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The storyline has always been that American firms wanting to move their products in the markets of Japan were facing a nearly impossible task.
But that is more myth than fact, according to Larry Ingraham, president of the foreign trade consulting firm Ingraham & Associates, based in Indianapolis. He was the featured speaker at a seminar Thursday, sponsored by Kosciusko Development Inc. and the Purdue University Center for International Business Education and Research.
Additionally, Ingraham said, Japanese investment in Indiana has already become a major force in the state's economy and is growing.
"Indiana is in the heart of the United States, and Japanese businesses - mainly auto manufacturers - are looking seriously at the state because it is easily within one day's drive to their other facilities in Illinois, Ohio and Kentucky," he said.
There are 200 Japanese firms operating in Indiana today, employing 35,000 Hoosiers, Ingraham added. The state's largest single employer is General Motors, with 32,000 workers.
"As you can see, the Japanese investment in Indiana has had a major impact in our economy," he said.
Ingraham said Indiana exports to Japan also have shown dramatic increases in the 1990s. And, due to changes within Japan's business culture, there is an opportunity to increase that trade as we enter the new millennium.
"Japan is Indiana's second leading trading partner, after Canada," he said. "There has been a 20.6 percent increase in exports to Japan since 1990.
"The Japanese are very receptive to foreign products. While the Japanese distribution system has been a daunting obstacle in the past, that is changing, particularly in the retail and service industries," Ingraham said.
A particular growth market in Japan is one catering to senior citizens, with an expected 20 percent of the country's population to be age 65 or over by 2005, according to Ingraham.
"There are myriad opportunities for companies that offer products and services for the aging," he said.
However, Ingraham cautioned, Indiana firms wanting to develop or increase trade with Japan will have to take a different approach than what is normally pursued with domestic customers.
"The most common mistake American firms make in trying to establish trade relations in Japan is taking a short-term approach," he said. "Most firms here are looking at the current quarter, but Japanese businesses take a long-term approach, looking out five or 10 years."
Understanding the Japanese market is also a key ingredient for business success, Ingraham said. That requires Indiana firms to invest significantly in market research before developing their trade strategies.
"It (market research) is expensive and it takes a lot of time to do," he said. "But once you do it and you're there, you're set."
Ingraham has more than 24 years experience in Asian affairs, living and working in the country for more than 15 years. He served as director of the Indiana Department of Commerce East Asian Office in Tokyo from 1983 to 1986.
