Business relationships in Japan

Concern about how others perceive you pervades business and social communication in Japan. Since saving and losing face are so important, you should avoid confrontation or embarrassing situations. A distributor that cannot follow up on a promise made to a customer loses face and may suffer damages to its reputation. Remember, if you are supplying distributors in Japan, to deliver on time (especially if they are samples) or else face a long chain of lost faces and apologies. An error or delayed shipment, even if it is not your fault, may damage your company’s reputation with the Japanese company you are dealing with as well as all the companies and customers that Japanese company does business with. Following through on promises and agreements, both oral and written, is of utmost importance and when you cannot do this you will have to swallow your pride and apologize profusely until you are forgiven. This is all part of common business practice and you may see business people (including top executives) on their knees apologizing. When in Japan be ready to include this as a part (hopefully not regular part) of your own business practice.

Nonverbal communications gestures, nuances, and inferences — are very important in signaling intentions. «No» is seldom said directly, and rejection is always stated indirectly. Remember that the Japanese hai means «Yes, I understand you» rather than «Yes, I agree with you. «The Japanese will sit in silence for some time — it is a way to reflect on what has been said. Early business and social contacts are characterized by politeness and formality.

The Japanese like to launch new products or take other important initiatives on «lucky days. «The luckiest day, called the «taian», occurs about every six days. Your Japanese counterpart will probably want to delay a major announcement until the next «taian». Japanese calendars usually indicate these days.

The presentation of a new product is traditionally followed by a reception with the product on display; an omiyage, or gift, is given to each attendee. This adds to the overall cost of the event.

Japan epitomizes the rule «Make a friend, then make a sale. «When selling to or negotiating with the Japanese, do not rush things. the Japanese prefer a ritual of getting to know you, deciding whether they want to do business with you at all, instead of putting proposals on the table, and seeing whether agreement is possible within a broad framework.

The Japanese prefer to close with a broad agreement and mutual understanding, preceded by thorough discussion of each side’s expectations and goals. If they decide they want to do business, they will negotiate the details with you later.

A Japanese negotiator cannot give a prompt answer during an initial discussion. No commitment can be made until the group or groups he or she represents reach a consensus. Do not expect an immediate answer. Negotiations may take an extended period.

Japanese executives emphasize good faith over legal, contractual safeguards. They are not in the habit of negotiating detailed contracts that cover all contingencies. However, Japanese managers who are accustomed to Western business dealings are familiar with more structured contracts. In case of disputes, the Japanese prefer resolving issues out of court on basis of the quality of the business relationship.

A Japanese partner or customer will usually prefer to develop a business relationship in stages, with a limited initial agreement that, if successful, is gradually extended into a broader, more binding agreement. So once you make a commitment, expect it to be for a long time. If you break it, your reputation will be affected and everyone will know. It may be difficult to find another Japanese partner after this happens.