So you want to open a retail store in Japan?
You’re not alone. Japan is the third-largest consumer market in the world, and for many global brands, having a physical presence here is a sign of prestige and strategic importance. But entering retail in Japan — especially department stores or high-end commercial facilities — is unlike launching in the U.S., Europe, or Southeast Asia.
At Japan Startup Advisory, we’ve launched and operated premium shops and cafés across Japan — from Haneda Airport to Marui and Tokyu department stores — and we’ve advised other brands on how to do the same.
Here’s what you really need to know before entering Japan’s retail market.
1. A Strong Brand Isn’t Optional — It’s the Entry Ticket
In Japan, branding is everything.
Buyers from department stores, landlords, and even local distributors are deeply conservative. They’re not just evaluating your product — they’re evaluating whether your entire brand aesthetic and message align with their customer expectations.
If your branding looks inconsistent, cheap, or overly Westernized without localization, you’ll struggle to get traction.
Tip: Refine your brand positioning before you start talking to Japanese partners. “Minimal, authentic, premium” tends to resonate — but authenticity is key.
2. Getting Into Department Stores Requires More Than Just Money
Everyone wants to get into Marui, Tokyu, Isetan, or Hankyu. But you can’t just rent space like in other countries.
Here’s how it works in Japan:
- Most department stores use a tenant screening process.
- You’ll often go through multiple decision-makers and committees.
- Your team, product presentation, price point, and alignment with their floor concept all matter.
You also need:
- Liability insurance
- A Japanese corporate entity or sponsor
- Compliance with display rules, food safety, labeling, etc.
Reality check: The application process alone can take 3–6 months. And you may be asked to do a pop-up first to prove your value before getting a longer lease.
3. Understanding Key Money, Deposits & Screening
Opening a store in Japan isn’t just about finding a good location — it’s about navigating a very traditional and risk-averse leasing system, especially in department stores or premium shopping buildings.
Security Deposit (保証金 or 敷金)
In retail, you’re typically asked for 6 to 10 months’ worth of rent upfront. This is refundable (often after months) and may be reduced for smaller shops, but it’s still a major capital outlay.
Key Money (礼金)
This is a non-refundable “gift” to the landlord — a cultural norm in Japan. Expect 1–2 months’ rent.
Third-Party Investigation
Before approval, department stores often require a background check:
- Financial statements
- Business plans and past sales
- Management bios
- Interviews with leasing teams
- Occasionally, external investigators are hired to vet your entity
Unclear corporate structure, unpaid taxes, or weak brand identity can derail a deal.
4. Trust Is the Currency of Japanese Retail
It’s not about moving fast — it’s about showing you’re here to stay.
Buyers want trusted partners who understand:
- Japanese customer service etiquette
- Inventory control
- Clean, consistent presentation
- Brand professionalism — in appearance and behavior
5. Common Pitfalls for Foreign Entrants
These are the patterns we see most often:
- Assuming global success will impress Japanese landlords
- Underestimating the time and cost to launch
- Failing to localize packaging, staffing, or operations
- Expecting results in 3 months — Japan plays the long game
6. What Works in Japan
The brands that succeed:
- Bring clear positioning and a premium image
- Localize everything — signage, language, SOPs
- Invest in training and follow-up
- Work with, not against, Japanese systems
And above all: they don’t go it alone.
Want to Open a Shop in Japan the Right Way?
At Japan Startup Advisory, we help companies:
- Build brands that resonate with Japanese consumers
- Secure space in department stores and premium locations
- Navigate deposits, key money, construction, and compliance
- Build teams and operations for lasting success