From Tokyo with Love and Logistics

Many observers feel that Japan’s startup ecosystem has historically been slow to scale globally compared with the country’s strong manufacturing sector. But in recent years, perceptions have begun to shift. Companies such as Mercari, SmartNews, and of course your own, BEENOS, have emerged as globally recognized digital ventures. From your perspective, what changes have enabled Japanese digital startups to begin expanding more successfully on the global stage? And how do you see Japan’s position in the global digital economy evolving?

That’s a very important question. To be candid, from our perspective, Japanese companies as a whole still have a long way to go before we can say they are truly thriving on the global stage. Of course, I acknowledge the progress that has been made in recent years—there are certainly more success stories than before. But compared with advanced economies such as the United States, Japan is still behind. Then again, apart from the U.S. and China, one could argue that most countries are still facing similar challenges in producing globally dominant digital companies.

What has changed, however, is that entrepreneurs in Japan are now aiming higher from the very beginning. If we look back at the first internet boom, companies such as SoftBank and Rakuten did attempt bold international expansion. But in more recent years, we’ve begun to see a new generation of entrepreneurs who are deliberately building businesses with a global mindset from the outset, rather than focusing only on domestic services. That shift in ambition is significant.

Interestingly, many of these entrepreneurs are now in their forties. This generation is unique: they grew up witnessing Japan’s bubble economy and period of rapid growth, but also lived through its subsequent stagnation and now face the reality of a declining population. They saw traditional Japanese corporations dominate global markets in their heyday, which instilled in them the belief that Japanese companies can succeed internationally. At the same time, they understand that Japan’s domestic market is shrinking, which creates a strong motivation to look outward.

And then, among the younger generation, we’re seeing something even more striking: some founders no longer even consider Japan as their first market. They are starting their companies abroad from day one, sometimes even establishing headquarters overseas. They are less constrained by Japan’s domestic market and more attuned to global opportunities. Another factor is that today’s young entrepreneurs feel that the “Web 2.0” wave has already been largely captured by major players. This perception pushes them to look to other countries where they can carve out opportunities. In this sense, while Japan has gone through three “lost decades,” it is important to remember that historically Japanese people have often ventured abroad. That spirit of venturing outward is deeply rooted. Now, combined with the pressure of demographic decline, there is a renewed determination to succeed globally.

We also can’t overlook the structural changes in the ecosystem itself. The venture capital ecosystem in Japan has matured significantly. Stock exchange rules have also become stricter. In the past, relatively small businesses focused on the domestic market could still go public on Tokyo’s emerging markets. Today, the bar is higher. This has encouraged both entrepreneurs and investors to aim for larger markets, often meaning global markets.

For BEENOS, this global perspective has been central from very early on. We were among the first Japanese IT companies to expand internationally, beginning the late 2000s with China. At that time, few people in advanced economies believed China would develop so rapidly. When we signed our first agreement with UnionPay, they had no English-language contracts—we were the first to request that they produce one. We felt strongly that China would mirror aspects of Japan’s earlier development: a large population, a young and energetic workforce, and the catalytic effect of the internet. We believed those ingredients would inevitably fuel explosive growth, and we wanted to be part of it.

Looking more broadly, I believe Asia—including India—is a key arena for Japanese digital companies. Culturally and geographically, Japan is well positioned. In some cases, Japanese firms may even be better placed than American companies to understand local needs and build trust. While the U.S. and China bring immense financial power, Japan’s strength lies in cultural sensitivity and the ability to integrate with local partners. That can be a real competitive advantage.

Growth Strategy

You mentioned BEENOS was one of the earliest Japanese IT companies to move globally, now with your services avaliable in more than 120 countries and across multiple platforms. Compared with other Japanese firms, what enabled you to expand so quickly and successfully?

The single most important factor for us has been speed of decision-making. In markets such as China and across Asia, business leaders move very quickly. If you take six months to deliberate over an investment or a partnership, the opportunity is gone—they won’t wait. So from the start, we made it a priority to dramatically accelerate our decision-making process.

Japanese companies are trusted globally for being reliable and ethical. If you combine that reputation with genuine speed, it becomes an incredibly powerful combination. In fact, today, in many negotiations, we often find that we are the faster-moving party—even compared to Chinese companies. Of course, Chinese startups can be lightning-fast, but when it comes to larger organizations, our speed has become a strength.

Looking ahead, which emerging markets do you see as having the greatest potential?

