he question we must ask is, is Japan an important market?
The answer is simple, YES! And we proceed to explain the reasons.
It’s the 3rd largest economy in the world (after the USA and China) and the 4th largest exporter and importer worldwide in 2017 after the EU-28, China and the United States, reaching EUR 1.131 billion.
It’s a market that dictates fashion trends, is a reference in technological development, it has a production of excellence and a high purchasing power.
Consumer habits are very similar to those of Europeans and Americans, with price and brand factors being important variables at the time of purchase, which makes the Japanese market a luxury market.
Exporting to this country could bring companies a competitive advantage as it is the perfect bridge to access other regional markets for value added products, high quality standards, innovative technology and design.
ECONOMY
Japan has about 127.5 million inhabitants (10th in the world) and has the third largest gross domestic product (GDP) in the world, after the United States of America and China. The services sector represents about 68% of GDP, industry about 30% and the agricultural sector around 1%.
The Japanese economic structure is made up of large and powerful multinationals and a diverse manufacturing industry (electronics, automotive, steel, machinery and tools). External dependence is growing on oil and raw materials, although their environmental concern is one of the highest, increasingly investing in energy efficiency and recycling.
Economic activity has slowed slightly in recent years, mainly due to the earthquake, tsunami and nuclear disaster of March 2011, but also by the floods in Thailand that caused supply chains to disrupt. In order to curb this less positive moment, the Government relied on fiscal stimulus, less restrictive monetary policies and structural reforms. This economic policy contributed to the recovery of the Japanese economy and sustained growth is expected during the period 2018-2022.
INTERNATIONAL TRADE
The Japanese economy relies heavily on international trade. In 2017, Japan was the fourth largest exporter and importer in the world. Exports and imports accounted for 27.4% of GDP in 2017, with 13.2% attributed solely to purchases of goods abroad.
The United States of America (US) and China are the two main Japanese export destination markets, representing respectively 19.3% and 19.0% of the overall amount in 2017. Next, South Korea (7.6%), Taiwan (5.8%) and Hong Kong (5.1%). The first five markets together accounted for around 57% of Japan's total overseas product sales that year.
The top 20 European countries in Japan's ranking of customers in 2017 were: Germany (8th, with a 2.7% share of total exports), the United Kingdom (11th, with a weight of 2.0%), the Netherlands (14th place, with a weight of 1.8%) and France (20th place, with a weight of 0.9%). European Union countries accounted for 11.1% of the total amount of their exports in 2017. Portugal was the 64th customer of Japan in 2017, with exports to our country accounting for 0.06% of the global value.
China is Japan's main supplier, accounting for 24.5% of the total value of imports in 2017. This was followed by the US (11.0%), Australia (5.8%), South Korea (4, 2%) and Saudi Arabia (4.1%). The first five markets together accounted for around 50% of the value of their purchases of products from abroad that year.
Within the European countries, the top twenty places in Japan's ranking of suppliers in 2017 are: Germany
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