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Modernity and traditions are the “keys” to take advantage of business opportunities in Japan


May 24, 2015

by André Krafft, Wa Consulting

Japan is the second largest vegetable seed market by value. Beside the two global companies, Takii & Co. Ltd. and Sakata Seed Corporation, more than 50 companies are competing in the market.

A variety of business models co-exist:

  • Companies specialized in breeding one or multiple species only
  • Companies distributing seed in national, regional or local markets
  • Companies active in breeding, production and distribution of one or multiple species

Production is also very diverse, some companies produce their own varieties, others join forces to produce together or contract out their production to specialized companies overseas.

The same diversity exist in farming. Beside the old farmer , working on a 1 to 2 ha rice field and a 1000 square meter tunnel for vegetables, there are « high tech » leafy plants producing lettuce  on hydroponic  systems.

The highly segmented domestic market is decreasing in size because of a shrinking population, changes in eating habits, and more productive varieties. Species are regularly affected by new diseases.

Local companies will have to adapt by:

  • screening foreign varieties with disease resistances,
  • setting up co-breeding with multinationals,
  • forging alliances with supermarkets to valorize varieties with better taste or health claims,
  • breeding varieties  for the processing industry,
  • breeding varieties for machine harvest.

A time for business opportunities.

The new generation wants to change Japan but has to respect many traditions. Individualism is frowned upon, harmony (wa) and consensus are key values for successful business with Japanese partners.

It starts with networking (jinmyaku), establishing trust with your partners. Japanese managers guide, protect and comfort their team. They work long hours (rôdojikan), take only half of their holidays, never complain (gaman) and believe that they have moral obligations (giri). Respect for these values is essential to succeed in business with Japanese partners.

Negotiations with Japanese are a complex combination of search for compromise and inflexibility. The straight line is not the most effective way to success. The rules are strict: meetings are for sharing information, gathering opinions, collecting data, and ensuring consensus, not for confronting opinions.

After hours drinking meetings are very relaxed, discussions are animated, opinions are exchanged and confronted, trust is built, solutions for collaboration are found. These solutions will be formally approved during the next day’s meeting.

In Japanese, the way one expresses an opinion is as important as the words one uses to do it. Context is essential to understand Japanese language. Non-verbal communication (hara) makes up 80% of the message.

Most Japanese managers have a good command of written English but are less comfortable with spoken English, a language poor in non-verbal elements. Therefore, when speaking English, a westerner must speak slowly and give his Japanese partner time to answer if he chooses to do so in English.

When working on a common project, your Japanese partners will deeply analyze every aspect and  evaluate solutions before implementation. In their eyese, all aspects of the project are equally important. Implementation has to be perfect, so there will be no need later on for painful adjustments.

My suggestions for negotiating successfully with your Japanese partners:

  • decipher the hidden message (ton & hara)
  • use  breaks and silent moments
  • prepare carefully ahead of time (informal face to face meeting)
  • respect the hierarchy
  • live up to your commitments
  • make use of emotional content and respect ”giri”
  • show modesty and be open for compromise
  • be precise and use data
  • be perseverant

Modernity and tradition coexist throughout the negotiations, and a basic knowledge of Japanese culture is essential to set up successful partnerships, whether in Japan or in Western countries. Wa Consulting can help you get started, avoid the misunderstandings seen too often in first contacts, and conduct successful negotiations.

André Krafft
Wa Consulting
Japaneuropeconsulting.com



More news from: WA Consulting


Website: http://japaneuropeconsulting.com/

Published: May 24, 2015



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