Booming SaaS Market in Japan
For a relatively tight-knit market where penetration of outside and unconventional services rarely succeeds, Japan has already warmed up to the idea of Software-as-a-Service (SaaS). Based on a recent study of Gartner, the SaaS market in Japan is expected to rise to $495.2 million in 2012, a 16% increase on last year. Whether in the government or private sector, SaaS has definitely made an indelible mark in improving business operations in Japan leading to considerable growth in their respective markets.
SaaS is particularly appealing to the Japanese due to its ease of use and customization features. Japan has always been a driving force in technology, especially in the Asia-Pacific market, and keeping ahead of its competitors means deploying the latest IT systems possible. What could be more advanced than an online-based system? Another factor is SaaS’s capacity to lower expenses compared with traditional hardware and software systems. With SaaS, Japanese companies are able to control their costs with competitively priced applications which are on a subscription-based fee.
After the unfortunate tsunami of 2011, local businesses began searching for alternative means to support operations in case another disaster struck. The diversity and flexibility of the SaaS make it one of the better options for business preservation in times of disaster. Companies wanting to offer their own on-demand software must still jump a number of hurdles before triumphing in this exclusive and hard-to-convince market.
The Japanese most welcome an offered service and accompanying marketing if they clearly understand what you are selling and saying. Thus, if you have a website, manual, or social networking account, you should hire a good translator or communication specialist to get your message across. If budget allows, make sure to have a competent Japanese team on your side who knows the market.
The Japanese also respond more positively to personalized services. Japanese consumers feel more valued when service providers directly interact with them as if they were their real friends. Timely responses offered in a courteous manner always give off the right vibe.
A marketing scheme is always a priority when breaking into a new market. If you want your SaaS product to be noticed, research the channels to saturate. When it comes to Japan, social media is a definite gateway to promote your product. With Facebook and Twitter booming in the market, you can take advantage of these networking sites – without overdoing it. Introducing prizes or freebies for signing up to your service could also lead to more users. It will attract more customers who shall then spread the word about your product – a practice known as “kuchi komi” which proves frighteningly effective in this tight-knit country.
There are indeed grand opportunities for SaaS providers wanting to infiltrate this previously-closed market. If approached the right way, you can gain more in Japan than you initially expected.
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About the Guest Author:
Rodolfo Lentejas, Jr. is a fulltime freelance writer based in Toronto. He is the founder of the PostSckrippt, a growing online writing business dedicated to producing top quality, original and fresh content. To know more about him, please visit www.postsckrippt.ca. Like him on Facebook or follow him on Twitter, Google+ and Pinterest.
