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A word of caution
The great majority of businesspersons, visiting Japan to promote their products and services, go back home baffled and outrage by the behaviour of their Japanese hosts, and some cases the interpreter is finger-pointed as the culprit.
In Japan, like in most societies, there some rules and expected set of social behaviours, which facilitate communication. There are "do and don't" like anywhere else. Contrary to the general belief, the Japanese do not expect foreigners to behave exactly in the same way as they do. However, this is not a license for complete misbehaviour, as we have witnessed in some cases, and we greatly advise you to read on and learn more about Japan and the way Japanese do things. The followings are the some guidelines based on our business in experience in Japan over the last twenty years in Japan.
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A "cold" call is best, if you want to make an appointment, if you do not have a connection. A personal call will be more effective than sending a letter requesting an appointment, which might go unanswered. Once, you have made an appointment be punctual. Punctuality is imperative when doing business in Japan. The Japanese believe it is rude to be late, and if for some good reason you cannot show up on time, always make a phone call and let them know that you are going to be late.
The Working week, in Japan, consists of 48 hours without overtime pay, completed in five and a half days. Most of the firms have initiated a five-day week. Customarily, office hours are 9:00 a.m. to 5:00 or 5:30 p.m. Many people work longer hours and may stay in office until 7 or 8 p.m. During the holidays, banks （except automatic tellers） and offices close, but most stores and department stores remain open. Avoid scheduling appointment, business trips during the New Year's holidays, December 28 to January 3; Golden Week, April 29 to May 5; and Obon, mid-August. (During the Obon holidays, many Japanese visit the graves of their ancestors.)
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In Japanese business culture, men traditionally wore conservative suits, typically in blue or grey, with a white shirt and dark tie. Suits are still conservative in medium-sized and larger Japanese companies and government offices. However, younger people are getting dandier and they wear the latest in Italian fashion. You can wear whatever you usually wear as long you maintaining a clean and neat appearance.
You should expect to take your shoes off in certain offices, public places, and restaurants. It may be a good idea to wear slip-on shoes and ensure that you pack a supply of clean black socks. Businesswomen should dress conservatively and use jewellery, perfume, and makeup only sensibly.
It is a tradition for most employees working in plants or at headquarters to wear a uniform and your host may request to wear one and on some occasions protective gears when visiting a plant. Please follow your host instructions carefully.
Summer in Japan is hot and very humid. You may need to change at least twice a day and its highly recommended to have enough clothing to change. You may take off your jacket during meetings, if the meeting room is too hot.
Your host may invite you to a business dinner at an inn “ryokan”, where you should expect to wear a "yukata" [or kimono] robe to dinner. The inn provides the "yukata". Remember that to wrap the "yukta" from left over right. Never wrap the "yukata" from right over left. Only the dead are wrapped from right over left.
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When visiting a firm for the first time, your host may request you to wait for a few minutes, in the drawing room or the meeting room, take the seat nearest to the door. If they offer you a drink, wait for your host to start to drink. Stand up as soon as your host comes into the room. Do not try to bow if you do not know how to do it gracefully. It is better to give a firm handshake than impersonating badly your host.
Business card or [meishi] are important part of the Japanese business culture. Make sure that you have a plentiful supply. After the handshake, when presented with a business card, take the card with your right hand and give your card with your left hand. Do not immediately put the card in your cardholder or in your pocket. Leave the card on the table or keep it in right hand and make a show of carefully examining it for a few moments and make complimentary remarks. Keep the business card on the table in front of you during the meeting. It is also an opportunity to clarify the person name (the reading), title, and functions within the organization. D o not write on your host’s business card. The Japanese consider such an act as plainly rude.
Your card should be in English with Japanese on the reverse. It is an asset to include information such as, your title and membership in professional associations. When designing your card, keep in mind that Japanese businesspeople will want to learn as much about your background and qualifications as possible.
People of high rank often have their business cards presented by subordinates.
In Japan, close personal contact is necessary, and they will ask extremely personal questions regarding your salary, education, and family life. If you do not want to answer, remain polite and try to gracefully side step the question.
In Japanese business protocol, never try to impress your host or directly contradict him. Pretend to understand if a person insists on speaking your language and cannot speak it well; this will be a “face-saving” measure, which is essential for maintaining cordial relations. Create an opportunity to clarify important points without hurting your host feelings.
