Experts say it can be a hard market to crack but that, once in, partnerships are long-standing \n<\/p>\n
Several B.C. companies are grasping opportunities in Japan\u2019s increasingly open market, as the province explores new international ties under the cloud of U.S. tariffs and trade action.<\/p>\n
One of the priority markets highlighted in Premier David Eby\u2019s June trade mission to Asia, Japan presents strong potential for local businesses \u2014 though experts say it can take time for B.C. firms to gain a foothold.<\/p>\n
ThisFish Inc., a Vancouver-based company that uses AI to help seafood processors digitize and automate data collection on the factory floor, recently signed its first deal with a Japanese firm after three years of working on the market.<\/p>\n
\u201cWe\u2019ve entered many markets around the world, and Japan is one of the toughest to enter for sure,\u201d said Eric Enno Tamm, co-founder and CEO of ThisFish.<\/p>\n
\u201cBut Japanese are much more loyal in their business practices than, I think, in the West, so once you get into the Japanese market and have built good relations with Japanese companies, they\u2019ll be very loyal customers.\u201d<\/p>\n
Tamm said the team invested a lot of effort into Japan after seeing strong growth potential in the agritech sector in the country, one of the largest seafood markets and producers in the world.<\/p>\n
He said although Japan is technologically advanced around industrial manufacturing, it lags behind on the digital front.<\/p>\n
\u201cWe saw a huge opportunity for potentially selling our software into the Japanese seafood sector,\u201d said Tamm.<\/p>\n
Japan\u2019s domestic seafood consumption has declined over the past two decades, partly due to a shift in younger generation diets toward more Western and plant-based foods. According to Japanese government data, seafood consumption in the country hit a new low in 2023 \u2014 down 47 per cent from its 2001 peak.<\/p>\n
As a result, more Japanese companies are looking overseas to grow revenue, which makes traceability and compliance with export regulations increasingly important, according to Tamm.<\/p>\n
\u201cMany of them are looking to upgrade their food safety, quality control systems in their factories and to digitize them,\u201d he said.<\/p>\n
Like ThisFish, Lumiense Photonics Inc., a Vancouver-based semiconductor company specializing in image sensors, has also been actively pursuing partnerships in Japan.<\/p>\n
The company recently expanded its presence in the country by signing a deal with a local telecommunications firm to use Lumiense\u2019s image sensor technology to advance their products.<\/p>\n
\u201cWe as Canadians, especially in the most recent events of the last six to eight months, have to be much more looking abroad and form coalitions more broadly,\u201d said Rob Hannebbauer, CEO of Lumiense.<\/p>\n
Hannebbauer said he has noticed a shift in recent years in Japanese company culture, with big companies wielding less influence and many interesting startups emerging.<\/p>\n
A recent example is Fujitsu General Limited\u2019s sale of its power models business, which Lumiense had partnered with before, in June to streamline operations within its tech solutions business.<\/p>\n
\u201cYou\u2019re starting to see a real groundswell of entrepreneurship and some of the companies that have been reconfigured are much more open to reaching out,\u201d said Hannebbauer.<\/p>\n
B.C. firms urged to take long view in Japan<\/p>\n
Interest from B.C. businesses in Japan has noticeably increased amid the post-pandemic recovery and global supply chain realignments, according to the Vancouver-based Japan Canada Chamber of Commerce (JCCC).<\/p>\n
As a key partner in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Japan is an attractive market for many B.C. firms \u2014 particularly in cleantech, agrifood, digital services, life sciences and advanced manufacturing, said Kenki Miyanabe, director of JCCC.<\/p>\n
He also expects growth in areas such as green transformation, carbon credit trading and decarbonization \u2014 including hydrogen energy.<\/p>\n
\u201cJapan\u2019s goals for carbon neutrality and digitalization align well with B.C.\u2019s strengths in innovation and sustainable technologies,\u201d said Miyanabe.<\/p>\n
With one of the most rapidly aging societies globally \u2014nearly 29 per cent of Japanese citizens aged 65 and older \u2014 Japan presents significant potential for B.C. innovations and technologies related to elderly and preventative healthcare. according to the B.C. Ministry of Jobs and Economic Growth in a statement.<\/p>\n
B.C. exported nearly $5.65 billion worth of goods to Japan last year, making it the province\u2019s third-largest export destination, following a record 2023 with exports exceeding $6.23 billion. Energy, mineral and wood products topped the list.<\/p>\n
Machinery and equipment \u2014 including electronics and communications \u2014 saw a 28.1-per-cent increase in May 2025 compared to the same month the previous year, reaching over $12.2 million.<\/p>\n
However, the Japanese market can be difficult to break into initially, due to language barriers, cultural differences and lack of publicly available business data, according to those who spoke with\u00a0BIV.<\/p>\n
\u201cGenerally, Japanese companies are characterized by their emphasis on building relationships of trust, strict adherence to deadlines, quality control and focus on customer needs,\u201d said the Consulate General of Japan in Vancouver in a statement.<\/p>\n
\u201cJapanese companies tend not to be driven by short-term profits, but rather to seek medium- to long-term profits.\u201d<\/p>\n
Choosing the right Japanese partner is essential, said Miyanabe, as is identifying the true decision-makers in a Japanese company and building multi-layered relationships \u2014 not only with executives but also with operational decision-makers \u2014 since titles may not always reflect who holds actual authority.<\/p>\n
He added that decision-making within a Japanese company can take much longer than in a typical Canadian company, requiring patience and resilience from B.C. firms.<\/p>\n
However, Miyanabe said the efforts are well worth it, as once firms establish relationships and partnerships in Japan, they tend to last.<\/p>\n
\u201cJapan is not just a short-term sales market. It serves as a high-value co-creation platform where quality, trust, and long-term relationships drive sustained success across Asia,\u201d he said.<\/p>\n
\u201cI always say to people that Japan is not a rotating table where dishes change quickly. Japan is like its cuisine \u2014 once you\u2019re on the table, your dish doesn\u2019t move much. It\u2019s stable\u00a0and tasty.\u201d<\/p>\n