Five Key Points to Avoid Failure When Expanding Traditional Crafts Overseas: Pitfalls and Solutions Explained by a Practitioner
- 堤浩記
- 2 日前
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"We exhibited at a trade show, but all the overseas buyers turned us down."
"It had a great reputation, but it didn't translate into actual sales."
"No matter how many trade shows we participate in, we don't see any results, and we can't figure out what the problem is."
Link Global receives numerous inquiries every month from artisans, manufacturers, and local government officials who are trying to expand the overseas market for traditional crafts. There are many traditional crafts that are highly regarded as "wonderful" in overseas markets, but why is it that there are so many that simply "cannot be sold"?
The majority of the problems stem not from "product quality," but from "the design of overseas expansion." On this page, Link Global will explain in detail the "five recurring failure patterns" we have observed from supporting over 100 companies, along with countermeasures for each. Please read to the end to avoid repeating the same mistakes.
Failure Pattern 1: Ending up with only the belief that "if we exhibit at a trade show, we'll sell."
This is the most common pattern of failure when expanding overseas. Trade shows are a way to connect with partners and buyers, but in reality, there are countless cases where people end up thinking, "Once I show up, it's over."
Specific examples of why exhibitions alone do not yield results.
Numerous buyers showed interest during the three days of the exhibition, but we lacked a system for follow-up afterward. We thought we'd contact them eventually, but they just disappeared. Overseas buyers always make contact after the exhibition, and the Japanese approach of "if you wait, they'll contact you eventually" doesn't work.
Measures to ensure that exhibitions don't end with just "participating"
It's crucial to position trade shows as a place to "decide the next step through impromptu business negotiations." It's essential to design a post-trade show follow-up system that involves obtaining lists from trade show organizers before the show, scheduling "business negotiation times" during the show, and deciding on "forwarding destinations, sample delivery, and the date of the next business negotiation" within 48 hours after the show. Link Global provides end-to-end support from trade show operation to post-show follow-up.
Failure Pattern #2: Taking "high domestic acclaim in Japan" and applying it directly to overseas markets.
The misconception that "if it's a desirable product domestically, it should be desirable overseas as well" is one of the major reasons for failure in overseas expansion. Even if a product has won awards domestically and has a track record of supplying to high-end department stores, it's a completely different story for overseas buyers.
Why what sells in Japan doesn't necessarily translate to success overseas
The criteria Taiwanese buyers actually use to evaluate products are "Can it be sold in the Taiwanese market?", "Is the risk of returns and complaints low?", and "Is the price-to-value ratio good?". While domestic store appearances and awards, such as "It's been displayed at Ginza no Yuki" or "It's in Yamada-i Department Store," are important factors for buyers, they are not necessarily the deciding factors.
Countermeasure: Calculate purchases based on the criteria used by overseas buyers.
Instead of creating sales materials using the same tools and equipment as for the Japanese domestic market, it is essential to prepare materials specifically for the Taiwanese market, incorporating cross-border e-commerce pricing, case studies, and exhibition response data from the Taiwanese market. Specifically, including descriptions of actual sales price ranges, competitor examples, and target demographics in the materials, as well as documenting that wholesale prices for products with traditional Chinese characters are 40-50% of the retail price, will significantly speed up trade show negotiations.
Failure Pattern #3: Trying to sell products without a story.
This may seem paradoxical, but 90% of products that try to expand overseas by thinking "if we make a good product, people will understand" fail. For overseas buyers, "who made it" and "what kind of passion went into making it" are among the biggest reasons for purchasing.
Why products without a story don't sell overseas
Buyers at overseas select shops receive pitches for new products costing just a few tens of yen every day. The ones that are selected are those that the buyer can display and explain to participants on the mountain after the product has passed. There is a simple difference in the story that can be woven into the display scene between "Wajima lacquerware born from the hearts of Kisen and Yamaya" and "Wajima lacquerware from an unknown manufacturer."
Countermeasure: Always include three elements: the craftsman's face, the place of origin, and the manufacturing method.