Do not discuss business until the first few minutes of any conversation, unless your Japanese ask you a question. They often start the business negotiation with " Jitsu wa…." (The fact of the matter is…)
It is always polite to apologize frequently for almost anything. For example, the Japanese will apologize for not being punctual enough, having a cold, taking you to see a disappointing movie, providing substandard hospitality (even if it was perfectly good), displaying rudeness at a previous meeting (even if they were not rude), and practically any other personal flaw. Visitors are encouraged to incorporate these kinds of remarks into their conversation and show the same humility.
Use Standard English and avoid too much colloquialism. Speak slowly and clearly. In Japan, it is good manner to be articulate and to take time to formulate your thoughts.
If you intend to hire an interpreter, choose your interpreter very carefully, and give him/her enough time to interpret and ask your host to do the same. It is highly recommended to brief your interpreter to make sure that he/she understands the essence of your business. Also, make sure to translate any document, which you intend to submit to your host. Most Japanese can read English, but having the document translated in Japanese, will prevent any potential confusion.
Many foreign businesspersons think that “maybe”, “probably”, or “I'm thinking about it”, “I'll consider it”, given as an answer to a question means “yes.”, however, it often means “no.” Some foreign business people fail to follow-up with a letter or a fax. It is always good to conclude eventually a written Agreement.
In the event of a problem, never make direct accusations or direct refusals. Focus on the problem and provide detailed and professional explanations. Never, blame people. Always remain polite. In the course of a conversation, if you can speak some Japanese, use as many Japanese sentences as you can. You may have to ask a question several times, in different ways politely, to receive a definite response or commitment. Do not rush or rush your host. It is good to pause for one or two minutes during the negotiation. Take questions raised during meeting very seriously. Never give answers in haste. If you cannot immediately provide valid and honest answers, tell them you will contact your firm to provide more details later.
When beginning a dialogue with a group, it is polite to direct all of your first remarks to the most senior member, and then to the appropriate individuals. Never underestimate any person attending the meeting, because the final decision may be based on this particular individual's assessment of your products or services. Japanese look much younger than foreigners do and they are much smaller in physical stature but do not let appearance mislead you. Regardless of the outcome of the meeting always keep polite and thank them for their time. They may come back to you at later date with a new profitable proposal.
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The followings are welcome topics of conversations:
- If you already know the person, it is always good to inquire about the person’s family [a good conversation starter]
- Praising the hospitality you’re receiving
- Talk positively about Japanese history, or Japanese cultural or artistic achievements
- Positive comments about the Japanese economy are always good.
- Sports, such as golf, baseball, and recently soccer
- Japanese are very proud of their country and they welcome positive comments about their country.
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Never, call people by their first names, usually reserved for family and close friends, unless, they specifically invite you to do so. Do not invite others to call you by your first name until you have met several times and know each other well. Even if your Japanese colleagues allow you call them by their first name, never do so in the presence of other colleagues, which may cause any embarrassment.
Be sure to use courtesy titles such as "Mr.", "Ms.", or the suffix "San", in addition to last names. "San", an honorific attached to a person's last name is not to be used when referring to your spouse or children. In addition, you should not use "San" to refer to someone in your company when talking with someone outside it. It is bad manners to elevate people of your own group when speaking with "outsiders." Otherwise, you may use "San" when addressing men or women, married or single. The Japanese often use professional titles in the place of actual names, as an acknowledgment of a person's status. It is better to address the person by his title "Shacho" (President), "Senmu" (General Director). "Jomu" (General Manager), "Butcho", (Director), "Katcho" (manager). When speaking in English, you may use "Mr." or "Ms." instead of "San" when addressing Japanese colleagues or referring to someone else. Again, you should never refer to yourself as "Mr. Jones," for example. Adding an honorific to your own name is unacceptable.
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Selecting and presenting an appropriate business gift. Many stores will be happy to help you to select the appropriate gift. A gift from your country will be much more appreciated.
Before the negotiations:
Gift giving is an important part of Japanese business protocol. Moreover, Japanese exchange gifts between colleagues on July 15 and January 1 to commemorate midyear and the year's end respectively. It is a good policy to bring an assortment of gifts for your country, in the event that they unexpectedly present you with one, you will be able to reciprocate.
