SUCCESS IN T HE M AKING VIII

HOW CANADIAN COMPANIES ARE WINNING NEW MARKETS IN JAPAN Contents 1 ______SUCCESS Introduction 2 ______IN T HE M AKING Index of Companies 3 ______VIII Company Profiles 4-28 ______

What Is JETRO/ICF? 29 ______

Outline of 30-31 JETRO/ICF Programs ______

History of Success 32 HOW ______

CANADIAN JETRO/ICF Offices in Canada Inside Back COMPANIES Cover ARE WINNING NEW MARKETS IN JAPAN

JETRO / ICF 2001/2002 1 INTRODUCTION In this year’s edition of Success in the Making, I am pleased to note that the number of case studies profiled has not declined but actually risen, despite the obvious difficulties in the Japanese market, the downturn in the U.S. economy, the dot-com crash and the effects of September 11. In fact, we could have profiled even more, except that we were unable to include the stories of four companies due to reasons of confidentiality. Once again, the focal point of JETRO’s activities in Canada during the last fiscal year centred on the Japanese IT Mission to Canada. The success of the 2000 IT Mission to Canada prompted JETRO to organize another mission consisting of about 48 Japanese business delegates who visited Montreal, Toronto, Calgary and Vancouver. They met 146 Canadian business representatives during the mission and made site visits to over 10 Canadian companies and research facilities. In addition, over 70 Canadian companies gave presentations and product demonstrations to members of the Japanese mission. Some of the companies profiled in this publication, Kaydara, Pacific Links and Pattern Discovery Software, have had great success out of these IT Missions. Notable in this year’s edition is the large number of environment-related stories, which emerged mainly out of JETRO’s Import Fairs, Environment Japan 1999 and 2001, and the Environment Import Product Specialist Program. Ballard Power Systems was a high-profile exhibitor at Environment Japan 2001. Our two Senior Trade Advisors and Advisor on Investment in Japan have also been active in supporting Canadian firms, including two cases of direct investment in Japan by Carroll Healthcare and Hydrogenics. Other companies used a wide variety of our programs to find success in Japan such as the Export to Japan Study Program, the Invest in Japan Study Program, Business Support Centres and the Housing Materials Centre.

I am especially pleased to introduce the first biotechnology companies included in this series, Caldwell Bio Fermentation and Signal Gene. These success stories emerged out of the Montreal-Hiroshima region-to-region program and I look forward to JETRO assisting many future biotech tie-ups between Canadian and Japanese firms. Lastly, we were pleased to welcome again a Saké Mission to Canada. Forty-eight sakés from sixteen brewers were exhibited at a tasting event attended by over 120 people, including media and wine connoisseurs. We were also presented with an excellent speech by Philip Harper, the only foreign saké brew master in Japan, on the joys of saké and the intricacies of the saké brewing process. From this collection of success stories, I hope that more Canadian companies will be motivated to look for opportunities to do business with Japan and ignore the negative media concerning the state of the Japanese economy. Japan still has one of the highest GDPs and savings rates in the world and the Japanese public is more than ever looking for products from abroad. The companies in this publication have found success in Japan; I hope that you do to.

Tomofumi Setsuda Executive Director JETRO Toronto

JETRO / ICF 2001/2002 2 INDEX OF COMPANY PROFILES BY PRODUCT CATEGORY

Biotechnology Products Caldwell Bio Fermentation Canada Inc...... 4 Signal Gene ...... 5 Construction / Housing Products Lauzon Distinctive Hardwood Flooring ...... 6 Winsire Enterprises / MegaPro Tools Inc...... 7 Environmental / Fuel Cell Products Aqua-Plant Construction Co., Ltd...... 8 Axys Analytical Services Ltd...... 9 Ballard Power Systems Inc...... 10 EnviroMetal Technologies Inc...... 11 Hydrogenics Corporation ...... 12 Lord & Partners Ltd...... 13 Napier Environmental Technologies Inc...... 14 Sanexen ...... 15 Food & Beverage Products GBK Canada ...... 16 Joseph’s Estate Wines ...... 17 Leahy Orchards Inc...... 18 Healthcare Products Carroll Healthcare Inc...... 19 Techno Scientific Inc...... 20 Technology Products Advanced Chemistry Development Inc...... 21 Colubris Networks ...... 22 Global Geomatics ...... 23 Kaydara ...... 24 Pacific Links ...... 25 Pattern Discovery Software Systems Ltd...... 26 SpiderSoftware ...... 27 Miscellaneous Products Brookdale International Systems Inc...... 28

JETRO / ICF 2001/2002 3 CALDWELL BIO FERMENTATION CANADA INC. (ORIGINALLY BIO LACTO)

Contact Info: “We offer a new twist on vegetables,” says Gary Caldwell, President of 189, de la Rivière Rd., Caldwell Bio Fermentation Canada Inc., a Canadian company that Martinville, QC creates mixed-culture starters used to ferment vegetables for human J0B 2A0 consumption. “Bio lacto vegetables have some significant health Phone: (819) 835-9277 advantages over ordinary vegetables,” he explains, “for example, the [email protected] sugar content of these vegetables is transformed by lactic bacteria into www.biolacto.com a more easily assimilated form, making them a food recommended for diabetics. This is a huge selling point for us.” Contact: Gary Caldwell, Over the past three years Caldwell has been working towards the goal President of expanding its business into foreign markets, including Japan’s. Caldwell was first confronted with the idea of export to Japan in 1999 Established: when a partner research centre in Quebec recommended JETRO’s 1984 services.

Employees: JETRO put Caldwell in contact with a Japanese company that was 4 interested in their vegetables and so, the company’s export business to Japan began. After a series of meetings in Canada as well as in Hiro- Annual Sales: shima, organized through JETRO’s Montreal-Hiroshima Region-to- n/a Region Programme, Caldwell and the Japanese company reached an agreement. Explains Mr. Caldwell, “although it won’t be finalized for Export Sales to Japan: a few months yet, the basic terms of the deal have been negotiated: n/a the Japanese company will have exclusive rights to our vegetable starter product and will purchase enough starter to ferment 1000 Products: tons of vegetables.” Vegetable Starter “Japan proves to be a great market for us,” says Mr. Caldwell. “Tradi- JETRO Services: tionally, the Japanese consume a lot of vegetables prepared in a similar fermented manner. However, a law recently passed in Japan now Region-to-Region requires that the percentage of salt used in the curing process be Program reduced from the typical 8 percent down to 2 percent. They came to us in need of a new process to achieve this reduction and that is exactly what we provided them with.”

When asked what advice he could give to other companies looking to break into the Japanese market, Mr. Caldwell stresses the importance of aligning your company with an organization like JETRO’s. “As a small company, it would have been quite difficult to gain recognition in Japan – being backed by JETRO’s reputation was a considerable asset. They have been extremely generous and really did so much for us.”

JETRO / ICF 2001/2002 4 SIGNALGENE

“It’s a catch-22,” declares Pierre Chrétien, Vice President Opera- Contact Info: tions, Clinical Genomics Unit at SignalGene. “When entering a new 8475 Christophe-Colomb Avenue, Suite 1000 market, you want to target your efforts to a select group of compa- Montreal, QC nies to maximize your resources – at the same time, being new to H2M 2N9 that market, and unfamiliar with the companies in operation there, Phone: (514) 850-2400 you want to avoid limiting your opportunities by taking too narrow Fax: (514) 850-2424 an approach.” [email protected] www.signalgene.com

SignalGene, a biopharmaceutical company that researches and Contact: develops novel therapeutics, was fortunately spared the dilemma Pierre Chrétien, described above when JETRO contacted the company. “JETRO Vice President Operations, helped us to get in touch and to set up meetings with a Japanese Clinical Genomics Unit technology development partner,” explains Mr. Chrétien. Established: 1992 SignalGene also attended a trade show organized by JETRO in 2000 – it was there that they met with a Japanese biotech company Employees: that was interested in engaging their technologies and capabilities. 65 “Our discussions with this particular company eventually led to a Annual Sales: small project,” says Mr. Chrétien. “We’re now signed on to test one n/a of their technologies – a diamond chip, which is a small piece of synthetic material capable of binding nucleic acids.” SignalGene is Export Sales to Japan: interested in testing the device with the goal of determining how it n/a may improve some of their own genomic technologies. In turn, the Products: Japanese partner would be receiving an additional application for Genetic Analysis their product. Processes

“Since our first contact with JETRO, we’ve found the organization’s JETRO Services: Region-to-Region services to be of endless help to us – they’ve provided us with Program everything from translators to logistics support,” Mr. Chrétien notes. JETRO also furthered SignalGene’s understanding of Japa- nese business culture. “We were quite surprised at the length of time it typically takes companies to come to an agreement – it’s very different from the fast pace of deal-making in North America.” JETRO / ICF 2001/2002 5 LAUZON DISTINCTIVE HARDWOOD FLOORING

Contact Info: “LAUZON Distinctive Hardwood Flooring is a well-established 2101 Côte des Cascades exporter in the Asian market,” says Robert Coveney, Vice President Papineauville, QC J0V 1R0 Sales & Marketing. “We’ve been exporting to Japan since 1990.” Phone: (819) 427-5144 Fax: (819) 427-5056 LAUZON first generated interest in its products among Japanese [email protected] companies through Canadian government contacts who arranged www.lauzonltd.com business interviews. Interviews led to mill tours and mill tours, to Contact: orders. “As we began to grow our business in Japan, a need devel- Robert Coveney, oped to know the ins and the outs of operating there. We turned to Vice President Sales & JETRO for help,” says Mr. Coveney. “Our company gained visibil- Marketing ity through JETRO’s Housing Materials Centre, a permanent Established: showcase of building products, and benefited from their efforts.” 1985 “Although we still have much to learn about the Japanese market, Employees: our experience confirms that it’s wise for a foreign company to hire 530 a local sales representative – someone who will be there to display Annual Sales: products and offer technical advice to clients. We found JETRO’s $140 million involvement very helpful in positioning our company in the Japa- nese business community.” Export Sales to Japan: n/a In his export adventures, Mr. Coveney has discovered that flooring Products: and clothing styles have much in common – both are subject to the Hardwood Flooring whims of fashion. “What works in Canada, does not necessarily JETRO Services: work in another country,” he admits. “We’ve found that market Housing Materials trends can sometimes be a challenge – we have to stay on top of Centre Japanese trends and make sure that we understand what Japanese clients are looking for.”

