Assessing the feasibility of expanding eBrands Global Oy’s business to Amazon Japan
Kohonen, Chih-Yu (2022)
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022060214508
https://urn.fi/URN:NBN:fi:amk-2022060214508
Tiivistelmä
The ecommerce market in Japan is attractive because of the high ecommerce penetration rate in the country. However, it is not easy for foreign businesses to enter the market due to the language barrier and differences in legislation, taxation and culture in general. The objective of this study was to gather information about the feasibility of eBrands Global Oy to expand its business to Amazon Japan. The thesis was carried out as a case study for one of eBrands Global Oy’s brands called Asebbo and its three types of insulated waxed canvas lunch bags.
This study explores the aspects that need to be investigated before entering a new market. The working methods are PESTEL analysis, demand and competition analysis, SWOT analysis and cost and profit analysis. Both quantitative and qualitative data were used for exploring the feasibility of expanding the business to Amazon Japan. The quantitative data was obtained via two market intelligence software solutions that provide the keyword search volumes, estimated monthly sales and the competitors’ estimated revenue. Analyzing this data provided information about the overall demand and competition level in the target niche. However, the data provided by these tools has a margin of error and uncertainty which needs to be considered especially in smaller markets like Amazon Japan. The qualitative data included industry news, customer reviews and governmental organizations’ websites.
The results show that well-known brands and cheaper products are favored by the customers in the target niche. The segment is too competitive because there are 60,000 products listed and their average price is much lower than the Asebbo products used in this case study. The brand used for the case study might not be suitable for Amazon Japan in terms of the profitability unless the manufacturing and shipping costs can be reduced. However, it is possible for eBrands Global Oy to expand its business to Amazon Japan with products that have a higher profit margin. Moreover, further research for branding is required as it was noticed that being recognized as a well-known international brand significantly impacts the Japanese consumers’ purchasing decisions.
This study explores the aspects that need to be investigated before entering a new market. The working methods are PESTEL analysis, demand and competition analysis, SWOT analysis and cost and profit analysis. Both quantitative and qualitative data were used for exploring the feasibility of expanding the business to Amazon Japan. The quantitative data was obtained via two market intelligence software solutions that provide the keyword search volumes, estimated monthly sales and the competitors’ estimated revenue. Analyzing this data provided information about the overall demand and competition level in the target niche. However, the data provided by these tools has a margin of error and uncertainty which needs to be considered especially in smaller markets like Amazon Japan. The qualitative data included industry news, customer reviews and governmental organizations’ websites.
The results show that well-known brands and cheaper products are favored by the customers in the target niche. The segment is too competitive because there are 60,000 products listed and their average price is much lower than the Asebbo products used in this case study. The brand used for the case study might not be suitable for Amazon Japan in terms of the profitability unless the manufacturing and shipping costs can be reduced. However, it is possible for eBrands Global Oy to expand its business to Amazon Japan with products that have a higher profit margin. Moreover, further research for branding is required as it was noticed that being recognized as a well-known international brand significantly impacts the Japanese consumers’ purchasing decisions.