Partner Marketing in Japan: Strategies for Success

In previous articles, we’ve discussed how Account-Based Marketing can be extremely effective B2B marketing strategies in Japan when applied to this unique market with the correct balance of cultural insight and global best practices. Now, we’re going to do a deep dive into an equally effective, yet arguably more difficult marketing strategy to adapt in Japan.  

Partner marketing, or co-marketing as it’s commonly known in Japan, represents a collaborative approach where businesses join forces to market complementary products or services. This strategy leverages the strengths of both partners to reach wider audiences and drive mutual growth. In Japan’s unique business landscape, characterized by a deep-seated culture of trust and relationship-building, partner marketing presents a distinctive opportunity to expand reach and achieve common goals through cooperation and shared efforts. 

As you may already know from our previous articles, a distinctive feature of the Japanese market is an emphasis on long-term relationships. Sales cycles in Japan typically last longer and require more demonstrations of reliability, often in-person. Many international companies often make the mistake of not budgeting the proper amount of time for the initial stages of these partnerships. Making connections and establishing trust is an elongated process in Japan, one that requires patience, dedication and a willingness to demonstrate commitment.

Given the intricacies of the Japanese market and the reverence for tradition in Japanese culture, it is more important than ever to have a solid, foundational understanding of Japanese customs in order to effectively initiate and successfully deploy partner marketing strategies. In this article, we’ll cover the essential components of a partner marketing strategy, the cultural factors that influence its execution and practical steps for international companies seeking to establish or expand their partner marketing efforts in Japan.

Understanding Partner Marketing

At its core, partner marketing involves businesses aligning their resources and marketing strategies to achieve shared goals. This can take many forms, such as joint promotions, shared events or collaborative content creation. In Japan, partner marketing has evolved over the years, moving from a predominantly sales-driven focus to a more integrated approach that includes digital marketing and innovative strategies.

Ken Saito, Senior Content and Project Director at Custom Media, has over a decade of experience in partner marketing. Throughout his tenure, he has worked with major vendors such as IBM and HP to educate partners on effective marketing strategies. Over the years, he has seen firsthand how Japan’s unique business culture has presented challenges in partner marketing, and how the market has slowly started to evolve to be more receptive to global marketing best practices. 

Partner marketing typically follows a series of best practices to guarantee that collaborations pay off for both partners. Let’s go through the general overview of what this looks like:

• Identifying the Right Partners: Organizations must first identify partners that complement their products or services. This involves assessing potential partners’ market positions, target audiences and brand values to ensure alignment.
• Setting Clear Objectives: Successful partner marketing initiatives begin with clear, shared objectives. Both partners should collaboratively establish what they aim to achieve through the partnership, whether it’s increasing brand awareness, generating leads or driving sales. Just as in Account-Based Marketing, where alignment between sales and marketing teams is crucial for a successful campaign, making sure that both partners are on the same page about what they want, how they want to achieve it, and what needs to be done in order to win is tantamount.
• Developing Collaborative Marketing Strategies: Once objectives are set, partners must develop strategies that incorporate the strengths of each organization. This could include co-branded campaigns, joint events or combined digital marketing efforts. Taking the time to evaluate each partners’ strengths and weaknesses can help ensure that all bases are covered and both partners are working in tandem to deliver top-tier results across the board.
• Resource Allocation: Each partner should contribute resources to the marketing initiative, whether in the form of budget, personnel or expertise. The goal is to ensure that both partners are equally invested in the success of the campaign. Making sure that both partners are aware of and comfortable with their contributions, whether they be financial or practical or both, is critical for smooth collaboration and creating long-term, profitable partnerships.
• Continuous Communication: Open lines of communication are vital throughout the partnership. Regular check-ins and updates help to ensure that both parties remain aligned and can address any challenges that arise. Striking the right balance between sufficient communication and over-communication will help keep all teams in the loop and happy to work together. Establishing a check-in schedule that everyone is comfortable with is an important step in the initial stages of any collaboration, and partner marketing is no exception.
• Evaluating Results: After the campaign, partners should evaluate the outcomes against the established objectives. This assessment helps to identify successes, areas for improvement and informs future collaborations. Hopefully, if the above steps are implemented, the biggest takeaway will be a desire to partner together again in the future!

