Talking Japanese Trade tips for the land of the rising sun
Doing business in the land of the rising sun means learning some different cultural customs.
Japan is an untapped land of opportunities for New Zealand businesses, but only for those that make the effort to understand everything that makes it tick.
From knowing how to present business cards to eating lunch and signing contracts, things are done differently in the land of the rising sun and doing business means getting to grips with a new set of customs.
But Kiwi Sam Cassels, who has spent the better part of 30 years living and working in Japan, says the opportunities for New Zealanders there are huge.
He calls Tokyo the ‘‘New York of Asia’’ and it’s where he started his company, Superdrive, after a highflying advertising and marketing career.
For the past eight years he has also been an adviser for New Zealand Trade and Enterprise’s Beachheads programme, which connects companies to advisers around the world.
Building strong relationships in Japan is one of the most important things that people need to get right, Cassels says.
‘‘Japan is a very high-context society. Things happen differently because of Japan’s history, because of the culture, because of processes.
‘‘It’s all about relationships. New Zealand businesses understand this but are not necessarily good at it.’’
Rather than send emails once or twice every few years, business owners should be spending time interacting with Japanese people in person.
Developing a business strategy specific for Japan is also important.
Getting these essentials right can open the doors to a huge market that’s fast-moving, has a vast infrastructure and is technically sophisticated, Cassels says.
Kiwi cloud video production company 90 Seconds has worked hard to build up its Tokyo base.
Founder Tim Norton started thinking about taking 90 Seconds to Japan in 2013 when he brought on two Kiwi entrepreneurs, who had listed two internet companies on the Tokyo stock exchange, as investors.
There are now 12 staff in the Tokyo team.
Norton says the key opportunity for New Zealand businesses is the fact that most companies aren’t trying to enter the Japanese market so there isn’t the usual competition.
But they have to be in it for the long-term, because of the deep relationships needed in all aspects of the business, Norton says.
An example of this is signing contracts – the Japanese like to physically sign contracts for even low-value deals but they won’t sign anything until they have confidence in the other party.
Language was one of the biggest challenges for 90 Seconds, as almost all business communication is done in Japanese.
Norton says it’s crucial to get a senior leader who is bilingual – he went eight months without one and those were incredibly tough times.
‘‘Unless you have a native Japanese team who is also bilingual, then expect to be crossing a big communication bridge every single day.’’
Localising the product or service was another challenge 90 Seconds faced – the Japanese not only value detail but they know how to pick a truly Japanese-ready business proposition, so even localising to a good standard was not good enough.
Japanese etiquette can be vastly different but understanding it will make a huge difference.
Cassels says one of the worst mistakes he sees foreigners making is not slowing down when speaking English to Japanese people.
‘‘Unless their English is fluent, you can pretty well guarantee that not everybody in the room is following everything,’’ he says.
There is a particular manner in which the Japanese handle business cards, which are seen as an extension of the individual, and it’s something that needs more attention than required in other countries.
Cassels advises against flicking cards across the table, and cards need to be arranged on the table in a certain order.
The standard practice is to keep the card out during the meeting and multiple cards should be arranged from left to right in order of seating from the receiver’s point of view.
Norton says some of the most common mistakes he sees include not listening respectfully and misunderstanding nods and yes responses as comprehension and agreement.
Talking over someone might be a normal part of brainstorming elsewhere, but in Japan it will often kill communication.
And in a culture that greatly values politeness, nodding and affirmative responses are a way to make everyone in the room feel comfortable, even if there isn’t genuine comprehension.
Another custom is that lowerranking senior staff will always wait for the boss to leave before they do.
‘‘If you think you’re being nice and humble by waiting, you’re not,’’ Norton says.
‘‘I’d sat in the office in Tokyo sometimes at night and no one leaves. I thought they were such a dedicated team – which they are – but what was actually happening was they won’t leave until the global chief executive does.’’