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The 'Sultan of Sign Makers' Sets up in Japan
by Brad Frischkorn
Tokyo (JPN) Sep 09, 2016


While Japan's domestic advertising industry is dominated by a few 'gorilla' players such as Dentsu, the global sign making industry has been ripe for consolidation for some time.

Are you an English-capable Japanese entrepreneur looking for a franchise opportunity? One of the world's leading sign making companies is setting up in Japan, and anxious to talk to you.

U.S.-based Signarama, the world's largest sign franchise, is eying Japan as a major new business hub in Asia, in a move that may illustrate how open the country is to outside business ideas.

The 30-year-old Florida-headquartered firm is the largest full-service signing/graphics franchiser in the world with over 850 global locations. The company has been active in Asia for the last 15 years, but only recently made its maiden foray to Tokyo.

Brand President Jim Tatem attended a franchising trade fair held at Tokyo Big Site venue earlier this year, looking for "master partners" - key investors to head regional operations, open pilot stores, and build a national infrastructure.

Japan is part of the company's regional rollout campaign following successful startups in Indonesia, Thailand, and the Philippines. The firm currently sports 105 partners in Australia and 27 in New Zealand.

"Japan looks attractive as it has come to be ranked as one of the top 'franchise-friendly' countries in the world," says Mr. Tatem. "Major cities such as Tokyo, Osaka, Nagoya, and Sapporo all have the demographics for the small and medium sized enterprises that we cater to as a B2B business."

Signarama aims to build out a 130-150-strong network in Japan in the next five to 10 years.

While Japan's domestic advertising industry is dominated by a few 'gorilla' players such as Dentsu, the global sign making industry has been ripe for consolidation for some time.

"In the past, sign buyers would make the rounds to several different types of specialists, but there was never a single do-it-all service," says Mr. Tatem. "We aim to be the biggest full service player who can handle pylon signs, vehicle graphics, building signs, tradeshow displays, LED displays, floor graphics, everything."

Size has its advantages, and Signarama's brand recognition and buying power with suppliers such as Hewlett-Packard and 3M is key, he adds. The company claims an annual average income for its franchisees of $700,000.

In its positive appraisal of Japanese business conditions, the International Franchise Association (IFA) credits tough laws such as the Medium-Small Retail Business Promotion Act, which requires pre-sale disclosure for certain retail franchise operations.

The country also sports a good Corruption Perceptions Index (CPI) score of 74 (100 is best), and an "Ease of Doing Business" ranking (as determined by the World Bank Group) of 34 out of 185 countries.

Recently, the Japan Franchise Association (JFA), together with the Japan External Trade Association (JETRO), announced the first ever Inter-national Franchise Expo at the Tokyo International Forum on Oct. 18-19.

Japan's technological prowess in electronics, robotics, and LED technology may suit it well for helping to accelerate the kind of sign making evolution that Signarama is courting. The firm offers virtual and digital signage options, such as its Virtual Messenger, a touch-screen capable, holographic image projector that can deliver multiple messages, languages, and presentation formats.

Such high-tech signage is booming in big cities, as Toshiba, Sharp, and other electronic component and panel makers ink deals in order to help them offset losses in their TV businesses. The domestic digital sign display market alone was worth 36.6 billion yen in 2013, but should grow to 43 billion yen by 2020, according to Fuji Chimera Research Institute.


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