One thing you should focus on when expanding overseas is preparing an "8-second story." There's a huge difference in the depth of the story you present to buyers between a product that can be described as "Okayama Bizen ware made by a single third-generation craftsman at Hoshijima Tome, a workshop in the mountains of Okayama that has been in operation for 400 years," and a product that can only be described as "pottery from a mountain workshop." We recommend always including a video of the craftsman (under 1 minute), a map of the production area, and a single sheet of paper explaining the process.
Failure Pattern 4: Setting prices based on domestic standards
Overseas selling prices should not be determined simply by adjusting the retail price (domestic supplier's retail price), but rather by carefully considering the market trends in the Taiwanese retail market. Setting prices without considering shipping costs, retail margins, and customs duties will inevitably result in losses.
Correct formula for calculating overseas sales prices
Wholesale prices for distributors are typically 40-50% of the end-user retail price. For a product with a retail price of 10,000 yen, the calculation would be: Retail price (10,000 yen) → Wholesale price (50% of retail, 5,000 yen) → Shipping and other small-scale trading costs → Actual profit can be as low as 2,000-3,000 yen. The correct procedure is to first research the retail price range that customers in the Taiwanese market purchase at, and then work backward to determine the wholesale price you can receive.
Failure Pattern 5: Leaving everything to the agency and losing contact with them.
Many business owners, once they find a preferred agency, leave the rest to them. However, overseas agencies generally handle 20 or more brands, and some have a strong focus on introducing original brands as a matter of policy, while others favor smaller brands. Without cyclical support such as exhibition and production information provision, it's far more common for the relationship to end once the initial interest in the brand wanes.
Solution: Define a "90-day support plan" at the time of contract.
A practical way to break free from reliance on individual expertise is to include a "90-day support plan after implementation" in the contract. Consider specific support you can provide, such as "providing monthly images and copy for social media," "translating seasonal promotional materials into English," and "regularly sharing detailed statements with Taiwanese buyers." Whether you can become the "best product" within the agency depends on your story and support.
Failure Pattern 6: Insufficient research on the target market and premature decision-making.
Making major decisions based solely on vague information like "It seems there's a manga-related boom in Japan overseas" is extremely risky. What's most unfortunate is that in many cases where overseas expansion fails and people later realize "the domestic market was better after all," this could have been avoided if proper market research had been conducted beforehand.
Examples of failures that occur due to insufficient prior research
The pottery I brought to Taiwan hoping to be displayed alongside "Funjimang" in stores was left neglected in a pile of "Funjimang's" products. The store's display location, customer base, and price range of its main products were a complete mismatch for my items. It is essential to visit at least three local select shops beforehand and investigate the customer base history of each store.
Countermeasure: Validate the market with a "small-scale test" before the trade show.
Before exhibiting at a large trade show or signing an agency agreement, we strongly recommend conducting small-scale tests. There are many inexpensive methods, such as listing a small number of products on Taiwanese cross-border e-commerce platforms (Shopee, PChome) to gather reviews and feedback, having acquaintances living in Taiwan actually try out the products, or conducting trial sales at vending machines in Shangshi. The lowest-risk approach is to confirm through empirical evidence whether the products will be purchased and which categories appeal to which age groups before investing.
The "root cause" common to failure patterns
Ending with just a trade show, lacking a story, miscalculated pricing, sloppy agencies, insufficient research—the root cause of all these failures is "not designing overseas expansion as a project." Instead of one craftsman handling everything and responding to each order for specific trade shows or facilities, the best solution is to design a series of processes—"research → trade show → negotiation → agency agreement → ongoing support"—and to have consultants and support staff who can act accordingly.
What changes when you consult with Link Global?
Link Global has supported the overseas expansion of a wide range of traditional crafts, including Hokkaido Asahikawa furniture exhibitions in Taiwan (featured in the Hokkaido Shimbun newspaper), tableware, dyed goods, and tourist souvenirs. Our initial consultation is free, and after gathering information about your products, market, and budget, we will propose a concrete, practical expansion scenario tailored to your specific needs.
If you're struggling with expanding your traditional crafts overseas, please start with a free initial consultation. We'll work with you from the planning stage of your overseas expansion.