Mr. Coveney is clear about LAUZON’s future goals for export to Japan. “Our efforts will be concentrated on generating increased public, contractor and architect awareness of our product – and, of course, on negotiating more contracts.” JETRO / ICF 2001/2002 6 WINSIRE ENTERPRISES / MEGAPRO TOOLS INC.

“It drives people crazy when they’re working with a screwdriver and Contact Info: they can’t find the right bit – you know you have it somewhere, but 5492 Production Blvd., you can’t locate it,” says Hermann Fruhm, President of MegaPro Tools Unit #5 Inc., a company that designs and manufactures screwdrivers with Surrey, BC retractable cartridges. Mr. Fruhm knew that there must be a way to V3S 8P5 make bit selection easier and faster, and wanted to create a perfect Phone: (604) 522-3652 screwdriver which does just that. Carving the original MegaPro Fax: (604) 533-9793 prototype screwdriver from a block of wood, Mr. Fruhm has since [email protected] helped out fellow handymen the world over. www.megapro.net

MegaPro’s retracting screwdriver has been a big hit in Japan since Contact: 1999 – the year MegaPro began exporting the product to Japan. Hermann Fruhm, President Contributing to MegaPro’s early success was the company’s access to JETRO resources. “Their library and directories helped us to learn Established: about Japanese companies that MegaPro might do business with,” 1994 says Mr. Fruhm. “We left promotional materials and contact informa- tion at the JETRO offices and, in turn, received inquiries from inter- Employees: ested Japanese companies.” 3

After lengthy discussions with a number of Japanese companies, Annual Sales: MegaPro secured a deal with YKO Hiroshima Inc. – a Japan-based n/a company who will now distribute the MegaPro screwdriver in the Asian market. “We just sent another shipment of our drivers out to Export Sales to Japan: YKO last week,” Mr. Fruhm says, “and we hope to get another one n/a out soon.” Products: “Exporting your product to different countries can be an educating Retracting Screwdriver experience,” explains Mr. Fruhm, “Based on some test marketing we carried out, we found that the handle of our screwdriver was awk- JETRO Services: wardly large for consumers in Japan. We are currently redesigning a Senior Trade Advisor handle with a smaller diameter.”

Having worked in the Japanese market for two years, Mr. Fruhm has gained invaluable knowledge about exporting abroad: “You really need to listen to your customers and consider their feedback – after all, without them, you really wouldn’t have a market. We have to remember that ‘the customer is always king’, mastering that – you are almost guaranteed success.” JETRO / ICF 2001/2002 7 AQUA-PLANT CONSTRUCTION CO. LTD.

Contact Info: “Initially we wanted to bring Japanese technologies to Canada,” says 329-1508 West Broadway Robert Wyckham, Manager of Marketing and Sales of Aqua-Plant Vancouver, BC Construction Co., Ltd., an environmental company that specializes in V6J 1W8 treating waste water. “As it turns out however, we discovered it was Phone: (604) 734-3514 more efficient for us to export Canadian technologies to Japan. So Fax: (604) 734-3520 that’s what we did.” [email protected] www.aqua-plant.co.jp In 1999, at JETRO’s Import Fair: Environment Japan, Aqua-Plant met a number of Japanese contacts who were interested in their Contact: technologies – in particular, that of arsenic removal from ground Robert Wyckham, water. After a series of meetings, a deal was signed between Aqua- Manager of Plant and Japanese company Sanix. “We’ve installed an arsenic Marketing and Sales treatment centre into a sports facility for Sanix,” Mr. Wyckham explains. Established: 1993 “They put on the most valuable trade shows,” Mr. Wyckham says of Employees: JETRO. “The one in 1999 helped us to strike a deal and the one we 3 attended in 2001 has brought us many contacts.” Aqua-Plant has since been busy doing a variety of projects for a number of different Total Annual Sales: companies. “We are looking forward to bringing more of our tech- n/a nologies to Japan,” says Mr. Wyckham, when asked about his future exporting plans. Export Sales to Japan: n/a Mr. Wyckham’s advice to other companies interested in exporting to Japan is to recognize the importance of patience and, oddly enough, Products: the metric system! “It can take a long time for everything to finally Wastewater Treatment come together – the Japanese take their time in examining every Technologies detail of your company. Nothing can come as a result of your efforts without the requisites of time and patience.” To his point about the JETRO Services: metric system’s importance, he adds: “the Japanese are accustomed to Environment Japan it – save yourself a lot of time and confusion by adapting to it before- Trade Show hand.”

Mr. Wyckham has spent a lot of time in Japan and urges others to do the same. “Because there are so many people in such a small area, you can actually feel the energy emanating from the people around you – it’s such an indescribable feeling, something I haven’t experi- enced anywhere else.” JETRO / ICF 2001/2002 8 AXYS ANALYTICAL SERVICES LTD.

Axys, a full-service laboratory specializing in dioxin and PCB Contact Info: analyses, has been doing business in Japan since 1999 and it P.O. Box 2219, 2045 Mills Road was at JETRO’s Import Fair: Environment Japan that Axys Sidney, BC Analytical Services Ltd. first broke into the Japanese market. V8L 3S8 “JETRO not only allowed us to participate, they provided us Phone: (250) 655-5800 Fax: (250) 655-5811 with translators and did all our advertising and publicity – for [email protected] that we are really grateful,” says Mr. Hope, President of Axys. www.axys.com

Contact: The novelty of the environmental field in Japan has contrib- Dave Hope, uted to the success that Axys has experienced there. “There is President so much potential in Japan, and since Japanese companies are Established: just starting at this business, Axys wins many of the jobs that 1974 they are not yet comfortable performing,” explains Mr. Hope. Employees: “It’s been great – although on the flip side, since it is such a 100 new industry, we really have to work to prove ourselves.” Annual Sales: $5-10 million When asked, Mr. Hope enthusiastically provides some advice for companies interested in exporting to Japan. “Make use of Export Sales to Japan: n/a all the free services out there: JETRO, the government and the embassies – all are there to help,” he says. “Associate your Products: company with an organization that will lend your company Environmental (Dioxin and PCB) credibility in Japan – being supported by JETRO really en- Testing Services couraged Japanese companies to pay attention to us.” JETRO Services: Environment Japan Currently, Axys limits its services to two environmental compa- Trade Show nies in Japan, however, as the environmental field develops, Axys plans to expand into new areas of testing and manage- ment. “In the near future, we hope to start up some joint ventures,” Mr. Hope says optimistically. “A good thing is happening, and it’s due in large part to JETRO!”

JETRO / ICF 2001/2002 9 BALLARD POWER SYSTEMS INC.

