On August 8th, X-HUB TOKYO, which supports the overseas expansion of startups in Tokyo, held the FY2024 X-HUB TOKYO #4 Overseas Expansion Seminar “How to Win Overseas Customers ~Make Effective Use of Exhibitions! ~”. The seminar included an overview of our business, seminars on how to win overseas customers and effective use of overseas Trade shows.

During the first half of the event, Mr. Alex Odajima, CEO of EDGEof INNOVATION, shared knowledge about developing customers overseas and utilizing overseas exhibitions.
In the latter half of the event,as senior success companies, Mr. Momoro Kaji, Executive Officer (Global Business) of INFORICH inc. and Mr. Yuji Shiraki, Founder & CEO of TECHMAGIC INC, joined us for a panel discussion with facilitation by Mr. Odajima. Mr. Kaji and Mr. Shiraki shared their experiences on how they drew their strategy to win overseas customers and utilized overseas exhibitions.

Overseas Customer Development Seminars for Startups

Mr. Alex Odajima, CEO of EDGEof INNOVATION

We would like to start by asking Mr. Alex Odajima, CEO of EDGEof INNOVATION, who supports domestic and overseas startups and business collaboration, about the key points when startups draw up overseas strategies.

Having supported over 1200 startups so far, I feel that there isn’t only way to win, but there are a few points that provide a framework.
The first point is to work on the assignments in the right order. When considering overseas expansion, there are numerous issues that need to be addressed, including how to develop local partners and laws and regulations. However, the most important thing for a successful overseas expansion is to first understand what local issues exist in the country or region where you want to expand.
Second, focus on problems, not solutions. If you are already developing a business or service in Japan, it is very dangerous to proceed with your business based on the assumption that there will be similar problems overseas. Let’s face local issues and analyze them deeply.
The third point is to focus on the most appropriate markets. In addition to market size, consider competitive advantages, barriers to entry, and other factors to determine which markets to expand into. Startups often have limited resources in terms of talent and funding, so I think it would be a good idea not to branch out too much from the start and focus on areas that have a high chance of success.

When expanding overseas, many startups may have difficulty finding local customers.What advice would you give to startups from your experience?

The first thing I want to tell you is to make a hypothesis before market research. Without a hypothesis, it doesn’t lead to specific actions or questions that follow. In addition to this kind of research, it is also effective to find local customers by “Opportunity Driven” such as “I happened to meet a good business partner” or “I had interacted with them in the past.” Participating in various programs in Japan and overseas, including acceleration programs, is also effective in cultivating overseas customers. Make sure you spend enough time preparing and have as many contacts with businesses and investors as possible. If you have a break during the program, it’s a good idea to schedule it separately.
You also need to be cautious when working with partners. You should clearly separate the parts that require local know-how and the parts that can be handled by your company. For example, it is recommended to divide the roles such as leaving the logistics to the local people and doing the technology related and PR by yourself. In addition, JETRO has a strong overseas network, so you can make a request and receive appropriate advice and support.

What should we consider when exhibiting at an overseas exhibition as the first step in overseas expansion?

First, as an advantage of exhibiting at overseas exhibitions, there are more opportunities to make connections on site than working alone, and various feedback can be obtained. When you attend, make sure you know the features of the event and proactively schedule an appointment using tools for attendees. Also, LinkedIn is important overseas, so I recommend that you create an account in advance.
Also, it is effective to take members with advanced English level to overseas exhibitions. If it’s difficult, consider hiring someone to support your sales while standing in the booth with you. It is desirable to participate in a team of at least 2 people, and preferably 3 people.
It is also important to have a member who can make decisions on site accompany you. If you prepare a topic right before the event, it will also lead to attracting interviews. Many media people also participate in overseas exhibitions, so don’t forget to prepare a media kit in English.

Panel Discussion: Strategies for Acquiring Customers Overseas and Experiences of Exhibiting at Exhibitions

(Above)Mr. Alex Odajima, CEO of EDGEof INNOVATION
(Lower left) Mr. Yuji Shiraki, Founder & CEO of TECHMAGIC INC.
(Lower right) Mr. Momoro Kaji, Executive Officer (Global Business) of INFORICH inc.

