AvePoint Triples Japan Revenue Each Year since Office Opening, Remains 'Very Bullish' after Quake

July 2011 -- A provider of infrastructure management software for Microsoft SharePoint, AvePoint opened its first Japan office in October 2008. Since then, the company has tripled its Japan revenue each year and aims to grow it from representing 10 percent of the company's total to 15 to 20 percent. JETRO spoke with AvePoint Co-CEO, Dr. Tianyi Jiang, about the opportunities that led the company to Japan, his experience with JETRO's free temporary office space, and the benefits the company has seen from having a local office.

Opportunities in Japan
AvePoint sought the Japanese market for its size and the maturity of its software market. "We believe firmly in the strength of the Japanese economy, and we felt that we can be successful there," said Dr. Jiang. Noting the importance of the Japanese market to AvePoint, Dr. Jiang said the Japan office was the second international sales office established outside of the U.S., after AvePoint UK office. Today, AvePoint has 19 offices across 4 continents.

 
Using JETRO's Free Temporary Office Space
"JETRO made it very easy for a U.S. company like ours to go and not have to worry about real estate--one of the biggest costs and concerns in Tokyo--and just really focus on business and establishing our network," said Dr. Jiang. AvePoint also used the temporary office space to interview candidates. "When candidates come in, they want to be impressed with an actual office to interview in, instead of a hotel lobby," he said. In addition, AvePoint used JETRO's meeting space to hold seminars, one of which drew 75 attendees.

• Greater ability to establish key relationships: "It is difficult to establish relationships in Japan without having people on the ground because that human element is so important within the Japan culture. Businesses tend to be far more risk-averse than Western companies. They feel far more comfortable if you have local staff, a local office, local numbers, and [staff] who speak Japanese. Establishing the sales channels and partner channels were all done once we actually opened the office in Japan and had people on the ground."
   
• Business growth: "Our business has grown tremendously in Japan. It's becoming a very significant portion of our company's portfolio, so it's been vital to have a physical presence in Japan. AvePoint Japan has experienced 300% revenue growth for two consecutive years, and is now looking to repeat the same growth rate in 2011."
   
• Enhanced global profile: "Having a Japan office really communicates that we are a truly global company. We are able to better handle global accounts and global engagements."
   
• Quality improvement: "Our Japan partners are some of our most meticulous and quality-driven partners we have globally, so having business in Japan helped improve the overall quality of our products."

AvePoint's notable customers in Japan include:

• Ministry of Foreign Affairs of Japan
• Seiko Epson Corporation
• Toshiba Corporation
• Nippon Steel Corporation
• Osaka Prefecture University
• Nikon Corporation
• Sony Global Solutions Inc.
• Yamaha Motor Co., Ltd.
• Canon Inc.
• Japan Tobacco

After Earthquake, AvePoint Remains 'Very Bullish' on Japan Business
When asked whether the March 11 earthquake has affected AvePoint's outlook in Japan, Dr. Jiang said, "It's no different. We're still very bullish on the business in Japan." AvePoint recently opened a second office in Osaka and is working on growing its Japan revenue from representing 10 percent of the company's total to 15 to 20 percent.

Japan Company Profile

*Note: The opinions contained in this article are based on the experiences of the interviewee. They are not representative of all experiences in Japan or working with Japanese companies, and do not reflect the opinions of JETRO.