The emphasis in Japanese business culture is on the ritual of gift giving, rather than the gift itself. For this reason, you may receive a gift that seems too modest, or conversely, extravagant. An expensive gift will not be perceived as a bribe. A wrapped gift is often carried inside a shopping bag to avoid ostentation and minimize any hint that a gift is about to be presented.
The best time to present a gift is toward the end of your visit. You can discreetly approach the recipient, indicating that you have a small gift. Avoid giving a gift early in a relationship or at any conspicuous moment. A gift for an individual should be given in private. If you are presenting a gift to a group of people, have all of the intended recipients assembled. Present gifts with both hands.
It is customary to comment that the gift you are presenting, even if it is extravagant, is “tsumaranai mono” (“an uninteresting or dull thing”). Remember that your relationship with your host is more important than the gift. Do not give the same gift to two or more Japanese of unequal rank. They will take offence. Never, give a gift to a single person in the presence of a group, unless your original intention was to give the gift to the group.
Never open received gifts in front of your host. Gifts must be opened in private to avoid "loss of face" if the gift turns out to be a poor choice. Before accepting a gift, it is polite to refuse modestly at least once or twice before finally accepting. Ensure that your gifts are wrapped. It is safest to leave this task to a store or hotel gift-wrapping service. Do not use to "ostentatious" wrapping.
If they invite you to a Japanese home, bring flowers (an uneven number), cakes or candy. If you receive a gift, be sure to reciprocate. The Japanese consider gifts in pairs as lucky.
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In the past connections were very helpful in this country, and the Japanese felt obliged to be loyal to them, and to some extend today, they still do play an important part in the Japanese business culture. If you decide to go through an intermediary, select someone of the same rank as the person with whom he or she will have dealings. Moreover, your intermediary should not be part of either company involved with the deal. If you know a highly respected, important person in Japan, use his or her endorsement and connection. Before you enter into negotiations, request a consultation, and then ask if you can use the endorsement and connection to further your business efforts. However, the Japanese economy, in the last two decades, has undergone tremendous structural changes, the old group structure is disappearing, and it may be better, in some cases, to do without an intermediary altogether. JETRO (Japan External Trade Organization) and local chambers of commerce may be more useful in making the first contact. You will make the best contacts during trade shows or during parties held at your embassy. Make a list of all your potential customers, and always contact them when visiting Japan.
The Japanese tend to be more emotional and like to have a close human contact with their business partners. Being acquainted is the purpose of the initial meetings. You may introduce your proposal during these preliminary discussions. It is a good policy to refrain from discussing business until the first 15 minutes of any conversation, unless your Japanese host asks a question. Remember that generally, the first impressions will always remain deeply engrained in the mind of your host. It is very important that you give them the best of yourself. The Japanese are highly emotional, and your first visit will be the most important meeting that you will ever have with them. For example, we travelled to Tokyo on two separate occasions with two different and very important persons. On the first occasion, it was a British VIP, who came from a very old British family. He showed up at the first meeting with an almost worn off necktie. Although this may be very dandy in British high societies, in Japan it is simply considered as showing disrespect. His host remarked to us that he must be a bankrupt man. We are sure that was not the case since this VIP in question was the chairperson of a prosperous conglomerate. The second case was of a French VIP, who was also the chairperson of an important conglomerate. He went to the first meeting half an hour late (against our advice). This may be a good sign for his status in France, but not in Japan. In both cases, the Japanese hosts, who were the managers of Japan’s largest general trading houses, were not very impressed.
Be especially respectful to your older Japanese counterparts since age equals rank in Japanese business culture. Although many young people today may hold important positions.
Use a Japanese lawyer, rather than a Western one, to conclude an Agreement. This will be perceived as a gesture of good will and co-operation.
Negotiations begin at the executive level and continue at the middle-level. "Saving face" is an important concept to understand. In Japanese business culture, a person's reputation and social standing rests on this concept. When a person loses his or her composure or otherwise causes embarrassment, even unintentionally ("losing face"), this can be disastrous for business negotiations. Never make personal accusation or direct refusals, and always show professionalism and enthusiasm.
