Dr. Jolanta Nalivaikė, Associate Professor at the Department of Management, VILNIUS TECH Faculty of Business Management, notes that Japan—one of the world's largest economies—stands out for its relative macroeconomic stability, high technological development, and affluent but highly demanding consumer base. “The Japanese market has very high purchasing power—the country’s GDP exceeds 4 trillion USD, making it the 3rd or 4th largest economy globally over the past decade, competing with Germany. Moreover, Japanese consumers are known for their high standard of living and strong consumer culture—reflected in their consumption expenditure, which in 2023 amounted to approximately 2.29 trillion USD, according to United Nations data. These consumers place great value on quality, reliability, and technological innovation. This economic environment opens unique opportunities for Lithuanian businesses."
According to data from the Innovation Agency, Lithuanian exports to Japan in 2024 reached 105 million EUR. Nearly 89% of this export consisted of goods of Lithuanian origin. Compared to 2023, exports to Japan grew by 16%, primarily due to an increase in the export of various chemical products and dairy goods. In 2024, the main exports from Lithuania to Japan included telecommunications, computer, and information services (5.99 million EUR), and travel services (2.32 million EUR). Export volumes have consistently grown over recent years, averaging 12–15% annually, indicating that Lithuanian products and services are gaining more recognition in the Japanese market,” notes Dr. Nalivaikė.
In 2024, the Innovation Agency conducted a study to assess potential export opportunities. Using an export opportunity evaluation model, they identified 900 product groups with the highest potential for export to Japan. It was found that food products, chemical industry goods, clothing, and machinery and equipment are among the most promising sectors for Lithuanian-origin goods.
A study by Craig C. Julian and Zafar U. Ahmed, published in the Journal of Global Marketing, revealed that successful export activity is most influenced by company executives’ commitment to entering foreign markets and their ability to adapt products to specific consumer needs: 25% of export results were explained by these two factors. The so-called “fear of exporting” is often rooted not in objective barriers but in passive management and attachment to the comfort zone of the domestic market.
At the same time, the Fortune/Deloitte CEO Survey conducted in spring 2025 showed that although executive optimism declined—with only 60% remaining positive about their company’s outlook (compared to 84% in 2024)—as many as 32% of CEOs still plan to expand into new international markets. This suggests that despite increasing uncertainty, a portion of business leaders still view exports and global expansion as key growth strategies. However, despite the potential of the Japanese market, it remains underutilized by Lithuanian businesses. According to sales strategist Dovydas Nalivaika, two scenarios are most common: either companies avoid entering the market due to lack of understanding and fear, or they enter superficially, incur large initial losses, and fail to achieve even minimal results. Businesses entering the Japanese market often face logistical and certification challenges: meticulous product adaptation to the local market, ensuring compliance with standards, and establishing efficient distribution chains are critical phases. Many Lithuanian companies enter the Japanese market nearly “blindly”—underestimating local specifics—leading to high initial costs, and when quick results aren’t achieved, they halt their efforts and lose confidence in continued investment.
“Additionally, investment in local market research and partner search is essential to gain customer trust and ensure smooth integration. Here, the role of a local intermediary is crucial—not only do they help establish reliable relationships with local distributors and authorities, but they also facilitate communication, understanding of cultural differences, and the certification process,” says Dovydas Nalivaika, who has years of experience working with the Japanese market.
“My personal experience in attracting the first major client in Japan turned out to be surprisingly effective—within the company, this step had long been seen as ambitious but unattainable. Although the market was appealing, none of the local specialists had managed to establish a sustainable partnership with Japanese firms. One of my most significant projects in Japan began through contacts with lower-level specialists. First, we developed a well-founded proposal for a manager, and later for the manager’s superior, ensuring our solution met the expectations of both sides. By consistently building trust and tailoring solutions to specific needs, the collaboration evolved into a long-term partnership. In just a year and a half, this client became one of our largest in the entire Asian market. Such success wouldn’t have been possible without local contacts and the ability to enter through small but strategically important doors.
Moreover, statistics show that Lithuanian exports to Japan reached 113 million USD in 2024, yet this accounts for only about 30% of the real potential. Studies indicate that having a local team increases the chances of success in the Japanese market by up to 30%—a crucial factor that should be included in every business expansion plan,” Nalivaika continues.
Lithuanian companies that have entered the Japanese market have repeatedly proven that proper preparation and a reliable local intermediary open the door to long-term success. For instance, a Lithuanian laser manufacturer’s collaboration with a consortium based in Tokyo allowed them to adjust not only the product label design but also the demonstration format for technology exhibitions—ensuring a clear message to the Japanese audience and instilling confidence in the product’s quality.
In contrast, another company, seeking the freedom to operate independently, worked in Osaka without Japanese advisors and failed to account for local certification requirements—their significant advertising investment did not lead to sales growth, and the project was suspended. It then became clear that a trusted local partner not only helps synchronize action plans with distributors and authorities but also provides valuable insights into the most effective communication channels (e.g., Rakuten or LINE), cultural nuances, and customer expectations—critical success factors for any business.
Japanese international Business & Community Consultant Dr. Hiroko Harada, who brings deep experience in cross-sector collaboration, and business development, states that “The Japanese market is famous for its high quality and design standards, with customers who really care about detail and reliability. Because it’s such a tough market, products that do well here usually show they can succeed globally too. At the same time, building trust is really important when working with Japanese companies. There’s a strong belief that “once trust is lost, it’s hard to get back.” Even if a product or service is great, worries about supply, quality, or communication can make companies hesitate to move forward. They tend to be cautious with new partners, but once trust is built, the relationship often turns into a long-term partnership based on shared goals and growth.
There’s also a popular saying in Japan: “Dandori hachibu,” which means “80% of success comes from preparation.” This shows how much they value careful planning and adapting to local needs. For example, IKEA didn’t succeed at first in Japan, but after more than ten years of research and adjusting their strategy, they made a successful comeback.
In short, preparation and trust are key to doing business in Japan.
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