Selling into Japan · Three gates, 2 of 3

The same product, bought
out of a different budget

A declaration is a policy, not a budget line.
Take the same product to the next office along and the answer changes.

Naoya Takamatsu, Representative Director, Kohomadha Inc.
Overseas Business Support Representative, Tottori Prefecture

Companies selling to Japanese local government tell me a consistent story. The meeting went well. The officials understood the product and agreed with the premise. Then: there is no budget.

What has usually happened is not that there is no budget. It is that there is no budget in that office. Elsewhere in the same municipality there may be a standing budget line that could buy the identical product — for a different stated reason.

A declaration is not a budget

The clearest example is the zero-carbon city declaration. A large number of Japanese municipalities have committed to net zero by 2050. The declaration itself carries no funding.

So a proposal that enters through the environment or decarbonisation section is welcomed as policy, and then stops, because policy is not money. You get courteous meetings and no purchase order. Practitioners selling energy equipment into Japanese municipalities describe the same pattern: the declarations are increasing, and the move to an actual implementation phase is where it stalls.

Where the money actually sits

Move the same equipment to a different office and the wallet changes with it. For energy-related hardware, the branches typically look like this.

Environment / decarbonisation

Reason to buy: reducing CO₂. Budget: the declaration exists, but funding has to be found separately. Action inside the current fiscal year is unlikely.

Disaster preparedness

Reason to buy: keeping designated shelters, clinics and the town hall running through an outage. Budget: frequently a standing annual line.

Regional revitalisation offices are a third route, and a different one again: they generally intend to draw on a national grant, which makes the timing dependent on when the application window opens rather than on the municipality's own budget.

In the preparedness conversation the question is not carbon.
It is how many hours it runs for.

That shift is worth taking seriously, because the numbers that matter change with it. Preparedness officers do not evaluate reduction figures. They evaluate duration under real load — will the shelter generator hold for hours or for days. If your material leads with emissions data, you are answering the environment section's question in the preparedness section's meeting.

Grant windows are a deadline on their side too

Where a national grant is involved, the municipality is itself an applicant with a submission date. If your proposal lands while that window is open, the officer can use it as their own application material. If it lands the week after it closes, the answer is "next time", regardless of merit.

The useful inversion: knowing when the window opens is itself part of what you are offering. Being the supplier who says "this grant opens in this period, shall we design to it" puts you in a different category from a supplier presenting a product.

Three things to establish before you propose

All three are answerable from public information plus a few conversations — provided you know which office and which person to ask, which is the part that does not appear in the public information.

In short

"No budget" in Japanese public procurement rarely means there is no market. More often it means the proposal has not yet reached the office that holds the money. The same product, a different department, a different budget, a different reason for buying it. This is one of the most common places a good overseas product stops in Japan, and one of the cheapest to fix.

If you have been told there is no budget

Tell me the product and the office you approached. I will map which other offices could need it, which of them hold standing budget, and what the argument looks like from each of their sides.

kohomadha.keiri@gmail.com