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Generally, the Japanese conduct negotiations in an atmosphere of solemn seriousness. However, they welcome light conversation as well as light humour before meetings and during breaks. Avoid Western style jokes that can be taken literally to the last word, and may give a very bad impression.
During presentations, and especially during negotiations, it is essential that you maintain a quiet, low-key, and polite manner at all times. The highest-ranking individual may appear to be the quietest of everyone present.
Be persuasive in your presentation. Describe how your product can enhance the prosperity and reputation of the Japanese side. Make sure, that you can back-up your claims by facts related to the Japanese market. Take pain to explain in details your quality assurance policy. It is also a good strategy to emphasize the size and wealth of your company. If your organization is an older, venerable institution, you should mention this fact frequently too.
Do not show anger, a bad mood or other negative emotions to your business counterparts. Follow the Japanese example, and mask these feelings with a smile.
Refrain from making remarks such as “This is killing me!” or, “You’re kidding!” since they will take practically anything you say literally.
If you cannot speak Japanese fluently, ask for the permission to take with you an interpreter. Choose your interpreter very carefully. This will save you a lot of time and trouble, since not many Japanese are truly bilingual. However, if they address you in English pretend to understand even you do not, and you can try to clarify at a later opportunity. (It is more important to "save face" and to keep good relations).
If it is necessary to discuss bad news, use an intermediary, such as the one who introduced you to the company or use a professional service, which can solve the problem. If you have to discuss bad news directly, focus on the problem and on means for solving the problem and never blame people. Japanese are great masters of the "Kaizen" art, and they will be more than happy to help you to make improvement to resolve the problem, if you discuss the problem calmly and show sincere enthusiasm in your attempt at resolving it.
Japanese like cheerful people (akarui ningen) but outbursts of laughter are not always indicative of cheerfulness in this culture. The Japanese use laughter, in certain business context, to mask feelings such as nervousness, shock, embarrassment, confusion, and disapproval. Never tap peoples' back or rest your hand on their shoulders. In Japan, it is very condescending gesture. Only immediate superiors use such gestures to show their appreciation of a job well done.
You may find that your Japanese counterparts will not be specific about what they expect from you, which lead some business people to "over sale" the impossible. Never "over sale" but always keep your promise. If ever you break your promise, they will loose faith in you, and it will be very difficult to regain their confidence again.
Never single out a Japanese colleague, even for praise or encouragement; the group is always more important than individuals, although it is highly recommended to keep excellent relations with individual members.
The Japanese will go over your proposal in painstaking detail and you can be sure that your proposals will be circulated among the appropriate people within the group. They will study it from every conceivable angle until they are fully satisfied that you can deliver on your promise.
The decision process is made by consensus within the group, and it takes longer to make the final decision. Do not rush things. It is more important to gain acceptance from the group than to get a definite answer. In order to influence the decision-making process, you must first gain their trust. Be patient until the group reaches a consensus. For big deals, this process can be very slow and sometimes the process may take as long as one to two years.
Japanese often listen with their eyes closed. They are not sleeping. They are listening very carefully to your proposals.
Initially, you should not pressure Japanese host into signing documents; however, it is always good to follow-up with a fax, letter, or email summarizing your understandings (they are also binding in court of law).
Nevertheless, it would be more than naive to believe that oral agreement between the parties is sufficient. In the medium and long term, you should negotiate a contract. Note that in Japanese business culture, contracts are not final agreements; the agreement should be flexible to allow adjustment in the course of the transaction: flexibility during the transaction is highly appreciated.
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In the last two decades, the Japanese economy has undergone rapid structural changes, and many companies have changed their ways of doing business: some are still very conservative, while others are making an effort to be more accommodating to women and foreign employees. Be prepared to adapt to each new situation. Still, a foreign businessperson will have to work harder and especially a woman must be exceedingly more dedicated and flexible. Nevertheless, if she succeeds in establishing solid relationships, she may possibly achieve success surpassing what she could accomplish in her own country.
There are some Japanese men who have not been abroad are not used to dealing with foreigners in general and foreign women in particular as equals in a business setting. If you are a woman, reacting with indignation to the traditional attitudes will not be productive. Instead, the best way to overcome these obstacles is to make a concentrated effort to demonstrate your skills and professional competence; these qualities are respected whether you are male or female. Moreover, learning as much as you can about every relevant issue, as well as Japanese language and culture, can also help you in gaining acceptance.
