Introduction
When you are a B2B brand targeting the Japanese market, it is important to have a good understanding of the business culture there.
This will help you to do business in the smoothest, most effective and most respectful way – by being able to adapt to local customs and avoid any embarrassing faux pas.
In this blog post, I will explore the business culture in Japan and how it differs from the West. The five categories I will cover are:
- Business attitudes in Japan
- Communication styles in Japan
- Meeting etiquette in Japan
- Presentation methods in Japan
- Marketing restrictions and regulations in Japan
Let’s get into it!
1. Business attitudes in Japan
Japan has a vertical business structure. This means that, as a partner or potential client of a Japanese company, the person you are in contact with might not be the decision-maker. They might have to go quite a few steps above them in the hierarchy to get a decision made, which means it might take longer than you would expect. You might also have to do presentations in front of managers you have never met before, just to get approval on the partnerships or projects you are proposing.
Another thing that the vertical structure affects is the way issues are handled. A lot of the time in Japan, issues are handled by upper management, and depending on who your contact is, they might not be the person handling the issue. So, if you have some kind of challenge that needs resolving, it might go from your person of contact, to their manager, to their manager, and so on, before it actually gets sorted. This means that, sometimes, you have to be patient. Be respectful of the fact that although this might not be the way you would handle issues in your company, it is the way things are done in Japan.
If you want to become a trusted partner, people in Japan want to feel that you understand them and that you will be able to fulfil all their requirements. They want to be 100% certain that you are the right choice, so if you do not answer all their questions or if they get the impression that you do not understand what they want, they will hesitate in partnering up with you.
And finally, first impressions are very important when it comes to dealing with Japanese businesses. You have to start off on the right foot. When you first meet or communicate with a Japanese company, make sure to put in a great deal of effort and make sure that everything is as they expect it to be. On the flipside, starting off on the wrong foot will probably end the relationship before it even begins.
2. Communication styles in Japan
English proficiency in Japan is ranked as “low” by the EF English Proficiency Index, even in business. Therefore, in meetings between Japanese and non-Japanese companies, it is not uncommon to utilise interpreters, who will translate what everyone is saying. Whether you are using a Japanese-speaker from your own company, or using the services of an external interpreter, it is a good idea to have someone who speaks Japanese who can attend meetings and calls with you, so that everything can be done faster and smoother.
The next thing I want to touch upon is what I call “the awkward pause”. You know that moment when you are having a conversation, and then a pause descends upon the room and you feel awkward? I feel that people who grew up in the West feel the impulse to fill this silence and say something. However, with Japanese companies, what you will find is that these pauses do happen, but they are not a bad sign. People in Japan are very meticulous, and they like to think things through and understand what they are being told. Therefore, sometimes, in the middle of a conversation or in a presentation, they will pause to think about what you have just said or to formulate a response. It is not an awkward pause at all – it is actually quite natural! So, if the pause happens, do not rush them or assume you have done something wrong; they are just thinking about what you have just said.
It is also good to know about reactions. When someone is speaking, it is seen as polite in Japanese culture to show that you are listening by nodding your head once in a while. You can also show that you agree with them by saying “hai” which means “yes” in Japanese.
Tone of voice is also very important. As you may be aware, there are different levels of formality in the Japanese language. Therefore, if someone from your team or an interpreter is going to be speaking Japanese on your behalf, it is very important that they use the correct level of formality for the people they are speaking to. Be aware of who is attending the meeting, their seniority in the company and how they should be addressed. Even if you are speaking in English and you have an interpreter, be as polite and respectful as possible. Try to use proper grammar, do not be overly casual or crack jokes; be formal and professional.
In written communication, some of the above points are still important. Documents should ideally be in Japanese, or in both Japanese and English, to make sure that everything is clear and understandable to everyone. You should pay attention to tone of voice in writing as well, because that is also important.
And finally, something that may surprise you is that fax is still commonly used as a method of communication between businesses in Japan. You may therefore be asked for your fax number. You do not have to use fax with them; just be honest if that is not something that your company uses anymore.
3. Meeting etiquette in Japan
Let’s talk about bowing. If you are in a situation where you are meeting someone from Japan and you do not know how or when to bow, they will likely do it first when they meet you, so just copy what they are doing. It can be a little more awkward to bow in online meetings, but a little bow at the neck works. If you do not know how to do this, a little trick I learnt is to just look at my lap, as that achieves the desired effect!
Being on time is very important, so make sure that you log in to any online meetings a few minutes early so that you are definitely there on time.
Be aware that in Japan, physical business cards are still very much a thing, even though they have been largely usurped by LinkedIn in the West. In Japan, it is seen as very polite to exchange business cards, so if you are visiting a client face to face, make sure you have business cards prepared for everyone in the team going with you.
And finally, you will often find that there will be quite a lot of people in a meeting, but only some of them will speak. There will be some people who are just there to listen, or to sit and take notes, who might not say anything except “hello” and “thank you” and “goodbye”. That is completely normal in Japanese culture, so do not feel overwhelmed if you go into a meeting and there are five or more people there and you are on your own.
4. Presentation methods in Japan
People in Japan are very appreciative of receiving a summary presentation, whether that is a summary section at the end of your full presentation or a different set of slides altogether that just has everything summarised succinctly.
Again, they might expect the presentation and the slides to be in Japanese, so be prepared to do this.
And finally, when it comes to colours, be careful of the colour red. Even though red is on the Japanese flag, it is not actually a colour that has a very good symbolism, as it is associated with fire (the destructive kind, not the passionate kind) – so, avoid red if you can.
5. Marketing restrictions and regulations in Japan
Generally, if you are a foreign company and you want to open an account on a platform in Japan, there are extra hoops that you have to jump through.
The actual documents and proof that you will need will depend on the platform that you are trying to open an account with, as well as on your industry.
Conclusion
I hope this blog post has given you a useful overview of the B2B business culture in Japan and how it differs from the West. If you follow the tips given in this blog post and are respectful of the local customs, you will be well on your way to doing business with your Japanese partners and clients in a smooth and effective way – good luck!
Want to learn more?
This blog post is based on a webinar I co-presented about how B2B brands should adapt culturally when targeting China, Japan and South Korea. You can watch the webinar recording here.
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Daiana Damacus
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