[Overseas Expansion Survey] Why Do Overseas Projects Fail? Uncovering the Reality Behind 'Cost' as the No. 1 Reason for Withdrawal
DNP conducted a survey on 201 overseas business managers who experienced project withdrawal or interruption. 'Cost' was identified as the top reason (31.3%), revealing that many companies face significant hurdles during early stages like product localization and regulatory compliance.
📋 Article Processing Timeline
- 📰 Published: April 22, 2026 at 21:00
- 🔍 Collected: April 23, 2026 at 00:02 (3h 2m after Published)
- 🤖 AI Analyzed: April 23, 2026 at 04:01 (3h 59m after Collected)
## Press Release Information
Title: [Overseas Expansion Survey] Why Do Overseas Projects Fail? Uncovering the Reality Behind 'Cost' as the No. 1 Reason for Withdrawal
Enterprise: Dai Nippon Printing Co., Ltd. (DNP)
The 'DNP Publishing IP Business Project' promoted by Dai Nippon Printing Co., Ltd. (DNP) conducted a survey on the reality of 'Withdrawal and Interruption in Overseas Expansion' targeting overseas business managers who have experienced project withdrawal or interruption while attempting to expand overseas.
Against the backdrop of a maturing domestic market and a shrinking population, an increasing number of companies are taking on the challenge of expanding overseas in search of growth opportunities. On the other hand, many cases are seen where plans are forced to be interrupted or withdrawn due to numerous hurdles such as differences in language and business customs, compliance with regulations in each country, and securing human resources.
The reality of why overseas expansion did not go well and the background of decision-making has not been sufficiently visualized until now.
Therefore, we conducted a survey on the reality of 'Withdrawal and Interruption in Overseas Expansion' targeting overseas business managers at companies with annual sales of 1 billion yen or more in the food, daily necessities, home appliances, retail, and distribution industries who have experienced withdrawal or interruption while attempting overseas expansion.
[Survey Summary] Survey on 'Withdrawal and Interruption in Overseas Expansion'
Survey Period: Tuesday, February 24, 2026 – Wednesday, February 25, 2026
Survey Method: Internet survey
Survey Target: Overseas business managers at companies with annual sales of 1 billion yen or more (food, daily necessities, home appliances, retail, distribution industries) who have experienced withdrawal or interruption while attempting overseas expansion.
Number of Responses: 201 people
Survey Agency: PRIZMA Co., Ltd. 'Sakurisa'
### The deciding factor for expansion was 'expectation for the growth and future potential of overseas markets'! What were the reasons for deciding to withdraw or interrupt?
First, when asked about the 'main trigger for considering or implementing overseas expansion,' the most frequent response was 'expectation for the growth and future potential of overseas markets (43.8%),' followed by 'sense of crisis regarding the shrinking and tapering off of the domestic market (27.4%).'
Combining 'expectations for overseas markets' and 'crisis sense for the domestic market' accounts for over 70%, suggesting that many companies are proactively tackling overseas expansion with an eye toward both ensuring future growth and business survival.
Despite this positive outlook, at what phase do companies face walls and decide to withdraw?
When asked, 'At what stage did you decide to withdraw or interrupt when considering or implementing overseas expansion?', 'Stage of product development and localization (25.4%)' was the most common, followed by 'Stage of regulations and certification (20.9%)' and 'Stage of local research and strategy building (20.4%).'
The fact that many decided to withdraw/interrupt at early stages like 'product development' or 'regulatory compliance' highlights the difficulty of expanding existing products directly into overseas markets and the high hurdle of localization to adapt to local preferences and rules. Also, withdrawals at the 'local research and strategy building stage' suggest that the accuracy of prior information collection and market understanding significantly affects business continuity.
So, what specific factors triggered withdrawals or interruptions?
When asked about 'reasons for deciding to withdraw or interrupt overseas expansion,' 'Cost made it difficult to continue (31.3%)' was the most common, followed by 'Needs and marketability were not expected (23.9%)' and 'Local legal systems and certification responses were difficult (22.4%).'
Regarding 'cost,' the most cited reason for withdrawal, it is suggested that not only prior estimates but also complex factors such as rising local prices, exchange rate fluctuations, and additional costs associated with regulatory compliance are impacting the cost burden.
Furthermore, many business managers seem to have reached the stage of reconsidering business continuity when they could no longer draw a sufficient profit outlook relative to the invested costs, such as when 'needs and marketability were not expected.'
### Struggling to grasp the real situation of local regulations and competitors... The key to success is the existence of a 'partner strong in the local area'
Then, what kind of information are they struggling to obtain in the process of proceeding with expansion?
When asked about 'information that was difficult to obtain when proceeding with overseas expansion,' the most frequent response was 'Specific hurdles and time required for legal regulations and certification (39.8%).' This was followed by 'Actual situation of local competitors (share, promotion methods, price range) (31.3%)' and 'Local business customs and unwritten rules (how to proceed with negotiations, entertainment, kickbacks, etc.) (30.9%).'