If you are a female business traveller make sure to inform your Japanese colleagues of your status as early as possible; otherwise, they may assume that you are playing only a supportive role. Keep in mind that Japanese men are sometimes unaccustomed to socializing with women on an equal business level. Moreover, if a woman appears overly confident, aggressive or extroverted, she may find herself in even more of a difficult position. For a woman, the best policy is to maintain a restrained, dignified manner.
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An invitation to lunch or dinner is important feature of the Japanese business culture, and if they trust you, they will definitely invite you to dine with them. You should never invite them at first meeting. (A light luncheon may mean that they are not interested in your proposals. Use this last opportunity to leave a good impression. They may change their mind).
If they do invite you to dinner, it is a good sign. It means that, in principal they want to close the deal.
If they invite you, do not try to pay. The host always pays, in accordance with Japanese business protocol. Sometimes they will invite you to a late social gathering. Always arrive on time. They may agree to pick-up you at the hotel but if they do not, make sure to be on time at the agreed place of meeting.
Your host will generally order for you but if you are familiar with Japanese dishes, it is perfectly acceptable for you to let the host know what you like. It is always good to show your appreciation during the meal. If, you cannot eat a particular dish do not force yourself, but make a plausible excuse. For example, insisting that health reasons prevent you from eating. A word of thanks at the end of the meal is good manners.
Bars and "Karaoke" are popular venues for business entertaining after dinner, particularly “karaoke” bars where patrons are encouraged to sing along to taped popular songs. Plan to stay out until the early hours of the morning.
If they invite you out to a karaoke bar, they expect you to sing along with them. It does not matter if you cannot sing a good tune, but remaining gracious and co-operative is essential. If you would like to propose a toast, the standard term is “Kampai”. Then, your companions will repeat your toast and clink glasses before taking a sip of sake, whiskey or beer. Traditionally, the host takes the first sip. If a toast is proposed to you, ensure that you reciprocate with a toast of your own. Businesswomen are not expected to drink; a glass or two should be enough to please your host.
Once you have established business contact, it is always good to invite them for lunch. Select restaurants of your own culture, if possible. Introducing one’s culture, and talking about it during the meal, is often an effective way of establishing rapport and a personal relationship. Then, it is likely that your guest will invite you to a Japanese restaurant and explain to you some aspects of Japanese culture. You should not focus only on work-related matters otherwise, it will be difficult to make friends or successfully conduct business. In Japan, a meal is an important social ritual and presents the best occasion for creating strong personal bonds.
During meals, if you are fluent in Japanese, speak in Japanese. If your guest(s) insist on speaking your language be patient with your guests/hosts.
If they invite you to a Japanese home, consider it a rare honour and express sincere appreciation to your hosts. When invited to a Japanese home, they will expect you to remove your shoes and wear the slippers that they will give to wear during the visit. When invited to a dinner party in a home, you may be expected sit cross-legged or with your legs to the side, around a low table with the family. Additionally, they may offer you a backrest. Although meals tend to be long, an evening in a home usually ends relatively early, around 11:00 p.m.
Customarily, the highest-ranking person hosting a meal sits at the centre of the table. The most important guest will be seated to the host’s immediate right. The “least” important guest will be seated near the entrance or door. The host is always the first to begin eating. Afterwards, the guests may proceed with the meal.
A standard Japanese meal consists of a staple such as grilled fish, along with a bowl of rice, a cup of soup, and a small dish containing pickles. Japanese cuisine includes delicacies such as inoshishi (wild boar) sakura-nabe (horsemeat), shika-no-shashimi (raw deer meat), suzume (sparrow), and uzura (quail). You are encouraged to sample everything. If there is something that you absolutely do not want to eat, you will have to make a plausible excuse. For example, insisting that health reasons prevent you from trying a food item can allow everyone to “save face.”
Never point your chopsticks at another person. When your chopsticks are not in use, place them on the provided chopstick rest. Moreover, do not place chopsticks straight up in your rice bowl.
Expect your host to slurp when eating noodles or when drinking tea. Do not look disgusted and it is always good to do the same.