Evolution of Partner Marketing in Japan

Ken Saito, a seasoned professional in the field of partner marketing, notes that the landscape has shifted significantly over the past decade. Historically, the Japanese IT market was heavily sales-driven, with vendors relying on partners for sales execution. Companies such as IBM offered co-marketing programs where marketing costs were split evenly between the vendor and partner. However, many partners lacked marketing expertise, leading to a limited scope of marketing activities.

According to Ken, in 2015, partner marketing in Japan predominantly focused on traditional methods, such as events and leaflets. Events were considered the most effective way to generate leads and build brand awareness. However, as the digital landscape evolved, so too did partner marketing strategies. By 2018, global vendors including HP and Microsoft began to introduce more sophisticated co-marketing programs, integrating digital marketing techniques into their strategies.

Despite these advancements, many partners still lacked the necessary marketing capabilities and often relied on agencies for execution. Ken observes that while partners are becoming more proficient in digital marketing, about half still do not possess the resources or expertise to execute campaigns independently. This underscores the importance of educational initiatives aimed at enhancing partners’ marketing capabilities.

Sam Bird, COO at Custom Media echoed this sentiment, noting that partner marketing efforts are not done as regularly in Japan as they are in other markets. As a result, agencies such as Custom Media spend a significant amount of time in resources on education and awareness-building when engaging in partner marketing. 

“Partner marketing is not done as much in Japan,” Sam explains. “Oftentimes foreign brands are more likely to do partner marketing programs within the Japanese market, and then they realize that it’s not as easy as they expected.” 

While it’s true that the scale of partner marketing is smaller than in other markets, there still are ways to navigate and implement this strategy successfully in the Japanese market.

Cultural Factors Influencing Partner Marketing

Success in partner marketing in Japan hinges on building trust and nurturing relationships. While digital tools have transformed the landscape, the heart of collaboration still lies in personal connections and shared goals.

Ken Saito
Senior Content and Project Director
Custom Media

In Japan, cultural norms significantly influence business practices, including partner marketing. Trust and relationship-building are a top priority, and these cultural factors shape the way partnerships are formed and executed.

Building Relationships

Japanese culture places a high value on relationships, particularly in business. Establishing trust takes time, and companies must invest in nurturing relationships with their partners. Face-to-face interactions are often preferred over digital communication, making in-person meetings and seminars essential components of effective partner marketing strategies.

Ken emphasizes that sales-driven face-to-face negotiations are critical in Japan. Organizations that rely solely on digital marketing may find limited success in establishing partnerships. Therefore, cultivating strong personal connections with partners and customers is vital for long-term success.

With in-person introductions comes meishi, or business cards. Japan has a highly specific cultural custom around the exchanging of business cards at the start of every meeting, so make sure you have yours handy and know the proper way to present it!

Loyalty and Exclusivity

Loyalty is a core value in Japanese culture. Once a relationship has been established, consumers often feel a sense of exclusivity with their vendors. Because of this, Japanese consumers will often stick to the same stores and brands for services, and things such as loyalty programs and membership cards are more ubiquitous in Japan than in other countries. This loyalty can make it challenging for companies to switch partners or adopt new solutions, which underscores the importance of maintaining strong, long-term relationships.

For vendors, this loyalty can pose challenges when working with partners that may have multiple vendor relationships. Partners often prefer to use their leads and opportunities to sell a variety of products, which can lead to conflicts of interest with the vendor’s objectives. Establishing clear communication and shared goals is essential to navigate these challenges successfully.