Contact Info: Over the past few years, Ballard Power Systems, a world leader in fuel cell 9000 Glenlyon Parkway technology, has actively developed relationships in the Japanese market in a variety Burnaby, BC of industries including transportation, electronics, telecom and others. In addition, Ballard has formed a jointly-owned company, EBARA BALLARD, with its joint V5J 5J9 venture partner in Japan, EBARA Corporation. EBARA BALLARD is working to Phone: (604) 454-0900 identify opportunities for the use of fuel cell products in stationary and portable Fax: (604) 412-4700 applications ranging in power from 1 kilowatt to 250 kilowatts. For Ballard the www.ballard.com challenge of entering the Japanese market with groundbreaking technology has been strongly supported by EBARA Corporation. Ballard is also working with Contact: Tokyo Gas and Osaka Gas, two leading developers of fuel processors who are also Marketing Department distributors of gas and gas appliances in Japan’s two largest cities. In seeking new opportunities, Ballard was interested in Japan because of its large Established: domestic market and its role in international markets. With its high cost of energy, 1979 Japan has a strong desire for new energy technologies that makes fuel cells and their cogeneration attributes a highly attractive option. There are broad opportunities for Employees: applications in transportation, stationary and portable markets. Ballard is currently ~ 1,400 developing three products that will meet the needs of the Japanese marketplace. A 1 kilowatt cogeneration stationary system for the Japanese residential market is being developed through EBARA BALLARD. Ballard has also promoted its Nexa™ Annual Sales: power module, a 1.2 kilowatt DC portable power product, to the Japanese In 2001, Ballard received marketplace and the company continues to work with its Japanese customers on orders totaling US$157 transportation applications. In addition, one of Ballard’s 250 kW stationary million. generator is undergoing field trials with Nippon Telegraph and Telephone in Tokyo, Japan. Export Sales to Japan: n/a In 2001, with the assistance of JETRO, Ballard participated in the Environment Japan trade show. Before and during the show, JETRO supported the company’s interface with the Japanese media and coordinated with the Canadian Embassy in Products: Japan to support tradeshow activities. Ballard had a strong presence at the show, Carbon Fiber Products, and received much interest and significant publicity. John Harris, Vice President, Electric Drives, Fuel Marketing and Sales, said, “The support given by JETRO was instrumental in our Processors, PEM Fuel Cells, success at Environment Japan.” PEM Fuel Cell Engines and Systems, Power Electronics. For companies considering expansion in Japan, Harris notes that the market is intensely competitive, and that Japanese consumers demand very high quality, performance and durability. Companies must pay close attention to the needs of the JETRO Services: Japanese market and the voice of the Japanese customers to ensure that products are Environment Japan of the highest quality and are adequately supported by customer service. Essential Trade Show to developing a new technology is requirements and applications feedback. The Japanese market provides this function.

Looking ahead, Ballard expects to build on its well-established partnership with EBARA Corporation for short and long term strategic projects in Ballard’s target markets. For transportation markets, Ballard strives to work more closely with its existing partners and customers such as Honda, Nissan and Mazda and will continue to investigate new Japanese automotive customers. JETRO / ICF 2001/2002 10 ENVIROMETAL TECHNOLOGIES INC.

“Although our company had an initial contact in Japan, the economic Contact Info: downturn there made it difficult for us to make progress in 1999,” says 745 Bridge St. W., Suite 7 Stephanie O’Hannesin, Principal for EnviroMetal Technologies Inc., Waterloo, ON developer of a patented technology for the clean-up of contaminated N2V 2G6 ground water. “JETRO helped us out immensely in 2000 by representing Phone: (519) 746-2204 our technology at an environmental exposition last spring, as part of their ext.235 Import Product Specialist Program.” She continues: “There was appar- Fax: (519) 746-2209 ently a lot of interest expressed at the show because JETRO returned to [email protected] Canada with several contact names of potential clients.” www.eti.ca Contact: Following EnviroMetal’s successful showing at the environmental exposi- Stephanie O’Hannesin, tion, the company was then chosen to participate in JETRO’s Invest in Principal Japan Study Program – a program that brought selected foreign environ- mental companies and Japanese trade specialists together in Japan for a Established: 10-day visit to expose the companies first hand to Japanese market 1992 conditions and trends. Additionally, over the 10-day period, unscheduled time was used for business appointments for companies like EnviroMetal Employees: to meet potential Japanese partners. 7

“IJSP was wonderful and so well organized,” Ms. O’Hannesin says appre- Annual Sales: ciatively. “It was a delightful trip with overwhelming hospitality. JETRO’s 1.2 million resources are amazing,” she declares. Export Sales to Japan: The story of EnviroMetal’s initial interest in exporting to Japan has to do n/a with the country’s growing movement toward environmental responsibility. Ms. O’Hannesin explains that Japan is looking to clean up its ground Products: Patented Technology for water and will most likely do so within the period before EnviroMetal’s Ground Water 20-year patents expire. Remediation

EnviroMetal garnered a lot of interest from Japanese companies and in the JETRO Services: November 2001 signed a joint exclusive license with Kurita Water Indus- Import Product tries Ltd. and Dowa Mining Co., Ltd. to market and implement the Specialist Program, IJSP patented technology in Japan. The clean-up technology will be applied at contaminated sites in Japan starting in 2002.

“Exporting to Japan is a challenge,” Ms. O’Hanneson admits. “It takes a long time to build relationships and to help them get comfortable with your technology. The Japanese really like to know their prospective partners well – it’s a very different culture.” JETRO / ICF 2001/2002 11 HYDROGENICS CORPORATION

Contact Info: Whether through a committed recycling program or by means of a strict 5985 McLaughlin Road avoidance of styrofoam, today’s citizens the world-over are attempting to Mississauga, ON preserve the earth by conducting themselves in an environmentally friendly L5R 1B8 manner. As a progressive company, Hydrogenics shares their aspirations. Phone: (905) 361-3660 Hydrogenics designs and builds fuel cell systems for power generation as Fax: (905) 361-3626 well as equipment for fuel cell testing and diagnosis. Fuel cells, which [email protected] convert chemical energy from hydrogen and oxygen into electrical energy www.hydrogenics.com to produce an electrical current, are a very clean and safe form of energy.

Contact: Hydrogenics began exporting fuel cells and fuel cell test stations to Japan Alex Beaudet, in July 2000, and since then, has seen interest in its technologies blossom. Director of Japan Office Hydrogenics was first approached by Toyota Tsusho, a Japanese trading company, who expressed interest in the fuel cell technology. “When they Established: came to us we really didn’t know too much about the Japanese market,” 1995 explains Alex Beaudet, Director of Hydrogenics’ Japanese Office, “but a call to JETRO, and Hydrogenics was quickly equipped with an Advisor on Employees: Investment in Japan and office space in Japan at its Business Support 160 Centre. They were a phenomenal help.”

Annual Sales: “When a company moves into a foreign market, there is so much to know n/a – it can be overwhelming,” says Mr. Beaudet. “ JETRO however, made the process easier by providing us with numerous contacts and unlimited Export Sales to Japan: use of their library which enabled us to quickly understand the culture and n/a what our company needed to do to see success in Japan. They provide an unparalleled wealth of free resources that companies interested in export Products: to Japan should definitely take advantage of.” Fuel Cells, Fuel Cell Test Stations Mr. Beaudet urges Canadian companies to not feel intimidated by Japan. “Many people think that Japan is already too far advanced technologically JETRO Services: and, that Canadian products or services must be too basic to compete Advisor on Investment there,” he says. “In fact, huge potential exists for Canadian companies in in Japan, Business the Japanese market.” Support Centre Hydrogenics anticipates a continuation of the success it has seen in the past few years. Developing marketing plans, advancing fuel cell technology and building up products to market in Japan, are just a few of the things that will keep Hydrogenics busy in the near future.

“There is an intensity in Japan that defies description,” says Mr. Beaudet. “If you thrive in activity-filled environments, you’re fortunate. You’ll find it exhilarating rather than exhausting.”

JETRO / ICF 2001/2002 12 LORD AND PARTNERS LTD.

Barry Young, President and CEO of Lord and Partners Ltd., a manufacturer of Contact Info: environmentally responsible solvents and cleaners, speaks enthusiastically of the 9-741 Muskoka Rd. services JETRO has provided to his company. “They’ve been most kind. When #3 North they invited us to attend NEXPO 2000 in Japan, as part of their Import Product Specialist Program, they paid for our booth, shipment of our materials and even Huntsville, ON translators while we were there,” he says appreciatively. P1H 2L3 Phone: (705) 788-1966 “When Japanese company executives came by our booth, the gracious translators Fax: (705) 788-1969 were there to explain our products. In addition, JETRO had translated our product [email protected] information onto a handout for the Japanese executives to take away with them. www.lordandpartners.com JETRO’s people really extended themselves trying to help us,” Mr. Young explains.

Lord and Partners first became interested in exporting its environment friendly Contact: products to Japan due to the country’s leadership in environmental technology and Barry Young, Japan’s push toward environmentally responsible practices. “The country is President and CEO extremely clean, having resolved many problems Canada hasn’t even begun to address,” says Mr. Young. In addition, the company was compelled to seek business Established: in Japan because of the country’s dense population – “more people in Tokyo than in 1990 all of Canada,” Mr. Young points out.

Because of their wealth of experience in the field, Mr. Young finds the Japanese to Employees: be more sophisticated than North American clients. “The Japanese executives ask 15 more questions and better technical questions,” he explains. “For example, they ask me questions about ingredients even before I have a chance to present the informa- Annual Sales: tion to them. They’re very inquisitive and extremely well prepared,” he says n/a admiringly. Export Sales to Japan: While Mr. Young finds the preparedness and high quality standards of the Japanese challenging, he welcomes it. “Their standards are extremely high, it’s true, and n/a Canadian businesses will be challenged by them but it’s a positive feature of the Japanese because it leads them to realizing a healthier and safer work environment.” Products: Environmentally Upon returning from JETRO’s Import Fair: Environment Japan 2001 in Novem- Responsible Solvents ber 2001, Lord & Partners signed an agreement with a major trading company in and Cleaners Tokyo, Japan – Sceti Co. Ltd. – to import, distribute and sell Lord & Partners’ environmental products throughout the country to the industrial, automotive, and marine business sectors as well as to government clients at the local, provincial and JETRO Services: national levels. In addition to this considerable success, Lord & Partners is currently Environment Japan in talks with another major distributor who supplies product to retailers throughout Trade Show, Import Japan. Product Specialist Program In terms of advice for other companies considering exporting their products to Japan, Mr. Young advocates patience and perseverance. “The Japanese go through structured channels and systems much more so than their Canadian and U.S. counterparts,” he says. Whereas Canadian distributors might act as importer and wholesaler as well, Japanese culture and the country’s dense population favours a separation of duties – it’s a slower process that demands patience and perseverance.” JETRO / ICF 2001/2002 13 NAPIER ENVIRONMENTAL TECHNOLOGIES INC.

