[Case Study] The secret of receiving an order for a large-scale project at an overseas exhibition of “traditional crafts”

“We want to promote our products overseas.” I think there are not a few people in charge who think so and at the same time are struggling to think about that method. Since exhibiting at overseas exhibitions operated by Japan Promotion (our corporation), we have received orders for large-scale projects from foreign companies for 2 consecutive yearsIchihara Co., LtdWe asked them to look back on the circumstances.

The current state and suffering of artisan work

When I visited the headquarters of Ichihara Co., Ltd., I saw umbrellas lined up in rows on the other side of the glass door. Inside, I'm in the middle of making an umbrella in the back of the room with the table in between. The person who greeted me with a smile was Keiko Ouchi, who is in charge of sales planning at the company. Looking sideways at the umbrellas that are attached to the wall, we asked them about overseas expansion.
“In addition to the craftsmen, we also have separate staff who are in charge of everything from planning to sales, but I still felt that it was difficult.”
It's a word that gets to the heart right from the start.

Tokyo umbrellas are traditional crafts

Ichihara Co., Ltd. was founded in 1946 as a manufacturing, planning, and sales company related to men's clothing, and began full-scale production of men's fashion umbrellas in the latter half of the 1960s. There are many umbrellas in the lineup that are fashionable and go well with suits, such as fabrics with patterns reminiscent of neckties and types that are slender and look like walking sticks when closed. Each one is made by hand, and is recognized as a traditional craft not only practical but also highly artistic.
The people who mainly work on these umbrellas are traditional craftsmen from “Tokyo Umbrella.” Currently, 2 out of 6 people certified by Tokyo are enrolled in the company, and Mr. Ouchi calls them “craftsmen.” Also, one of the traditional craftsmen is also the company's representative.

An experience contrary to the desire to expand the business

In addition to wholesaling products to department stores and receiving domestic OEM orders, the company has also begun internet sales etc. as the times change. When did you start considering overseas expansion?
“I felt that there was a limit to expanding traditional crafts domestically alone, and the entire company wanted to disseminate them overseas. Therefore, just before the COVID-19 pandemic hit, we exhibited at an exhibition in Japan where overseas buyers were coming. I also asked for 1 interpreter.”
However, Ouchi-san's expression is cloudy.
“There was definitely quite a response. However, we weren't able to communicate after the exhibition ourselves. In particular, in the case of buyers where English is not the first language, it is difficult to convey nuances, etc., and knowledge of specialized language such as conditions and contract-related matters is also necessary. They both create barriers that cannot be overcome at a simple everyday conversation level. I have had the experience of not being able to respond well to communications received after the session.”

It wasn't just words, it was a barrier to business negotiations

It is said that issues remained about business negotiations during the exhibition.
“For example, 'Can you prepare 100 of these? ' Let's say you're asked. If it's a big company, I think inventory is managed in a system, but for a craftsman based company like ours, it's surprisingly difficult to grasp inventory.”
An umbrella is an item with so many parts. While there is an advantage that each product can be customized in detail according to customer requests, system management of parts etc. seems difficult.
“Then, in response to the question, they answered, 'I'll take it home and check it out. ' In the end, the deal didn't go through, and we talked internally about “that was a waste.” However, when I looked around, it seemed like all the businesses dealing in traditional crafts were in a similar situation.”
That led to the opening story.
“Apart from the craftsmen, we have staff who are in charge of everything from planning to sales, and we still felt that it was difficult.”
Then, from the Tokyo Small and Medium Business Promotion Corporation, the project“Tokyo Handicraft”You will be encouraged to participate.

A new method of overseas expansion that has been tried

This project is being planned by the Tokyo Metropolitan Government and the same corporation for the purpose of promoting the spread of traditional Tokyo crafts domestically and internationally. Multiple businesses dealing with traditional crafts are participating and exhibiting at various events and exhibitions as “Tokyo Handicraft.” The image is like a single brand.
“Since 'exhibiting at overseas exhibitions' was included in the requirements for 'Tokyo Handicraft', I decided to participate. That was 2023, last year. There are 2 overseas exhibitions, once at the BtoC Japan Expo Paris, and the other at the BtoB Maison & Objet. Our company exhibited both times”

Click here for more information on Japan Expo Paris
▶ Japan Expo Paris 2023 “WABI SABI Pavilion” Event Report
Click here for a detailed article on Maison & Objet
▶ Maison et Objet to exhibit at 2023 Interior & Design Hall of Fame

Our corporation is responsible for the comprehensive production of this “Tokyo Handicraft” overseas exhibition and full support for businesses.
Please tell us about the impressions you have gained through both meetings.
“I'm glad that market trends were known by putting it out to BtoC before BtoB. I was able to participate in the Maison & Objet while being able to see the customer's feelings and preferences, and the situation in France.
It was also nice to be able to make good friends with the artists who participated in the Japan Expo. We are still in touch now, and ideas and collaborations that cannot come true alone are born, and events may be possible together, which are linked to the future.”

