Overseas strategy going forward

 

Ishimura：Could you tell us about your sales strategy going forward?

Sugawara：Currently, almost all of our exports are for industrial use, especially for automobiles, and the majority of our domestic sales are also for the automobile industry. In order to reduce the industry bias, we plan to focus on the food and medical industries in the future. In the food industry, with the expected penetration of HACCP, the demand for cleaning brushes is expected to increase as franchise stores, which were previously in a gray area, will now have to comply individually. While some major food and beverage manufacturers are already using our products, there are still many opportunities to expand into the food service industry, fast food restaurants, convenience stores, and hygiene product manufacturers. Additionally, there is undoubtedly a need for our products in the medical industry, so we plan to strengthen our sales efforts there as well.

Ishimura：Your company participates in many overseas industrial exhibitions, but in 2017, you also participated in a food-related exhibition in Singapore, where Ibaraki Prefecture Small and Medium Enterprise Promotion Corporation set up a joint booth. Was this aimed at targeting the cleaning needs in the food industry?

Sugawara：Yes, that's right. When we were surveying various overseas markets, we heard that the Ibaraki Prefecture Small and Medium Enterprise Promotion Corporation was recruiting participants for the Singaporean food-related exhibition, so we decided to exhibit there.

Ishimura：How was the response at the overseas food exhibition?

Sugawara：We were able to collect various needs at the local venue. We received a request from an airline company to create a brush for washing the dishes used in their in-flight meals. Unfortunately, we were not able to have detailed meetings during the exhibition period, and the discussion ended with several email exchanges. It seems that it takes a considerable amount of time to discuss the specifications and even more time to finalize a contract, so we realized that we could not have full-fledged negotiations until we found a local distributor or trading company. Also, Singapore was a bit too far for our company (laughs).

Ishimura：Your company's current multilingual website seems to have been made using the Ibaraki Challenge Fund grant. What are your thoughts on using this grant?

Sugawara：Until then, we only had a Japanese website, but we strongly felt the need to create an English version website after experiencing that a website with only Japanese characters was useless at overseas exhibitions. Thanks to the grant, we were able to create a higher-quality multilingual website. We also created an English version brochure. Going forward, we plan to utilize these tools to promote our products at overseas exhibitions.

Ishimura：On the English version of your website, there's a "CONTACT" page for inquiries from overseas. Who handles these inquiries and how?

Sugawara：I personally check and respond to all inquiries for now, since there aren't many yet. However, as we expect more inquiries in the future, we want to develop staff who can handle them within the company.

Ishimura：With each product being custom-made, isn't it difficult for the sales staff to communicate with the production team?

Sugawara：No, all of our sales staff have experience in the production process. We believe that the "production process" is the most important aspect. Without a thorough understanding of the production process, we can't come up with solutions or ideas to solve the customer's problems, nor can we provide estimates. That's why we assign all of our employees to the "production process" to thoroughly teach them about manufacturing know-how. Only then can we have meetings with customers and provide estimates. Until now, I've handled most of the sales myself, but we've finally started to develop staff who can handle sales, so we plan to gradually accompany them to domestic and international exhibitions to deepen the sales team while providing customer feedback on production trends and demands.

Ishimura：Lastly, if you have any requests or suggestions for the organization, please let us know.

Sugawara：We are aiming to expand our business in Europe, so it would be very helpful if we could set up an Ibaraki prefecture booth at industrial exhibitions in Europe. In particular, Germany leads the world in industries and medical care, so I'm sure there is demand there. To explore that demand, we believe that exhibiting at exhibitions is the most efficient way. We don't want to waste any business trips. If we're going to travel far, we want to exhibit at the trade show, conduct business negotiations, and conduct market research in the city. However, a small and medium-sized enterprise like ours cannot do all of that alone. We have no experience at all in Europe, so we would like to set up a joint Ibaraki prefecture booth. Actually, we've been requesting the exhibition of the Ibaraki prefecture booth in Europe for a long time, but it hasn't been realized yet. I'm mentally prepared to go whenever it's realized (laughs). Budget constraints for Ibaraki Prefecture may be a factor, but we would be grateful if it could be realized this time. We're looking forward to it.

Ishimura：Understood. As the voice of small and medium-sized enterprises working on overseas exports, I want to convey your message to Ibaraki Prefecture. Thank you very much for today.

Hashimoto Brush Manufacturing Co., Ltd. ●Inauguration　1955 ●Capital　　10 million yen ●CEO　Hideaki Hashimoto　 ●Employees　25people ●Year quotient of 300 million yen ●Location　1133-6 Okitsu, Miho-Mura, Inashiki-gun, Ibaraki Prefecture, Japan ●Business contents　　Manufacturing of industrial twisted brushes ●URL　　　　https://www.hsmt-brush.co.jp/

 

 

 

 

 

Interviewer Ibaraki Small Business Global Promotion Agency, Incorporated Foundation Overseas Extension Promotion Agent ●Name　Akira Ishimura ●Major Field　Industry (Communication Infrastructure) ●Career Worked for a major general trading company and engaged in trade operations including overseas sales for many years. Has experience working in Venezuela, China, and Egypt, and establishing joint ventures.

 

 

 

 

 

 

 

 

 

 

【comment】

Ishimura：There are many hurdles to exporting industrial products overseas. Additionally, industrial products have various constraints on maintenance guarantees and after-sales services even after they are exported. Therefore, it is very difficult for small and medium-sized manufacturing companies to export products overseas on their own. However, in the case of Hashimoto Brush Manufacturing Co., Ltd., they focused on Japanese companies that have expanded overseas based on their experience in negotiations with overseas customers, approached their headquarters in Japan, and attacked from both sides. They also entrusted the shipping procedures and after-sales services to Japanese trading companies in the commercial flow. It is impressive that they have accumulated experience through negotiations and are determining the direction of their future sales activities.

　On the other hand, I was very impressed that they thoroughly follow the policy of having their sales staff gain experience on the manufacturing floor first. Hashimoto Brush Manufacturing Co., Ltd. continues to make tireless sales efforts by not only applying for joint booth slots at overseas exhibitions that the organization is recruiting for but also entering large-scale specialized domestic exhibitions every time. Furthermore, they are skillfully utilizing subsidies, such as the organization's Challenge Fund project, to develop foreign language websites. I think that their planning and proactivity in these areas are contributing to their export results.

　If there are any small and medium-sized companies in Ibaraki Prefecture who are considering challenging overseas expansion, please contact us at the address below.