Why Japan’s Brand Pit expanded to France, a rare move among Asian startups

Photo credit: Unsplash.

Since setting up shop in 2013, Japan-based Brand Pit has made a name for itself with its unique object recognition software. The startup began by helping brands identify their products in photographs shared online, allowing them to target consumers in marketing campaigns.

Despite having strong Asian roots in Japan and Hong Kong, the startup is now expanding into a vastly different market — Europe.

Reading consumers through photos

Brand Pit first ran as a consultancy company, using the same technology to help clients understand consumer behaviour.

The company does so by seeking out photos that include a brand and analyzing elements within them. These elements could help gauge the social media users’ age, gender, lifestyle, and preferences. For example, if someone poses with a can of Coke, Brand Pit would be able to identify if the photo was taken in an office or on a beach, with a girl in her twenties or a man in his sixties.

The technology sources images from various platforms, including Instagram and Weibo. Brand Pit then processes its findings into consumer behaviour reports that influence marketing tactics.

Bonjour, Brand Pit

The company, which still runs a lean business of fewer than ten staffers, is eyeing the European market and is using France as its launch pad.

TT Chu, founder and CEO of Brand Pit, explains that having worked in European banks such as BNP Paribas and Credit Suisse, he is familiar with French culture and working style. It helped that there is a sizeable French population living in TT’s hometown of Hong Kong.

France also has many schools with a strong curriculum in imaging technology or artificial intelligence, such as Pierre and Marie Curie University (UPMC) as well as École Centrale de Nantes. This could bring fresh talent to Brand Pit in the future.

For those who dare take the plunge

While TT is familiar with French culture, he recognizes that not many Asian startups have that same advantage. To startups thinking of expanding to Europe, he gives a word of caution: the European market can be challenging for those not familiar with its way of life but rewarding for those willing to adapt.

For example, working in France without a basic understanding of French etiquette could make it difficult to build meaningful business relationships. Many Parisians speak English, but you’ll get further speaking as much French as possible.

Photo credit: Unsplash.

The rewards are there. According to UBI Global, Europe has 117 active incubators that have attracted a total of US$2.4 billion in investments.

VC investments in Europe sky-rocketed by 73 percent from 2012 through 2014. Corporate venture arms are also emerging. Salesforce dedicated US$100 million to invest in European startups, while Cisco has a startup portfolio of US$2 billion.

The European Union is providing more support for startups. It initiated the Entrepreneurship 2020 Action Plan, which promises more accessible sources of funding and lowering of barriers for international entrepreneurs.

Joining incubators is also a great way to scope out the market and learn valuable tips about working with locals. Brand Pit has taken part in three different incubators in each of the markets they are present in. The firm were selected along with 22 other promising projects among 750 worldwide for the inaugural French Tech Ticket last year, a government-supported accelerator programme that supports international startups.

In exchange, the one-year program comes with funding of US$50,000, 12 months in one of 41 French incubators, and fast tracking for team members to obtain a French residence permit. The latter was particularly valuable to TT. The process took him just one month.

“In Japan, it took us three, four months to register. In France, all I had to do was send one email. Before I knew it, it was done.”

The program also provides coaching with mentors, which are tailored to startups at many different stages. Networking events hosted by the program also helped TT score some of his first French clients.

About French Tech Ticket 2016

French Tech Ticket is a program designed for entrepreneurs from all over the world who want to create their startups in France. 70 winning teams can speed up and internationalise their startup in a vibrant startup community in France. They would receive US$50,000 in funding for each startup team, and a fast-track procedure to obtain a French resident permit. Startups will also be hosted in one of 41 top incubators around France for 12 months, and can take part in a tailored acceleration programme of master classes, networking events, mentoring sessions to accelerate the startup’s growth.

To find out more about French Tech Ticket Season 2 and how to compete, visit www.frenchtechticket.com. Registration closes on 23rd September.