Japan is the third largest economy in the world after the United States and China and it is an excellent market for new opportunities, having approximately 4,776,000 businesses active in the country.
The economy of the nation is one of the most solid in the world, in fact Japan, as we already said, ranks in the third position for nominal GDP after the United States (first place) and China (second place). In addition to this, the Asian country is also one of the most important trade and investment partners for the United States.
It is the fourth largest importer of U.S. products after Canada, Mexico, and China and a key member of the international trade system with a market that respects the rule of law and provides strong protections for intellectual and real property rights.
From the graph above, we can see that the Construction Sector is Japan’s largest sector, representing 22.49% of the whole market.
In second place in terms of number of active companies in the market is the Manufacturing Sector** with 16.81%, while in third place the Wholesale Trade Sector with 13.08% of the market.
For the sake of clarity:
The Construction Sector** (NAICS 23) includes plants involved in the construction of buildings or engineering projects (e.g. motorways and utilities). This sector also includes plants that prepare establishments for new construction and plants that subdivide land for sale as construction sites.
The Manufacturing Sector (NAICS 31-33) includes plants engaged in the mechanical, physical or chemical transformation of materials, substances or components of new products. Manufacturing plants are often described as plants, factories or mills typically using motor machines and material handling equipment. However, factories that transform materials or substances into new products and those engaged in the sale of products made in the same premises from which they are sold, such as bakeries, candy shops and custom tailoring, may also be included in this sector.
The Wholesale Sector (NAICS 42) includes establishments engaged in the wholesale of goods, generally without processing, and the provision of services ancillary to the sale of goods. The goods described in this sector include agricultural production, mining, manufacturing and some information industries, such as publishing. The wholesale process is an intermediate stage in the distribution of goods. Wholesalers are organized to sell or arrange the purchase or sale of goods for resale (i.e. goods sold to other wholesalers or retailers), capital goods or non-consumer durables and raw, intermediate and supplies used in production.
In light of the above, country’s economic stability and the precise and result-oriented mentality of Japanese companies make it a very attractive market. Thanks to a good company structure alongside with highly delineated strategies and a problem-solving approach, it is possible to obtain great satisfaction from this growing and attractive market.