To foster overseas business by Japanese companies, the Ministry of Economy, Trade and Industry (METI) launched a new package of measures to support market development through trans-boundary e-commerce (EC)* mainly by small and medium enterprises (SMEs) under the FY 2011 third supplementary budget. At the same time, METI built a web portal to provide businesses interested in trans-boundary EC with basic information (http://www.cbec.go.jp) and opened it on Wednesday, February 1, 2012.

*Trans-boundary e-commerce (EC) is selling goods on the Internet (e-commerce) from Japan to overseas consumers.

Faced with concerns over the shrinkage of the domestic market due to the decreasing population, aging society and falling birth rate, Japanese companies are expanding into overseas markets.

Large companies often attempt to enter an overseas market by establishing a local subsidiary. However, many SMEs with limited business resources (e.g., funds, human resources) can hardly afford to take the same approach.

This is why trans-boundary EC is attracting attention as a means for SMEs to advance into overseas markets. It gives their products access to the global market at relatively small cost without geographical constraints. The Framework for Supporting SMEs in Overseas Business,* which METI issued in June 2011, sets forth a policy of effectively leveraging EC in "assisting market development through the Internet."

However, trans-boundary EC is still under development as a business model. The basic information and know-how needed for business operations is insufficient, making some companies hesitant to do business through trans-boundary EC.

METI is seeking to increase the number of companies engaged in trans-boundary EC and accelerate the spread of trans-boundary EC by providing basic information on trans-boundary EC and by supporting Japanese SMEs' market development through trans-boundary EC (under the FY 2011 third supplementary budget).

*For information on the Framework for Supporting SMEs in Overseas Business, please visit the following website:
http://www.meti.go.jp/english/press/2011/0623_01.html

1. Support for market development through trans-boundary EC (see Appendix 1 for details)
   Under a subsidy financed by the FY 2011 third supplementary budget, the following support will be provided to subsidy recipients (e.g., Japanese private organizations engaged in surveys, studies and assistance activities with the goal of fostering the use and development of EC):

   • Support for the creation of e-commerce sites aimed at overseas markets
     In cooperation with trans-boundary EC malls or other parties, this project assists companies in areas affected by the Great East Japan Earthquake and companies dealing with products from those areas in creating and operating EC sites aimed at overseas markets.
   • Assistance in overseas public relations activities
     The project focuses on assisting public relations activities contributing to sales promotion, for example, by helping to improve the awareness of a newly built overseas EC site among overseas consumers.
   • Dissemination of successful models of trans-boundary EC
     This is a project to first analyze information (e.g., successful models) gained through assistance to companies and then supply helpful information over the Internet and run an awareness raising campaign for Japanese companies on trans-boundary EC through seminars.

2. Launch of the Trans-Boundary EC Support Portal (see Appendix 2 for details)
   The Trans-Boundary EC Support Portal (http://www.cbec.go.jp) will offer the following information useful in implementing trans-boundary EC, based on the results of METI's E-Commerce Market Surveys and data on trans-boundary EC compiled by private organizations.

   • How to start trans-boundary EC
     This section provides information on starting an EC store and on associated operations such as promotion, distribution and settlement, along with successful examples of trans-boundary EC.
   • Legal systems concerning trans-boundary EC and the handling of problems
     This section shows relevant legal information for Japan and other countries and a list of informative websites that would be useful in handling problems.
   •  Outlook of the trans-boundary EC market
     The size of the trans-boundary EC market and related marketing information are available here. The data are primarily based on surveys conducted by METI.

3. Seminars on trans-boundary EC
   METI will organize seminars in which its officials and other professionals and experts working on the front lines of trans-boundary EC will speak about trans-boundary EC and describe their activities.

   • Planned seminars

     [Sendai]

     Date: Monday February 20, 2012, 14:30-17:00
     Place: Bel Air Hall
     Seating capacity: 100 people
     Admission: Free

     [Osaka]

     Date: Friday, February 24, 2012, 14:30-17:00
     Place: Hearton Hall, Nihon Seimei Midosuji Building
     Seating capacity: 100 people
     Admission: Free

     *For further information, please visit the Trans-Boundary EC Support Portal ( http://www.cbec.go.jp).

• Appendix 1 (PDF:301KB) (in Japanese)
• Appendix 2 (PDF:305KB) (in Japanese)

February 3, 2012

Information Economy Division, Commerce and Information Policy Bureau