Doing Business Abroad: Japan

August 26th, 2008 Amir Posted in Culture |

Being successful in a different country than your own requires to quickly adapt to the customs, rules and culturally bound rituals of that particular country. Understanding those you negotiate with, showing them the proper deference can do wonders in boosting your market success.

Mount Fiji, japan

Japan is one of the countries where doing business is a true art for any gaijin (foreigner). Everything follows a certain ritual, everything one thought is normal behavior isn’t, things generally considered impolite are subject to every day conversation. Learning enough about the Japanese culture to do business in this part of the world takes lots of time and dedication.

It all Starts with Harmony

Harmony is an important component of the Japanese culture. Ever since childhood, harmony is presented as an ultimate goal and everything else related to how people act emerges from this belief: the immense politeness they strive to show, the group mentality, the concern for the common not individual good and much more.

It is this sense of harmony that drives Japanese businessmen to try to please others and have such a hard time saying “no” to someone. Every denied request is dressed up and beautified so that those hearing the bad news could take it as lightly as possible.

Greetings

A few words in Japan won’t hurt and will show good will on your side. Also, forget the handshake and learn how to bow. Bows go as low as social standards require, and the lower you bow, the more respect you show. Generally, you should bow as low as the Japanese person in front of you.

Yokohama

If a Japanese man chooses to shake your hand, it will be a weak shake. Don’t judge character by it, you’ll end up being wrong. As for women, well, touching the other sex in public is a serious mistake.

Business Cards

If you want to start doing business in Japan, you’ll need new business cards. You’ll need a bilingual set (English and Japanese for example) and always give them with the side in Japanese facing the person you’ve met.

Business cards are the image of the person in front of you and have to be given the same respect as their owner. Given and received with both hands, you should place them in front of you carefully when in a meeting, or place them carefully on your shirt pocket or a card holder after thoroughly examining them. If a position is not clear to you, feel free to show interest and ask for details.

Meetings

Another important ritual to learn: how to behave on meetings. Remember the little importance given to individuality and expect to have group meetings, not one-on-ones. The position and power is extremely important in how individuals are seated. The most powerful person in the team you’ll meet will always be seated in the middle of the table, as far from the door as possible.

You’ll have to wait to be shown your seat and then you should stand by it until the highest in rank will ask you to sit down. If drinks are served, they will be poured according to each person’s status and you shouldn’t drink before the highest person in rank of the group you are talking to.

Learn not to get anxious if no one says anything, the Japanese like to enjoy their silent moments. And don’t rush to get to business; it may take several such meetings before any business is done. And it’s most likely you’ll be given a trial task to perform before anyone commits to a long term deal.

No matter how impossible a request might sound and although it might not bring any profit to you, never reject it. Try your best to complete it, as it’s probably just another test and all Japanese companies are really looking for long term deals.

Negotiations

While Japanese men avoid saying no, by no means do they accept everything offered to them. They might even say yes and mean the complete opposite. What they use? Body language, a very specific language that a foreigner has to learn to read. There have been books written on the matter, so it should be taken extremely seriously.

Japanese businessmen will always put the best offer on the table and certainly expect the same from their counterparts. Act accordingly and remember one important status detail: the buyer is always on a higher position than the seller.

Ramen Stand

If you have a signed contract at the end of your first round of negotiation that does not mean it is final. Contracts, although ever present and definitely required, are never final. They are subject to renegotiations as the Japanese like to solve all emerging problems by making use of maximum flexibility.

Appearance

The Japanese prefer conservative, stylish outfits to the casual style other countries have adopted. That’s why dark suits (black or dark blue) would be a great option for men. Women should also adopt a conservative style but replace pants with skirts on all occasions. Japanese men would otherwise be offended. Also, if you’re a tall woman, choose shoes carefully. You should drop the high heals as looking down on the men you’re talking to may also be found offensive.

Entertainment

The Japanese prefer all entertaining activities be scheduled after working hours and preferably in a bar or restaurant. Sometimes hostesses are involved, so if you’re a woman doing business there, make sure to skip such fun times. When it comes to picking the tab, insist to pay on all occasion, you’ll rarely get to, but your effort will be appreciated.

A rule of thumb would be that the person inviting also pays. But as we are talking about visitors to their country, the Japanese will probably consider it an exception to the rule.

If you’re ever invited to a Japanese house, consider it an extremely big honor and act accordingly. Remember to take off your shoes before entering and to properly place them afterwards. As in the case of business meetings, wait to be shown where to sit. When eating, slurping is something you should consider doing. Far from being impolite, it shows you’re really enjoying your food.

Offering Gifts

Gifts are extremely important in the Japanese business world. While the price is never really important, the wrapping is and they offering ceremony as well. Quality whiskey, brandy or wine, exquisite chocolates, something representing your country, all these will do. But when it comes to wrapping your presents, colors are really important and it’s better to have them wrapped at a Japanese store. If you brought the gift from abroad, then ask for suggestions from your Japanese contacts.

As it happens with business cards, gifts are given and received with both hands. If they are wrapped, they are never opened in the presence of those offering them. But if they are unwrapped, you should take your time and admire the gift, maybe also ask some questions about it. If the person giving you the gift insists on you opening it when it’s wrapped, you should grant them their wish.

Another important aspect when it comes to gifts is that the Japanese are not really keen on surprises. So think of offering the gift towards the end of the evening and make a few remarks during the meeting so that your host understands they are about to receive a gift.

Tokyo

Bad luck and death

There are numbers and colors that bring bad luck. Some, as the number four, are signs of bad luck because their pronunciation is close to the sound of words meaning death, others, as the color white and certain flowers, bring bad luck as they are used in burial ceremonies.

Before starting to attend meetings, you should allot some time to learning the don’ts of the Japanese culture.

These are just a few pointers, a glimpse to what you’re about to experience. There are dozens of online articles and books written on business etiquette in Japan. If you’re serious about doing business here, you should start learning more right a way. Start here, here, here or here. And when you think you’re ready, test yourself with this quiz!