Some Dos and Don'ts of Doing Business with Japanese Companies
Are you planning to do business with Japanese companies but unsure about what to expect? Don't worry – here is a list of the top 10 mistakes foreign companies make when dealing with their Japanese counterparts.
Not understanding Japanese business culture: Japanese business culture is based on hierarchy and group harmony, and decision-making can be slow and consensual. If you're used to getting straight to the point and making quick decisions, you might need to adjust your approach.
Skipping the preparation: Japanese companies expect you to have a thorough understanding of your products, services, and business plans. Don't skimp on the research – it's essential to building credibility and trust with your Japanese partners.
Neglecting to build relationships: In Japanese business culture, relationships are everything. Make sure to take the time to get to know your Japanese counterparts and build trust – it will pay off in the long run.
Not understanding the role of intermediaries: Japanese companies often use intermediaries, such as trading companies or distributors, to facilitate business with foreign companies. Make sure you understand how these intermediaries fit into the overall business relationship – otherwise, things could get confusing fast.
Ignoring protocol: Protocol is important in Japanese business culture, and it's essential to follow proper etiquette when it comes to greetings, gift-giving, and business card exchange. Don't be that person who whips out a business card with one hand from your pocket.
Being too direct: In Japanese business culture, direct communication is not always appreciated. Make sure to be polite and respectful, even if you disagree with your Japanese counterparts.
Failing to tailor marketing materials: Japanese consumers have different preferences and expectations than those in other markets, so make sure to tailor your marketing materials and sales pitch accordingly.
Ignoring the importance of quality: Quality is highly valued in Japanese business culture to the extent of 0% failure rates and defects. No matter how long you have been selling products in the US with no customer complaints, the Japanese WILL find a quality issue with your product.
Being overly aggressive in negotiations: Japanese business culture values harmony and consensus, so try not to be too pushy or aggressive in negotiations. The Japanese are master negotiators and use the technique of silence (and gasping for breath) quite effectively.
Neglecting to follow up with a thank you: Follow-up is important in Japanese business culture, so make sure to follow up on any promises or commitments made during negotiations or meetings. Most importantly, always start any follow-up with a thank you for the last meeting.