Contact Info: Napier Environmental Technologies Inc. develops environmentally friendly 720, Eaton Way alternatives to hazardous chemicals used in industry. Formed in 1990, Napier has invested considerable resources in researching, developing and bringing to market a Delta, BC range of sophisticated de-coating chemicals. The products have been extensively V3M 6J tried and tested in several industries and have surpassed the expectations of Phone: (604) 526-0802 customers. Now, as Napier opens up new markets through a series of strategic global ext. 2429 alliances, it is poised for considerable growth in the forthcoming years. Fax: (604) 526-7772 [email protected] With a confirmed distribution agreement signed in the past year, Napier has found www.napierenvironmental.com success in exporting its chemical paint strippers to Japan. The paint strippers are based on a revolutionary new technology called SARA Technology, which has been Contact: developed and patented by Napier worldwide. The technology utilizes the physical Vinod Jhamb forces generated by chemical reactions, to break the adhesive bond between the paint and the substrate. In addition to being extremely effective on high perform- Established: ance coatings, the strippers are worker safe and environmentally friendly. 1990 Following Napier’s first trade show in Japan, JETRO, through the Import Product Specialist Program, provided the company with the opportunity to exhibit at Employees: NEXPO in Tokyo, allowing them to expand their base of contacts. Napier recom- n/a mends that other companies considering export to Japan should utilize JETRO’s assistance and its associate organizations to help move their program forward much Annual Sales: faster. n/a In terms of what makes Japan an attractive market for export, Napier conveys that it Export Sales to Japan: provides an ideal mix of marketing opportunities to make their technology success- n/a ful, including Japan’s high level of concern for the environment, and worker health and safety; a high cost of labour; and the country’s willingness to accept new Products: technologies and techniques. Chemical Paint Strippers Napier did run into a few challenges with exporting to Japan. It took time to find JETRO Services: the right partner for distribution and language barriers made communications Import Product difficult. Also a complete lack of knowledge of distribution methods in Japan Specialist Program coupled with an awareness that things are done differently from North America proved to be challenging.

Once the company got past these challenges, they learned that the Japanese market differs from other markets in that Japanese distribution networks are tightly interlinked and supportive of each other. Napier found that different business houses co-operate with each other to promote products, contrary to the company’s previous experience in other parts of the world, where these businesses would try to compete with each other.

Napier has future plans to increase product awareness and market penetration in Japan as quickly as possible.

JETRO / ICF 2001/2002 14 SANEXEN

“With one deal sealed and a second on the way, Sanexen is experienc- Contact Info: ing great success in the Japanese market,” says Normand Bernier, 579 Le Breton Street Special Consultant to Sanexen. Sanexen, a full service environmental Longueuil, QC waste management company, has been involved with Japan-based J4G 1R9 company Ebera since 1999 and is currently in negotiations with Phone: (450) 646-7878 another company. Fax: (450) 646-5127 [email protected] In 1995, Sanexen presented a paper on waste management at a www.sanexen.com conference in Vancouver which was attended by several Japanese companies. As a result of the conference, several of them began Contact: talking with Sanexen. In the end, it was Ebera, one of Japan’s largest Normand Bernier, environmental companies, that struck a deal. Sanexen provided Ebera Special Consultant with knowledge of PCB testing. As the environmental field continues to develop, Sanexen and Ebera continue to work together at adapting Established: the PCB testing technologies. Sanexen then sought out JETRO’s 1985 services to further establish their company in Japan. “The two best things about JETRO are their wonderful library and their representa- Employees: tives in Japan – they were exceptional at providing us with guidance,” 70 says Mr.Bernier. Annual Sales: When asked what tools a Canadian company should possess to n/a succeed in the Japanese market, Mr. Bernier responds that patience and attention to detail are of the utmost importance. “Expect to be in Export Sales to Japan: negotiations for four to five years and know that they are looking for n/a perfection.” Illustrating the distinctiveness of the Japanese and Canadian business styles, Mr. Bernier adds: “you’ll be expected to Products: explain your company, its products and services in fine detail to the Environmental Japanese. It’s worth the effort though – once they have fully appreci- (Dioxin and PCB) ated your company, you’ll have the opportunity to create a business Testing Services relationship and bond of loyalty to last a lifetime.” JETRO Services: Mr. Bernier also points out that a company’s credibility greatly Region-to-Region influences the way they are received in Japan. “The Japanese regard Program our longstanding relationship with organizations such as Quebec Hydro and Ontario Hydro as a major indicator of Sanexen’s abilities.”

In 2002, Sanexen plans to finalize negotiations with a second Japa- nese affiliate – a contact that Mr. Bernier acknowledges appreciatively was made through JETRO. “We’d like to take all the credit,” he says lightheartedly, “but we owe many thanks to JETRO’s Montreal- Hiroshima Region-to-Region Program for this one.” JETRO / ICF 2001/2002 15 GBK CANADA

Contact Info: Although it may not be a popular dish in Canada, in the city of 2514 Burnford Trail Mississauga, ON Osaka, it’s all the rage. Aburakasu, as it is called in Japanese, is L5M 5E3 by all accounts a fragrant and flavorful dish consisting of fried Phone: (905) 821-8313 beef intestine – small intestine, that is. The exotic dish has Fax: (905) 821-2152 [email protected] garnered Japanese-based Global Kitchen and its Canadian www.global-kitchen.co.jp counterpart GBK Canada great business success.

Contact: Yuka Tsuno, Established in Japan in 1995, Global Kitchen began import- Manager ing, cooking and distributing beef products. “We decided to come to Canada and open a branch because beef here is Established: 2001 cheaper and available in greater quantity than in Japan,” says Yuka Tsuno, Manager of GBK Canada. Employees: 2 “We first approached JETRO to learn about business exporting Annual Sales: between Canada and Japan – JETRO’s Senior Trade Advisor n/a was very helpful in providing us with translators and in explain- Export Sales to Japan: ing business practices to us,” says Ms. Tsuno. “We also used n/a JETRO’s library a lot – it was perfect for finding just the right Products: contacts.” Cooked Beef Small Intestine Research completed, GBK Canada was established in 2001 JETRO Services: Senior Trade Advisor and has been busy exporting beef products to Global Kitchen in Japan ever since.

GBK Canada was able to successfully send beef products to Japan where Global Kitchen would distribute to restaurants and retailers. Although Global Kitchen is currently the only distributor in Japan, GBK Canada has another contract underway. “We will hopefully have the contract signed by this spring,” says Ms. Tsuno.

JETRO / ICF 2001/2002 16 JOSEPH’S ESTATE WINES

“Everyone enjoys the finer things in life,” says Flord Eliz Legarda- Contact Info: Custodio, Vice President of Exports for Joseph’s Estate Wines. Lo- 1811 Niagara Stone cated in the heart of the Niagara wine region, Joseph’s Estate Wines Road, RR3 attracts thousands of tourists each season – all eager to sample the Niagara-on-the-Lake, ON estate table wines and distinctively flavored ice wine. L0S 1J0 Phone: (905) 338-9072 “We began to notice that a lot of visitors to the winery were from Fax: (905) 338-8460 Japan,” explains Ms. Legarda-Custodio, “Seeing this, a question [email protected] immediately came to mind – why not bring our wines to Japan?” www.josephsestatewines.com With this idea, Ms. Legarda-Custodio sought out JETRO’s services and began doing research on the Japanese market. “The first thing Contact: we had to do was find statistics and background information on the Flord Eliz wine business in Japan. JETRO’s Senior Trade Advisor was truly Legarda-Custodio, helpful in this regard.” Vice President of Exports The next step in Joseph’s Estate Wines’ path to success in Japan was attending a Fukuoka Prefecture trade show. There they met a leading Established: logistics and distribution company in Japan. “Before we could even 1983 think about exporting to Japan, we had to figure out if it was logisti- cally feasible,” explains Ms. Legarda-Custodio. “It is most important Employees: to know the essentials upfront – information such as market analyses 30 and shipping logistics – before even attempting to negotiate with Japanese companies.” Annual Sales: n/a Satisfied with their research, Joseph’s Estate Wines began exporting to Japan in September 2001. “We signed a deal with Nittsu Sanji in Export Sales to Japan: Japan who purchased several cases of our ice wine. They will begin n/a marketing our wines during their upcoming ‘gift season’ in Japan.” Products: When asked what advice she would give to companies looking to Table Wines export to Japan, Ms. Legarda-Custodio stressed the importance of JETRO Services: building a good rapport. “You are unknown when you first meet a Japanese company, so it is so important to have an established organi- Senior Trade Advisor zation make the introduction for you – by using JETRO we were perceived to have far greater credibility than what would have been attributed to us had we arrived without their support.”

