Funai Soken Holdings Releases Two Case Studies of Korean Tech Companies Entering the Japanese Market

Funai Soken Holdings Incorporated (Headquarters: Chuo-ku, Tokyo; President and CEO: Daisuke Shingai; hereinafter referred to as Funai Soken), a management consulting firm with specialized consultants targeting small and medium-sized enterprises, is releasing case studies of its support for the Japanese market entry (Go-to-Market) of two innovative Korean tech companies, LEESOL and SpaceVisionAI.

Background for Release

Currently, some companies in Japan are securing nominal sales figures in "existing domains" due to foreign exchange gains from the weak yen and business adjustments (such as price increases) amidst rising prices. However, on the other hand, overseas companies, including those in Korea, are rapidly expanding their businesses in "innovative domains," targeting the younger demographic in their home countries.

Many Japanese companies tend to focus on the middle-aged and elderly demographic, which has a large population and high spending power. Furthermore, not only Japanese consumers but also the "Japanese corporate buyers" who select and procure products are predominantly middle-aged and elderly, making the development and introduction of products and services for younger Japanese generations a relative low priority.

Meanwhile, overseas companies are actively deploying marketing strategies that leverage the younger generation's strong influence on social media to reach a wider age range. This structural gap creates what overseas companies see as a "clear gateway market" in the current Japanese market.

The biggest key to the success or failure of these overseas companies entering Japan lies in the presence or absence of an appropriate "localization strategy." We believe that Japanese companies that maintain strong performance in their existing domains should seize the opportunity to strengthen their international competitiveness and draw up new growth strategies through active business collaboration and joint development with these innovative overseas companies.

Japanese Market Entry (Go-to-Market) Support Case Studies

[Case Study 1] SpaceVisionAI (AI-Powered Storefront Marketing)

Challenges Before Support Began

To establish the retail media CMS (Content Management System) "SpaceVisionAI" in Japan, the company understood the importance of developing代理店 (distributors/agents) but was seeking concrete strategic design for how to position and present it to be accepted in the Japanese market. They also needed to verify which features should be enhanced for successful establishment in Japan.

Focusing on storefront marketing that enhances in-store visibility, which is being re-evaluated as an excellent touchpoint in the zero-click era driven by generative AI.

Innovation of SpaceVisionAI

It can instantly differentiate digital content based on the gender and age of the user viewing it. Furthermore, the implemented generative AI automatically adjusts existing content from posters and social media to fit the size of digital signage. SpaceVisionAI can be retrofitted to any size of existing digital signage.

Localization Strategy

Based on PoC (Proof of Concept) research, the value proposition was redefined not as a mere "retail media CMS" but as a "storefront traffic survey" and "storefront marketing" solution that solves specific on-site challenges in the Japanese market. Subsequently, 10 priority industries, such as specialty stores and service industries, were identified, and on-site surveys were conducted with actual SpaceVisionAI installations. The supply chains of industries that showed particularly positive responses were meticulously analyzed, leading to the development and execution of a highly accurate "industry-specific distributor development strategy" tailored to Japanese business flows, in addition to global market achievements.

Potential for Collaboration with Japanese Companies

The concept of "UGC (User Generated Content) Marketing" is prevalent in Japan. If UGC digital assets can be displayed on storefronts, their value will be further enhanced. Moreover, for Japanese UGC marketing support companies, collaboration with SpaceVisionAI could serve as an opportunity for global expansion.

Comments from the Consultant in Charge

"The 'storefront traffic survey' using SpaceVisionAI allows for fixed-point observation of storefront traffic volume, promotional material visibility, and store entry numbers by gender and age, greatly contributing to the re-evaluation of store locations and target setting. In 'storefront marketing,' the generative AI implemented by the company optimizes and automatically generates content for distribution from UGC and existing production materials, addressing on-site challenges in content creation. With the high technical capabilities achieved by a company founded by engineers from a major Korean display manufacturer, we will bring a new wave to Japanese retail marketing."

[Case Study 2] LEESOL (Sleep Support Device "sleepisol+")

Challenges Before Support Began

The flagship product, "sleepisol+" (sleepisol plus), utilizes a unique technology of weak electrical current (CES: Cranial Electrotherapy Stimulation) to synchronize brainwaves to a state conducive to sleep and concentration. However, this initially resulted in low psychological acceptance among Japanese users, primarily the middle-aged and elderly. The biggest challenge was how to gain trust in the Japanese market and approach the target demographic.

The recommended usage for sleepisol+ is to wear it for about 30 minutes before sleep. Clinical trials with Seoul National University Hospital are progressing smoothly, and we look forward to discovering new possibilities for CES technology.

Innovation of LEESOL

LEESOL possesses core technology that synchronizes brainwaves to a state suitable for sleep and concentration using weak electrical current technology (CES) and its proprietary "CS-tACS technology." Conventional technologies were hindered by the body's protective barriers (such as the skull), making it difficult to synchronize brainwaves in the deep parts of the brain. However, the company has fused the advantages of "high frequencies" with high permeability and "low frequencies" that induce brainwave synchronization, achieving "deep brainwave synchronization" for the first time in the world, safely synchronizing brainwaves in the deep brain. This technology has been objectively validated in clinical trials at Seoul National University Hospital for its effectiveness in improving insomnia (such as shortening sleep latency) and enhancing cognitive and memory functions. Recognized for this innovation, the company has garnered significant global attention, including certification as a "Baby Unicorn Company" by the Korean government and an award at "CES 2025," one of the world's largest technology trade shows.

