One Amazon: To support the DX of small and medium-sized enterprises Vol.17 | A new challenge for a long-established company that has expanded its sales channels to the world – About Amazon
There are two long-established companies that use Amazon Global Selling to sell on Amazon overseas. What effect has overseas sales on Amazon had on both companies, which have a long history? We will take a look at the new challenges of a long-established company.
Selling quality pearl jewelry on Amazon
Located in Hyogo PrefectureOtsuki Pearl Co., Ltd.Since our founding in 1930, we have been engaged in an integrated system from culturing pearls to processing and selling them into jewelry. We boast the top market share in Japan for first-grade Akoya pearls, and have been leading the industry for many years. Yuriko Nishitani of the company’s Internet Business Department says, “In addition to the volume we handle, our strength lies in our high level of technical ability in determining the quality of pearls.”
Mr. Nishitani“Even though pearls are of the same quality, there are subtle differences in their luster and shape.We inspect each pearl with the naked eye and sort them even more precisely according to our company standards.We combine our technical strength with the large amount of pearls we handle. This allows us to create beautiful jewelry with pearls of uniform quality.”
Although the company had established sales channels centered on domestic and international wholesale sales, expanding sales channels had been a long-standing challenge. Therefore, in 2010, they started selling on their own e-commerce site, and in 2012 they expanded their sales channel to Amazon.co.jp in Japan.
Mr. Nishitani“At first, there were some voices within the company that doubted whether we could convey the shine and quality of pearls through e-commerce. However, by implementing strict quality standards and thorough after-sales service, we gradually gained the trust of our customers. We started selling on Amazon because we felt the design of the listing screen was sophisticated and could clearly convey the appeal and quality of the product.”
Amazon Global Selling solves the challenges of overseas sales
As the company looks to further expand its sales channels, Amazon and the Japan External Trade Organization (JETRO) will jointly support its overseas expansion. JAPAN STORE programfrom 2022, usingAmazon.comStarted sales at. “While Japanese pearls are highly valued around the world, it was difficult to deal with the individual shipping and customs duties required when selling overseas through e-commerce, so we used the JAPAN STORE program as a solution,” Nishitani recalls. .
Mr. Nishitani“With the support of an Amazon representative, we started using Amazon Global Selling, which allows us to list (sell) items on Amazon overseas while staying in Japan.The United States has a mature market as an advanced e-commerce country. There is also a high demand for pearl jewelry.If we were going to sell overseas through e-commerce, we had decided to start in the United States.There are great advantages to being able to sell overseas without setting up a local subsidiary.”
Also,Fulfillment by Amazon (FBA)Mr. Nishitani continues, calling it an indispensable service.
Mr. Nishitani“With FBA, Amazon handles storage, order processing, packaging, shipping, and even customer service for orders and products on your behalf. You don’t have to find a warehouse or a shipping company to store your products in the U.S. It’s been extremely helpful. Amazon Global Selling has solved a variety of issues in overseas sales.”
Amazon’s services supported Pearl’s new value proposition
Sales on Amazon.com have been going well, and says Nishitani, “There are months when sales exceed domestic e-commerce sales.”
Mr. Nishitani“The brand is still poorly recognized in the United States, so we use Sponsored Product Ads and use the Store function to create pages to introduce the brand.We also use customer reviews as a reference to Overseas sales have expanded our product lineup and ideas, such as developing products with improved chain lengths to suit different body types.American customers who learned about us on Amazon.com came to Japan. I was very happy when he visited our directly managed store.”
The company also uses FBA on Amazon.co.jp to create time for product development by improving operational efficiency.
Mr. Nishitani“Pearls have a deep-rooted image of being something worn on special occasions, but we want them to become more familiar to us, so we are proposing designs and value that can be used on a daily basis.In the future, we will develop products that are popular in the United States. We plan to expand our products globally by selling them in Japan as well.Pearls, which are born from living organisms, have a shine that other gemstones do not have.We will continue to create special products that will be passed down from parent to child for a long time. I want to deliver products that are unique to the world.”
Started selling on EC to clearly convey the appeal and features of the product
Since the introduction of ink in the Asuka period, Nara Prefecture has developed as a producer of ink, and Nara ink has been designated as a national traditional craft.Founded there in 1902Kuretake Co., Ltd.The history of Kuretake also began with ink. “When we first started, solid ink was our main product, but our 120-year history has been filled with challenges,” says Sho Tateishi, Deputy Director of Planning and Marketing.
