Case Studies

January 2007 -- PEK Interactive is a one-stop shop for small- to medium-sized businesses in need of online solutions.  Providing web development, eCommerce, online marketing, eLearning, rich media production and streaming video, this growing firm based out of San Diego, CA made Japan its first step toward establishing its global presence.

Opportunities in Japan

The size of the Japanese market was one of the primary factors in deciding where to go next.  “One of the most important things was to establish ourselves where our services are most needed,” said Sergio Kajirian, Executive Director of PEK Interactive.  “There is clearly a big market here in the States, but the next question is, ‘Where is a good country where we can establish ourselves for a small niche of their business and see where we can grow?’  Japan was just the perfect opportunity.”

Market Entry

To seize this opportunity, Kajirian says networking and taking care of legal requirements were crucial.  JETRO was able to help with both.  “JETRO had been incredible in helping us get into Japan the right way,” said Kajirian.  “Without you guys, it would have never happened.  Never.  I can assure you that’s the case. “

JETRO connected PEK Interactive a legal contact in Japan and also helped file necessary paperwork.  “JETRO was very helpful in making sure we took the right steps,” continued Kajirian.  “The red tape is thick.  It’s very complex, so JETRO helped us move along very nicely, very smoothly.”

Three months from initial contact with JETRO, PEK Interactive started their business in Japan. 

Results and Outlook

Having only started in September 2005, PEK Interactive has successfully built over two dozen websites for their customers in Japan and are already building second generations of those websites.  “Out of the year that we’ve been there,” said Kajirian, “our customers are coming back and saying, ‘We’re ready for the second phase of our website.’”

Furthermore, the company’s Japan presence has proved to be of great strategic importance.  Karjirian notes, “For us, Japan is a very key strategic placement.  Jeff Preston, [our Asia manager] is very well-placed for us in Japan as our window into Asia and Russia.  We are a global sourcing company, so if I did not have Jeff in Japan on the time zone that he is, working with the States would just be too difficult, even being here on the Pacific.  We are very fortunate to have that opportunity.”

As for the outlook for his company in Japan, Kajirian says, “Our future is bright.  I think we have a lot of potential.  The Japanese have a wonderful eye for design, and they have an extremely full resource of talent – there are many beautiful designers in Japan.  What they lack is the American initiative on online marketing.  I think we have a wonderful opportunity to show them how to sell a website.”

Speaking from experience, Kajirian offers the following advice to companies launching their business in the Japanese market: “Success doesn’t come overnight in Japan, especially to a green company like us where we basically had no experience abroad.  The most important thing when you set up your office in Japan is to make sure the person who’s running the show, your key person, is ready to integrate himself into Japanese society, meaning attend meetings, seminars, dinners – network.  If this person is not going to start these relationships or is unwilling to go out and be a part of the Japanese culture, it’s going to be very, very difficult for a foreign company to get the business.”
 
As a final note, Kajirian says, “JETRO has been very helpful setting us up, and I think JETRO is going to be even more helpful to us, establishing a presence and doing some networking in the near future.  That certainly helps.  I cannot stress that enough.”