Understanding Foreigners

Japanese people understand it is difficult for foreigners to work in Japan; therefore, they do not expect you to speak or read Japanese or follow their own cultural ways.

Mistakes in language, etiquette, and customs are allowed as long as genuine respect is shown at all times. Japanese will try to help you but often feel embarrassment due to their own lack of English understanding and language ability.

Relationships & Communication

Japanese people prefer to do business with the help of personal relationships. Being introduced or recommended by someone who already has a good relationship with the company is extremely important in Japan. It allows the Japanese to know how to view you in respect to themselves. One way to build and increase relationships is with seasonal cards and occasional gifts. It is very important to respond to such gifts, as the Japanese hold this in high esteem.

Business Meeting Etiquette

Appointments are required for many business individuals and should be made several weeks in advance. It is best to call for an appointment rather than sending a letter, a fax or an email. Punctuality is crucial. You must arrive on time for meetings and know your Japanese colleagues will do the same. Since Japan is a group society, you might be in for a surprise to walk in on a group meeting instead of a one-on-one as initially thought of.

The most senior Japanese individual will be seated furthest from the door, with the rest of the people in descending rank, with the most junior person seated closest to the door. It may take several meetings for your Japanese business partners to become comfortable with you and be able to conduct business. This "getting to know you" time is crucial to laying the foundation for a successful relationship. You may be given a small amount of business as a trial to see if you are a serious person and keep to your word. If you respond quickly and with excellent service, your business partner will continue to do business with you.

Remember to never refuse a request, no matter how difficult or non- profitable it may appear. Japanese business partners look for long-term relationships. Always provide a package with information about your company, including articles and client testimonials. Always give a small gift, as a token of your appreciation, and present it to the most senior person, at the end of the meeting. Your business adviser can assist you on where to find an appropriate gift.

Business Negotiation

Japanese people will rarely confront you without a middle-man. They also have a difficult time saying 'no', so you must be observant of their non-verbal communication. It is best to phrase questions that usually require a 'yes' versus a 'no'. For example, "do you disagree with this?"

Group decision-making and approval are important in Japan. Written contracts are required as they like everything organized.

The Japanese often remain silent for long periods of time. Be patient and wait for them to think about what has been said. They prefer broad agreements and mutual understanding so that when problems arise they can be handled in a flexible manner. Using a Japanese lawyer is seen as a gesture of goodwill. Understand that Japanese lawyers are quite different from Western lawyers as they are much more functionary.

Never lose your temper or raise your voice during negotiations. Some Japanese close their eyes when they want to listen intently, therefore, don't take this as a sign of disrespect. In meetings, Japanese expect both parties to come to the table with their best offer. Businessmen do not see contracts as final agreements, therefore agreements can be renegotiated.

Speed of Decision-Making in Business

Due to a strong contemporary business competition in Asia, the previously explained concept of the 'unhurried Japanese negotiation process" is becoming no longer applicable. Decisions are now made swiftly and efficiently.

Dress Etiquette

Business attire in Japan is rather conservative. Men should wear dark-colored, conservative business suits. Women too should dress conservatively.

Business Cards

Business in Japan cannot begin until the exchange of business cards or 'meishi' has been completed. Business cards are exchanged constantly and with great respect. As a serious individual, you should invest in quality cards. Always keep your business cards in great condition. Treat the business card you receive as you would the person, with utmost respect.

You may be given a business card that is only in Japanese; therefore, it is wise to have one side of your business card translated into Japanese for a clear understanding.

Give your business card with the Japanese side facing the receiver.
Make sure your business card includes your title, so your Japanese colleague knows your status within your company. Remember that business cards are given and received with two hands and a slight bow. Always examine the business card you receive very carefully. During a meeting, place the business cards on the table in front of you in the order people are seated. When the meeting is over, put the business cards in a business card portfolio to preserve them and to keep them organized.

What to do and what to avoid

Do use apologies where the intention is serious and express gratitude frequently as it is considered polite in Japan. Do avoid confrontation or showing negative emotions during business negations. Express opinions openly but evade direct or aggressive refusals. Do greet your business partners with the proper respect and politeness. If your counterpart bows make sure you return the gesture, which is usually performed shortly and shallowly. More often than not, a handshake is sufficient.

Don't give excessive praise or encouragement to a single Japanese colleague in front of others. Remember that the group is often more important than the individual. Don't address your Japanese counterpart by their first name unless asked to do so. Use the titles 'Mr' or 'Mrs' or add 'San' to their family name; for example, Mr Yamada will be "Yamada San". Don't use large hand gestures, unusual facial expressions or dramatic movements.

Why do business in Japan?

Japan is the world's second largest economy after the U.S. Due to recent pressure from the global recession, Japan is easing restriction on foreign business and relying more on market forces for economic growth. This means that now is a good time to introduce your business, products, and yourself to the Japanese market.

For more info. about Japan visit the Japan External Trade Organization.