3DNest Inc.

In February 2018, 3DNest founded 3DNest Inc., its Japanese subsidiary, in Tsukuba, Ibaraki. The company chose this location because office rent is lower than in Tokyo and excellent talent can be easily recruited from the University of Tsukuba. The shared office the company entered is located next to the campus, and it employs one University of Tsukuba graduate, an international student from China with a technology background. Mr. Zhang also came to Japan as an international student 10 years ago, and is familiar not only with the language but also the culture. He now heads the Japanese subsidiary. Mr. Zhang said that 3DNest decided to enter the Japanese market because of the presence of global companies, its developed infrastructure and the increase in inbound tourism that has resulted in a higher demand for 3DNest’s technology from the real estate and hotel industries. “When we thought about going overseas, we thought we should enter the Japanese market because Japan is a gateway to the global market,” he said. To expand their business in Japan, 3DNest established a business base in Tokyo and plans to add an Osaka office by the end of February 2019.

Mr. Zhang said that the most challenging experience in Japan was having to perform sales activities with few personal connections. In July, 2018, however, 3DNest Inc. won the Grand Prize of the Foreign Entrepreneurs Business Plan Competition hosted by the Tokyo Star Bank, Limited. Mr. Zhang said, “We applied for the competition to build personal connections in Japan, but, to our surprise, wound up winning and were given the opportunity to appear on TV. The Tokyo Star Bank gave us prize money and introduced us to multiple Japanese companies with the potential need for our technology. It was a big help.” After the win, multiple companies started contacting 3DNest Inc. looking for the possibility of incorporating its technology, and business discussions are ongoing.

There is currently a Chinese-affiliated real estate company in Japan attempting to differentiate itself from competitors by using 3DNest’s technology to allow investors in China to view properties in Japan in 3D online without having to travel to the country. 3DNest Inc. has also recently received inquiries from hospitals, schools and restaurants in Japan wanting to advertise their facilities online, and there is great demand from private lodging businesses in the Kansai area.

In China, many companies across various industries, such as real estate firms, private lodging facilities, art museums, factories and EC sites, have begun using 3DNest’s 3D VR technology. Mr. Zhang said that he sought to build connections among companies and make people’s lives better through this technology. Ongoing projects in China include 3D models of sightseeing spots, online 3D “open campus” tours of schools and 3D factory tours meant to give background to the products they make. Mr. Zhang said, “If 3D VR technology were used in Japan for sales and leasing of condominiums, it would change the way properties are viewed from now on.”

He continued, “As of now, 3DNest Inc. conducts business in Japan by importing cameras developed and manufactured in China, but we want to further localize our technology for the Japanese market. To do this, we are eager to recruit people to be engaged in product development.”

(Interviewed August 2018)