The Limits of Relying Solely on Agents

Agents play a role, but their activity is often misunderstood. Many brands assume that appointing an agent - and later a distributor - will take care of all aspects of building market presence and growth. The reality is more nuanced.

Here are some structural challenges of relying only on agents:

• Preexisting networks and shared interests. Agents work within a preexisting circle of buyers and often represent multiple competitors to your brand. Their priority is to maximize their network, not to invest in your brand.

• Undefined commitment. Their involvement is often undefined, as commission-based arrangements give them freedom over when they act and how much effort they put in. While it is good that there is no cost until revenue is on the table, it also makes it difficult for brands to set clear expectations for support and future trajectory.

• Ad-hoc matching. F&B brands want to expand visibility by finding the best consumer fit. Agents, however, typically rely on testing products through their immediately available channels, seeing what sticks rather than investing in a structured or long-term fit. This can be useful for exploring early interest, but it is not a substitute for building groundwork for strategic growth and optimized positioning.

• Follow-up limitations. An agent's mandate usually does not extend to tasks like localized positioning or brand strategy - the very things that help brands move from entry to growth.

The result: an agent can secure a meeting, potentially an initial order. This makes them valuable partners for entry - but further growth requires additional steps like localized positioning and strategic support.

Agent activities can be beneficial for initially testing market interest or creating some visibility at a low cost. For smaller brands with limited budgets, exploring potential matches from existing connections can be a valuable first step. But broader expansion and growth usually come when brand investment, localized positioning, and ongoing support are added.

At TOO International, our work also includes activities from agents' playbooks, such as outreach and introductions. But we approach them as part of a broader business development strategy, ensuring that these first steps are paired with the groundwork needed for long-term growth.

International marketing studies also confirm this: pure agent-only entry models can help with first orders, but continued growth typically requires investment in branding, localization, and market development.

The Three Invisible Preconditions for Success in Japan

So, what else contributes to sustainable success in Japan? Based on years of experience supporting Western F&B brands, I see three preconditions that often remain invisible without knowledge of the local market - and that can make or break a Japan strategy.

1. Understanding Market-Specific Barriers

Many F&B brands underestimate how different Japan is from their home markets. Barriers such as local regulations, domestic supply chains, price structures, and consumer expectations can stop even the best products from scaling.

Lesson: Trade show disappointment often comes from skipped groundwork, not just cultural gaps.

Another frequent barrier is pricing. Many F&B brands underestimate the combined impact of import duties, logistics, distributor margins, pre-included marketing budgets, and retail expectations. What looks competitive in your domestic market can easily become unworkable in Japan.

2. Localization Beyond Translation

For many Western companies, "localization" means translating existing labels or brochures into any local language. But in Japan, it must go deeper - and not necessarily in design or packaging.

A critical but often overlooked dimension of localization is the fit between a brand's portfolio and Japanese distribution partners. Target consumer segments can differ widely by market, and each distributor has a specific customer base. Not all products in a brand's lineup will resonate equally.

Short case clip: repositioning Unicum for cocktail culture in Japan.

3. Business Development Before Sales

In their home markets, F&B brands naturally invest in product–market fit, positioning, and building relationships before sales activity starts. But when expanding abroad, many skip these steps and jump straight into sales, hoping that an agent or distributor will do the work.

Lesson: When you reduce risk and effort for your distribution partners, they usually put more into sales - and results follow more easily.

👉 Read more about “sales vs. business development” in my previous article: sales vs. business development.

Communicating Competence: Why Localized Positioning Wins

"People don't buy the best products; they buy the products they can understand the fastest."

— Donald Miller · Source: Building a StoryBrand

This applies directly in Japan. An agent may get you in front of a buyer, but if you cannot clearly show your competence, readiness, and credibility from the perspective of the customer, the opportunity fades.

Localized positioning does more than support sales. It communicates commitment. It signals to Japanese distribution partners that you are ready to invest and build together. It shows that you have created something with them in mind, so they do not need to take the risk of guessing whether it fits.

That perception can be the difference between a polite "no thank you" and a committed, long-term partnership.

Conclusion

Market entry is only the first step. Agents can help open doors, but further growth often requires additional support. Sustainable success in Japan requires:

• Knowing the barriers
• Localizing with the right channel fit
• Building the BD foundation before sales

Pairing introductions with structured preparation is what turns first steps into lasting success.