While XREAL is planning to expand in China with a new partnership with eyewear retail chain Doctorglasses, Yin Zhiqiang from XREAL Japan shared their experience and strategies in the Japanese market with 36kr. Here’s a summary.
Understanding the Japanese Market
Yin emphasizes that the Japanese market is more traditional than China’s. Direct advertising and KOL (Key Opinion Leader) marketing, while effective in China, don’t yield the same quick results in Japan. Building strong relationships with traditional media, government bodies, and industry institutions is crucial for long-term success. XREAL focused on cultivating these relationships, recognizing their profound impact on market penetration.
Adapting to the Local Culture
Yin highlights the importance of cultural sensitivity and adaptation. He recounts how he made a conscious effort to integrate into the Japanese work culture, starting with simple gestures like bowing to clients. He also cautions against blindly applying strategies that worked in other markets, describing a common three-stage process: initial confidence, followed by confusion, and finally anxiety.
Long-Term Vision and “Growing Downwards”
XREAL adopted a “grow downwards” strategy, focusing on:
- Localization: Building a local team to connect with Japanese society and establish brand presence.
- Deepening Relationships: Fostering long-term relationships with stakeholders, including universities and government agencies.
Content Education as a Core Strategy
XREAL’s core strategy revolves around “content education,” crucial for educating consumers about the new AR glasses. This includes:
- Familiar Scenarios: Demonstrating enhancements to existing experiences, like movies and gaming.
- Leveraging Social Media: Using micro-influencers who are passionate about technology for more effective engagement.
- Securing PR Endorsements: Collaborating with media outlets and institutions to build credibility.
- Enhancing Retail Experience: Establishing offline experience zones in major cities for hands-on product trials.
Results and Future Plans
XREAL’s approach has led to impressive results, including:
- Market share in Japan approaching 90%.
- 93% growth in 2023.
- Dominating Amazon’s smart glasses category.
In 2024, XREAL plans to enhance content education further, including engaging experiences like a “glasses fashion show” at Tokyo Tower.
Key Takeaways
XREAL’s success in Japan underscores:
- Cultural sensitivity and adaptation.
- Long-term vision and relationship building.
- Content-driven marketing focused on education.
- Integrating online and offline experiences.