“Having a unique product also helps,” notes Ms. Legarda-Custodio. “If you are exporting something that they haven’t seen yet in Japan, success is bound to be a little sweeter – like our ice wine.”

JETRO / ICF 2001/2002 17 LEAHY ORCHARDS INC.

Contact Info: “An apple a day keeps the doctor away” – a noteworthy maxim for the 1772 Route 209, health-minded and a well-loved slogan for members of the apple industry. Franklin Center, QC Don Keddy, Director of Sales and Marketing at Leahy Orchards Inc., an J0S 1E0 applesauce and apple snack manufacturer, reports that “business has been Phone: (514) 827-2544 great.” Leahy’s commitment to quality and service has made them the Fax: (514) 827-2470 largest supplier in Canada, maintaining over 60% market share and [email protected] producing over 90% of all private label apple products. www.applesnax.com Since 2001, Leahy has been exporting applesauce to Japan. Their involve- ment in the Japanese market began when they attended a gourmet food Contact: show organized by the Government of Quebec’s Agriculture Department. Don Keddy, A number of Japanese companies were persuaded to come to Canada by Director of Sales and the Quebec Government’s Tokyo office and they were given advice and Marketing Export, recommendations by JETRO’s Guelph-based Agri-Food Senior Trade Private Label and Advisor at the show. It was here that Leahy met the Japanese food im- Foodservice porter who would become their first distributor. After a series of discus- sions regarding the logistics, permits & licenses, and feasibility of export- Established: ing to Japan, Leahy and the Japanese distributor came to an agreement. 1980 Commenting on Leahy’s business practices in Japan, Mr. Keddy discloses: Employees: “out of loyalty and a desire to maintain a strong business rapport, I am 160 only interested in doing business with one Japanese agent/distributor at a time.” He explains: “the Japanese culture is very much centered around Annual Sales: quality and loyalty. Once a bond is formed, it has the potential to last a lifetime – provided it’s properly nurtured.” $45-50 million “Canadian companies should definitely try out the Japanese market, but Export Sales to Japan: they shouldn’t expect results right away. Deals take at least six months $75,000 - $100,000 from initial talks to the final distribution,” says Mr. Keddy. As each country has its own set of import/export regulations, Canadian companies Products: looking to export to Japan should be aware of Japanese regulations rel- Applesauce evant to their particular industries. “We noticed that Japan’s health and food approval process takes much longer than it does in some other JETRO Services: countries,” says Mr. Keddy. “Despite differences in food regulations, Senior Trade Advisor Leahy has managed to adapt quickly and efficiently to business in Japan – overcoming even the cultural and linguistic barriers that exist.”

When asked what advice he might give to other companies looking to crack the Japanese market, Mr. Keddy advises: “Take the time to select an agent that fits your needs and knows the market. Also, be patient. Not only does the approval process take a lot of time, effort and research, but things like difference in time zones can make getting or giving information a week long process. A reliable email system is an absolute necessity. I think that’s the best advice I could give to a company.” JETRO / ICF 2001/2002 18 CARROLL HEALTHCARE INC.

“A comfortable bed is something that we commonly take for granted,” Contact Info: says Kazuyo Sooudi, Representative Director of Carroll Healthcare Inc. 994 Hargrieve Rd. “That is, until by reason of infirmity or old age, we become dependent on London, ON one 24 hours a day.” Since 1975, Carroll Healthcare has been designing N6E 1P5 and manufacturing long-term healthcare beds that have revolutionized the Phone: (519) 659-1395 market. From sturdy solid wood head and footboards to an adjustable Fax: (519) 659-4001 [email protected] height mechanism that lowers closer to the ground than any other, Carroll www.carrollhealthcare.com Healthcare’s five bed designs take into consideration a full range of patient and caregiver needs. Contact: Kazuyo Sooudi, Carroll Healthcare began exporting to Japan in December 2000 after Representative Director conducting an extensive feasibility study that revealed some important facts about Japan. “Our study told us that Japan leads the world with its Established: elderly population, a market which is very important to us,” says Ms. 1975 Sooudi. “A healthcare conference, that we attended allowed us to speak to several Japanese business executives in related fields who confirmed for us Employees: the presence of a demand in Japan for our beds.” 120 Annual Sales: Upon deciding to pursue the Japanese market, Carroll Healthcare sought n/a out JETRO’s assistance. “We knew virtually nothing about doing business in Japan,” explains Ms. Sooudi. “JETRO had to teach us all the basics of Export Sales to Japan: conducting business with the Japanese. JETRO’s Advisor on Investment in n/a Japan was tremendous – we couldn’t have moved into the Japanese market without his help.” Products: Long-Term Healthcare Carroll Healthcare is currently looking to expand its presence in Japan. Beds “Ideally, we’ll convince many more hospitals and long-term care facilities to use our beds – it’s something that we are trying to negotiate,” says Ms. JETRO Services: Sooudi. Advisor on Investment in Japan Ms. Sooudi cites loyalty as one of the biggest challenges to overcome when exporting to Japan. “The Japanese people are incredibly loyal in business relationships – a quality that proves difficult for foreigners trying to get into the Japanese market,” she says. “Acquiring credibility is essential to securing deals in Japan as is the ability to speak the same ‘language’. Far beyond knowing the right words, it’s imperative to approach the Japanese in a manner that is respectful of their culture and business practices. This is something we learned from our contacts at JETRO,” Ms. Sooudi says. JETRO / ICF 2001/2002 19 TECHNO SCIENTIFIC INC.

Contact Info: Upon hearing of Techno Scientific’s sonic cane mobility assistive device, 13 – 231 Millway Ave. one imagines a high-tech toy that James Bond might play with in his Concord, ON twilight years – with some further explanation however, the sonic cane L4K 3W7 emerges as an exceptionally practical device used by the vision-impaired to Phone: (905) 760-1745 be made alert of obstacles located along the path ahead. “It’s really quite a Fax: (905) 760-1746 revolutionary device,” says Dr. Mirek Macecek, President of Techno [email protected] Scientific. www.technoscientific.com While such a universally useful device would appear to require little Contact: localization, Dr. Macecek’s experience proves contrary to that assumption. Dr. Mirek Macecek, “We had to modify the cane for the Japanese market,” he says. “In Japan, President where streets are narrower, sound bounces everywhere – the sonic cane had to be adjusted to accommodate Japan’s crowded city environment.” Established: 1980 Techno Scientific spent several years in negotiations with Japanese compa- nies before seeing any contracts come to fruition. Approximately three Employees: years ago, the company was approached by JETRO, offering to showcase 20 Techno Scientific’s product in Japan, as part of its Import Product Special- Annual Sales: ist Program. “It was from this presentation that we started to hear from 1-2 million several Japanese companies,” says Dr. Macecek.

Export Sales to Japan: “Up to that point, our principle export markets had been the US and 1% of sales Europe,” he explains. “We recognized however the potential for us in Japan upon learning of the country’s large aging population and the Products: considerable coverage the Japanese health care system provides to its Mobility Assistance citizens.” Device for Visually Impaired In order to achieve a solid understanding of the Japanese market, Techno Scientific made use of several JETRO resources – attending seminars and JETRO Services: making contacts through the organization’s network. Import Product Special- ist Program Currently, Techno Scientific supplies its products to two different compa- nies in Japan, who in turn distribute them throughout the country. Al- though pleased with the company’s success to date, Dr. Macecek wishes to further promote Techno Scientific in Japan by participating in trade shows and following up with new contacts.

The advice Dr. Macecek gives to other companies interested in exporting to Japan is simple: “it’s certainly worth trying, ” he says. “Just make sure you have a local contact like JETRO to assist you – that’s very important.” JETRO / ICF 2001/2002 20 ADVANCED CHEMISTRY DEVELOPMENT INC.

‘Software that is so well integrated, it’s easier done than said,’ is the tagline Contact Info: on the website of Advanced Chemistry Development (ACD) and, it 90 Adelaide Street, Suite 702 couldn’t be more fitting for a company that takes something as complex as Toronto, ON chemistry and makes it simple. ACD is a chemistry software company M5H 3V9 offering solutions that integrate chemical structures with analytical chemis- Phone: (416) 368-3435 try information. ACD creates innovative software packages that provide Fax: (416) 368-5596 chemical research scientists with a host of services including, [email protected] spectroscopic validation of structures, elucidation of unknown substances, www.acdlabs.com chromatographic separation, preformulation of novel drug agents and chemical patenting and publication. Contact: Val Kulkov, President Established in 1994, ACD excelled quickly to become a leader in the field of scientific software for chemistry purposes. Looking to further expand Established: its reach, ACD turned its attention toward Japan – the company’s third 1994 largest market following North America and Europe. “When we decided to break into the Japanese market we looked to JETRO to help us get Employees: started; they provided us with a wealth of valuable business information 30 regarding economic, political, technological and regulatory environments in Japan,” says Val Kulkov, President. “Without JETRO, our entry into Annual Sales: the Japanese market would have been slower, more difficult and much n/a more costly.” Export Sales to Japan: Mr. Kulkov offers up an important observation to companies interested in n/a export to the Japanese market. “The Japanese are better than foreigners at doing business in Japan – it’s so obvious yet it’s a fact too often ignored by Products: foreign companies trying to break into the market.” To maximize ACD’s Scientific Software chances of success in Japan, the company sought out a Japanese partner to distribute its technology and provide assistance to its Japanese customers. JETRO Services: Advisor on Investment in Recently ACD announced a partnership agreement with Japanese com- Japan pany Fujitsu Limited. Fujitsu will distribute ACD’s entire portfolio of software solutions to the chemistry-based research industry throughout Japan. This initiative with Fujitsu expands ACD’s marketing reach in Japan significantly and enhances its customer support capabilities in this market.

