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Formerly based in San Francisco, the U.S. interactive store and brand, b8ta, is now bankrupt in its home market. Interestingly, its Japanese subsidiary, b8ta Japan, is doing quite well.
According to Mr. Kitagawa, the president of b8ta Japan, their business has thrived in Japan, possibly due to better alignment with Japanese business practices and consumer behavior.
Could Japan be a second home for struggling foreign brands?
Lawson
Lawson is one of Japan’s top convenience stores, but it started in Ohio in 1939 as “Lawson’s Milk Company,” selling milk at a dairy plant. After expanding to nearly 700 stores, the brand vanished from the U.S. in 1985. Yet, it thrives in Japan, having been introduced in 1975 by Daiei, Inc. Today, there are more Lawson stores in Japan than there are 7-Eleven outlets in the U.S. and Canada combined.
Tower Records
Despite going bankrupt over a decade ago in the U.S., Tower Records has managed to survive and even thrive in Japan. The brand started in Sacramento, California in 1960 and expanded globally. However, it couldn’t keep up with changes in the music industry and disappeared from the U.S. by 2006. Yet, it remains popular in Japan, particularly at its Shibuya location.
Mister Donut
Mister Donut, which started in Boston in 1956, is another example. Competing with Dunkin’ Donuts, it expanded rapidly but was eventually overtaken and bought out in the U.S. However, it found a second life in Japan. The first Japanese store opened in Osaka in 1970, and the brand was adapted to better fit Japanese tastes and preferences. Now, Mister Donut is a beloved chain in Japan.
The key is brand localization.
These examples show that brands which struggle or disappear in their original markets can find new life in Japan. Many Western brands, if localized effectively, can succeed in the Japanese market.
Btrax has helped brands like Toys R Us, Seven Eleven, and Evernote succeed in Japan. Could your company be next? Contact us to find out how we can help you thrive in the Japanese market.
Download our new e-book, “A Guide to the Promotional Seasons in Japan,” to learn more about successful marketing strategies specific to the Japanese market.
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