A guide for non-Japanese business persons
Saturday, 15 March 2008
Dr. Abu N.M. Wahid and Mohammad Salahuddin
SINCE the World War II, Japan abandoned the path of militarization and focused on economic growth and development. Japan has never been rich in natural resources in any way, but using its hard working and innovative manpower and national determination, the Japanese economy continues to grow at such a pace that at this time, it is the third largest economy in the world - next to the United States and China. Its gross domestic product (GDP) was $4.35 trillion in 2006. It grew over the year at a rate of 5.3 per cent. In the first quarter of 2007, it was estimated to be $4.6 trillion. It's a country with 123 million people all of whom are rich consumers habituated to high mass consumption. Their GDP per capita is $38,000 more or less same as that of the United States of America.
In order to keep pace with the western world, Japan is investing trillions of dollar to update and expand its infrastructure such as airports, seaports, road network, bridges, telecommunications, tourist resorts, etc., at both private and public initiatives. In the international trade and business, it is a major player in the world. Every company and every business in the world has a keen eye on the Japanese market. If any business can successfully penetrate into the Japanese market, prospect for business and profits is immense.
Economic and business activities in Japan and doing business there, are inextricably related to their political system, business law and regulations, and, above all, their business culture that includes their social values and social norms. In order to be successful to do business with the Japanese counterpart, one must know the Japanese business-culture first.
Although the Japanese government, politicians, and business leaders are very conservative, they are very prompt in enacting laws and regulations to protect the interest of the Japanese companies that create a great disadvantage for all foreign businesses who seek to enter the Japanese market. The changes in business rules and regulations take place in Japan so spontaneously and regularly that it is not only difficult for foreigners but also for the Japanese to keep track until they carefully and deeply read every newspapers. This is one of the main factors for which major European and American companies find it extremely difficult to expand their business in Japan. As for example, Burger King, Woolworth, General Motors, and Nokia are doing business in Japan but their scale of operation is not as large as in other countries.
Entering into the Japanese market requires a comprehensive strategy. Market for the product has to be studied very carefully and thoroughly. To avoid frustration, all concerned should bear in mind that the negotiation process with the Japanese counterpart will be tough, lengthy, and often costly. Final agreement on any proposed deal normally entails several meetings at different tiers of company hierarchy and the process can take months. During this process, your counterpart would prefer to maintain silence without giving you any indication whether things are moving in the positive or negative direction. Commitment has to be long lasting. The return will initially be low but the long term prospects of the business and profits outweigh these early stage difficulties. Even if one knows the market of the product very well, yet he or she may not get desired business results for not dealing with the business people in the proper Japanese way. Japan is a very complex society with exotic social values and norms.
Japanese people and consumers have a very strong aesthetic sense. In all stages -- from manufacturing to packaging, they make sure that they produce the good or service, however trivial or small it is, in the most perfect manner humanly possible. To them, three things are important- first quality, second quality, and third quality. Japanese workers often commit suicide when flaws are found in their workmanship. The whole shipment of merchandise may be rejected by a Japanese importer if a very small, negligible, and minute defect which is ordinarily not even visible with open eyes, is found in only handful of them.
In dealing with the Japanese counterpart, one has to be honest and straightforward. Delivery deadlines and product warranties must be met. After sale services must be made available easily and promptly. Constant and regular physical presence and physical contact with the local counterpart must be maintained as a sign of long-term commitment. This gives the opportunity to have a first hand idea about the performance of the product, collect feedback from the retailers and consumer and, above all, to enhance a long term relationship with the Japanese business.
In the first meeting, the traditional Japanese greeting is represented by a bow. But now-a-days, they do shake hands with foreigners. If you want to bow, there is a risk involved, because many Japanese would take a bow from a foreigner as a mockery. Thus, the safest way is to wait and follow your counterpart.
In dealing with Japanese, in general one should exercise utmost caution. Sometimes, people do things that are convenient for themselves or efficient in terms of time and money. But that is not true for the Japanese, they would like to do everything including social behaviour exactly the way they are supposed to do it properly. So one must know ahead of time, what are to be done and what ought not to be done. However smart and observant a foreigner is, it is almost impossible for him to figure out, what they are consciously avoiding. If the foreigner's etiquette and manner are not proper and polite in the Japanese eyes, he may fail to reach an agreement with his counterpart or, it may take longer than what it should take. Thus, learning Japanese business culture will help foreign businessman save his time, money, and, above all, can make succeed business ventures in Japan.
