Why Good Products Fail in Japan: It’s Not Always the Market

Many global executives are told the same story when sales in Japan disappoint:
“Japan is a difficult market.”
“Customers here are conservative.”
“The regulations are too strict.”

While there is truth in each of these statements, they are often used as a shield. In reality, many good products fail in Japan not because of the market itself, but because of issues closer to home: the structure, incentives, and performance of the chosen distributor or partner.


The Market Isn’t Always the Problem

Japan is the world’s third-largest economy. Customers here buy new medical devices, pharmaceuticals, technologies, and industrial products every day. Competitors launch and succeed. If your product has proven demand elsewhere, it’s unlikely that Japan is uniquely resistant.

What’s far more common is:

  • Distributor passivity – waiting for orders instead of creating demand.
  • Overreliance on existing relationships – your partner only pushes products that already sell.
  • Limited transparency – poor reporting hides weak performance until it’s too late.
  • Excuse-driven culture – “the market isn’t ready” becomes the default explanation for inaction.

Common Failure Patterns

  1. Early enthusiasm, fast fade.
    A Japanese distributor initially invests in the relationship, then quietly shifts focus back to their core products once the “newness” wears off.
  2. Big name, little effort.
    Companies often feel secure signing with a well-known trading house or distributor. But size doesn’t guarantee commitment — your product may never be more than a line item in a catalog.
  3. Blaming culture instead of strategy.
    Politeness masks underperformance. You hear reassurance in meetings, but no sales momentum in the field.

What This Means for You

If your product is struggling in Japan, don’t assume the market is the problem. Instead, ask:

  • Is our distributor really investing in this product, or just holding the license?
  • Are they providing real sales and market feedback, or just excuses?
  • Do we have visibility into their pipeline, customer meetings, and promotional activity?
  • Have we defined performance expectations — and what happens if they’re not met?

Fixing the Problem

Improving distributor performance in Japan isn’t easy — but it is possible. Options include:

  • Resetting the relationship – with clearer expectations, KPIs, and accountability.
  • Providing tools and support – sales training, marketing materials, or market data.
  • Applying pressure – making it clear that underperformance will lead to change.
  • Exploring alternatives – sometimes the right answer is to replace, not repair.

Final Thought

Good products fail in Japan not because of some mysterious barrier in the market, but because of misaligned partnerships, lack of transparency, and unaddressed distributor underperformance.

The market is there. The demand is there. The question is whether your partner is really opening the door — or standing in the way.


At Invision, we specialize in helping companies diagnose and fix partner challenges in Japan. If your product isn’t performing, it may not be the market — it may be your partner. And that can be fixed.

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