While 'difficulty of legal systems and certification' was a top reason for withdrawal in the previous question, this question suggests that the difficulty of gaining a concrete outlook—such as how long it actually takes to understand the system or what kind of additional responses are required—is becoming an anxiety factor in creating business plans. Furthermore, they seem to be struggling with the real situation on the ground that is difficult to grasp from public information alone, such as the 'actual situation of competitors' and 'local business customs and unwritten rules.'
Title: [Overseas Expansion Survey] Why Do Overseas Projects Fail? Uncovering the Reality Behind 'Cost' as the No. 1 Reason for Withdrawal
Enterprise: Dai Nippon Printing Co., Ltd. (DNP)
The 'DNP Publishing IP Business Project' promoted by Dai Nippon Printing Co., Ltd. (DNP) conducted a survey on the reality of 'Withdrawal and Interruption in Overseas Expansion' targeting overseas business managers who have experienced project withdrawal or interruption while attempting to expand overseas.
Against the backdrop of a maturing domestic market and a shrinking population, an increasing number of companies are taking on the challenge of expanding overseas in search of growth opportunities. On the other hand, many cases are seen where plans are forced to be interrupted or withdrawn due to numerous hurdles such as differences in language and business customs, compliance with regulations in each country, and securing human resources.
The reality of why overseas expansion did not go well and the background of decision-making has not been sufficiently visualized until now.
Therefore, we conducted a survey on the reality of 'Withdrawal and Interruption in Overseas Expansion' targeting overseas business managers at companies with annual sales of 1 billion yen or more in the food, daily necessities, home appliances, retail, and distribution industries who have experienced withdrawal or interruption while attempting overseas expansion.
[Survey Summary] Survey on 'Withdrawal and Interruption in Overseas Expansion'
Survey Period: Tuesday, February 24, 2026 – Wednesday, February 25, 2026
Survey Method: Internet survey
Survey Target: Overseas business managers at companies with annual sales of 1 billion yen or more (food, daily necessities, home appliances, retail, distribution industries) who have experienced withdrawal or interruption while attempting overseas expansion.
Number of Responses: 201 people
Survey Agency: PRIZMA Co., Ltd. 'Sakurisa'
### The deciding factor for expansion was 'expectation for the growth and future potential of overseas markets'! What were the reasons for deciding to withdraw or interrupt?
First, when asked about the 'main trigger for considering or implementing overseas expansion,' the most frequent response was 'expectation for the growth and future potential of overseas markets (43.8%),' followed by 'sense of crisis regarding the shrinking and tapering off of the domestic market (27.4%).'
Combining 'expectations for overseas markets' and 'crisis sense for the domestic market' accounts for over 70%, suggesting that many companies are proactively tackling overseas expansion with an eye toward both ensuring future growth and business survival.
Despite this positive outlook, at what phase do companies face walls and decide to withdraw?
When asked, 'At what stage did you decide to withdraw or interrupt when considering or implementing overseas expansion?', 'Stage of product development and localization (25.4%)' was the most common, followed by 'Stage of regulations and certification (20.9%)' and 'Stage of local research and strategy building (20.4%).'
The fact that many decided to withdraw/interrupt at early stages like 'product development' or 'regulatory compliance' highlights the difficulty of expanding existing products directly into overseas markets and the high hurdle of localization to adapt to local preferences and rules. Also, withdrawals at the 'local research and strategy building stage' suggest that the accuracy of prior information collection and market understanding significantly affects business continuity.
So, what specific factors triggered withdrawals or interruptions?
When asked about 'reasons for deciding to withdraw or interrupt overseas expansion,' 'Cost made it difficult to continue (31.3%)' was the most common, followed by 'Needs and marketability were not expected (23.9%)' and 'Local legal systems and certification responses were difficult (22.4%).'
Regarding 'cost,' the most cited reason for withdrawal, it is suggested that not only prior estimates but also complex factors such as rising local prices, exchange rate fluctuations, and additional costs associated with regulatory compliance are impacting the cost burden.
Furthermore, many business managers seem to have reached the stage of reconsidering business continuity when they could no longer draw a sufficient profit outlook relative to the invested costs, such as when 'needs and marketability were not expected.'
### Struggling to grasp the real situation of local regulations and competitors... The key to success is the existence of a 'partner strong in the local area'
Then, what kind of information are they struggling to obtain in the process of proceeding with expansion?
When asked about 'information that was difficult to obtain when proceeding with overseas expansion,' the most frequent response was 'Specific hurdles and time required for legal regulations and certification (39.8%).' This was followed by 'Actual situation of local competitors (share, promotion methods, price range) (31.3%)' and 'Local business customs and unwritten rules (how to proceed with negotiations, entertainment, kickbacks, etc.) (30.9%).'
While 'difficulty of legal systems and certification' was a top reason for withdrawal in the previous question, this question suggests that the difficulty of gaining a concrete outlook—such as how long it actually takes to understand the system or what kind of additional responses are required—is becoming an anxiety factor in creating business plans. Furthermore, they seem to be struggling with the real situation on the ground that is difficult to grasp from public information alone, such as the 'actual situation of competitors' and 'local business customs and unwritten rules.'