Find clients and develop your business in Japan

Japan is known for its unique blend of traditional and modern culture. As of 2023, Japan has a population of about 125 million. It is notable for its technological advancements, rich cultural heritage, and influential economy.

Japan’s economy, with a GDP per capita of around $40,000 USD in 2023, is one of the most advanced in the world. Major industries include automobiles, electronics, robotics, and manufacturing. The country is also known for its strong emphasis on research and development.

Japan’s primary imports are machinery and equipment, fossil fuels, foodstuffs, chemicals, and raw materials for its industries.

Key cities include Tokyo, the capital and world’s largest metropolitan area; Osaka, known for its modern architecture and nightlife; Kyoto, famous for its historic temples and traditions; and Yokohama, a major port and commercial hub.

International business opportunities in Japan

Most Business opportunities in Japan are in the following sectors:

• Alternative Energy – owing to a high population density, clean energy is a priority; the Fukushima nuclear disaster has added to the urgency for clean fuel
• Pharmaceuticals & Healthcare – demand for products and services in this sector is growing with a steadily increasing aging population, referred to as the ‘silver’ market
• Wealthy Nation – As Japan is the third biggest economy in the world, there is demand for high-quality consumer products
• Advanced Engineering & Tech – Japanese businesses are interested in cutting technologies to maintain their superiority in designing and manufacturing internationally winning products
• Food and Drink – Given a large population density and ever-diversifying food habits, Japan needs food imports
• Gaming & Music – Japan is a major gaming centre and has the second largest music industry in the world

WHAT DO YOU NEED TO KNOW ABOUT JAPANESE BUSINESS CULTURE?

The business approach in Japan springs from its culture. The Japanese follow a group culture where the welfare of the society is its prime goal. It is based on ‘Honne’ and ‘Tatemae’, the difference between one’s true feelings and what a person displays in public. Personal opinions are sacrificed at times, according to the expectation of society. Hence, harmony is their top priority.

The Japanese believe strictly in hierarchy and are courteous to the core. They give importance to human relationships and mutual trust. These are the fundamental aspects of their culture that colour their business transactions and negotiations.

WHAT ARE SOME NEGOTIATION TACTICS IN JAPAN?

It is helpful to be aware of business procedures and etiquette before initiating business with the Japanese:

• Japanese follow hierarchical order even at the initial stages of discussion. They prefer to deal with their equivalent counterpart.
• Business cards are a must, clearly indicating the position held. The cards are to be offered with both hands to show respect for the parties.
• The Japanese prefer an introduction to the business party through a known third source.
• Discussions are more through written word and visuals as the Japanese are people of few words.
• All business discussions are group oriented. Great emphasis is given to human relationships; any decision making involves all members.
• Discussion and decision making are usually slow.
• Any language or action that hurts or negatively influences reputation can deter proceedings.
• Strict etiquette is followed; excuses are not accepted. Apologies are accepted and discussions are tinged with extreme courteousness.
• At the same time, any favour is valued and repaid. The Japanese accept appropriate gifts as a mark of appreciation and value it greatly.
• Peaceful and calm negotiations mark their meetings. They hesitate to say no and there are periods of total silence which may indicate either their acceptance or their disapproval.
• Business meetings require a formal dress code.