![]() Also, the Japanese don’t say ‘no’ to the face of the counterpart, they might say ‘yes’, meaning I understand what you’re saying but not that I agree to what you’re saying.”įoreign business should also be aware that Japanese people don’t readily show their feelings, so you won’t necessarily be aware if you have done something wrong. Sometimes the Japanese team has no right to sign a deal so they’re just testing the waters. “Sometimes the person leading the negotiations is not the most senior, it’s the person with the language ability. “There can be lots of misunderstandings in negotiations,” says Guesdon. This can cause issues during business negotiations. Japanese society can still be very formal and hierarchical, while decision-making processes can be much more complex and drawn out. Part of your upfront research should also involve understanding the culture, the written and unwritten rules of society, which can be significantly different from what Western businesses are used to. ![]() “But once they have identified a good business partner who can contribute in terms of added value, they will certainly be interested.” “Japanese consumers are not nationalistic in their approach, but they are looking for innovation and quality, and the standards can be extremely high, which can be challenging for EU companies,” says Landry Guesdon, a foreign attorney at IWATA GODO, a Japanese law firm, which helps international firms entering the market. Consequently, the company has outstripped the popularity of even homegrown brands. In contrast, Dyson did its market research thoroughly and realized that a more compact vacuum cleaner would better suit the smaller homes in Japan, and designed a specialist range for the market. Japanese consumers have very high standards in terms of the products and services they use, and their tastes and needs can be significantly different from those in Western countries, so it is vital to understand the market segment you are trying to serve, what works and what doesn’t, and the preferences of consumers, before making any firm plans.įailing to do sufficient research was the mistake that Vodafone made when it tried - and failed - to enter Japan with the handsets that were popular elsewhere, not realizing that Japanese consumers had very specific preferences. Preparation and research are important when entering any new market, but this is particularly the case with Japan. Spend time understanding Japanese markets and consumers Here are some key tips on how to make it: So, for startups that prefer to go against the grain, there are opportunities to be had, partnerships to forge and profits to be made in Japan if you approach it in the right way. ![]() However, on the flip side, there are also plenty of success stories to draw inspiration from Apple, BMW, Microsoft, and Dyson, to name a few. Some may have been put off by those that have failed in the past, for example, Vodafone, Nasdaq, eBay, Carrefour, and Boots. ![]() Yet despite these opportunities, many international companies are still reluctant to expand into Japan, due to concerns surrounding cultural and language differences and worries about getting things wrong. ![]()
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