Japan Emerges as a Highly Attractive Market for Web3 Projects

Japan, a country with a population of 120 million, has emerged as a highly attractive market for Web3 projects and practitioners. According to Statista, the number of local cryptocurrency accounts in Japan grew to 6.4 million by the end of 2022. What makes Japan stand out is its clear regulatory framework, robust purchasing power, and high user loyalty, creating immense opportunities for those seeking to establish a strong presence in the Web3 ecosystem.

High User Loyalty: A Key Market Feature

When delving into the unique characteristics and trends of the Japanese Web3 market, two factors become evident: a compliant regulatory environment and a sense of community belonging. These elements foster a high level of user loyalty among Japanese crypto enthusiasts. Once Japanese users choose a specific cryptocurrency or engage in a particular project, they tend to maintain long-term interest and unwavering dedication. This market attribute has been observed by Meteorite Labs across various projects and investments. For instance, as an early investor in StepN, Meteorite Labs actively supports the project's operations in Japan. From the initial 800 community members, 300 were Japanese, and to this day, Japanese members constitute 20-30% of the StepN community.

Empowered by Strong Purchasing Power

The Japanese market boasts substantial purchasing power, ranking fourth globally despite being the 11th most populous country, according to data from the official website of the Central Intelligence Agency (CIA). This indicates the formidable average purchasing power of the Japanese population. Following Meteorite Labs' strategic investment in Fusionist, the project team revealed that Japanese users represent 30% of the entire community, underscoring the significance of catering to this market's purchasing potential.

Private Network Operations: Harnessing the Power of Connections

Trust is highly valued in Japanese society, and establishing trust becomes the gateway to unlocking opportunities with Japanese users. In Japan, a common purchasing pattern prevails, where individuals are influenced by their family members, friends, and social circles. When one family member or acquaintance adopts a product or service, others often follow suit, generating a viral effect within these private networks.

Years of experience operating within Japanese society have taught Meteorite Labs the importance of fostering trust and conducting stable real world events. This includes organizing ambassador meetups and establishing a strong presence in communities. Japan's society thrives on a sense of belonging, and by tapping into these dynamics, projects can create a community-driven environment that resonates with Japanese users. For example, as an early investor in Mahjong Meta, Meteorite Labs has facilitated the establishment of offline mahjong parlors in Shibuya, bridging the gap between Web2 and Web3 experiences.

Overall, comprehending the unique characteristics and trends of the Japanese Web3 market and leveraging user loyalty, strong purchasing power, and private network operations are instrumental in successfully penetrating and integrating Web3 projects into Japan's thriving ecosystem.

Maximizing Local Market Resources

Building strong connections with major corporations and incubators in the local Japanese market is essential for the success of Web3 projects. This not only facilitates fundraising but also grants access to unique local resources that can drive growth and expansion.

Collaborating with renowned Japanese companies provides significant advantages for projects. It enhances credibility, trust, and opens doors to existing customer bases and distribution channels. By working together, joint marketing efforts and cross-industry partnerships can amplify the project's influence and visibility.

Receiving supports from local incubators and accelerators will bring in invaluable resources to Web3 programs. These organizations provide mentorship, networking opportunities, funding, and infrastructure, empowering startups to thrive. Engaging with these programs allows project teams to tap into their extensive network resources and gain insights and guidance from seasoned professionals.

Active participation in local communities and engaging with key community influencers are vital for establishing a strong presence in the Japanese market. Attending community events, meetups, and conferences fosters connections with like-minded individuals and potential users. Collaborating with influential figures who command attention in the Japanese market can significantly boost project promotion and attract a broader user base.

Customizing products or services for the Japanese market is crucial to meet the specific needs and preferences of local users. This includes providing localized content, a user interface in Japanese, and incorporating features aligned with Japanese cultural norms and consumer behavior. Prioritizing user experience and ensuring high product quality builds trust and loyalty among Japanese users, enhancing the project's long-term success.

About Meteorite Labs

Meteorite Labs is a fundamental research-driven crypto fund with extensive experience and connections in Asia, particularly Japan. Its multidisciplinary team combines expertise in investment, marketing, mathematics, data analysis, arts, game industry, and law. Meteorite Labs invest in venture and liquid opportunities within the blockchain sector through intensive research, investigation, and data analytics. We actively evaluate blockchain projects and ecosystems, with a focus on those that instill positive values in the web3-based world economy and experience, as well as the bridges between them.

About Aki Network

Aki Network is the first Web3 growth stack to track real promotion performances of crypto influencers with on-chain data-driven products. Since its launch in July 2022, Aki Network has been growing rapidly, collaborating with 200+ campaigns while connecting them with 2400+ network influencers and 310k+ community members via 303k+ successful user referrals. Aki Network's approach to data-driven influencer marketing, combined with its strong network of influencers and community members, makes it an indispensable asset for businesses looking to grow in the Web3 space.

Reference:

1. Number of crypto asset accounts set up in Japan from 2018 to 2022 https://www.statista.com/statistics/1301107/japan-number-crypto-asset-accounts/
2. Country comparison: Population https://www.cia.gov/the-world-factbook/field/population/country-comparison
3. Real GDP (purchasing power parity) https://www.cia.gov/the-world-factbook/field/real-gdp-purchasing-power-parity/country-comparison