How Startups in Japan Are Using Social Media to Find Success

Japan isn’t necessarily known as an innovation hub for startups.

But for those who have found their niche here, a movement is beginning to make its way, for example:

Did you know that Japan is the only place in the world where Twitter is more popular than Facebook?

That Instagram growth in Japan is 50% year over year?

Or that YouTube in Japan has a higher daily user penetration rate than Line?

Which brings us to this, what does this mean for startups striving to succeed in Japan?

2020 will be a huge year for Startups in Japan

Last year, we launched 18 startups in Japan through our Tokyo Startup Marketing Bootcamp— If you’re a startup launching in Japan, follow the link.

But what we learned is that this is only the beginning for social media in Japan and startups should be flocking at the opportunity to take advantage of consumer adoption numbers.

But do you know who isn’t flocking to Facebook? “Japanese brands”.

Thousands of years of tradition is keeping these giants from progressing forward, something we actually speak about often.

And to be honest, I used to care. I used to work endlessly to win over Japanese executives, but eventually you realize that change just doesn’t come easy here.

So, when Japanese brands ask me, “What happens if we decided not to transition to digital?”

My response is simple, “Who cares.”

Allow me to explain.

Yes, we all know that Japanese companies are struggling to make the transition from paper flyer marketing to social media advertising (I can’t believe I had to actually just type that).

However, does this change the fact that when you step on the train tomorrow everyone will be glued to their phones more than the inside of their mailbox?

Does this change the fact that I won’t be able to properly cross Shibuya crossing because of the amount of Instagram selfies being taken?

Does this change the fact that I can’t find a seat in Starbucks because the students are there both studying and watching YouTube videos?

Does this change the fact that when I’m missing my card at a networking event, the follow up is “Can I just Facebook you?”

Does this change the fact that when I want to find a networking event in Japan I have to search both Meetup and Facebook Events now?

I could go on, but you get it.

No, their inability to evolve with the times, doesn’t change the fact that the consumer has already evolved and is ready for everything new that comes with it.

So if Japanese corporations are going to opt for mailbox marketing over mobile marketing, this leaves open a million and one opportunities for every startup out here in Japan willing to invest in the new world of digital.

You see, in the state's startups have to compete for the attention of consumers against major corporations, not in Japan.

Elsewhere, smaller companies have to spend thousands to bid on certain keywords or social PPC campaigns against bigger firms, not in Japan.

Here in Japan, the race for consumer attention is wide open, which means a new electronic startup has just as much opportunity to win new customers using Facebook as Casio does.

Foreign corporations know this, which is why they’re heavily investing in Japan’s social media landscape.

Social media platforms know this, which is why they’re working more with Japan’s startup community rather than the corporate community.

But do you know this?

Now you do and if you’re a startup in Japan it’s time to get your digital game cued because the modern consumer is mobile ready and socially capable.

Here are three quick tips on how you can get started as a startup:

1. YouTube has the highest penetration rate of all digital platforms in Japan (even over Line), yet less than 10% of corporations use it as a marketing platform. As a startup, you can use this to build your initial community, leveraging the daily usage rate to provide a new form of advertorials your consumers are literally clicking and waiting for.
2. Instagram has a 50% year over year growth rate, yet at a lunch meeting with an employee from Dentsu last weekend, she had the nerve to say she’s not that impressed with Instagram, and she’s a community manager- shameful!!! Your move, as a startup you can use Instagram’s growing micro influencer network in Japan to form partnerships with 10–100 accounts that have 1,000–10,000 followers and literally “no brands contacting them but you”. With that network you can reach thousands while at the same time influencing purchasing decisions next time they’re in the market for a product like yours.
3. Facebook is being ignored by every company in Japan because daily usage and adoption isn’t that great, this is true. But that’s only true for B2C, not B2B. Did you know that on Facebook for our B2B clients our ads perform 60% better than on any other platform? This is because Facebook is perceived like a directory or phone book for resources, not networking. So as a thought leader connecting professionally, this is the perfect platform and you can get started for just a $1/day. The perfect budget for a startup and the perfect success metric for scalable growth.

I could go on and if you want more advice, you can reach me here.

But I’ll close with this final story.

Two weeks ago we contacted a major player in Japan’s business ecosystem about the importance of digital. Our end point was, “You can ignore us, but it won’t matter. As long as your customer still has a mobile phone, we or some other startup will be up early tomorrow morning on our computers trying to get their attention, the question is are you going to be up with us or still stuffing mailboxes?”

Funny, he got back to us right away.

-Want to take your startup to level 10x?

Join our Tokyo Startup Marketing Bootcamp in August and learn how.