Attention Economy


Monday, November 6, 2017

A Simple Lesson in International Business – Know Your Foreign Customer

Why Aren’t U.S. Cars Popular in Japan?
ALANA SEMUELS notes:
“But protectionism is not the full explanation for why Japanese people don’t buy foreign cars. There are no import tariffs on cars, for example, while the U.S. and European Union impose 2.5 percent and 10 percent tariffs. And while Japanese cars are right-hand-drive, requiring manufacturing modifications before American cars can be sold there, this is no different from many other markets where foreign cars are prevalent.
Instead, the problem is in large part that American car dealers have been hesitant to invest in the kind of dealer network that consumers like Shujiro Urata have come to expect. “The way Japanese consumers buy cars is very different,” Deborah Elms, the executive director of the Asian Trade Center, told me. “Yet the Americans have not invested in a dealer network to break into the market.””

Related:
https://www.bloomberg.com/view/articles/2017-11-07/the-u-s-and-japan-don-t-have-a-trade-problem