Jan. 23, 2025
To build a distribution network that will add color to the lives of people around the world
In anticipation of a shrinking market due to Japan's declining population and significant economic development in emerging countries, an increasing number of Japanese manufacturers and retailers are becoming increasingly eager to expand their operations overseas. However, there are many challenges involved in expanding overseas, such as securing products and sales channels and developing local marketing strategies, and facing these challenges and implementing successful overseas strategies are important factors that will determine the future growth of domestic companies.
PALTAC has the trade know-how and connections with local distributors cultivated through over 50 years of experience in trade transactions. In addition, from 2022, PALTAC will take on the challenge of leveraging its distribution functions cultivated in Japan to engage in overseas wholesale business at its local subsidiaries established in emerging countries, thereby strengthening its ability to gather useful local information and sales capabilities.
In the future, we will leverage these strengths to first help our business partners resolve issues related to their overseas expansion. Then, we will take on the challenge of building a global network that seamlessly links products that add color to people's lives, regardless of whether they are Japanese or foreign products, using our bases, including our local subsidiaries, as hubs.
As a first step toward creating new value in our overseas business, we have established local subsidiaries in Vietnam and Indonesia, where remarkable economic growth is expected. By providing services that take advantage of the mobility and information-gathering capabilities of our local subsidiaries, we are steadily acquiring expertise in the local subsidiary business, such as supporting the overseas expansion of Japanese manufacturers and gaining a good reputation for proposing high-quality Japanese products suited to local needs.
As a first step toward creating new value in our overseas business, we have established local subsidiaries in Vietnam and Indonesia, where remarkable economic growth is expected. By providing services that take advantage of the mobility and information gathering capabilities of our local subsidiaries, we are steadily acquiring know-how in the local subsidiary business, such as supporting the overseas expansion of Japanese manufacturers and gaining a good reputation for proposing high-quality Japanese products that are suited to local needs.
In the future, we will take on new challenges to expand the scale of our local subsidiaries. In addition to our existing sales promotion proposals for Japanese products, we will work to develop local brands and take on the challenge of expanding cross-border distribution of local products. In addition, we will actively consider M&A and alliances with leading local companies in order to expand our sales network.
Through these efforts, we will take on the challenge of building a global network that seamlessly links attractive products and useful information with local subsidiaries as hubs, and will also conduct research to create new bases in neighboring countries where future economic growth is expected.
Vietnam and Indonesia, where we have established local subsidiaries, have large populations of young people and are on the rise, and their economies are expected to grow in the future. On the other hand, Japanese manufacturers are facing challenges such as managing information on local permits and licenses, marketing, and securing sales channels, and although they wish to expand into these markets, the hurdles are high. PALTAC's local subsidiary will solve this problem through a wholesale business that leverages the distribution functions and trading know-how it has cultivated in Japan. Specifically, the PALTAC Group will support the overseas expansion of manufacturers by directly handling the "application for permits and licenses" that handle confidential information (product ingredients, manufacturing methods, etc.) required for imports. We will also maximize the effectiveness of sales promotions through SNS and other means by utilizing the sales networks of trusted local distributors with whom we already have business relationships to distribute products widely and to gather useful information that only a local subsidiary can provide. Through these efforts, we will contribute to the realization of affluent and comfortable lifestyles for local people by distributing a wide range of high-quality Japanese products.
