Tips for penetrating the Japanese market 2000

  1. One of my previous tips in this column was, "Business with the Japanese does start exchanging business cards. You need to have plenty of them. It's rude not to carry your cards." I'd like to add to this. It often happens that, when we send letters or samples to the numbers and addresses on the card, they don't get through and the samples are returned labeled "addressee unknown." Or a different company name or address is printed on the card. You should make sure that you hand out the right card. If you are involved in several businesses, choose the one most appropriate for the person you're giving it to. Some people hand out more than one card, saying, "I have many faces," but this only confuses your prospective business partners. You only have to give out the one most appropriate for that person. Moreover, don't use old cards ? Make sure they carry the latest information.

  2. When a Japanese company requests a sample, some send several other samples as well, desperately trying to tap into a sales opportunity. Though it's fine to be aggressive, the business should first develop the sample requested exactly to specifications. In many cases, those unwanted samples are off target and fail to meet the needs of the Japanese market. Instead of making unasked efforts and complaining about the high cost of sample development, a business should concentrate on producing samples that meet the specs precisely. No remarks - "We will modify such-and-such in such-and-such a way, etc., in the actual product," "The actual product will be produced like such-and-such" - convinces the Japanese, who are eager to know exactly what they can expect from their potential supplier. In many cases, Japanese companies do not place orders before they have checked the exact samples. Rather than waste time and money, a business is better off doing their very best to develop samples that satisfy the requirements.

  3. When someone is referred to you, you should not fail to contact him or her. There are many instances in which no contact is made at all even when you have asked for referrals. The person you asked for the referrals might have been kind enough to take time out of their busy schedule to locate a person appropriate for you, believing it to be urgent. You should reward him or her for their kindness by getting in touch with that person as soon as you receive his or her contact information. If there's no hurry, you should wait to ask for referrals until you really need them.
    Once a business person visiting Japan told me that she wanted to buy such and such product and bring it home. I made an appointment with the manufacturer and told the lady to ask for Mr. A. The business person left to go see him, but a little while later Mr. A called to tell me that she hadn't shown up yet. I replied that she must be on her way and asked him to wait a bit more. One hour later, Mr. A called, impatient, to say that the lady hadn't arrived yet and that he had to leave because he had other business to take care of. I had no choice but to say, "It can't be helped, then. Please go ahead and leave." When, the following day, I asked the business person what had happened, she told me that on her way she found the item she was looking for, so she didn't bother to visit Mr. A. When I asked her if she had called to say that she wouldn't be coming, she said, "No." I was appalled at her irresponsibility, and immediately called Mr. A to offer my most humble apologies. On no account should you break an appointment. Japanese manners dictate that you should at least call to advise your contact if you cannot come because of some unavoidable circumstance, or if you no longer need to come, as in the above case.

  4. If you wish to sell merchandise on the Japanese market that requires maintenance, mending, repairs or correction, the key lies in your development of an after-sale service network. You can consult your Japanese partners to create a well-arranged service network. Japanese industrial products are popular in overseas markets because they offer good maintenance service as well. The last thing you should do is fail to fulfill your responsibility to provide after-sale services.

  5. As pointed out in a previous column, the Japanese market is always on the move and never hovers in one place. When you do business with Japanese companies, you need to forecast future opportunities in the market before you take any action. For example, the rapid shift to an IT-oriented society will definitely change the way people work: an increasing number of them may work at home instead of commuting to their offices every day. What this means for apparel manufacturers is that the market for men's business slacks will shrink, but that the market for a more casual style trousers to wear at home will expand. You have to be wise enough to anticipate future changes before you start doing business here.

  6. Even when your Japanese partner has approved your prices, design, materials and the final sample and you are eagerly waiting for orders, the project could be discontinued because of sudden changes in the Japanese market. This happens in the apparel retailer: one major apparel retailer suddenly announced that they were discounting their T-shirt prices (\1,900 \1,000 for plain ones, \2,900 \1,900 for printed ones), which triggered a decline in competitors' prices. The overseas supplier was unable to meet the pricing pressure, and the business relationship was discontinued. The lesson here is that an inability to respond to changes in market prices means a loss of business opportunities.

  7. It is getting increasingly difficult for overseas businesses to succeed in the Japanese market without a good Japanese partner. Traditional sales strategies simply don't suffice. You need to collaborate closely with a partner who is involved from the very first stage and helps you develop project planning, including product design, so as to develop products that cater to specific needs of the Japanese. When you find a partner, you may start creating products together. There aren't many candidates with good ideas and good designs. If you are lucky enough to locate one, you could be a winner in Japan.

  8. You may believe this contradicts my earlier argument that the Japanese don't like to be pushed excessively, but you may push for a response to an offer. In fact, you're entitled to if you haven't had any response for, say, two months, to that offer you spent time, money and labor painstakingly putting together. It's not a good idea to request an answer immediately after an offer has been made, but you may as well do so after a two-month silence. There's no reason to hesitate. The Japanese side is obliged to respond to the offer, and naturally your effort deserves it. You have every right to expect a reply, so don't just give up.

  9. It is a hard fact that the Japanese are very demanding when it comes to quality. A variety of quality merchandise is made available at \100 shops. At the same time, however, the Japanese are brand conscious. The general public purchases designer-brand goods, blindly trusting in the quality the name offers, because they don't have an eye for discerning what's good from what's not. Meanwhile, customers are treated like "God" in Japan. In an attempt to listen eagerly to the consumer, the middlemen between overseas producers and Japanese consumers are demanding severe quality requirements from the producers. Because of this, producers are being required to grow "straight" cucumbers, radishes and carrots, even though the shape doesn't really matter when you eat them. I believe the Japanese side needs to compromise more in this regard, and expect to see such overly strict quality requirements disappear. But, in the meantime, it is necessary to discuss quality in detail before you sign a supply contract.



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