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BUSINESS TRAVEL IN
JAPAN
A. Business Customs
An understanding of Japanese business and social practices is
of great
importance in establishing and maintaining successful business relationships
in Japan. Indifference to local business practices may indicate
a lack of commitment on the part of the exporter, and may lead to
misunderstandings
and bad feelings between both sides which could result in the loss
of business opportunities. One should not assume that because meetings
and correspondence are carried out in English, Western social and
business
norms apply.
Japanese society is complex, structured, hierarchical and group-oriented
with strong emphasis on maintaining harmony and avoiding surface
confrontation.
Japanese religious practice tends to be socially-oriented and selective
rather than a matter of deep personal commitment; ethics tend to
be situational.
Building relationships (which will probably precede the first sale)
should emphasize mutual trust, confidence, loyalty and commitment
for the long term.
The concept of mutual social obligation ("giri") is
important. The obligation to repay a favor only applies if there
is a strong bond between the parties. A longstanding successful
business relationship may allow each side to grant each other favors
to be repaid later, even if not stipulated in a contract. Existing
obligations may surpass economic interests, which helps explain
why a superior product at a good price may not be enough to break
into this market.
Group decision making is emphasized in Japan and has been generally
described as bottom up rather than top down. Family businesses founded
since WWII and smaller second tier firms are exceptions to this
rule. However, even in the large family firms, where decisions are
made at the top, the process is usually managed so that company
members have a sense of participation. This group decision-making
tends to be slower. Recognizing that it takes a longer time to cultivate
business relationships in Japan than in Australia, Australian business
executives should not expect to make a deal in just a few days or
they will depart in frustration, having made no progress. Consistent
follow-up is vital.
Likewise, Australian business people should recognize the importance
of working with the staff-level of their Japanese counterparts and
not exclusively with the executive level.
Gift-giving is expected on many business occasions in Japan. Regional
Australian gifts or company-logo gifts are appropriate. Quality
is important, but the gift does not have to be expensive. The packaging
of the gift is as important as the gift itself and should be done
professionally. In Japan, sets of four are considered unlucky (the
number 4 is pronounced the same as the word for death). Gifts that
can be shared among a group are appropriate.
Business travelers to Japan should have bilingual business cards
with the traveler's title. Business cards are exchanged to formalize
the introduction process and establish the status of the parties
relative to each other. Japanese bow when greeting each other but
will expect to shake hands with foreign executives. A slight bow
in acknowledgment of a Japanese bow is appreciated. Japanese executives
deal on a last name basis in business relationships, and initial
business and social contacts are characterized by politeness and
formality.
Using a professional interpreter in business meetings is highly
recommended, although expensive, even if the Japanese side is supplying
one and even if the Japanese side speaks good English. This shows
proper preparation, gives an opportunity to observe the other side
more closely and assures better communication.
A written contract, even if less detailed than a contract between
two Australian companies, is essential to meet legal, tax, customs
and accounting
requirements. Contractual commitments are perceived as representing
longterm relationships. Therefore, a company should consider carefully
whether to grant exclusive rights to an unknown Japanese company.
B. Holidays
The following lists Japanese annual holidays. When a national
holiday falls on a Sunday, the following Monday is a compensatory
day off. In addition, many Japanese companies and government offices
traditionally close during the New Year's holiday season (December
28-January 3), "Golden Week" (April 29-May 5) and the
traditional O-Bon Festival (usually August 12-15).
- January 1 New Year's Day
- January 15 Adult's Day
- February 11 National Foundation Day
- March 21 Vernal Equinox Day
- April 29 Greenery Day
- May 3 Constitution Memorial Day
- May 4 (Declared Official Holiday)
- May 5 Children's Day
- July 20 Marine Day
- September 15 Respect-for-the-Aged
- September 23 Autumnal Equinox Day
- October 10 Health-Sports Day
- November 3 Culture Day
- November 23 Labor Thanksgiving Day
- December 23 Emperor's Birthday
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