Key Components of a Successful Partner Marketing Strategy in Japan

To thrive in Japan’s unique market, foreign companies must be willing to adapt their strategies and embrace local customs. Partner marketing is not just about sales; it’s about fostering long-term alliances that benefit all parties involved.

Sam Bird
COO
Custom Media

To effectively execute partner marketing in Japan, it’s important to keep these key components top of mind: 

1. Telemarketing and Face-to-Face Meetings: As mentioned previously, the importance of face-to-face interactions cannot be overstated. Telemarketing and personal meetings are crucial for establishing rapport and trust with potential customers and partners, and Japanese partners especially will be looking to put faces to a company name before considering working together. 
2. Collaboration and Information Sharing: Successful partner marketing requires collaboration among all parties involved. Vendors, partners and agencies must share information and resources openly to create a cohesive strategy. Building trust within the team can facilitate this process. When this happens in Japan, it’s important that language barriers do not prevent effective and timely communication from happening. Working with bilingual marketing agencies or interpreters is important to maintain a smooth channel of communication. 
3. Setting Shared Goals: Establishing shared goals at the outset of the partnership is critical. Both partners should agree on what they aim to achieve together, as misaligned objectives can hinder collaboration. In Japan, this requires a nuanced understanding of the Japanese market, consumer behaviors and typical customs and trends. Setting a shared goal can only be achieved if both partners have an in-depth understanding of the market they’re operating in.
4. Establishing a Marketing Budget: Given that many partners are sales-driven, securing a marketing budget is essential for executing effective campaigns. Vendors should work with partners to ensure that they allocate adequate resources to marketing initiatives.
5. Long-Term Relationship Development: Partner marketing should be viewed as a long-term endeavor rather than a one-off initiative. Continuous programs that evolve over time help strengthen partnerships and drive sustained success. At Custom Media, we succeed in doing this by leveraging our bilingual, bicultural expertise to prove time and time again to our clients that their success is our success. Alignment on goals, processes and results is the only way to establish trust and ensure future collaborations

Challenges of Partner Marketing in Japan

According to Ken, 20-30 years ago, global vendors entering the Japanese market were very pushy. Ken frequently encountered conflict between international companies and their Japanese partners. While international companies put pressure on their Japanese counterparts to adapt to their model for doing business, Japanese teams were adamant in their position that Japan is different.

Things have changed since then, with global vendors becoming more tolerant and demonstrating an improved understanding of Japanese business culture. At the same time, Japanese businesses have become more open to adopting global best practices. “Still,” says Ken, “global vendors need to take more time to understand Japanese business culture.”

The friction between international companies and their Japanese partners is easily managed when there is a clear understanding of what to expect when partnering with a company that operates in a different market. With that in mind, let’s take a look at the most common challenges to be aware of when implementing partner marketing strategies in Japan.

First and foremost, a common challenge in partner marketing is managing databases effectively to generate new leads. Many companies in Japan lack sophisticated third-party databases, making it difficult to target and engage new leads. Furthermore, in Japan, companies can’t use databases in English, as names are registered in Japanese. Matching Japanese names to their English counterparts can be a troublesome and time-consuming task. Because of this, many Japanese companies tentatively rely on databases from the media, such as IT Media and Nikkei BP, which presents its own set of challenges, as data may not always align with specific target audiences. 

Because of this, it is crucial that international companies remain committed to being flexible in strategy execution. Global teams must recognize that strategies effective in other markets may need to be adjusted to suit the unique dynamics of the Japanese market. Staying vigilant of market trends and local customs is important for knowing when to move forward with strategies that work abroad, and knowing when you need to tweak to account for specific nuances. 

As partners become more sophisticated in their marketing capabilities, ongoing education is vital to ensure they stay up-to-date with the latest trends and techniques. As stated previously, partner marketing is not a widely used strategy in Japan, meaning that agencies play a crucial role in providing training and resources to enhance partners’ skills. Being prepared for in-depth education sessions and coming prepared with the proper training materials can expedite what might otherwise be a time-consuming process. 

