News On Japan

Global Demand for Japanese Products Opens New Doors

OSAKA - In Kobe, a company that has been processing and selling kelp for over 60 years has begun exporting its products overseas as domestic consumption declines. The company turned to a service called ZenPlus, a platform that sells overlooked Japanese products to global customers. ZenPlus offers over 9 million items across 175 countries, charging a 10% commission only when a sale is made.

Operated by ZenGroup, where roughly half of the employees are foreign nationals, the company was co-founded by Slovey, who is originally from Ukraine. ZenGroup helps small and medium-sized enterprises (SMEs) develop new markets by introducing Japanese products to the world, and the kelp company has successfully expanded its sales through this service.

As domestic demand for kelp has fallen, long-standing specialty kelp shops have been closing one after another, forcing companies to explore new opportunities. Through ZenPlus, which features everything from Kyoto matcha to anime merchandise, Japanese sellers have found overseas buyers, with matcha, for example, selling well in about 20 countries, mainly in the United States. Sellers incur no upfront costs, only paying a 10% system fee on successful sales.

At ZenGroup's office, where foreign staff members work under residence statuses such as technical, humanities, and international services visas, the atmosphere reflects its global reach. Slovey, who graduated from a university in Ukraine and later studied in Japan, started the company with fellow Ukrainian and Russian students. He said that seeing the international interest in Japanese products like sweets, tea, and even electronics inspired the business idea.

Initially, ZenGroup focused on purchasing products on behalf of overseas residents and shipping them abroad, with anime figures and related goods becoming especially popular. The company has attracted 2.7 million registered users, generating a total distribution volume of 15.3 billion yen.

In 2016, ZenGroup launched ZenPlus to actively source unique Japanese products, partnering with local chambers of commerce to discover items with potential appeal overseas. For the kelp business, extensive discussions were held on how to effectively promote products to foreign buyers who may not even recognize kelp as food. The company devised ways to clearly explain how to use and cook with kelp, including Instagram posts and product pages with QR codes that link to usage instructions in multiple languages.

"Many companies want to expand their perspective globally. Discovering that their products are actually in demand abroad is a valuable realization," a ZenGroup representative said. "Even if small businesses don't know how to start selling overseas, we provide them with the opportunity to see that it is possible."

Currently, Japan's e-commerce exports account for only about 5% of total e-commerce sales. However, many see significant potential for SMEs to grow by tapping into global demand, creating new opportunities for Japanese businesses facing a shrinking domestic market.

Source: Television OSAKA NEWS

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