When asked about ACD’s future, Mr. Kulkov responds enthusiastically: “The company’s sales in Japan have been growing steadily since 1996 and, with our new distribution agreement with Fujitsu, we can only anticipate further increases in revenues.” JETRO / ICF 2001/2002 21 COLUBRIS NETWORKS

Contact Info: “Colubris Networks was just established in 2000 and already, it’s well 420 Armand-Frappier, on its way,” says Pierre Cardinal, Director of Sales. You might not Suite 200 expect such international success from a relatively new company or, Laval, QC maybe you would if that company was in the business of providing H7V 4B4 cutting-edge wireless Internet technologies. And, that is exactly what Phone: (450) 680-1661 Colubris Networks does. Fax: (450) 680-1910 [email protected] Colubris Networks was approached by JETRO about a year ago with www.colubris.com promising news. “We were told that JETRO was interested in Contact: showcasing our technology at a trade show in Japan, as part of its Pierre Cardinal, New Business Specialist Program, and that they could put us in Director of Sales contact with Japanese companies who would likely be interested as well,” says Mr. Cardinal. It was with these contacts that Colubris Established: Networks began working with Japan-based companies Marubeni and 2000 Rikei. To date, both companies have purchased wireless equipment from Colubris Networks and are currently in negotiations to transact Employees: second purchases. 40 Mr. Cardinal observes significant differences between the Japanese Annual Sales: market and other markets he’s done business in. “Much more time is n/a needed – while companies in other countries tend to finalize things in a matter of weeks or months, the Japanese like to take their time and Export Sales to Japan: n/a meet with you much more often,” he says. “If you’re a person who likes traveling, it’s great – you’ll visit Japan frequently and get to Products: know the country and its people well.” Wireless Internet Networks Having tasted success in Japan, Colubris Networks is eager to expand JETRO Services: further. “We’d like to do business with more companies in Asia,” Mr. New Business Cardinal explains: “The wireless technology is huge and Japan is a Specialist Program, great market for us.” Business Support Centre As advice to other Canadian companies looking to export to Japan, Mr. Cardinal offers his mantra. “Participate, be patient, and you will penetrate,” he says of a market that is often described as ‘difficult to get into’. The importance of guidance is also vital to a company’s success in exporting. “Colubris Networks was headed in the right direction but JETRO’s guidance really sped up the process for us – without JETRO we wouldn’t be this far along at this point in time.”

JETRO / ICF 2001/2002 22 GLOBAL GEOMATICS

“We’re able to pinpoint almost any location in the Contact Info: 825 Querbes Avenue, world by means of an aerial photograph in a matter of Suite 200 minutes,” says Alban Thomann, Director, Business Outremont, QC Development. “That’s an extremely powerful tool. So H2V 3X1 Phone: (514) 279-9779 powerful in fact, that the mapping capabilities of Glo- Fax: (514) 279-0255 bal Geomatics are employed by the US and French [email protected] armies – among the most sophisticated armies in the www.globalgeo.com world.” Contact: Alban Thomann, Global Geomatics became involved in the Japanese Director, Business Development market in 2000 and was able to do so with the help of JETRO, through its Business Support Centre service in Established: Tokyo. “JETRO has been very helpful: from sourcing 1989 business advisors to providing conference rooms, they Employees: have proved invaluable to us time and again,” Mr. 12 Thomann says. Annual Sales: n/a With JETRO’s participation, Global Geomatics was Export Sales to Japan: able to establish numerous business contacts in Japan. n/a The contacts that Global Geomatics made proved to be quite successful. Although, an official announce- Products: Mapfusion - access, ment has not taken place, Global Geomatics has nego- visualization, sharing, tiated to be represented in Japan by a Japanese com- and distribution of pany. heterogeneous and distributed geodata Based on his experiences in Japan thus far, Mr. JETRO Services: Export to Japan Study Thomann has learned well the importance of thinking Program, Business long-term. “There are no quick deals in Japan, trust Support Centre and understanding need to be developed for relation- ships to progress – and that only happens with time.”

JETRO / ICF 2001/2002 23 KAYDARA

Contact Info: “If you don’t know how to use chopsticks, better that you learn,” 4428 Boul. St. Laurent advises Dan Kraus, Director of Business Development for Kaydara. Suite #300 “It’s very important to the Japanese that the Canadian business Montreal, QC people they work with understand and appreciate their culture. Table H2W 1Z5 utensils are a little thing, but the little things added up mean so Phone: (514) 842-8446 much to the success of a business relationship – to the success of any Fax: (514) 842-4239 [email protected] relationship, for that matter.” www.kaydara.com Kaydara, a software company that creates character animation tools Contact: for video games and films, participates in an industry that is currently Dan Kraus, booming in Japan. To take advantage of the burgeoning software Director of Business demand there, Kaydara turned to JETRO for business advice. “While Development working with them, we met Koei – a fellow animation company in Japan to whom we sold our 3-D animation software”. Established: 1993 “JETRO really helped further our business development there,” Mr. Kraus says. “Even though we had already successfully established ties Employees: in the Japanese market on our own, they were able to carry us farther 70 by strengthening those existing bonds and by expanding our pool of Annual Sales: contacts. We thought we knew all the relevant companies in Japan n/a until they came along and introduced us to so many more.”

Export Sales to Japan: When entering a foreign market, Mr. Kraus believes one of the most n/a important factors to success is to be introduced by a credible, highly regarded third party. “Being backed up by JETRO helps a lot – Products: without their endorsement it’s difficult to get Japanese companies to 3-D animation software listen to your pitch.” Mr. Kraus also believes solid product knowl- edge is another key to business success in Japan. “The Japanese are JETRO Services: extremely keen and will probably know more about your product Japanese IT Mission to than you would expect. You have to be prepared – know whom you Canada want to sell your products to and why,” he advises.

When asked about Kaydara’s future prospects in Japan, Mr. Kraus exudes confidence in his answer. “Japan’s unwavering commitment to and fascination with technology keeps us hopeful. We are planning to expand business there by nurturing our current relationship with Koei and by actively pursuing new potential clients using JETRO’s extensive network of business contacts.” JETRO / ICF 2001/2002 24 PACIFIC LINKS

“Pacific Links was named to reflect the company’s mission to be the Contact Info: bridge between Canadian and Japanese technological companies,” says 10 Yonge Street, Steve Fry, President of Pacific Links, “by providing the full range of Suite 3507 services needed by Japanese companies wanting to do business in Canada Toronto, ON and by Canadian companies wanting to do business in Japan.” M5E 1R4 Pacific Links’ most significant client to date is Mitsui Canada, a Canadian Phone: (416) 899-1680 subsidiary of a Japanese company looking to establish a new IT solutions Fax: (416) 367-1418 group in Canada. The company’s goal is, more specifically, to provide IT [email protected] consulting services to Japanese companies in the Toronto area based on www.pacificlinks.ca the model of their successful IT solutions division in Japan. Contact: With his own extensive experience in the IT industry in both Canada and Japan, Mr. Fry is confident about the contribution Pacific Links will make Steve Fry, in helping Mitsui achieve its goals in Canada. “Pacific Links has been President hired to play a key role in this project owing to our background,” he says. Pacific Links is providing a wide range of services that include establishing Established: partnerships between Mitsui Canada and local solution providers, helping 2001 to develop a marketing plan and providing ongoing support during the sales and development process as a technical advisor. Employees: Interestingly, the establishment of Pacific Links and the company’s rela- 3 tionship with Mitsui was born out of Mr. Fry’s participation in a JETRO IT Mission held in October 2000 which he then, in fact, attended to Annual Sales: promote a now separate Internet development services company called n/a Epicent. Export Sales to Japan: “Last year in October, when I gave a speech at the IT Mission on behalf n/a of Epicent, among the many people I met were representatives of Mitsui,” Mr. Fry recalls. “At the time, there were no immediate opportunities to work together but we fortunately kept in contact and, in April 2001, that Products: opportunity came when Mitsui decided to move forward in establishing a Canada-Japan Business Toronto-based IT solutions group.” Services

Mr. Fry is eager to give credit to JETRO for the unfolding of these events. JETRO Services: “I think this is an excellent example of how Canadian and Japanese Japanese IT Mission to companies can come together and find successful business opportunities through JETRO’s efforts,” he says adding: “if it weren’t for that IT Mis- Canada sion, I never would have met with the people at Mitsui.”

In addition to establishing Mitsui in Canada, Mr. Fry is also working with local Canadian software companies to prepare their product for Japan. Through Pacific Links’ network of industry contacts in Japan, the company provides business development services by arranging introduc- tions to potential Japanese partners and negotiating distribution agree- ments. Pacific Links also specializes in software internationalization and localization.