Under the usual circumstances, the Japanese counterparts would not invite a foreigner to his or her house for any business deal. If and when it happens, guests should not only remove shoes from feet but also should place them neatly and nicely together facing the door. However, if the host insists the guest to keep his shoes on, or if the host is seen wearing shoes, then the guest can follow the host. No matter how good or fluent in English one may be, it may not be understood by your host the same way as the Englishman or the foreign businessman. Therefore, slang words and jargons should be carefully and strictly avoided. In many cases, words are taken to mean literally. If one asks for a wash room or a bath room or a rest room, the Japanese counterpart may say, "we do not have it". No matter how indecent it sounds, the foreigners should call a toilet, " a toilet." This is especially true in making hotel reservations.
Some holidays are truly holy to the Japanese. On those days they would not like to do any business meetings as Muslims would not do it on their Eid days, Chinese would not do it on Chinese New Year day, and Christians would not do it on Christmas day. By calling the Japanese consulate, one should make sure about such holidays during his/her business trip to Japan.
In discussion, the Japanese counterpart must be called by his last name. One should never dare to call him her by first name. It is exclusively used by his/her family members or very intimate friends.
In business discourse, Japanese talk very much like diplomats. When they say "yes," it means "may be;" when they say "may be," it means "no." Japanese would hardly say 'no" on his guest's face. Sometimes, the Japanese counterpart would say, "meet you in the evening in such and such restaurant for dinner." This does not necessarily mean, you are invited to a dinner. Therefore, do not insist on such proposals. If he/she really means it, he/she will follow through on it.
Young business professionals are gradually changing their attitudes toward the traditional Japanese business culture due to the continuous waves of globalization. However, it is very unlikely that a foreigner would deal with a young staff for any kind of business deal whatsoever. In most cases, the Japanese decision-makers are of middle age, male.
Foreigners' business card be printed dual sided. One side in English and the other side in Japanese language following the Japanese style. Absolutely no casual dress is allowed in any business meetings. One must dress up conservatively, safest is white shirt, black or ash suit with matching tie and shining shoe - glossy not of mat finish type. Before sitting on the discussion table, the foreign guest should wait standing. The guest will be instructed by the host where to sit. It must be in some order according to their culture. Until the highest ranking person seats the guest should not sit. At the end of the meeting, the guest should not stand up and start leaving until chief of the meeting does. If any drink is served, the guest should wait until the chief starts drinking.
Small gifts are fine and appreciated. The best is a souvenir from the guest's home town. The gift must be wrapped nicely and neatly before it is handed over to the host. If the guest gives a gift, he should not expect that it will be reciprocated. However, if and when the host gives you a gift, look at it carefully and ask some queries about the gift to show some interest in it and that the guest is appreciating the gift. The guest should not open the gift in the presence of the giver. During the meeting, it is wise that the guest is taking some notes to indicate that the guest is taking proper interest and that he is serious about the matter. Make sure you one does not write anybody's name in a red pen even if one does not carry a blue or black pen. If and when the guest is eating a meal with the host, the guest should make sure that he eats something from everything. If the guest has some serious dietary restrictions, make sure the host is informed well ahead of time. The food must be appreciated even if was not good to eat.
After the dinner, if the guest is a buyer, he can reasonably expect that the host will pick up the tab. If the guest is a seller, he should insist to pay. However, since the guest is a visitor in host's country, normally it is expected that the host is going make the payment. When the host takes the counterpart to dinner, the guest may make a meek attempt to pay. Under any circumstances, the host would not let the guest do so. But willingness to pay, would look good to the host.
The Japanese sometimes would ask his guest questions that can make the guest feel uncomfortable. As for example, he/she may ask "what is your age?" The guest should remain silent if he so chooses. This may be offensive in many cultures but not at all in Japanese culture.
The Japanese do drink alcohol a lot during the dinner and afterwards. If the guest does not drink, he must make an apology and seek excuse. If the host insists on boozing, make sure the guest does not get angry. If the guest does not drink, it will be definitely an odd against himself.