Asia outside of China remains hugely important—Southeast Asia and South Asia hold enormous promise. In addition, the Middle East is increasingly attractive as a market. Europe, unfortunately, is less of a priority for us—not because it lacks opportunities, but simply because of the distance and the high cost of logistics, which reduce its relative priority.

Buyee Storefront

BEENOS was also an early investor in high-growth startups across Southeast and South Asia. What first drew you to those markets, and what potential did you see?

Our journey began the late 2000s, when we entered China and worked closely with Alibaba. We were able to witness Alibaba’s growth up close. We saw the powerful combination of population scale and internet adoption driving transformation. But by the late 2000s, we realized that “the next China” would be very difficult to capture if we focused only on China itself. So we began actively seeking the next wave of opportunities—earlier than most Japanese or even American VCs. That led us to Indonesia, Vietnam, and later India.

In Indonesia, for example, we invested in Tokopedia, which is now one of the country’s most prominent tech companies. At the time, many local founders were hesitant to take money from overseas investors—they feared being overwhelmed. Japanese capital was perceived as safe and trustworthy. Combined with our speed, that made us an ideal partner. Our investment thesis was also highly focused: we targeted marketplaces and fintech. These are sectors that always emerge in the early stages of an internet economy. By being disciplined in this way, we were able to position ourselves well.

Beyond providing capital, what unique value does BEENOS bring to startups in overseas markets?

Our core strength is e-commerce. Through our platform, Buyee, we can distribute Japanese products globally, from new items to secondhand goods. Japanese products have a unique cachet across Asia, so this early injection of supply creates real value for our partners. We’ve recently extended this model to South Korea, where we are building a platform similar to our Japanese business, enabling us to deliver both Japanese and Korean products—which are highly sought after across Asia.

BEENOS recently became part of the LY Group. How has that changed your ability to pursue long-term growth and decision-making?

On day-to-day decision-making, nothing has changed—we still act autonomously. The big difference is in long-term strategy. In Japan, shareholder activism has been increasing, and companies face growing pressure to prioritize short-term profitability. Being part of a larger umbrella like LY Group allows us to take a longer-term perspective. Discussions are not about quarterly profits, but rather about how to grow markets three to five times over the coming years. That shift in horizon is extremely valuable.

Warehouse Facilities

Speaking of growth, how do you plan not only to expand your markets but also to increase profitability?

The cross-border e-commerce space is evolving rapidly. Some players compete primarily on overwhelming price and scale, but we take a different approach—selling mass-market products at the lowest possible cost. Our strategy is different. We focus on the long tail—unique, scarce, and collectible items that connect people with what they are truly passionate about. This applies especially to secondhand goods: once an item becomes pre-owned, every piece is unique in its condition, price, and story. In that sense, secondhand markets represent the ultimate long tail.

To give a concrete example: imagine a 45-year-old father in Brazil who grew up watching Dragon Ball. As an adult, he may finally have the means to purchase a rare figurine for $500. That demand is real—and it exists all over the world. Anime is just one example; the same dynamic applies to countless categories. This is where our model shines. The rise of streaming platforms like Netflix has also helped spread Japanese IP globally. Combined with the surge in inbound tourism to Japan, we are seeing more international consumers develop a taste for Japanese products, which they then continue to purchase once they return home. Our platforms can serve as the gateway that enables that ongoing connection.

You mentioned your partnership in Korea. Do you see yourself pursuing similar partnerships in other countries?

Absolutely. In Korea, we not only invested early capital but also embedded our own members, shared know-how, and built the business together with local partners. The agreement even includes the option of becoming part of our group in the future. This approach increases the likelihood of success, while still empowering local entrepreneurs. We see this as a model we can replicate globally.

BEENOS was founded in 1999, which means you are celebrating your 26th anniversary this year. When we meet again in four years, for your 30th anniversary, what goals do you hope to have achieved?

Our ambition is to become the global platform connecting people with the things they love. Until recently, our focus was largely on Japanese products, but now we are expanding to include Korean products and beyond. We want to create a world where anyone, anywhere, can easily and access the items they are passionate about—whether new, secondhand, or collectible. This is not about competing on price; it’s about connecting people to unique value. By our 30th anniversary, I want BEENOS to have multiplied its market fivefold, realizing this vision of being the platform that ties together diverse passions across the globe.

Finally, if you had to describe BEENOS in just one sentence for our international readership of entrepreneurs and consumers, how would you put it?

Simply put, BEENOS is a platform that connects the world. We are the foundation that enables connections—between people, between cultures, and between passions.

For more information, visit their website at: https://beenos.com/en/