JETRO / ICF 2001/2002 25 PATTERN DISCOVERY SOFTWARE SYSTEMS LTD.

Contact Info: “They are astute matchmakers and extremely professional,” says 550 Parkside Drive, Unit B9 Wade DesRoches, President and CEO of Pattern Discovery Waterloo, ON Software Systems Ltd. of his involvement with JETRO. Pattern N2L 5V4 Phone: (519) 888-1001 Discovery, a company that creates unique software technologies Fax: (519) 884-8600 for a number of different uses, has been exporting financial [email protected] services software to Japan since early 2001. www.patterndiscovery.com

Contact: “JETRO introduced us to Japan-based Axiom and, from that Wade DesRoches, President and CEO introduction, a business relationship grew,” says Mr. DesRoches when asked how Pattern Discovery began doing business with Established: Japanese companies. Axiom, a company that develops biosen- 1997 sor equipment, uses software created by Pattern Discovery in its Employees: operations. Although the two have only been working together 20 for a year – it has been a year of great success. Annual Sales: n/a To illustrate his experiences in developing new business in Export Sales to Japan: Japan, Mr. DesRoches says: “Patience is a necessary virtue – n/a negotiations with Japanese companies tend to take some time.” Products: Mr. DesRoches notes however that there are exceptions to the Financial Software rule. “Our contract with Axiom came so quickly – it was a surprise and most certainly a welcome exception to the rule.” JETRO Services: Japanese IT Mission to Canada Although Pattern Discovery has no immediate goals to seek business in Japan beyond its relationship with Axiom, Pattern Discovery maintains an optimistic attitude to doing business abroad. “When you are pitching a tangible product like ours that is to a large extent self-explanatory, differences in language don’t significantly impede business relations – language actually becomes secondary.”

JETRO / ICF 2001/2002 26 SPIDERSOFTWARE

SpiderSoftware, a developer of content acceleration technologies, is Contact Info: basking in their recent successes. As a relatively young company, 512-1529 West 6th Ave. SpiderSoftware has been doing tremendously well. “In the past few Vancouver, BC months, we have seen a lot of exciting movement,” says Brian V6J 1R1 Craddock, Vice-President of Sales at SpiderSoftware. Phone: (604) 637-0200 Fax: (604) 637-0205 [email protected] “We really wanted to break into the Japanese market,” says Mr. www.spidersoftware.com Craddock, “so we teamed up with JETRO and our Asian representa- tives, NewQuest Capital, to help us find potential contacts in Japan.” Contact: After JETRO showcased its products at PC Expo in Tokyo last year as Brian Craddock, part of its New Business Specialist Program, SpiderSoftware met the Vice President of Sales kind of Japanese companies it had been looking for. Established: In December 2001, SpiderSoftware announced a distribution part- 2000 nership with Marubeni Solutions Corporation, one of the largest resellers of networking solutions in Japan. Based in Tokyo, with offices Employees: across Japan, Marubeni will distribute SpiderSoftware’s technologies. 20

“Japan is one of the most technologically sophisticated countries in Annual Sales: the world with the highest number of Internet users in Asia. This n/a requires Japanese companies to adopt leading Internet infrastructure Export Sales to Japan: solutions – like the ones we provide,” says Mr. Craddock. “Our n/a partnership with Marubeni is critical to bringing SpiderSoftware to the Asian market.” Products: Server Solution Software “You have to be tenacious, keeping in mind that the end result will be well worth the energy you expend upfront,” advises Mr. Craddock, JETRO Services: urging Canadian companies to be realistic in their forecasting. De- New Business Specialist spite the economic climate, drawn-out negotiations, and the long Program selling cycle, Mr. Craddock recommends companies look into export- ing to Japan, “It’s a really favourable place for Canadian companies – especially in the high-tech industry.”

Japan has seen huge growth in the e-commerce industry in the past year and estimates it will grow to more than $53.3 billion by the beginning of 2002. Given SpiderSoftware’s strong ties with Marubeni, SpiderSoftware is poised to reap the benefits of Japan’s e- commerce explosion.

JETRO / ICF 2001/2002 27 BROOKDALE INTERNATIONAL SYSTEMS INC.

Contact Info: Brookdale, a DuPont company, is a world-leading designer and 1-8755 Ash Street manufacturer of respiratory protective escape devices. One device in Vancouver, BC particular – a device resembling a pop can attached to a hood – has V6P 6T3 revolutionized fire safety practices in Canada and around the world. Phone: (604) 324-3822 “Our product is mainly used in office buildings and high rises – it Fax: (604) 324-3821 provides up to 20 minutes of filtered air, and allows people to get [email protected] down stairways, avoiding smoke inhalation,” explains Mr. McCleery, www.evac-u8.com Account Executive, Asia Pacific.

Contact: Brookdale markets its award-winning products internationally, with Patrick McCleery, over 250,000 units sold in over 40 countries around the world. Account Executive, Asia Pacific Discussions about exporting to Japan began in 1995, but it wasn’t until 2001 that Brookdale’s exporting business really heated up. “We Established: had a few small orders over the past few years, but it didn’t gain real 1990 momentum until last year when we signed a deal with Koatsu Co., Ltd. in Japan, giving the company exclusive distributing rights to our Employees: product in Japan,” explains Mr. McCleery. 35 Mr. McCleery joined Brookdale two years ago, to head up the Asian Annual Sales: market division. Having remembered hearing about JETRO, Mr. n/a McCleery was quick to contact their Senior Trade Advisor in order to list Brookdale in JETRO’s Import Business News: “From this free Export Sales to Japan: publicity we began to receive a number of calls from Japanese n/a companies who wanted to meet with us.” Mr. McCleery continues, “I’ve book-marked JETRO’s web address as one of my favourites – I Products: review it regularly to see what trade shows or seminars are coming Fire Safety Personal up.” Emergency Escape Smoke Hoods Although business is booming for Brookdale – the company is not currently pursuing any new contacts in Japan. “From time to time, JETRO Services: we get calls from Japanese companies interested in our product – Senior Trade Advisor, when this happens, we immediately redirect them to Koatsu,” Import Business News explains Mr. McCleery. Mr. McCleery’s advice to Canadian companies intending to export to Japan is to pay a personal visit. “Meeting potential Japanese partners is critical to your working relationship – no quantity of emails or phone calls can substitute the learning you gain from a face-to-face meeting. Personal interaction teaches you so much more about a company and its lines of business.”

JETRO / ICF 2001/2002 28 WHAT IS JETRO/ICF?

JETRO The Japan External Trade Organization (JETRO) is a non-profit, government-related organization dedicated to promoting mutu- ally beneficial trade and economic relationships between Japan and other nations. Headquartered in Tokyo, JETRO has a net- work of 38 offices in Japan and 80 overseas offices located in 59 countries.

JETRO has 3 offices in Canada – in Toronto, Montreal and Vancouver – as well as two Senior Trade Advisors and an Advisor on Investment in Japan. Working closely with all levels of government and industry organizations, JETRO’s activities in Canada are designed to promote two-way trade and investment partnerships between Canadian and Japanese companies.

ICF Formed in 1993, the Canada-Japan Industrial Co-operation (ICF) was established upon the initiative of JETRO for the purpose of strengthening industrial co-operation between Canadian and Japanese enterprises and facilitating the collaboration of relevant government offices in both Canada and Japan.

The ICF is comprised of the Canadian Chamber of Commerce, Canadian Manufacturers & Exporters (formerly Alliance of Manufacturers & Exporters Canada), the Toronto Japanese Association of Commerce and Industry (Shokokai) and JETRO, which acts as Secretariat to the ICF. “Ex-officio” members include, as appropriate, representatives from Agriculture Canada, Natural Resources Canada, the Department of Foreign Affairs and International Trade (DFAIT), Industry Canada, and all provincial and territorial governments. In addition, the Canadian Council of Chief Executives (formerly Business Council on National Issues) acts as an Advisor to the ICF.

JETRO / ICF 2001/2002 29 OUTLINE OF JETRO/ICF PROGRAMS

ADVISOR ON INVESTMENT IN JAPAN At JETRO’s Toronto office, there is an advisor always ready to assist Canadian companies with inquiries about direct investment in Japan, for example, market opportunities, how to set up an office, joint venture partners, licensing, taxation practice or accounting.

BUSINESS SUPPORT CENTRES (BSC) To assist foreign business people in launching their marketing efforts in Japan, JETRO maintains Business Support Centers in Tokyo, Yokohama, Nagoya, Osaka, Kobe and Fukuoka. They offer up to four months of free office space. In addition, the conveniently located centres are staffed with on-site expert consultants who offer business information and advice free of charge.

EXPORT TO JAPAN STUDY PROGRAM (EJSP) This program invites selected Canadian business people and trade specialists to Japan for a ten-day-long visit designed to provide a first-hand look at Japanese market conditions and trends. In addition to helping arrange individual business appointments in advance, we provide specialized briefings by Japanese business people, importers, manufacturers and other specialists. Tours of local firms and manufacturing facilities can be arranged.

HOUSING MATERIALS CENTRES Targeted at both Japanese consumers and builders, centres in Tokyo and Osaka exhibit a wide variety of housing fixtures and interior fittings from abroad. Catalogs, pamphlets and other publications cover an even broader range of items. Seminars and consulting are also provided.

