The realities of winning in Asian markets, examined through the local operations and challenges faced by Lotte, Daikin and KADOKAWA. How are the 3 companies strengthening their local bases and responding to region-specific distribution structures?
As the IMF forecasts growth in the Asia-Pacific region, Japanese companies are stepping up their expansion into Asian markets. At the session “The Realities of Japanese Companies Taking on Asian Markets” at the Asia Insight 2026 business conference held in June, initiatives by Lotte, Daikin Industries and KADOKAWA were presented. The session shared examples of how companies are responding locally in light of growth opportunities in local markets and differences in culture and consumer trends.
Lotte locally produces and sells confectionery in Thailand, Vietnam, Indonesia, Taiwan and elsewhere, adopting strategies tailored to the differences in distribution structures from one country to another. Modern trade is prominent in Taiwan and Thailand, for example, while traditional trade is the main channel in Indonesia and Vietnam. Lotte has established a direct sales system in these markets, using motorcycles to deliver products to stores and collect payments.
Daikin Industries' overseas sales account for approximately 83% of total sales, making its international business a core pillar of the company. As rising global temperatures drive increased demand for air conditioners, the company is promoting the switch to R32 refrigerant, which has a lower environmental impact, as part of its efforts to address global warming. It is also focusing on opening up its technology and working with governments to develop rules, rather than limiting its efforts to selling products.
KADOKAWA operates in publishing, anime and games, and is advancing its local operations from bases established through local subsidiaries. Overseas sales currently account for approximately 20% of total sales, but the company aims to increase that figure to approximately 50%. It is building a system to deliver Japanese content worldwide by developing a region-specific “360-degree approach” encompassing not only publishing, but also events, merchandise sales and video distribution.