Distribution and Sales Channels in Japan
Electronic Commerce /e-Business in JapanSuccessful Selling Factors/Techniques in Japan Marketplace
2008/01/15 17:49 | by SamChan ]
Successful Selling Factors/Techniques in Japan Marketplace
To be successful in Japan, U.S. exporters must pursue sustained personal contact with their customers. A visiting U.S. company representative should accompany the firm’s Japanese agent or distributor on visits to existing or potential customers. Such joint sales calls demonstrate a commitment to clients and are an excellent way to obtain market feedback.
A common mistake of U.S. companies in this market is failing to provide ample support for Japanese business partners after enjoying initial success. Needless to say, this quickly sours the honeymoon period. It’s important to prevent a distributor from implementing a conservative, low-volume, high-markup marketing strategy that protects its own interests but fails to develop the full sales potential of the U.S. product. To avoid this: stay engaged!
To increase their chances for success, U.S. exporters also should learn how to negotiate and maintain relationships with Japanese. Japanese language skills and familiarity with the nation’s culture and etiquette can be invaluable. Be prepared to attend after-hours social events: these informal gatherings go a long way towards establishing mutual trust and understanding between new partners. It has been said that most business deals in Japan are made “after five.”
Initial contact between Japanese firms is usually formal and made at the executive level, with more detailed negotiations often delegated to the working level. Typically, the first meeting is to become acquainted, to establish the interest of the calling party, and to allow both sides an opportunity to size each other up. Don’t expect too much from a first meeting — sometimes the actual business subject may be overtaken by more mundane topics. A series of meetings with a large number of Japanese company representatives is common, as part of the “sizing up” process. Business negotiations may proceed slowly, as the Japanese side might prefer to avoid an agreement rather than being criticized later for making a mistake.
While many Japanese business executives speak some English, a skilled and well-briefed interpreter is essential to prevent communication problems. A good interpreter is worth the extra money and firms who choose to skimp on or forego this expense significantly reduce their odds of success. Though there are some U.S. firms that do business in Japan without a signed contract, written contracts between U.S. and Japanese firms is an accepted practice. Contracts satisfy tax, customs, and other legal requirements. Japanese companies prefer shorter and more general contracts as opposed to lengthy, detailed documents spelling out every right and obligation in detail. Again, personal contact and relationships are important and a contract should be viewed as just one element of a broader effort to create a mutual understanding of obligations and expectations.
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