Rethinking Market Development: Beyond Export-First Strategies in Japanese Sake
I have completed and submitted my lecture video for the 110th Sake Management Seminar hosted by the Japan Brewing Society. The seminar has shifted to an on-demand format, available for viewing from July 1st (Tuesday) 10:00 AM through September 30th (Tuesday) 3:00 PM, 2025.
Challenging the Export-First Assumption
When I was initially approached for this lecture, the request centered around “the domestic market is tough, so let’s focus on export expansion.” While I initially planned to proceed with this theme, something about equating “market development = exports” troubled me. Is this really the case? Should all businesses seeking market development automatically target exports?
Having participated in overseas trade shows and handled export operations ourselves, we understand the challenges and costs involved through direct experience. This is why I question the assumption that “market development = exports” applies to all businesses, and that all businesses should promote exports.
A Consumer-Centric Alternative Approach
I’m not dismissing exports entirely. However, overseas expansion requires substantial marketing investment from a business perspective. When considering untapped markets, shouldn’t we first explore why current consumers, despite having interest in sake, aren’t purchasing it? If the reasons lie in factors other than sake quality design or marketing/PR activities — such as packaging, labeling, or volume — addressing these issues might lead to more substantial profits.
The KURA ONE® Discovery
Through our KURA ONE® project, we discovered that 40–50% of a 720ml sake bottle’s weight comes from the bottle itself. Consumers often abandon purchases due to concerns like “too heavy to carry,” “might break during travel,” or “difficult to finish.” These aren’t quality issues — they’re delivery problems.
By switching to 180ml aluminum cans, we achieved 50% weight reduction and 60% volume decrease, while bilingual labeling eliminated comprehension barriers.
Finding the Inbound Tourist Market
Instead of traditional export markets, we discovered “inbound tourists” — ideal overseas customers who pay their own transportation costs to visit Japan. Over 80% drink sake during their stay and want to take it home as souvenirs.
The key insight: untapped markets should be considered from a “consumer perspective” of “who to sell to,” rather than a geographical “domestic vs. overseas” viewpoint.
This perspective shift has revealed new market possibilities that challenge the conventional “market development = exports” mindset.
