Learn 22 points on how to do business (B2B) in Japan.
The below 22 suggestions are my best attempt to accurately describe the Japanese business (B2B) style. But if I'm wrong, with any of my suggestions, I apologize profoundly in advance.???
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1. Communication rules are straightforward in Japan; every email should be answered promptly. The correspondence writing should be business dry and precise. Avoid disclosure of personal/trivial information. ("Yesterday, I was sick, busy, my computer crashed, I had ISO 9001 audit…etc." The only exception to the above rule is rejecting a Japanese proposal/suggestion/offer. You say/write that the decision "is difficult," "let us think it over," "it is quite good," or "maybe in the future." The Japanese reader will understand the answer is NO even if you do not specifically say NO. A direct NO response is not appreciated in a business situation and may create a hostile reaction.
2. The meetings in Japan start on time and finish on time. It is impolite to show up for an appointment with a senior person and they are already in the meeting room/restaurant, even if you are on time for the meeting! You are expected to arrive 5 minutes before the appointment, but if you are meeting with a significant person, you better show up 10 minutes before the meeting to be sure you are the first in the meeting room.
3. The game-changing solution to the problem is not welcome in Japan. Kaizen – slow, steady improvement is expected. Flexibility is not widely appreciated; processes and procedures are expected to follow.
4. Never start a presentation: "We have new equipment for your application with better... The equipment is in our R&D department." New, just developed - translate – untested, no record operating instruction, no maintenance history, who knows how the equipment will perform in a year or five.
5. Cold call Japanese customers are considered rude and, in most cases, a time waster. An appointment needs to be prearranged, and, in the same circumstances, you should use recommendations from a senior person to go-between who knows both parties.
6. Price discounts are not expected. Delivery time shortening is appreciated. Avoid price increases during the negotiation of the project. The project may last up to 2 years—used friendly scapegoats such as Nickle's price surge or inflation.?
7. Customers expect timely project management and regular updates per agreed intervals (for example, every Friday of the week). If delays happen, notifications about the causes should be immediate, honest, and truthful.
8. Japanese contracts are short, vouge, with friendly conflict-resolving stipulations. The Japanese buyer's technical support, maintenance, and service expectations are long, precise, picky, and brutal on the sellers' profit margin.??
9. Personal life in Japan is not shared in the office or discussed. During initial cooperation, asking for or sharing private information is not welcome. As you build a relationship, more personal info is shared. Most likely, the personal information is transferred outside of the office setting, for example, during drinking after work. This slow personal introduction as time progress is essential to build better business communication.????
10. If you travel to Japan, always drink with your coworkers/partners. What happens in the bar after work will stay in the bar.
11. Apologize, apologize and one more time, apologize. The apology has a different meaning in Japan, and most likely, you will be forgiven if you apologize correctly. But you will not be forgiven if you do not apologize. Even if it is not your responsibility or the problem was not caused by you (global parts shortage), still APOLOGIZE. The apology expresses that disruption/harmony was disturbed/broken and that you are sorry that the disruption happened.
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12. Learn a few Japanese words and social facts to show your effort to understand Japanese culture. Follow business card exchange protocols precisely. Always thank customers for the meeting, and politely bow three times after the meeting on the way to the door. The customer will take you to the outside door and wait until you are in the car. Wave politely if you still see your customer from the vehicle. Politeness will not assure the order, but rudeness definitely will lower your chances of an order.
13. Remember, Japanese behavioral politeness doesn't translate into personal friendship or give you any favor in business dealing.??
14. Negotiation is usually slow because all interested Japanese parties involved in the project should approve it. It is not unusual for projects to last for one- or two years. If you negotiate, one significant piece too advice; talk less and listen more. If you offered a contra proposal, stop talking and await a response. Do not help the Japanese with their answers. For most Japanese, the answer requires courage and time to figure out the solution, so be quiet and wait.
15. Do not correct the English pronunciations. Do not finish sentences even if you know what the word is.
16. Japanese businesses prefer to buy proven solutions, minimizing the risk of failure and from trusted sources. The preference is to buy from companies having a long history and extensive reference list.
17. The equipment should be described precisely with very detailed data. Do not oversell, do not over-promise, and convey upfront product limitations. Do not be creative with your proposal by offering too many options.
18.?One of the advantages and disadvantages of the Japanese buying pattern is that it is challenging to become an equipment supplier to a new customer. However, if you become an approved and trusted supplier, you will have a loyal buyer for life. The point is that the Japanese believe that Japan operates differently from the rest of the world, where social stability, harmony, and satisfying customers are more important than growth or profit.
19. During the negotiation, be persistent, diligent, and consistent.
20. Japanese companies seldom, if ever, change their decision once it is made. Your calling persistence after sales is finished should have its limit.??
21. Several large industrial conglomerates and government bureaucrats control the Japanese economy. The Japanese business system provides employment and price stability. Most of the business is between firms belonging to conglomerates when profit is not a significant priority. Business is very much close to outsiders. The best way to enter the B2B market is through cooperation with one of the members of the conglomerate.?
22. Manufacturing/service presence in Japan is required to succeed. Fast service capability is crucial. Japanese people prefer to do business in their language.?
That's all, folks.???
Technical Sales Manager EMEA Region at Nitrex Metal
2 年Great article, worth to read.
Prior US Army Officer. Told Me I Couldn't Do It, Now, One of the Most Successful Martial Arts School Owners in Japan, EVER! 10K Students Trained and World Champions in Striking and Grappling.
2 年What a GREAT share! Seriously! I could add some more, by just these are perfect. I always had a hard time with the drinking with coworkers part. Drank a lot of gingerale in my day, because it looks like beer of course. haha.
Founder Pocotein (株式会社Kulbay)
2 年Thanks for sharing, Janusz.
Regional Sales Manager | Asia-Pacific & Canada
2 年Excellent observations. Mandatory read for any aspiring business person in Japan.