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or our latest business trip feature, where we look at the UK’s most interesting export markets, Business Leader Magazine gives you an in-depth guide into everything you need to know about doing business in Japan.
The Land of the Rising Sun has for decades been one of the world’s leading economies and is currently third on that list, with only China and America boasting a larger GDP. In the past year, Britain has become a more prominent trade partner and a recent report by the Office for National Statistics (ONS) revealed an increase in trade with Japan, rising by 7.6%, from £13.8bn (2018) to £14.8bn (2019). Japan is already the UK’s 11th largest trading partner and one of the world’s fastest-growing markets. The government has made it public that one of its main goals post-Brexit is to strike a new Free Trade Agreement, which would solidify and expand the nations' business relationship. So, with a strong trade history and a public commitment to build on the partnership between the nations – is now the time to expand your company’s operation into Japan? 34
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The Britain-Japan relationship British businesses are currently benefitting from record levels of trade with Japan, with exports continually rising over the past three years. One of the thousands of companies that have found success in Japan is Londonbased Shadow Robot Company. The firm is Britain’s longest-running robot company and winners of the Queen's Award 2019 for Innovation. The company produces the world’s finest anthropomorphic dexterous robotic hands, which have been used as a testing tool for artificial intelligence and machine learning, as well as in research and development at Tokyo and Akita universities. Shadow Robot is currently participating in a development project with a Japanese corporation that has already brought in £500,000 and is expected to do the same over the next six months. Rich Walker, Managing Director of the Shadow Robot Company, said: “Japan is a key target market for us. There is a solid business culture and the country has a great respect for investing in exciting and cutting-edge technology, such as that used in our products. We have found the nation takes a very long-term view of business and it is refreshing to see how Japan is open to exporting innovation and expertise from abroad.
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“The business relationship between the UK and Japan is certainly strengthening, as both are leaders in the field of innovation and both recognise the importance of cooperation in providing innovative solutions to global problems. It’s a model of continuous development and needs ongoing commitment from both parties.” But it isn’t just recent opportunities that have made Japan a commercially viable nation to export to. Greg McDonald, Managing Director for Japan at TMF Group, comments: “The UK and Japan share a centuries-long business relationship that is supported by a strong political relationship. This has formed an excellent base for increased cooperation in recent years. "Both island nations, despite being relatively short on natural resources, have been able to propel themselves by creating economies based on knowledge and technology.” Why should you start working in Japan? Both nations have made it clear they are carrying on and developing their business relationship into the future. With political partners on both sides publicly promoting a bright future for trade, now is the time to break through the Brexit blues and set up a business function in the Far East. McDonald comments: “Japan is a mature March - April 2020