IMPORT BUSINESS NEWS (Yunyuu Saizensen) Senior Trade Advisors use this Japanese language monthly publication to introduce promising Canadian products directly to Japanese importers.

IMPORT FAIRS JETRO organizes annual large-scale trade fairs in Japan for foreign products and services with an emphasis on areas with excellent growth potential.

NEW BUSINESS SPECIALIST PROGRAM (formerly Import Product Specialist Program) On a periodic basis, Japanese private-sector experts on imported products are dispatched to Canada to make direct contact with Canadian manufacturers and purchase product samples, which they then represent at specially organized JETRO Import Showcases held in conjunction with major industry-specific trade fairs in Japan. These specialists are veteran Japanese business people from the private sector selected for their expertise in specific product areas as well as their experience in dealing with imported products.

INVEST IN JAPAN INDIVIDUAL PROGRAM (IJIP) Provides foreign companies that are ready to invest in Japan with a number of practical services such as introductions to advisors and specialists, assistance with market research, arrangement of meetings and organization of field trips.

INVEST IN JAPAN STUDY PROGRAM (IJSP) Designed to assist foreign companies or organizations research opportunities for investing directly in the Japanese market, this program includes study seminars, field trips and meetings with potential partners.

JETRO / ICF 2001/2002 30 OUTLINE OF JETRO/ICF PROGRAMS

MARKET RESEARCH JETRO has a wide variety of market research resources for Canadian companies, from specific sector market reports to a database of potential Japanese importers to directories of trade fairs in Japan. There are also guides to Japanese business culture, videos and regular publications about trends in the Japanese market. Much of this information can be accessed on-line and companies are welcome to send their inquiries to their nearest JETRO office. REGION TO REGION PROGRAM (Local to Local) The Region-to-Region Initiatives program was launched in 1996 to support two-way international regional development. Under the program, JETRO works with the regions to determine their mutual needs and objectives, and then offers support for existing and new activities. This is done mainly by conducting surveys, dispatching and receiving missions as well as holding seminars. These efforts, coordinated through JETRO’s extensive network of offices worldwide, can play a crucial role in bringing regions together for investment and technical tie-ups, collaborative research and development, overseas procurement by Japanese firms, and investment in Japan by foreign firms. SEMINARS & BUSINESS FORUMS All the JETRO offices are active in holding seminars and business forums to inform Canadian companies about various aspects of the Japanese market and how to do business there as well as to provide business-matching opportunities for Canadian and Japanese companies. SENIOR TRADE ADVISORS The function of the Senior Trade Advisors (STA) is to seek out products with potential for export to Japan, provide one-on-one consultations, and introduce promising Canadian products directly to Japanese importers through the publication Import Business News. There are two Senior Trade Advisors in Canada. Please see back of publication for contact information and note that STAs will change in the middle of 2002 so please see websites or contact a JETRO office for updates. TECHNO-BUSINESS FORUM This event is designed to explore mutually beneficial partnerships between overseas and Japanese companies, for example joint ventures and technology alliance, especially in the fields of info-tech, multimedia and electronics. Costs of exhibitor booth, accommodation in Tokyo, as well as interpreter services are paid for by JETRO. Also, seminars, presentation meetings, individual follow-up meetings with Japanese companies and field tours to regional markets are arranged. TRADE MISSIONS JETRO actively supports selected incoming Japanese missions to Canada and outgoing Canadian missions to Japan, in cooperation with federal and provincial governments and other organizations. For example, in 2000 and 2001, JETRO organized Japanese IT Mission to Canada. In 2002, JETRO is planning to bring another IT Mission to Canada. TRADE TIE-UP PROMOTION PROGRAM (TTPP) JETRO’s free Trade Tie-up Promotion Program (TTPP) is an innovative Internet-based system that connects companies from around the world with Japanese firms interested in business relationships. The new system is available in both English and Japanese, with companies able to establish contact with potential partners through pre-formatted e-mails. It is designed to be a one-stop shop for business-matching in a variety of categories including the import and export of products and parts, technology transfers and other tie-ups, investment and the establishment of offices and factories in Japan and other countries as well as services such as translation, accounting, legal advice, consulting, advertising and market research. The site can be accessed at www.jetro.go.jp/ttppe/ (English) or www.jetro.go.jp/ttppj/ (Japanese).

JETRO / ICF 2001/2002 31 A HISTORY OF SUCCESS

JETRO Toronto has been making an annual publication called ‘Success in the Making’ since 1995, in cooperation with JETRO Vancouver and JETRO Montreal, in order to introduce the experiences of Canadian companies that have successfully penetrated the Japanese market and have participated in JETRO Programs. We hope to encourage other Canadian companies to enter the Japanese market with these case studies.

Below is an outline of the 207 Canadian companies introduced in the publication from 1995 to the spring of 2002.

SUMMARY OF SUCCESS STORIES 1995 - 2002

Product Category Number Provincial Breakdown Automotive Parts 1 Ontario – 1 Biotechnology Products 2 Quebec – 2 Chemical Products 1 Alberta – 1 Construction & 62 B.C. – 25 Quebec – 6 Housing Products Alberta – 1 Nova Scotia – 3 Saskatchewan – 1 New Brunswick – 3 Manitoba – 2 Newfoundland - 1 Ontario – 20 Environmental Products 11 B.C. – 4 Quebec – 1 Ontario – 5 Nova Scotia - 1 Fashion Products 6 B.C. – 4 Newfoundland - 1 Ontario – 1 Financial Products 1 Ontario - 1 Food & 28 B.C. – 8 Quebec – 3 Beverage Products Alberta – 2 Nova Scotia – 3 Saskatchewan – 1 Newfoundland – 1 Ontario – 10 Furniture Products 11 BC – 2 Ontario – 4 Alberta – 3 Quebec – 1 Manitoba – 1 Healthcare Products 21 BC – 1 Ontario – 12 Alberta – 1 Quebec – 4 Manitoba – 2 Newfoundland - 1 Industrial Products 2 B.C. – 1 Ontario - 1 Scientific Products 2 Ontario - 2 Technology Products 43 B.C. – 11 Ontario – 23 Alberta – 2 Quebec – 7 Miscellaneous Products 16 BC - 5 Quebec – 3 Alberta - 2 Nova Scotia - 1 Ontario – 5 Total 207 Canada

JETRO / ICF 2001/2002 32 JETRO OFFICES IN CANADA

JAPAN EXTERNAL TRADE CANADA-JAPAN INDUSTRIAL ORGANIZATION OFFICES IN CANADA COOPERATION FORUM (ICF) MEMBERS

JETRO Toronto Canadian Chamber of Commerce 181-University Avenue, Suite 1600 Delta Office Tower, 350 Sparks St., Suite 501 Toronto, Ontario M5H 3M7 Ottawa, ON K1R 7S8 Phone: 416-861-0000 Phone: 613-238-4000 Fax: 416-861-9666 Website: www.chamber.ca E-mail: [email protected] Website: Canadian Manufacturers & Exporters (CME) http://www.canada.jetro.org/toronto/ (formerly Alliance of Manufacturers & Exporters http://www.jetro.go.jp (JETRO Tokyo) Canada) One Nicholas Street, Suite 1500 JETRO Montreal Ottawa, ON K1N 7B7 1 Place Ville-Marie, Suite 1506 Phone: 613-238-8888 Montreal, Quebec H3B 2B5 Fax: 613-563-9218 Phone: 514-879-5617 Website: www.cme-mec.ca Fax: 514-879-5618 E-Mail: [email protected] Toronto Japanese Association of Website: http://www.jetromontreal.org Commerce & Industry (Shokokai) Suite 106, 1500 Don Mills Rd. Toronto, ON M3B 3K4 JETRO Vancouver Phone: 416-360-0235 World Trade Centre 660 Fax: 416-360-0236 999 Canada Place E-Mail: [email protected] Vancouver, BC V6C 3E1 Phone: 604-684-4174 JETRO Fax: 604-684-6877 Please contact JETRO Toronto as Secretariat with E-Mail: [email protected] regard to any ICF inquiries. Website: http://www.JetroVancouver.org

SENIOR TRADE ADVISORS ADVISOR ON INVESTMENT IN JAPAN

Guelph JETRO Toronto Mr. Mitsuhiko Kushida Mr. Yoshi Ichida c/o Agriculture and Agri-Food Canada 181 University Avenue, Suite 1600 174 Stone Rd. West Toronto, ON M5H 3M7 Guelph, Ontario N1G 4S9 Phone: 416-861-0000 x237 Phone: 519-837-5868 Fax: 416-861-9666 Fax: 519-837-9782 E-Mail: [email protected] E-Mail: [email protected]

Vancouver Mr. Hiroshi Wakabayashi c/o Canadian Manufacturers & Exporters (CME) British Columbia Division Suite 1330, 1100 Melville Street Vancouver, B.C. V6E 4A6 Note: New Senior Trade Advisors Phone: 604-713-7803 will be posted to Canada in the middle Fax: 604-713-7801 of 2002 so please see website or contact a E-Mail: [email protected] JETRO office for details. www.canada.jetro.org

© JETRO / ICF 2002 Printed in Canada