BioFach Japan 2006

The interest in this year’s BioFach Japan is tremendous. A large number of the stands in the Tokyo Big Sight exhibition centre are already booked four months before the start of the sixth exhibition, which takes place from 21-23 September 2006. It is already clear that there will be more display space and a bigger share of international exhibitors. Natural cosmetics and care products are emerging as the stars of the product spectrum.

Picture: BioFach Japan 2005

The German natural cosmetics manufacturers, who were strongly courted at the previous year’s BioFach Japan, apparently don’t want to miss the opportunity of cultivating existing contacts and finding more business partners. Insiders confirm excellent potential for natural cosmetics and for organic food on the Japanese market. The positive consumption climate is favoured by the persistent trend to safe and healthy food and by the distinct upward trend in the economic situation.

The Japanese economy is now accelerating strongly after years of stagnation: A good opportunity for entering the market or expanding business in the land of smiling faces. The Foreign Office in Berlin and the German Embassy in Tokyo talk of a market to which German companies should devote more attention again. The image campaign “Germany in Japan” is also an attractive background for intensified market activities. Japan, the second largest industrial nation in the world and also Asia’s leading market, accounts for as much as 60 per cent of the total Asian gross national product, with a growing trend. Yet the island relies on imports, particularly in the food segment: Well over half the quantity of the food originates from other countries.

The situation is no different in the Japanese organic market. Local organic agriculture can nowhere near cover the demand. The farms are small – 3,200 farms manage about 5,300 hectares – and account for only 0.1 per cent of the land used for agriculture. Traditional farming is very intensive due to the shortage of land, which means enormous amounts of pesticides are used. After many food scandals, however, the Japanese consumer appreciates natural and safe products, which means big opportunities for organic products.

The Japanese market is very demanding. Companies wishing to do business with Japan must possess flexibility and patience. “Trading with Japan is not uncomplicated, but very promising especially for companies offering organic products,” explains exhibition specialist Heinz Kuhlmann from the agency ABC Enterprises Inc. in Tokyo. The expert, who also represents Nürnberg Global Fairs in Japan, recommends obtaining competent assistance for export business with Japan. For example, the JAS legal regulations for organic products have changed, which has made the certification procedure more complex. It is also advisable to observe a few general rules of conduct: Japanese business partners insist on absolute punctuality and dependability. The products should be adapted to Japanese buying habits in terms of sensory analysis, packaging and marketing before placing them on the market: “The key to market entry is good communication with the Japanese customer and a product idea that meets the needs of the Japanese consumer,” says Heinz Kuhlmann. Companies should also get used to the slow-spending mentality of the Japanese consumer, who is not a spontaneous buyer and compares prices. Once convinced of the value of a product, however, the consumer is happy to spend more money in line with the quality.

The natural cosmetics segment is excellent proof of this. Several German brand manufacturers have already found loyal customers for their products in Japan. The consumer’s growing desire for safe and gentle skin care products contributes to the increased demand for real natural cosmetics. Another factor is that the LOHAS – stands for “Lifestyles of Health and Sustainability” – consumer type is becoming increasingly established in Japan. The trend to environment-friendly products is noticeable in a positive way. More and more people tend to have sensitive skin and are looking for suitable products.

So outstanding conditions for capturing the Asian market with appropriate product ranges. BioFach Japan with its good reputation as an exhibition for international organic trade and its competence based on strict admission criteria offers export-orientated companies a fitting platform.

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