Bones should be placed on the side of your plate or in a special bowl left at the centre of the table. Use both hands to hold a bowl or cup that you wish to be replenished.
During dinner, your host will pour to drink. Men drink their first drink, almost in one gulp, but do not drink too fast the next drink, since your host will immediately fill your glass. It is a tradition to keep pouring drinks between men, and if you are not used to it, do not empty your glass too fast. If you do not want anymore to drink, leave your glass or cup partially full or turn it up side down, otherwise they will refill it and you have to drink. If you are a hosting a meal, you are usually expected to refill the beverages for the first round or two. When finishing a meal, leave a small portion of food on your plate to indicate that the meal was satisfying. Tea is served at the end of the meal.
If you think that it is necessary to reciprocate your hosts, choose a restaurant of your own culture, if possible. Remain insistent about your invitation, as your hosts may first decline so that it does not seem that they are imposing on you. Do not tip, since the bill includes a service charge except when staying in a country inn ("ryokan"), you may have give the house cleaner a 5% tip.
Only a few taxi drivers can speak English. The best way of overcoming this problem is to have your host or an employee from your hotel write your destination in Japanese so that you can show it to the driver. Also, keep your hotel’s matchbox or card in Japanese to show it to the taxi driver to return to your hotel in the event that your host does not escort you back to your hotel.
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Always maintain a quiet, low-key, and polite manner.
The Japanese will shake hands with Westerners as a way of making others feel comfortable. Do not try to bow unless you can do it graceful. The depth of the bow depends on the recipient's rank, status. When bowing to an individual who has a higher status than you do, bow a little lower than that person does to show deference. Do the same if you are uncertain of the status of the person that you are facing. With a person of your equivalent status, bow at the same height. The bow is an important part of Japanese business protocol. Japanese bow to express appreciation, make apologies and requests, as well as to greet people. Whatever you do, always try to convey both respect and humility.
The Japanese are very good at hiding their feelings. They will read meanings even into the slightest gestures. Consequently, avoid displaying unusual facial expressions and motioning in ways that are remotely dramatic or expansive.
The American “O.K.” sign (thumb and forefinger shaped into an “O”) actually means “money” in Japan.
Be aware that many popular North American and European gestures may be greeted only with incomprehension here (i.e., shrugging the shoulders, winking the eye).
Blowing one's nose in public is impolite. When this action is necessary, use a disposable tissue and then throw it out immediately. Generally, the Japanese find the idea of actually keeping a used handkerchief or tissue disgusting.
Laugh only in a funny situation otherwise your laughter may indicate embarrassment or distress, rather than amusement. Smiling is good but do not over do it. The Japanese often use it for self-control, particularly in masking displeasure. When the Japanese feel confused by a certain situation, they may scratch their head to show embarrassment. In certain cultures, folding arms is considered as rejection or anger, but the Japanese fold arms to give the impression that they are in deep thought. Do not to interpret this as a gesture of hostility. From time to time, direct eye is good to show sincerity, however when listening to a person focus at his/her mouth, and do not stare directly into his/her eyes.
You may experience some pushing and shoving when in crowds of commuters getting on and off trains and subways. A popular “excuse me” gesture involves bowing slightly and holding an open hand in front of you (as if clearing a passage). You do not really chop; you just hold your hand up, and may wave it slightly.
Touching in public between males and females, once frowned upon, is now common among young couples. This kind of touching is also is starting to occur among men out on the town and older men drinking in bars and cabarets.
In Japanese business culture, men do not engage in backslapping; but, again, it is common in drinking situations after hours.
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Once you have established a business relationship, it is important to communicate regularly with your partners. Try to visit them at least twice a year. Keep them updated on every aspect related to your business. If you are fluent in Japanese, call them at least once a month. If possible, invite them to visit your offices, and if they agree, give them a royal treatment.
Contrary to the general belief, the Japanese are very astute in money matter, and the old proverb "Good accounts make good friends" always applies. Make sure that your business relationship is profitable. Japanese are willing to invest time, efforts and money in profitable ventures. Short-term profitability has become a necessity and they will not invest in projects, which will not generate immediate profits. Like their American colleagues, they spent most of their time working, and they will not spare efforts to insure the venture success.
Participating to Golf events in Japan or abroad with partners and potential customers is one of the best ways of promoting the business.
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