETRO advisers

Collaboration of Kanagawa prefecture,

Yokohama city and JETRO Yokohama

The company executives’ visiting Kanagawa

Renting an office at IBSC (***) Kanagawa

Launching the business in Japanese market

Market

Humanresources

Cost

Internationality

Livingenvironment

Access

Company's opinion

Urban and advanced modernity is interwoven with historical elements.


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