In the latter half of this seminar, we will have a discussion with Mr. Alex Odajima, CEO of EDGEof INNOVATION, as a facilitator, Mr. Momoro Kaji, Executive Officer (Global Business) of INFORICH inc., and Mr. Yuji Shiraki, Founder & CEO of TECHMAGIC INC., as panelists. To start, could you introduce yourselves and tell us about the progress of overseas expansion.

Mr. Kaji: I am mainly in charge of overseas business at INFORICH, which is a smartphone mobile battery sharing service. Our company launched the service in April 2018 based on the concept of “You can borrow it anywhere, you can return it anywhere.” and has expanded the number of installation sites, mainly at stations, airports, commercial facilities, restaurants, convenience stores, and public facilities nationwide. As for overseas, we have expanded into Hong Kong, China, Thailand, and other countries, and have also developed franchises.

Mr. Shiraki: We established our company in 2018 with the mission of “Using Robotics to Improve the Quality of Human Happiness.” We are developing cooking robots mainly for business use and currently have them installed in various restaurant chains and restaurants. As for overseas, we plan to expand into the United States in September 2024.

What are the differences between Japan and overseas in terms of business that you have experienced during the preparation for overseas expansion and the actual promotion of the business overseas?

Mr. Kaji: My impression is that there are many startups that put their lives on the line. Especially in Southeast Asia, it is not rare for people to borrow money from their families to start or continue their businesses. It feels like they have a lot of passion because they are “responsible for the success of their entire family.” In order not to lose them it is important to have a strong mind never to give up easily. I think we need to be prepared to “Once you decide to go abroad, you challenge the world and don’t come back until you win.”

Mr. Shiraki: We participated in exhibitions such as “CES,” one of the world’s largest technology trade shows, in anticipation of full-scale expansion in the United States. Then we were surprised by the speed of decision-making by American companies. I think it is important to establish an internal system that can respond to such a sense of speed when conducting business overseas.

What are the attractions and points of participating in overseas exhibitions?

Mr. Kaji: At overseas exhibitions, the effect of “seeing the actual equipment firsthand” that cannot be obtained through online business meetings is very significant. For example, what wasn’t decided in 10 online meetings may be decided in 1 face-to-face meeting. You can use support such as JETRO to prepare in advance, so you should consider it.
Above all, it is one of the great attractions of exhibiting at overseas exhibitions that you can directly feel the unique world view of local people. That’s what you get when you talk to investors later.

Mr. Shiraki: Our company has participated in two exhibitions in the United States, and I think the clear purpose of each exhibition was a success factor. At “CES,” we aimed to gain brand recognition and fortunately, the “Innovation Award” helped us to raise brand recognition in the U.S. market. We talked to a lot of potential customers in advance and told them to come to CES to see the actual equipment, so I feel that made the results even greater.
On the other hand, at an exhibition dedicated to the restaurant industry, we aimed to acquire customers and we were able to build a network with industry stakeholders. I think it was also a great achievement that we were able to make concrete next steps on the spot, instead of making vague promises like “I will contact you first. ”. We can also research competitors and potential partners at overseas exhibitions. Taking all these points into consideration, I believe that participating in overseas exhibitions is extremely valuable as a means of “studying for the future.”

Finally, do you have a message for startups that are looking to expand overseas?

Mr. Kaji: For startups, overseas expansion is an important option to achieve explosive growth. I would like to encourage everyone to act boldly. The key to success will be to see the site with your own eyes and, if necessary, take steps with external support.

Mr. Shiraki: Improving brand recognition and building a strong network are essential for successful overseas expansion. Participation in overseas exhibitions and events is a great opportunity. I hope you will act boldly and prepare for the next step!

At this seminar, we introduced how to develop overseas customers and how to use the exhibition in concrete terms. X-HUB TOKYO will continue to provide the features of overseas ecosystems and markets, as well as the key points for expanding overseas, through various events.