While the bright lights of Tokyo, Osaka, Kyoto, Fukuoka, Nagoya, and Yokohama often attract foreign companies seeking to penetrate the Japanese market, success may actually lie beyond these metropolitan areas. However, we believe that there may be a different approach from some of our projects.In this article, we will explore what business opportunities regional cities have that big cities don't, uncovering the hidden potential of these often-overlooked areas in Japan.Unique Cultural Insights and Regional CharacteristicsLocal Traditions and Products: Each region has its own traditions and specialty products, which can be integrated into new business ideas.Example - Tottori's Sand Dunes: Tottori is known for its extensive sand dunes, a feature unique within Japan. This natural wonder has inspired local government initiatives to tout the region's lunar landscape, fostering ambitions to become a hub for space technology and related industries. More details can be found here.Tourism Opportunities: From historical sites to local festivals, regional cities offer untapped tourism resources.Business Ease in Regional CitiesLower Operating Costs: Unlike major cities, operating in regional areas might be more cost-efficient, with potential savings on various expenses.Support from Local Governments: Many local governments in regional areas are focused on community revitalization and often welcome collaborations with private enterprises. Unlike in big cities like Tokyo and Osaka, where regulations and rules may make even conducting a Proof of Concept (PoC) very challenging, especially when using public spaces, local authorities in regional cities are more accommodating and supportive.Strategies for Building Collaborations in Regional CitiesComprehensive Collaboration Agreements with Local GovernmentsMutual Benefits: Such agreements offer support from the local government and can increase a company’s social contribution.Examples: Increasing cases of collaboration for local revitalization and problem-solving.Strategies for Successful PartnershipsUnderstanding Local Needs: Engaging with local communities to understand their unique characteristics and needs.Collaborative Models: Joint ventures with local companies, involving shared goals, and transparent communication.Case Study: A Strategic Collaboration in Tamana, KumamotoTamana City, Kumamoto Prefecture and Taiwanese startup "Uniigym" conclude MOU1. Problem:Tamana City: Faced with challenges in local revitalization, with traditional methods yielding limited success.Uniigym: Difficulties in finding municipalities or businesses in Japan willing to test or adopt their services, especially as an overseas startup.2. Purpose:Tamana City: Wanted to promote community building and citizen health through innovative means.Uniigym: Sought a Japanese location to serve as a springboard for global expansion, focusing on contributing to health and well-being.3. Solution:Collaboration: The parties reached an MOU, outlining activities such as citizens' experience events, and public solicitations for testing Uniigym's services.Outcome: Created a groundbreaking model that resolves both parties' challenges, with Tamana City being the first in Japan to implement a strategy centered on a Taiwanese startup.Reference: https://prtimes.jp/main/html/rd/p/000000001.000118590.html