Introduction
The Little Wine Company is an Australian premium wine producer. The product line includes all the most popular types, such as red, white, and sparkling wines (The Little Wine Company, 2023). The company’s global competitiveness is characterized by The Little Wine Company’s experience in expanding into major foreign markets such as the United States and the United Kingdom (The Little Wine Company, 2023). The growing demand for organic products can positively impact the supplier who produces nuanced, artisanal wines. It is necessary to carry out a detailed report to fully understand how The Little Wine Company is ready to enter the Japanese market.
Market Analysis
The Japanese market can be advantageous for several vital reasons. First, this can be easily accomplished using an online sales strategy since this area is actively growing, and 16% of consumers buy goods this way (S.A.W.I.A. Inc., 2020). In addition, the Japanese market is quite conservative, serving the category of buyers aged 55+, which can have a positive impact on sales of premium wines (S.A.W.I.A. Inc., 2020). The young audience who enjoys wine products prefers organic, natural wines, which can help The Little Wine Company gain a foothold in the Japanese market (Wang, 2021). The target markets within Japan are buyers over 55 years of age, as this category of consumers most actively purchases wine products.
Influences
The main external aspects that influence a company in Japan are the political environment, geography, and infrastructure. In the context of the first factor, the company may be positively impacted by trade agreements between Australia and Japan (Ohana-Levi and Netzer, 2023). This should also be enhanced by an advantageous geographical location, which will facilitate a faster and more efficient supply chain. From an infrastructure point of view, The Little Wine Company can take advantage of developed e-commerce by selling goods through online platforms. Thus, we can say that in this country, no factors could negatively affect expansion.
The Little Wine Company’s entry into a new market requires a thorough understanding of the cultural aspects and factors that may hinder or facilitate the company’s progress. The primary influence in this context may be Japanese traditionalism and aesthetics (Tsuchiya et al., 2020). The organization must consider redesigning the product packaging for better adaptation and representation in the premium wine market. External factors of the competitive environment can negatively affect sales since many other brands in Japan have managed to gain a foothold in the market (Harada and Nishitateno, 2021; Thome and Paiva, 2020). In this regard, adjusting the marketing mix by analyzing leading competitors and counteraction systems will also be necessary.
Market Entry and Ethics
Considering all the factors studied, the best way to enter the market would be through joint venture and e-commerce integration. This is because the company will be able to collaborate with brands that are more well-known to the Japanese to earn trust in this way. E-commerce is since many buyers prefer to make purchases through this method (Evans, 2020; Anderson, 2020). In the future, the company may need to set up an office in the country to manage its stores. This will be possible by using the theory of the multinational firm, which provides the basis for regulation and proper management (Nippa and Reuer 2019). Entry into a new market requires considering the country’s ethical standards and being regulated accordingly. Some of the company’s principles must be sustainable viticulture, responsible marketing, and interaction with local communities. In this way, it will be possible to better create a brand reputation in a new region.
Recommendations and Conclusion
Successful entry into the Japanese market may require changes to product packaging and brand re-creation. Such steps are due to the existing market division by large industries that were able to create sustainable brands. Thus, it will be possible to compensate for this difference by entering into strategic partnerships with local retailers or advertising agencies. E-commerce should also become a suitable tool for the company to begin more active sales.
Reference List
Anderson, K. (2020) ‘Asia’s emergence in global beverage markets: the rise of wine’, The Singapore Economic Review, 65(04), pp. 755-779. Web.
Evans, S. (2020) Japan looks hard to crack for Australian wine makers. Web.
Harada, K., & Nishitateno, S. (2021) ‘Measuring trade creation effects of free trade agreements: Evidence from wine trade in East Asia’, Journal of Asian Economics, 74, pp. 1-27. Web.
Nippa, M., and Jeffrey J. (2019) ‘On the future of international joint venture research’, Journal of International Business Studies, 50, pp. 555-597. Web.
Ohana-Levi, N., & Netzer, Y. (2023) ‘Long-term trends of global wine market’, Agriculture, 13(1), pp. 1-26. Web.
South Australian Wine Industry Association Inc. (2020) Emerging Markets Program Japanese Market Intelligence Resource for South Australian Wine Businesses. Web.
The Little Wine Company. (2023) A Little Wine is good… Web.
Thome, K. M., and Paiva, V. A. L. (2020) ‘Sparkling wine international market structure and competitiveness’, Wine Economics and Policy, 9(2), pp. 37-47. Web.
Tsuchiya, T., Fukui, Y., Izumi, R., Numano, K., & Zeida, M. (2020) ‘Effects of oligomeric proanthocyanidins (OPCs) of red wine to improve skin whitening and moisturizing in healthy women–a placebo-controlled randomized double-blind parallel group comparative study’, European Review for Medical and Pharmacological Sciences, 24(3), pp. 1571-1584. Web.
Wang, C. (2021) ‘Creating a wine heritage in Japan’, Asian Anthropology, 20(1), pp. 61-76. Web.