In Part 1 of our series, we explored the foundational pillars of entering the Japanese market: achieving problem-solution fit, navigating the long lead times for building trust, balancing local and global talent, and leveraging institutional relationships. These insights provide a crucial map of the terrain. But a map is only useful if you know when to embark on the journey and how to navigate the specific paths to your destination.

In this second installment, we address the “why now” and the “how-to” of unlocking Japan. We draw on the macro-economic perspective of Robert Subbaraman, Nomura’s Global Head of Macro Research, (from this episode of our podcast) to understand the powerful tailwinds making Japan more attractive than ever. We then turn to the tactical, on-the-ground advice for a playbook on engaging with the market’s most critical gatekeepers: Japanese corporates.

The Macro “Why Now”: Japan’s Economic Revival

For decades, Japan’s economy was characterized by deflation and slow growth. However, as Robert Subbaraman explains, fundamental shifts are creating a new economic landscape ripe for innovation.

“Japan is back. It’s back in a big way in the sense that after two decades of being in deflation, it’s out now… Going forward, because Japan is running short of labor, there are two things. One is you’re going to see stronger wage growth going forward because labor is scarce. The second thing is Japan is really going to embrace AI and be a big adopter of it, which will boost productivity. So those two things can generate Japan nominal growth, which could be somewhere between three to 4%, which is decent growth for profits.” [1]

This creates a powerful trifecta for startups:

1. End of Deflation: A shift to an inflationary environment encourages spending and investment, creating a more dynamic market.
2. Labor Scarcity: This is the single most compelling driver for the adoption of labor-saving technologies, particularly AI and automation. For B2B software and robotics startups, this is not a cyclical trend but a deep, structural need.
3. Renewed Growth: Projected nominal growth of 3-4% signals a healthy environment where companies are more willing to invest in new solutions to fuel their expansion.

Where are the Opportunities? Sector-Specific Tailwinds

Beyond the general economic uplift, Subbaraman points to specific sectors poised for growth, offering a more granular map for founders looking for entry points:

• Fintech: As the Bank of Japan begins to raise interest rates, the financial sector is expected to perform well, creating opportunities for fintech innovation.
• Housing and Property: The real estate and property sectors are also projected to do well, opening doors for proptech solutions.
• Green Energy and Biotech: Japan is actively seeking new technologies in sustainability and healthcare, driven by both national priorities and the challenges of an aging population.

The Tactical “How-To”: A Playbook for Corporate Engagement

With a clear understanding of why the time is right, the next question is how to execute. We share some lessons from our experience engaging with Japanese corporates, moving beyond high-level principles to the specific tactics that drive success.

1. Master the Art of “Nominication”

The previous article highlighted the importance of building trust. Shikata adds a layer of tactical detail, emphasizing the role of informal relationship-building through a practice known as “nominication” (a portmanteau of nomu – to drink, and communication).

This is not simply about socializing. It is a critical channel for gathering intelligence, understanding internal politics, and building the personal rapport necessary to turn a potential client into a partner. It is where you learn who the true decision-makers are and what their real priorities are, insights that are rarely revealed in a formal meeting.

2. Find Your Internal Champion

One of the most common mistakes foreign startups make is assuming a top-down decision-making process. Success in Japan often hinges on finding the right advocate within the organization. You have to find the right budget within the company. There are a lot of divisions and it’s not top-down decision-making. You have to approach the right champion and that is something that is probably harder than the other countries.

This is where the Japanese concept of jinmyaku (personal networks and relationships) becomes essential. Jinmyaku refers to the web of relationships that connect individuals within an organization. In the context of corporate Japan, jinmyaku is the invisible infrastructure through which decisions are actually made. It is not enough to have a great product; you need to be woven into the right network.

Finding your internal champion means identifying someone within the organization who has strong jinmyaku – someone with credibility, influence, and connections across the divisions and departments that matter for your solution. This person becomes your bridge into the organization’s informal decision-making network. They understand the political landscape, know who holds budget authority, and can advocate for you in conversations that happen outside of formal meetings.

This requires a more nuanced approach than simply targeting the C-suite. It involves identifying the specific division that feels the pain your solution solves and finding a manager or team leader who is willing to champion your product internally and has the jinmyaku to make it happen. This is a longer, more investigative process, but it is the key to unlocking large enterprise accounts. Without the right champion embedded in the right network, even the best solution will struggle to gain traction.

3. Collaborate with Local Experts

Given the layers of cultural nuance and the complexity of corporate structures, going it alone is a high-risk strategy. The consensus from experts is clear: local partnership is essential.

This doesn’t just mean hiring a country manager. It means building a network of local advisors, investors, and partners who can help you navigate the subtleties of the market, make the right introductions, and interpret the unspoken signals in business communications.

In Japanese culture, the concepts of sensei (mentor or teacher) and senpai (senior colleague) are foundational to how knowledge and wisdom are transmitted. A sensei is someone with deep expertise and authority who guides you through complex terrain. A senpai is someone slightly ahead of you on the same path, who understands the challenges you face because they have recently faced them themselves. Both relationships are built on respect, trust, and a willingness to learn.

When entering the Japanese market, you need both. Your sensei might be an experienced venture capitalist or business consultant who has navigated Japan’s corporate landscape for decades and can provide strategic guidance and credibility. Your senpai might be a founder who recently expanded into Japan, a local business development executive, or an advisor who understands both your industry and the Japanese market. The senpai relationship is particularly valuable because it combines empathy with practical, hard-won knowledge.

These relationships go beyond transactional consulting. In the Japanese context, becoming someone’s kohai (junior) to their senpai or sensei implies a longer-term relationship of mutual respect and obligation. Your mentors invest in your success not just for a fee, but because you represent an extension of their own legacy and network. This alignment of incentives is powerful and often underestimated by foreign founders.

Conclusion: From Paradox to Playbook

If Part 1 of this series highlighted the paradox of the Japanese market, Part 2 provides the playbook. The macro-economic tailwinds identified by Robert Subbaraman signal that the “why now” is stronger than it has been in decades. The tactical advice then offers a clear “how-to” for navigating the most challenging aspect of market entry: corporate engagement.

Unlocking Japan is no longer just about acknowledging the opportunity. It is about understanding the specific economic drivers that are prying the door open and applying a deliberate, culturally-attuned strategy to walk through it. The journey still requires patience and commitment, but for those who are prepared, the path to success is clearer than ever.

References

[1] On Call with Insignia: Robert Subbaraman, Nomura Global Head of Macro Research, on Japan’s return to the investor spotlight