Localization Strategy

Through research, we discovered insights that, in contrast to the middle-aged and elderly, "acceptance is high among younger generations up to their 30s," and that "there is a segment of women who have given birth and suffer from lifelong sleep problems." For the full-scale launch of the device, a CES 2025 award winner, in Japan, we shifted our marketing strategy (localized target strategy) to focus on young people and women, capitalizing on the recent boom in the recovery market and smart ring market. Furthermore, to acquire "third-party validation," which is crucial in the Japanese market, and to promote business, we have comprehensively implemented the following, including joint research with Shinshu University and the involvement of former athletes:

* Building Trust: Support for obtaining "Medical Device Certification" in Japan and establishing academic evidence through joint research with "Shinshu University." * Awareness Expansion and Digital Marketing: Strengthening brand image by featuring former athletes who experienced sleep problems during their Olympic careers or child-rearing periods. Comprehensive implementation of press release enhancement, web advertising, and website construction and operation. * Sales Channels and Distributor Development: Establishing touchpoints through participation in "Health & Productivity EXPO" and exhibiting actual devices at Futako-Tamagawa "Tsutaya Denka Plus," while promoting full-scale distributor development in the Japanese market. We anticipate that adoption by corporations seeking to promote health management, capitalizing on the current demand for it, will lead to third-party validation of reliability, which will then permeate to general consumers. * Partner Company Management (PMO): To address the challenge of managing an increasing number of partner companies for market development as LEESOL expands its business in Japan without a Japanese subsidiary, Funai Soken has taken charge of overall partner company management. This has enabled smooth and rapid business development.

A Korean consultant from Funai Soken also provided interpretation services for interviews at the Health EXPO. Their deep understanding of the business content was highly praised for facilitating smooth interview responses.

Comments from the Consultant in Charge

"While the importance of reviewing lifestyle habits for sleep improvement is becoming widely recognized, it is also true that many people cannot achieve improvement through lifestyle changes alone. We aim to establish 'new options' in the Japanese market through the use of innovative technology devices, rather than relying solely on medication or supplements for sleep improvement. This project is an ideal collaboration that fuses Korea's innovative technological capabilities with Japan's delicate and meticulous localization partnership.

We will provide consistent consulting to help LEESOL's products meet the final quality standards demanded by customers in the Japanese market (Last One Quality) and expand globally. We hope this support will bring about changes in the conventional development and operational styles of Japanese companies and the Japanese sleep market, and serve as an opportunity for Japanese companies to draw up their own unique 'growth strategies' incorporating a new global perspective."

Future Developments

To further accelerate the efforts of overseas companies entering the Japanese market, Funai Soken will strengthen alliances and collaborations with overseas companies, including those in Korea, such as our strategic partner SETOWORKS. We will enhance support not only for new overseas companies entering the Japanese market but also for revival support for companies already in the Japanese market that are facing challenges in expansion and growth, continuing to partner with Japanese companies as a catalyst for new business transformation.

▼ Funai Soken Holdings Global Business Support Site (English)

https://globalbusiness.funaisoken.co.jp/en/

About SETOWORKS Inc.

As a data-driven global expansion (GTM) marketing company, SETOWORKS has a track record of managing over 1,300 global funding projects, the most in Asia, achieving cumulative funding of over 60 billion won. With corporations in four countries – the United States, Japan, Taiwan, and South Korea – SETOWORKS is a global marketing specialist company that actively supports corporate overseas expansion through digital marketing, branding, and localization strategies tailored to the characteristics of each national market. In particular, the company excels at supporting rapid overseas market establishment by providing integrated solutions that cover everything from initial market entry strategy to online and offline practical support. We aim to further strengthen cooperation to enable smooth execution of Funai Soken's consulting for Korean companies.

Location: 3F, 554 Samseong-ro, Gangnam-gu, Seoul, South Korea CEO: CHO CHUNG YEON HP: https://jp.setoworks.com/

About Funai Soken Holdings Incorporated

As one of Japan's largest management consulting firms with specialized consultants targeting small and medium-sized enterprises, Funai Soken employs a unique support style that combines "monthly support" and "management study groups" on an industry and theme-specific basis. Furthermore, through "growth execution support," "recruitment and human capital management support," "corporate value enhancement support," and "DX (Digital Transformation), AX (AI Transformation) support," the company aims to create many socially valuable sustainable growth companies. Its practical consulting activities, which involve close engagement with clients on-site and close support for management, have received high praise from managers across various industries and sectors.

<Funai Soken Holdings Official Site> https://www.funaisoken.co.jp/

Inquiries from Media Representatives Regarding This Matter

Funai Soken Holdings Incorporated

Corporate Communications Office, Public Relations, Representative: KUNINOBE

TEL. 0120-958-270 (9:45 AM - 5:30 PM)

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https://www.funaisoken.co.jp/form/press