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Should a Japanese partner pay you for exclusivity? What actually protects your brand

Many overseas brands assume that granting exclusive rights in Japan should come with an upfront fee. In our experience, the company willing to pay the most upfront is often not the partner who will build your market. What protects your brand is a plan, a first order, milestones and a clear way out.

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ANSWER FIRST

In short: a fee buys a signature, not a market

Instead of asking how much a partner will pay for exclusivity, ask what they will do in the first 90 days, what they will order, and what happens if they don't hit the milestones.

By Yuki Nojiri, CEO of Eifer, Inc. (Tokyo). Since 2019 Eifer has launched or supported 58+ overseas brands in Japan.

THE PROBLEM WITH FEES

Why the biggest upfront offer can be the weakest partner

An upfront fee feels like commitment. In practice it often works the other way. A company that has paid a large sum for your rights now needs to earn that money back before it takes any more risk. It becomes cautious with ad spend, slow with new channels, and happy to hold your rights while it waits.

Meanwhile your brand is locked out of Japan. The fee bought you a signature. It did not buy you a market.

In our experience, most exclusive deals for Japan are signed without an upfront fee. What the brand gets instead is a partner that puts its money into the launch itself.

WHAT TO ASK FOR

What to ask for instead of a fee

01

A launch plan

Who the Japanese customer is, which channel comes first, and what the first 90 days look like

02

A first order

A real wholesale order, even a small one, so the partner has stock in the game

03

Milestones

Minimums that grow with results, agreed in writing, instead of one big number on day one

04

A way out

If milestones are missed, exclusivity ends or narrows, and the rights come back to you

05

Clear scope

Territory, channels (online, retail, wholesale) and term, all written down

06

Visibility

Regular reports on sales, prices and customer feedback, so you can see how Japan is going

PROTECT YOUR BRAND

Two more things to check before you sign

  • Your trademark in Japan. Check whether it is registered and in whose name. It should be yours.
  • Who owns what after the deal. Japanese product pages, translated materials, certification documents and customer data: agree in writing what happens to them if the partnership ends.
OUR APPROACH

How Eifer structures a partnership

We are usually the side asking for exclusive rights, so we try to make the deal one we would accept as the brand. We buy at wholesale, starting with a small first order, and pay for the Japanese launch ourselves: localization, certifications such as PSE, crowdfunding, Amazon and Rakuten, ads and retail partners.

We are also selective. For every 100 overseas manufacturers we shortlist, we end up signing with two or three, because a launch only works when the product, the price and the partner fit at the same time.

Get in touch

Has a Japanese company asked for your rights?

Book a 30-minute call. We are happy to give you a second opinion on the offer, even if you end up working with someone else.

  • Minimal upfront cost for your brand
  • The form takes about 2 minutes
  • We reply within 3 business days
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