Finding a Japanese agent — and what to agree before you do

Do you need one?

Not always. If you are selling small volumes to a handful of shops, direct relationships are simpler and more profitable. An agent earns their margin when you need coverage — many accounts, ongoing account management, and a Japanese-language presence you cannot maintain yourself.

A reasonable rule: if you are spending more than a day a week on Japanese correspondence, an agent is worth considering. Below that, you are paying for something you are already doing.

Where to find one

• Japanese trade shows. The most efficient route by a distance — agents attend specifically to find new lines, and you can assess them in person before committing.
• Existing importers in your category. Look at who imports work comparable to yours. Their name is usually on the packaging or the shop's website.
• Shops you already supply. A shop that stocks you successfully will often know who should be handling you more widely, and their recommendation carries weight.
• Introduction. As with everything else in Japan, this is the highest-quality route.

How to assess one

Ask these, and pay attention to how specifically they are answered:

• What else do you carry? An agent holding two hundred lines will not prioritise yours. Fewer lines, handled deeply, beats a large portfolio.
• Name your accounts. Not "we work with major retailers" — actual shop names you can look up.
• Do you hold stock, or order against demand? This determines whether they carry any risk.
• Who pays for marketing? Agree this explicitly; it is a common source of later friction.
• What happens if my contact leaves? Relationships in Japan attach to people.
• Tell me about a line that did not work. The most informative question in the set. An agent who cannot answer it is either inexperienced or not being straight with you.

Exclusivity — never unconditional

Every agent will ask for exclusivity in Japan. From their side this is entirely reasonable: they will invest in building the market and do not want a competitor free-riding on it.

The problem is that unconditional exclusivity makes your entire position in Japan dependent on one company's effort level, with no remedy if that effort declines. Sensible conditions:

• Fixed term. One year initially, renewable on performance.
• Minimum purchase volumes. Exclusivity lapses if targets are not met. This is the single most important clause.
• Channel or territory limits. Exclusive for physical retail, while you retain direct online sales — or exclusive for Tokyo, not all Japan.
• A defined exit. Notice period, stock buy-back, and what happens to the accounts.

Register your trademark first

This is the one that causes real damage. Japan operates a first-to-file trademark system. If your agent — or anyone else — registers your brand name in Japan before you do, they own it there. You can lose the right to trade under your own name in Japan even after ending the relationship.

It happens, and it is expensive and slow to unwind. File your own trademark in Japan before signing anything. The cost is trivial compared to the alternative.

Alternatives to an agent

Before granting anyone exclusivity, consider whether you need it yet:

• Direct relationships with a few shops. Slower to scale, but you keep the margin and the customer knowledge.
• Department store exhibitions. No distributor, no minimum order, and direct customer contact.
• A Japanese online retailer that handles import and fulfilment without exclusivity.

Negotiating from a position of existing Japanese sales — however small — produces far better terms than negotiating from nothing. Get some traction first, then find an agent. The order matters more than most people realise.