#Japan #Small Business #Shinjuku, Tokyo #Raycrew #PR Survey

Understanding the Challenges Small Businesses Face in Brand Awareness

In a recent survey conducted by Raycrew, a company renowned for its PR services, it was revealed that a significant number of small businesses, specifically those with fewer than 100 employees, face substantial challenges when attempting to increase awareness for their products and services. This survey aimed to uncover the realities surrounding the activities undertaken by small enterprises in Japan to promote their offerings.

The Context of Small Businesses in Japan

Small businesses represent a staggering 99.7% of all enterprises in Japan, highlighting their critical role in the nation’s economy. However, in an age defined by information overload, effectively communicating their products and services has become increasingly vital for these companies. Unlike larger corporations, small businesses often lack the financial and human resources necessary for comprehensive marketing and public relations strategies, leading many to struggle in this area.

Key Insights from Raycrew's Survey

Conducted from November 28 to December 2, 2025, the survey targeted Japanese business owners within small companies. The insights gleaned paint a concerning picture about the state of brand awareness initiatives in SMEs (small and medium-sized enterprises).

Decline in Brand Awareness Initiatives

Notably, only 40.4% of small businesses reported engaging in activities aimed at increasing awareness of their products—a decline of 7.6 percentage points from the previous year. This decreasing trend raises alarm bells regarding the marketing efforts of small enterprises.

Popular Awareness Activities

The survey revealed that the most commonly used strategy for enhancing product recognition is through managing social media accounts, which 44% of respondents employ. Other popular methods include participating in events and exhibitions (26.2%) and email marketing (24.8%). It’s interesting to note the shift in ranks from the previous year, where email marketing was the second most utilized strategy.

Major Challenges Faced

Among those businesses actively working on brand awareness, a staggering 80% reported feeling some level of challenge. Specifically, 53.9% admitted to feeling challenged, while 27% indicated they faced significant issues. The main difficulties cited were related to cost-effectiveness (45.6%), insufficient human resources (44.7%), and budget constraints for advertising (43%). These findings demonstrate the multi-faceted challenges that small companies encounter in their branding endeavors.

Reasons for Not Pursuing Awareness Activities

Interestingly, 66.4% of companies not pursuing these activities cited a lack of necessity as their main reason. However, a considerable number also indicated barriers such as insufficient advertising budgets (18.8%) and lacking human resources (14.4%). This indicates a mix of perceptions regarding the need for brand awareness efforts and tangible barriers that prevent action.

AI Utilization

One key area observed in the survey was the minimal use of AI in brand awareness activities, with about 69.5% of small businesses admitting they do not leverage AI in these efforts. This highlights a potential opportunity for businesses to harness technology for better efficiency in marketing.

Conclusion

The findings from Raycrew's survey underscore a critical need for improved support and resources for small businesses attempting to enhance product awareness. Despite recognizing the importance of brand visibility, many small enterprises grapple with challenges such as financial constraints, resource limitations, and a general sense of unnecessity towards awareness activities. Raycrew offers a promising avenue for these businesses through its PR services, which encompass everything from planning and conducting surveys to promoting media and measuring effectiveness. By addressing these challenges, Raycrew aims to empower small businesses to elevate their brand recognition in a competitive marketplace. For further details on how Raycrew can assist your business, visit Raycrew or contact us directly.