Active Industries in Partner Marketing

As stated above, partner marketing is not commonly done in Japan, but when this strategy is used, due to the very Japanese, detail-focused approach that is typically followed, partnerships are not commonly made with international companies. That being said, certain industries in Japan are particularly well-suited for partner marketing due to their collaborative nature and reliance on relationships.

• Information Technology: The IT sector is a prime example, with global companies such as IBM, HP and Microsoft leveraging partner marketing to drive growth. Given the complexity of IT solutions, partnerships enable companies to reach broader audiences and enhance their market presence.
• Healthcare: The healthcare industry is also seeing increased activity in partner marketing. Organizations are collaborating to improve patient care, share resources and promote innovative solutions. These partnerships are essential in navigating the complexities of the healthcare industry.
• Financial Services: In Japan’s banking sector, partnerships are crucial for providing comprehensive financial services. Collaborations between banks, fintech companies and technology providers can enhance service offerings and improve customer experiences.
• Consumer Goods: The consumer goods industry can benefit from partner marketing by combining brand strengths to create joint promotions. Collaborations can lead to increased visibility and customer engagement, especially in Japan, where name recognition is essential to establishing brand loyalty amongst consumers.

If your business falls into any of these industries, you may have an easier time finding partners in Japan to enhance your growth opportunities and gain a competitive advantage in the region.

Key Takeaways

Based on years of successful collaborations, our deep understanding of the market and insights from our expert team, here are Custom Media’s key takeaways for partner marketing best practices in Japan:

• Understand Cultural Norms: The importance of understanding Japanese cultural norms can not be overstated. Take the time to familiarize yourself with Japanese business culture and values, or partner with an agency who does. Building trust and relationships takes time, so be patient in nurturing connections and have your meishi ready!
• Seek Local Expertise: Once you’ve gone through the formalities of establishing the necessary trust, partnering with local firms that understand the market landscape can significantly enhance your chances of success. These local partners can provide valuable insights and connections that can streamline your entry into the market – once you’ve proven yourself to be a reliable partner that is!
• Never Underestimate the Power of In-Person Relationship-Building: Taking the time to build strong personal relationships with potential partners is important. Attend networking events, engage in face-to-face meetings and demonstrate your commitment to collaboration by showing up offline. Zoom chats and Google Meetings should be saved for later on in the partnership.
• Leverage Digital Marketing: Digital marketing has been slower to adapt in the Japanese market compared to markets abroad. Print media is still widely popular and effective. That being said, don’t underestimate the power of digital marketing in Japan. Embrace digital channels and innovative techniques to reach your target audience effectively, and make sure to adapt global best practices around digital media to the most popular Japanese digital channels.
• Be Flexible and Commit to Continuous Learning: Recognize that strategies that work in other markets may not be applicable in Japan. Be willing to adapt your approach and learn from local partners. Likewise, stay informed about market trends and changes in consumer behavior. Participate in industry events, workshops and training sessions to enhance your understanding of the Japanese market while also remaining vigilant about how the landscape is evolving abroad.

Partner marketing in Japan presents a unique opportunity for businesses to expand their reach and strengthen their market presence. By understanding cultural nuances, fostering trust and developing collaborative strategies, businesses can effectively navigate the complexities of this approach. The evolving landscape of partner marketing, coupled with the growing emphasis on digital strategies, opens exciting new avenues for growth and engagement.

As companies prioritize relationship-building and adaptability, those who embrace the power of partnerships will be well-positioned to thrive in the competitive Japanese market. By applying the strategies outlined in this article, businesses can establish successful partner marketing initiatives that drive mutual growth and create lasting impact in the marketplace.

Ultimately, successful partner marketing in Japan requires a commitment to building strong relationships, aligning shared goals and leveraging the unique strengths of each partner. By fostering collaboration and embracing cultural values, organizations can unlock the full potential of partner marketing in one of the world’s most dynamic business environments.