Marvelous talk with Marvelmind Robotics
Interview with Maxim Tretyakov CEO of Marvelmind Robotics.
Marvelmind Robotics is one of the leading companies in the robotics industry (all companies and “one of the leading”)with its cutting-edge technology which is a precise (±2cm) indoor “GPS” system for autonomous robots, drones, VRs, and humans. They caught the attention of a few leading Japanese trading companies and established partnerships with them over the past year. In our interview with Maxim Tretyakov, the CEO of Marvelmind Robotics, he gave useful tips on starting and expanding business in Japan for young startups. Marvelmind Robotics has participated in Plug and Play Japan’s accelerator program of IoT Batch from December 2019 to March 2020.
- Why did you decide to conduct business in Japan?
As we do robotics, and as Japan is one of the elite countries for robotics technology, it was a perfect market for us. We have already been selling our products successfully in Europe and the United States, but the Japanese market is more special and important for us. We wanted to focus on Japan, and at that time an invitation to Plug and Play Japan’s accelerator program came in and we evaluated it as a good opportunity. It was a nice coincidence as we were already planning on focusing on Japan specifically.
-How different was the process of building partnerships in Japan from the ones in other countries?
We had done some background study, so there were no surprises for us. In general, building partnerships in Japan takes longer and requires more precision (efforts). We had many meetings with our partners, and one year later when they finished going through all the formalities such as certifications, the business has finally started taking off. While in other countries, specific certifications on the piloting stage are not necessary, (well, it is nearly always necessary, but customers don’t insist on them so fiercely), Japanese partners asked for Japanese certification from the beginning. When we joined the program we didn’t have one. Due to the pandemic last year, getting the certification took a long, but we eventually got it. In general, the whole process is more cautious and lengthy. In other countries, there are 1–2 people at meetings, whereas Japanese partners would have 5 to 10 people listening to you. You need to come to Japan fully prepared. Do not rush and do not expect quick decisions. We had the privilege to go through a long but steady process, as we had businesses going on in other countries. If you are only focusing on Japan, it might be too much of an investment, as sales will not come easily. You should have a stable leg somewhere else.
-Can you say you made the right choice by entering the Japanese market?
Yes of course! The market is great, it is in our top 3. We have great expectations from markets as developed as Japan. We have multiple prospects ahead.
-What kind of benefits were there for your company when you joined Plug and Play Japan?
Visibility. We wanted to have a “flag” in Japan, and Plug and Play Japan became a channel for us in this mission. Our product is applicable not only in IoT, but also in mobility and automation fields. As we were in the program already, we wanted to meet as many companies as possible. Basically, Plug and Play Japan became a platform for us to raise this flag, and that worked very well.
-What kind of benefits have you gained since starting a business in Japan?
We got access to quite a few companies! The accelerator program really helps as companies come to see you. We made some great steps and we are now expanding carefully, waiting for fruits to come from the seeds we have planted last year.
-Are you considering expanding your business in Japan in the future?
Right now we have 2 distributorship agreements. It means that we will be walking through 2 large trading companies that are much better than us at selling products in Japan. We sell our product to them and they sell it to their customers. It is a preferred way for us, as well as for Japanese customers since they will be buying from well-known Japanese companies. Trading companies know us, and that was our first step. Also, we are not thinking of establishing a permanent company in Japan just yet due to high costs, but we are most likely to find a local partner who will represent us. Currently, we have these agreements that we have been pushing, next step is to hire one part-time and then full-time employee, and then let’s see what happens.
-Did COVID-19 affect your business in any way?
Everything became much slower: availability, logistics, etc. we had to do 5 times more steps to achieve the same results. Moreover, many countries and markets became inactive as well. Now things are going a bit better, everything is on a good path.
-Do you have any partnerships with system integrators?
Yes, we do. System integrator is one of our key expansion elements. Trading companies have system integrators in their companies, that’s another different thing in Japan. Our partnerships are not with only one company, but with a mass of companies. We have potential integrators, that have not yet integrated us to anyone else, and we have a local partner, and they have a local distributor. Before they become active, we would need to catch some sales, and before we catch them we need to have potential partners and integrators, so everything is intertwined. We already have small cases with larger companies, universities, and exhibitions, even before joining the Plug and Play’s program. Through these trading companies, we have also established relationships with integrators, shortly we pulled a thread and it became a whole mass of companies.
-How did you find your distributors and system integrators?
One was a coincidence because exactly at the same time we contacted Plug and Play, we also contacted some companies directly. And then they came to us, so we seized the opportunity.
Another one was through Plug and Play. A company saw us somewhere, most probably Plug and Play linked information flow, and simply contacted us.
-Did you have any other difficulties with partners here?
The general culture in Japan doesn’t support hustle decisions, therefore decision-making takes some time. Language also became a barrier, as they might need translators and some time to study materials and make decisions. Therefore, the process in Japan is not always as smooth as with other countries. We had to fight two things coming to Japan: real entry and potential competition.It means that it will also take the same time for your competitors to fully enter the Japanese market. Therefore, if you enter the Japanese market first, you might have an advantage of time compared to your competitors.
-What would you recommend to younger startups wanting to start a business in Japan?
One: Patience. You need to be patient, as it can take a year before anything fruitful.
Tow: Get all documents ready. The piloting, certification, agreements and licensing, etc . . Be ready to put those efforts forward before something potential and larger comes.
Three: The rest is more on the Plug and Play side. The more meetings the better. Although we were part of the IoT program, our technology also matches Mobility field. I tried to catch some meetings in the mobility stream, it would be great to have cross-fertilization between batches.
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Plug and Play Japan is currently offering cross-vertical matching opportunities for wider possibilities.
Marvelmind Robotics
Founded in 2005