The writers, Dr. Abu N.M. Wahid and Mohammad Salahuddin, are with Tennessee State University, USA and Southeast University, Bangladesh respectively
SINCE the World War II, Japan abandoned the path of militarization and focused on economic growth and development. Japan has never been rich in natural resources in any way, but using its hard working and innovative manpower and national determination, the Japanese economy continues to grow at such a pace that at this time, it is the third largest economy in the world - next to the United States and China. Its gross domestic product (GDP) was $4.35 trillion in 2006. It grew over the year at a rate of 5.3 per cent. In the first quarter of 2007, it was estimated to be $4.6 trillion. It's a country with 123 million people all of whom are rich consumers habituated to high mass consumption. Their GDP per capita is $38,000 more or less same as that of the United States of America.
In order to keep pace with the western world, Japan is investing trillions of dollar to update and expand its infrastructure such as airports, seaports, road network, bridges, telecommunications, tourist resorts, etc., at both private and public initiatives. In the international trade and business, it is a major player in the world. Every company and every business in the world has a keen eye on the Japanese market. If any business can successfully penetrate into the Japanese market, prospect for business and profits is immense.
Economic and business activities in Japan and doing business there, are inextricably related to their political system, business law and regulations, and, above all, their business culture that includes their social values and social norms. In order to be successful to do business with the Japanese counterpart, one must know the Japanese business-culture first.
Although the Japanese government, politicians, and business leaders are very conservative, they are very prompt in enacting laws and regulations to protect the interest of the Japanese companies that create a great disadvantage for all foreign businesses who seek to enter the Japanese market. The changes in business rules and regulations take place in Japan so spontaneously and regularly that it is not only difficult for foreigners but also for the Japanese to keep track until they carefully and deeply read every newspapers. This is one of the main factors for which major European and American companies find it extremely difficult to expand their business in Japan. As for example, Burger King, Woolworth, General Motors, and Nokia are doing business in Japan but their scale of operation is not as large as in other countries.
Entering into the Japanese market requires a comprehensive strategy. Market for the product has to be studied very carefully and thoroughly. To avoid frustration, all concerned should bear in mind that the negotiation process with the Japanese counterpart will be tough, lengthy, and often costly. Final agreement on any proposed deal normally entails several meetings at different tiers of company hierarchy and the process can take months. During this process, your counterpart would prefer to maintain silence without giving you any indication whether things are moving in the positive or negative direction. Commitment has to be long lasting. The return will initially be low but the long term prospects of the business and profits outweigh these early stage difficulties. Even if one knows the market of the product very well, yet he or she may not get desired business results for not dealing with the business people in the proper Japanese way. Japan is a very complex society with exotic social values and norms.
Japanese people and consumers have a very strong aesthetic sense. In all stages -- from manufacturing to packaging, they make sure that they produce the good or service, however trivial or small it is, in the most perfect manner humanly possible. To them, three things are important- first quality, second quality, and third quality. Japanese workers often commit suicide when flaws are found in their workmanship. The whole shipment of merchandise may be rejected by a Japanese importer if a very small, negligible, and minute defect which is ordinarily not even visible with open eyes, is found in only handful of them.
In dealing with the Japanese counterpart, one has to be honest and straightforward. Delivery deadlines and product warranties must be met. After sale services must be made available easily and promptly. Constant and regular physical presence and physical contact with the local counterpart must be maintained as a sign of long-term commitment. This gives the opportunity to have a first hand idea about the performance of the product, collect feedback from the retailers and consumer and, above all, to enhance a long term relationship with the Japanese business.
In the first meeting, the traditional Japanese greeting is represented by a bow. But now-a-days, they do shake hands with foreigners. If you want to bow, there is a risk involved, because many Japanese would take a bow from a foreigner as a mockery. Thus, the safest way is to wait and follow your counterpart.
In dealing with Japanese, in general one should exercise utmost caution. Sometimes, people do things that are convenient for themselves or efficient in terms of time and money. But that is not true for the Japanese, they would like to do everything including social behaviour exactly the way they are supposed to do it properly. So one must know ahead of time, what are to be done and what ought not to be done. However smart and observant a foreigner is, it is almost impossible for him to figure out, what they are consciously avoiding. If the foreigner's etiquette and manner are not proper and polite in the Japanese eyes, he may fail to reach an agreement with his counterpart or, it may take longer than what it should take. Thus, learning Japanese business culture will help foreign businessman save his time, money, and, above all, can make succeed business ventures in Japan.
