Selling into the US market has always been the ultimate challenge for Japanese software companies.  Make it here and you’re for real.  It’s the only legitimate way to claim success.  Succeeding only in Japan — ask Just Systems and their long-forgotten Ichitaro word processor — is not enough.

But the US market is big and geographically diverse, and linguistic and cultural barriers make it expensive and time-consuming.  What can a Japanese software startup do?

Leverage social media.

The landscape is constantly changing, but as of mid 2009, there are three main services you should be using: Twitter, Facebook, and YouTube.

Twitter

In Japan, Twitter is known as the “mumbling blog (つぶやきブログ)” which is an unfortunate translation.  Thinking of Twitter as unimportant things you’d say under your breath is misleading.  In the US, because it is a fast, quick way to get news, hints and links — in real-time — it is quickly overtaking blogging as a preferred way to communicate with users and the media.  It grew 3712% in April 2009, and it has become a major source of news and information for millions of users.

Twitter has several major advantages for Japanese companies:

1. It’s short.  The 140 character limit helps non-native English speakers.

2. It’s lightweight.  You are not allowed to write a full blog post.  Just a thought, a link, or a quick answer.  This makes Twitter easy to continue.  Corporate blogs always end up being too much work.

3. The US media reads it.  Twitter has two important audiences: The US media and your potential users.  Even just one would be good enough.

Case Study: Japanese software company Lunascape

Lunascape, an unknown commodity in the US through the end of 2008, was developing a “triple rendering engine” web browser.  Internet Explorer, Firefox, Safari and Chrome have virtually unassailable market share.  However, Page One PR helped Lunascape announce their alpha version, which garnered coverage in Tier 1 technology blogs like TechCrunch, Slashdot, Wired and many others.  Traffic spiked 30,000%.  (No joke.)  We then set up the Lunascape Twitter account.  Lunascape was able to attract over 150 followers, many of whom regularly talk up Lunascape, ask support questions, and recommend Lunascape to others.  As an important bonus, Lunascape is able to ask questions directly to its main users this way as well.  Even more valuable, several important bloggers and journalists now follow Lunascape and have established very direct channels of communication with the company.  This has helped keep Lunascape web traffic elevated long after the initial “big bang” press release.

Facebook

Facebook is the way to connect into a growing audience with a mix of static corporate information and live updates.  It is the largest social networking site, growing 700% over the past year.  It has a bigger and more professional audience than MySpace.  Automatically bringing your Twitter updates to Facebook requires no extra effort to keep your Facebook page up-to-date and interesting.

YouTube

Owned by Google, YouTube is the biggest video site in the US by far.  For explaining complicated software to the media, there is nothing better than a short, clear video.  Don’t think HD and clear lighting.  No, it’s “down and dirty,” just screenshots of the most interesting functionality.  Videos like this can explain complicated software clearly and catch viewers’ attention.

Will all of these social media sites be active and popular in a year or two?  Probably not.  The landscape is changing quickly.  But why wait?  You can gain access to US media and potential customers very quickly and easily.  Social media can be an important stepping stone to making it in the US.

Plat’Home, in discussions with Page One, realized that they needed more specific differentiation in the U.S. market and re-positioned the product value proposition around the microservers’ hidden strengths – low power consumption and extreme temperature resistance. In our rollout strategy at Page One, we also offered review units to reporters. You have to see these things to believe them. Out of the box, the high quality Japanese engineering and small size – a fully functional server that fits in the palm of your hand – has a big impact.

Plat’Home has the advantage of having market-tested products. While they appear to be a startup here, the products they sell in the U.S. market are in their fifth generation, with many large satisfied Japanese customers such as KDDI (telecom), HitachiSoft (software), Yomiuri (news), and Shimizu (construction).

Page One, in media outreach and Web-based guerilla marketing, focused on “tiny, green and extreme toughness,” to re-launch Plat’Home products in the U.S.. Clips piled up quickly, with coverage in CNET, Wired, The Register, Slashdot (with 188 comments), E-Commerce Times, and many other important IT trade publications.

U.S. web site traffic, the main barometer of success and where all sales leads originate, jumped 20-fold and then 70-fold and finally 90-fold. It was like an online firehose. In-coming sales leads tracked a similar trajectory, overloading Plat’Home’s ability to respond, initially (they subsequently added “Buy Now” buttons on most of their Web pages). That’s a nice problem to have!

The U.S. market is large and noisy for foreign companies entering for the first time. Adjusting to the landscape of U.S. media can also be daunting. But Plat’Home now has increased interest in the U.S. market, both in the media and with customers. They still have work ahead of them but they have built a good foundation for long-term success by focusing their messages and playing to their strengths.

Plat’Home-At-A-Glance
Daily U.S. web site traffic before Page One PR: life support, almost flat line. Minimal inbound sales queries (see trend lines in graph below).

March 31, 2008, first press release with Page One PR (clips in CNET, others):

• Web traffic up 2,000%;
• In-bound sales queries up 500% over historic traffic level.

April 21, 2008, second press release with Page One PR (clips in Wired and Slashdot, others):

• Web traffic up 7,000%;
• In-bound sales queries up 1,000% over historic traffic level.

April 28, 2008, follow-up Page One pitching on second news release sparks second round of media coverage (clips in The Register, others):

• Web traffic up 9,000%;
• In-bound sales queries up 1,300% over historic traffic level.



(percentage increases in plathome.com website traffic)