Canadian Market Advice for a Japanese Exporter

[GTR-Garage]

I am an experienced exporter (with no language barrier) based in Japan and am currently in the process of creating a company that specializes in exporting Skylines and used factory and performance parts. What I am looking for is advice in regard to the Canadian market.

Are enthusiasts in Canada willing to purchase parts direct from Japan. Our e-commerce system will be rather advanced and include credit card processing and integrated shipping so the process of purchasing will be pain free, but I question whether Canadians would be willing to order parts direct from Japan rather than from a local shop.

In terms of vehicles, is the market saturated with specialty importers or is there room for a small exporter to provide a handful of cars direct to customers. Obviously, I still need to research into importation and legality in Canada, but I put great value in what Canadian enthusiasts would have to say. While I have exported to numerous countries, I have yet to export to Canada.

Any opinions would be greatly appreciated, even if it is telling me not to waste my time. To the moderators, I could not find any information in regards to advertising so I sent a PM.

>Kunio<

[JZ]

Welcome to GTRCANADA Kunio.

The Canadian market, though much bigger than the US one, is still very small. I have been involved with this community since its inception and I can speak with a fair amount of confidence that the market is well served with its existing line of importers. There are a fair number of buyers who choose to import directly from Japan (I went that route in 2004 with my first GTR), while another segment has taken good advantage of the decent selection of already landed Skylines in the used market which lets buyers go out and "kick tires" to see if the car is right for them (which I did with my second GTR). If I were to make a observation, I would say the more selective clientele are the ones with a very good knowledge of these cars and have bought directly from Japan whereas the more casual, curious buyer has found them locally via used car channels.

I can say however, that that days of a market flooded with importers had ended 3-5 years ago and perhaps the market can support a new venture as long as it demonstrates excellent customer service, honest business practices and respect to the market.

Good luck.
JZ

[cobrAA]

I think the market for cars is full, but the market for used parts has place.

Even if USA cant get cars, they still swap rb engine in their nissan so they also need parts. The money is to be made with parts import more than cars.

Anyways 25% of the canadian population can't import jdm cars anymore. I believe ontario is also flooded with company and B.C is maybe even worst so what's left ? 25% of the population with a 3000 kms separation? quite hard to service if you ask me.

[dah_hunter]

What i feel a good exporter needs to have:
Storage space in Japan, (Offer me free storage and i will buy the car from you)
Shop/Mechanics in japan (Parts installed rims changed, if you can do that for a good price then thats what im looking for)
Fast direct communication, I know we are in different time zones but it shouldn't take more then 48 hours for you to respond to a inquiry.
Experaince with cars that goes behond just looking on Wikipedia. (If i want a 1998 Nissan Elgrand, i want you to tell me stuff that i cant find online. common issues that you could only know because you have been in the business for many years)
Selling only skylines, well that seems just silly.. the most popular cars that are imported into Canada are Delicas/Diesel vans and trucks. I would say there are 10 for every 1 skyline that comes in. thats the market i would suggest catering to, (www.delica.ca)

The stigma with importing has pretty much vanished these days most people can easyly find out how to import there own car, that they can hand pick from tradecarview. JDMVIP.com has walk through/videos etc.. Everyone know how to find out the costs of past cars sold at auctions so your margins will be thin.

Create a positive online presence, and go from there..

thats the end of my rant.

[GTR-Garage]

I can say however, that that days of a market flooded with importers had ended 3-5 years ago and perhaps the market can support a new venture as long as it demonstrates excellent customer service, honest business practices and respect to the market.

Good luck.
JZ

I appreciate the advice. I am primarily interested in supplying parts, but if there was a viable market for exporting vehicles it would be negligent to not try and provide vehicles. My primary business for years has been exporting standard vehicles and I also operate a few small dealerships in Yamaguchi-ken. This venture is a bit of a passion project. I'm interested in becoming a trusted and reliable supplier for like-minded individuals. Is GTR Canada accepting new advertisers?

[GTR-Garage]

I think the market for cars is full, but the market for used parts has place.

Even if USA cant get cars, they still swap rb engine in their nissan so they also need parts. The money is to be made with parts import more than cars.