Under the usual circumstances, the Japanese counterparts would not invite a foreigner to his or her house for any business deal. If and when it happens, guests should not only remove shoes from feet but also should place them neatly and nicely together facing the door. However, if the host insists the guest to keep his shoes on, or if the host is seen wearing shoes, then the guest can follow the host. No matter how good or fluent in English one may be, it may not be understood by your host the same way as the Englishman or the foreign businessman. Therefore, slang words and jargons should be carefully and strictly avoided. In many cases, words are taken to mean literally. If one asks for a wash room or a bath room or a rest room, the Japanese counterpart may say, "we do not have it". No matter how indecent it sounds, the foreigners should call a toilet, " a toilet." This is especially true in making hotel reservations.
Some holidays are truly holy to the Japanese. On those days they would not like to do any business meetings as Muslims would not do it on their Eid days, Chinese would not do it on Chinese New Year day, and Christians would not do it on Christmas day. By calling the Japanese consulate, one should make sure about such holidays during his/her business trip to Japan.
In discussion, the Japanese counterpart must be called by his last name. One should never dare to call him her by first name. It is exclusively used by his/her family members or very intimate friends.
In business discourse, Japanese talk very much like diplomats. When they say "yes," it means "may be;" when they say "may be," it means "no." Japanese would hardly say 'no" on his guest's face. Sometimes, the Japanese counterpart would say, "meet you in the evening in such and such restaurant for dinner." This does not necessarily mean, you are invited to a dinner. Therefore, do not insist on such proposals. If he/she really means it, he/she will follow through on it.
Young business professionals are gradually changing their attitudes toward the traditional Japanese business culture due to the continuous waves of globalization. However, it is very unlikely that a foreigner would deal with a young staff for any kind of business deal whatsoever. In most cases, the Japanese decision-makers are of middle age, male.
Foreigners' business card be printed dual sided. One side in English and the other side in Japanese language following the Japanese style. Absolutely no casual dress is allowed in any business meetings. One must dress up conservatively, safest is white shirt, black or ash suit with matching tie and shining shoe - glossy not of mat finish type. Before sitting on the discussion table, the foreign guest should wait standing. The guest will be instructed by the host where to sit. It must be in some order according to their culture. Until the highest ranking person seats the guest should not sit. At the end of the meeting, the guest should not stand up and start leaving until chief of the meeting does. If any drink is served, the guest should wait until the chief starts drinking.
Small gifts are fine and appreciated. The best is a souvenir from the guest's home town. The gift must be wrapped nicely and neatly before it is handed over to the host. If the guest gives a gift, he should not expect that it will be reciprocated. However, if and when the host gives you a gift, look at it carefully and ask some queries about the gift to show some interest in it and that the guest is appreciating the gift. The guest should not open the gift in the presence of the giver. During the meeting, it is wise that the guest is taking some notes to indicate that the guest is taking proper interest and that he is serious about the matter. Make sure you one does not write anybody's name in a red pen even if one does not carry a blue or black pen. If and when the guest is eating a meal with the host, the guest should make sure that he eats something from everything. If the guest has some serious dietary restrictions, make sure the host is informed well ahead of time. The food must be appreciated even if was not good to eat.
After the dinner, if the guest is a buyer, he can reasonably expect that the host will pick up the tab. If the guest is a seller, he should insist to pay. However, since the guest is a visitor in host's country, normally it is expected that the host is going make the payment. When the host takes the counterpart to dinner, the guest may make a meek attempt to pay. Under any circumstances, the host would not let the guest do so. But willingness to pay, would look good to the host.
The Japanese sometimes would ask his guest questions that can make the guest feel uncomfortable. As for example, he/she may ask "what is your age?" The guest should remain silent if he so chooses. This may be offensive in many cultures but not at all in Japanese culture.
The Japanese do drink alcohol a lot during the dinner and afterwards. If the guest does not drink, he must make an apology and seek excuse. If the host insists on boozing, make sure the guest does not get angry. If the guest does not drink, it will be definitely an odd against himself.
The writers, Dr. Abu N.M. Wahid and Mohammad Salahuddin, are with Tennessee State University, USA and Southeast University, Bangladesh respectively