Not to say you can't break into the market (look at what Sugi Cutlery has been doing) but you need to make sure you're doing something different.
I started Sugi Cutlery in 2020, so I will offer some of my thoughts.
I’m a handle maker that sells knives, more than a knife shop owner. When I opened Sugi, It was not my intention to make money, as I make plenty with my day job. I thought it would be cool to have a bunch of knives and then I could make the handles that I wanted to pair with the blades.
I really love making handles, it’s my way of expressing creativity. So much of my time is spent daydreaming about handles, it’s a bit silly (my family might say annoying). It’s not just the physical process, but everything that goes into it : learning about different woods and materials, experimenting, seeing the finished product, daydreaming, hearing back from people who appreciate the handles and inspiring others to make handles. Unless you have the passion, which it seems you do, then don’t bother.
After a few year of it, here’s what I will share:
Start up Timing - like others said, it may not be the best time to start a luxury goods shop. That may not be bad, as it gives you time to prepare.
Capital - There is an initial investment, ensure you have access to cash, more than you will think. The timing of delivery isn’t known, so cash flow isn’t steady. Be prepared when a big invoice pops up
Reputation - I made handles for years before starting Sugi. In addition to 1-1 clients, I sold handles to shops in multiple stores throughout the Americans, Europe and Asia. This really helped, as some of the blacksmiths knew my work and helped introduced me to a vendor
Japanese Culture - I have made some errors due to my lack of understanding how businesses work in Japan. It’s easy to make a mistake, harder to make up for your mistake. Don’t dive in feet first and not expect to make a splash.
Delivery - it takes time before you will get knives. I started in Feb/March with the idea of having some stock ready for the end of year holiday season. I was able to get enough in to keep me going, but it really takes longer than that. 6-30 month wait is not uncommon, many knives have 12-18 month wait.
Good luck, hope it works out.