SOMA Inc. (Headquarters: Yokohama) identified through client surveys that 95% of companies interested in overseas sales are deterred by the lack of local support capabilities. To address this, the company developed support services utilizing the BtoB wholesale marketplace 'Faire.' To date, SOMA has assisted 18 companies, achieving 72 retail contracts and a total wholesale transaction volume of 125.6 million JPY.
Through a new business partnership with Colorado-based Horizon Leap Partners LLC (HLP), SOMA will further strengthen local sales and logistics functions.
The 'Local Barrier' Hindering Japanese Brands
When negotiating with overseas buyers, success depends on more than just product appeal. Responsiveness to sample requests, communication via local phone numbers, and proactive sales activities—these all require the ability to function as if one were physically present in the market. Many Japanese companies have retreated in the early stages due to these hurdles. SOMA's survey confirmed that 95% of interested companies struggle with this issue.
Proven Reality of 'Wholesale Without a Local Office'
SOMA's record in Faire support includes:
- Total companies supported: 18 - Total retail contracts: 72 - Total wholesale transaction volume: 125.6 million JPY
A manufacturer in the Kanto region secured its first order just 22 days after launching, eventually contracting with 5 retailers and generating 3.2 million JPY in wholesale trade over six months, with repeat orders continuing. Another company from Kyushu secured its first order in 15 days, achieving a 70% repeat rate and an average order value of 150,000 JPY, successfully establishing its brand with US retailers.
SOMA also has a track record of supporting over 30 overseas crowdfunding projects, totaling over 200 million JPY. Their Faire support service leverages this promotional expertise for wholesale channels.
What Changes with the HLP Partnership?
HLP brings the following functions to the partnership:
- Buyer acquisition: Proactive sales using a database of over 20,000 international buyer targets. - Sample responsiveness: US logistics hub allowing sample shipments within 4 business days. - Local communication: Buyer support using a local US phone number.
Being able to interact as a 'local business partner' significantly changes the initial dynamics of business negotiations.
Future Outlook
Moving forward, SOMA will deepen its cooperation with HLP to provide end-to-end support, from launching on Faire to establishing and scaling operations. The goal is to establish a system where Japanese brands can sustainably operate overseas wholesale channels without needing a local office.
FACT BOX
- Source: PR TIMES
- Category: Partnership
- Organizations: Horizon Leap Partners LLC