Anyways 25% of the canadian population can't import jdm cars anymore. I believe ontario is also flooded with company and B.C is maybe even worst so what's left ? 25% of the population with a 3000 kms separation? quite hard to service if you ask me.

Can you elaborate on your comment in regard to offering free storage space? Space is not an issue for me. I am a car trader here and am always moving cars in and out of our storage space as we make any necessary repairs to get them ready for inspection. We do the same thing with the agricultural equipment I export.

In regard to your comment about selling only Skylines, I agree with your sentiment. I sell a wide variety of cars, but this new venture is intended to be very limited in scope and something I will enjoy very much. However, I will look into the Delica link you provided. Interestingly enough one of my daily drives is a Space Wagon. Thanks for the heads up.

[GTR-Garage]

I think the market for cars is full, but the market for used parts has place.

Even if USA cant get cars, they still swap rb engine in their nissan so they also need parts. The money is to be made with parts import more than cars.

Anyways 25% of the canadian population can't import jdm cars anymore. I believe ontario is also flooded with company and B.C is maybe even worst so what's left ? 25% of the population with a 3000 kms separation? quite hard to service if you ask me.

It's funny that you mention the United States as I am currently storing one of the earlier production run 1990 GTRs for a friend in the US who plans on importing it in late 2014. Many of the exporters here are expecting the flood gates to open, but I'm a bit more conservative in my expectations. We are hoping it is a good market that we can provide for.

[Woodly]

I think the market for cars is full, but the market for used parts has place.

Even if USA cant get cars, they still swap rb engine in their nissan so they also need parts. The money is to be made with parts import more than cars.

Anyways 25% of the canadian population can't import jdm cars anymore. I believe ontario is also flooded with company and B.C is maybe even worst so what's left ? 25% of the population with a 3000 kms separation? quite hard to service if you ask me.

I would agree with this, parts are definitely always in demand for these cars.

[Oakville]

There are very few local shops that sell quality JDM parts at a decent price. The only shop I know locally that sells new stuff is very overpriced compared to buying online. The market for used JDM performance parts here is virtually unheard of. Almost all JDM parts here are either OEM motor sets or parts sold through individual private sales.

I would personally KILL for a UPgarage style store here.

[bobbo]

I would like to see an end to overpriced used parts. I can't understand how people think you can use a part for years and still sell it for 75% of retail.
That being said although I've had nothing but excellent service from Daryl @ Rightdrive and my past experience with AMS was good too a new supplier is certainly welcome and thanks for finding us.

[GTR-Garage]

Again, thanks for all the tips and suggestions. It's much easier to decide where to focus my efforts when the type of people I would like to sell to let me know the reality of the situation.

In my research what I've seen as lacking is easy access to used aftermarket performance parts and factory parts. By easy I mean you go to a website with a clean design, see what you want, add to your cart, check out and you're done. UpGarage was mentioned previously and what I'm trying to do is essentially create a Skyline specific UpGarage online that utilizes an advanced e-commerce system combined with excellent customer service.

If anyone has any suggestions as to what type of parts you would like to see available or any other services that would be useful please let me know. I am all ears!

>Kunio<

[Kunzz]

RHD Japan is good for that stuff...great sales but prices are already a bit high

[JZ]

+1 for a NA version of UpGarage, that would rock. One thing I like too would be a translated and brokerage service for Yahoo.jp auctions.

[MattiasJacobs]

I would like to see an end to overpriced used parts. I can't understand how people think you can use a part for years and still sell it for 75% of retail.
That being said although I've had nothing but excellent service from Daryl @ Rightdrive and my past experience with AMS was good too a new supplier is certainly welcome and thanks for finding us.

Haha I agree. I saw a used timing belt for what, $25. I was like "REALLY?"...

[Dragon Humper]

A Skyline (or other models) online style UpGarage for us over here would be awesome, I can think of at least 5 people on here that would jump all over a manual steering rack (from the GXi R32). Pricing would have to make up for the shipping costs though, I know its a fine balance to still be able to make money but that will be a deciding factor.


Jon