Is it an exhibition with support or a solo exhibition with a grant

What was the difference between exhibiting at an exhibition where they struggled alone before the COVID-19 pandemic?
“Not only the interpreters, but the Japan Promotion staff also give advice such as 'Maybe I should take this kind of approach next time, 'and they can share information one by one. Buyers come for many days during the period and go around many companies, so we have to approach them by email etc. after talking, but we stay at the venue from morning to night and talk with other buyers, so it's not easy to touch computers. There, the staff followed up with “this kind of story,” “Let's send the catalog again,” etc., and then send me an email each time, so it's helpful. They can also make the catalog itself. Also, they always create a business negotiation sheet. In the end, a list of all business negotiations will come out.
There is also a subsidy if you go to an overseas exhibition alone, but you are exhibiting as an individual booth. Then, when it comes to making your own booth, asking for an interpreter, talking to customers, doing calculations... the hurdles are high. Just because there are grants doesn't mean you can exhibit.”

Judgment materials are needed to make decisions on the spot

What products did you actually order?
“The biggest one is the 300 umbrellas I received as an OEM by a Russian company. Buyers asked various questions little by little every day during the exhibition. I explained things such as not being able to mass produce due to craftsman work and the fact that it takes time, etc., and while communicating with the company on LINE, I shared these with Japan Promotion and the interpreter, and the person in charge came on the last day and settled the conversation. There, a few people from the company went around the venue in pieces, and it felt like they had been going to places they thought would be nice for a few days.
There were also many other shops in Lithuania and New York, and many people bought multiple bottles as samples.”

Differences in business negotiations between Japan and overseas

There was talk of advice and follow-up, but is there any difference between Japanese and overseas business negotiations?
“The tempo is different, isn't it? Like in Japan, people often ask for an autograph on the spot after a business negotiation rather than “well then when is the next meeting.” Even if you don't make a quick decision, if you don't come to the conclusion that “we can do it” to some extent, the story will flow and end. More than 80% don't come back, and there is no reply even when contacted after the exhibition. It's great to be able to decide that kind of conclusion on your own each time with advice from staff and interpreters. Customization is often requested rather than a ready-made product, so the point is whether it can be handled on the spot.
Also, the number of people buying online and making inquiries has increased. I think it was great that they prepared an Instagram QR code on the panel. The number of followers has also increased”

Disadvantages and assumptions about exhibiting overseas

So, after participating twice, were there any disadvantages or improvements?
“While the overall exhibition space has been decided, when it comes to how much space I will have, I will divide it by the number of participating businesses. However, I don't know the number of participants until the last minute. Originally, the best way to display an umbrella is when it's open, but it's difficult when it's small. I thought the larger it was, the easier it would be to conduct business negotiations.
Also, I had heard in advance that the sense of cost would not be positive, but some of the businesses that participated in the same meeting assumed that business negotiations would be decided. There may be a gap if you don't participate, grab the trends and information that will lead to the next, and come back.”

Nevertheless, Mr. Ouchi says that it was relatively nice to participate.
“What I thought would sell was something that inbound people in Japan would buy, and that people from overseas had decided without permission that they would like this kind of thing, but what I learned through the exhibition was that the trend was completely different. Inbound and BtoC are natural since people who like Japanese culture gather. As for BtoB, even though the venue was Paris, it was a company from another country that decided on a business negotiation. Participating in a big exhibition means that both buyers and exhibitors gather from all over the world. It's very difficult to get people to speak to you on that scale, so I think it's a plus to participate in an exhibition where there is support.”
The sound of a sewing machine and the sound of a cut fabric rubbing against it. Next to the craftsmen, Mr. Ouchi was discovering the future of the company.

We received large orders again with a re-exhibition that made use of our experience

A few months after listening to this story, Ichihara Co., Ltd. also participated in the 2024 Maison & Objet held in Paris. As a result, we obtained large-scale projects similar to last year, and transaction emails are still flying around today.
Every time we exhibit, we will keep an eye on the company, which is definitely connecting our experience up to that point to the next.

Japan Promotion plays a part in overseas expansion. If you are interested, please feel free to contact us.
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