Mr. Tateishi“In 1958, our company created ink droplets for school children’s copying, and subsequently developed brush pens. Creating liquid or pen-type products using ink was unconventional in the industry at the time.In recent years, We are also trying to manufacture art supplies for art and calligraphy, and even cosmetics.”
We sell wholesale to stationery stores and art supply stores through agents and wholesalers, and have expanded our sales channels not only to Japan but also to 80 countries overseas.
Mr. Tateishi“Wholesale sales have the advantage of being able to widely distribute products by leveraging a wide network of agents and wholesalers.On the other hand, there are many products out there, and the problem is that we are not able to fully convey the appeal of our products. We decided to sell our products through our own e-commerce platform in 2019, believing that e-commerce would allow us to clearly convey the functionality and features of our products without them being buried on shelves.”
Sell products in 10 countries around the world using Amazon Global Selling
At the same time as our own e-commerce, we started selling on Amazon.com in the US using Amazon Global Selling.
Mr. Tateishi“The pleasant writing quality, unique color, and delicate tip of our products are recognized by overseas creators, both professional and amateur, and there is a very high demand overseas. With Amazon, you can directly communicate the product features, and you can purchase stationery. We can also deliver to customers who live in cities without stores.Currently, we sell on Amazon in more than 10 countries around the world, starting with the United States, Europe, and Australia, but this is because Amazon has marketplaces all over the world. Otherwise, it would not have been possible.”
He says that customer reviews from customers all over the world serve as an opportunity to create new products.
Mr. Tateishi“For example, we learned that solid paints developed for use at home were used overseas for outdoor sketching, so we developed a compact size product. Wholesale sales provide an opportunity to hear directly from customers. There aren’t many of us, so being able to hear the voices of customers from all over the world through Amazon Global Selling is very stimulating.”
We want to deliver products using digital technology and convey the importance of analog experiences.
In recent years, we have been actively disseminating information overseas using SNS.
Mr. Tateishi“We interact with customers and create connections with artists through SNS. We create videos of famous artists from overseas drawing illustrations using our products, and post them on Amazon product pages. Regularly. Coupled with the effectiveness of the Sponsored Product ads that we use in our marketing, brand recognition overseas is also increasing.”
Mr. Tateishi continues that Amazon’s services are important because his work has become more diverse.
Mr. Tateishi“In recent years, the era of direct-to-consumer transactions (D2C) has arrived, where manufacturers are also responsible for areas such as branding and promotion.That is why outsourcing operations such as FBA, where Amazon handles shipping of products around the world, have arrived. I think efficiency will become increasingly important.”
Mr. Tateishi says that in the future, he plans to strengthen collaboration with overseas agents and wholesalers and focus on overseas sales through both wholesale and e-commerce.
Mr. Tateishi“In order to respond to issues such as Japan’s declining birthrate and population, we would like to expand our overseas sales channels to reach more customers. Local small and medium-sized enterprises like our company can achieve this. This is possible because of Amazon Global Selling. We want to use digital technology to deliver products to customers around the world and convey the importance of the analog experience of the warmth of handwritten notes.”
Otsuki Shinju Co., Ltd. and Kuretake Co., Ltd. took on the challenge of selling overseas while staying in Japan using Amazon Global Selling. As a result, both companies have discovered new needs and perspectives through customer reviews from overseas customers, and are utilizing them in product development. Selling on Amazon Global Selling will be an opportunity for both companies to take on further challenges.
Amazon Global SellingWhat is it?
This is a service that allows you to list (sell) items on Amazon overseas while staying in Japan. Target regions span the world, including the Americas, Europe, and the Asia-Pacific region. Also,Fulfillment by Amazon (FBA)Amazon handles product storage, order fulfillment, packaging, shipping, and customer service for orders and products on your behalf.
About this series
Amazon offers a variety of services, including the “Amazon Selling Service” that supports sales on Amazon, the “Amazon Business” service for businesses that supports business purchases, the payment service “Amazon Pay”, and the cloud service “Amazon Web Services (AWS)”. We offer a variety of options to solve the challenges faced by companies. In this series, we will introduce the stories of small and medium-sized enterprises engaged in DX (digital transformation) and Amazon, which supports these DX in various ways.
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