- When I try to contact a foreign person using the contact information, such as address/telephone number/fax number/website URL/e-mail address as stated on name card/computer document (website, e-mail)/fax/letter, it is often incorrect, and my message is returned. I don’t know whether this is because the information is not updated or because false information is given just to make the person seem more important, but I would like to emphasize the importance of abiding by the basic rule of keeping all contact information correct and up-to-date. If this is neglected, one could lose the trust of the Japanese people. Update the contact information as soon as it is changed, and don’t list information that doesn’t exist.
- The Internet is a very convenient communication method, but it can be discourteous to the receiver. In many cases, the e-mail contains only the sender’s name, e-mail address and content of request/requirement, and the receiver could feel that he/she is not being respected. Sometimes, the name of the sender is only the first name instead of the full name, or even just a nickname. If the e-mail is from overseas, it is not unusual for the receiver to not even recognize what country the e-mail is sent from, since the e-mail address does not always provide the country of origin. As long as the sender is asking the receiver for something, it is common courtesy to give his/her country, full name, name of company, address, telephone number and how he/she obtained the e-mail address of the receiver.
- Labor cost in Japan is high, but there are things that can be made inexpensively. A little while ago Suzuki Motor Co., on the orders of its president, created a motor scooter called "Choinori" and proved that safe motor scooters can be produced at half the conventional cost by reducing functions and eliminating unnecessary parts. This is a magnificent example of a "Japan-made product" and a "Japanese brand-name product." If you’re willing to give it a try, things can be made cheaply in Japan.
- Japanese products are expensive, but they are high quality and made with strong technological skills. I have heard that steel plates used for car bodies must be Japanese in order to produce a satisfactory car. And it is said that Japan is also number one in large metallic molds. Construction machinery made in Asia is half the price of those made in Japan, but they break down easily and often, and the repeated repairs end up costing the owner more. I often hear that it is cheaper in the end to buy Japan-made machines that don’t break down so easily. There is also the comical story of a person who bought a made-in-Asia motorbike, a copy of a Japanese product, at one-third the normal price, but the bike had so many breakdowns that repairs cost him much money since he had to use Japanese genuine parts. However, every time he repaired it the bike got better and better, until finally it became the same quality as the genuine Japan-made motorbike. Japan-made capital goods such as machinery and facilities are expensive, but they are high quality and rarely break down or malfunction. Even when there is a problem, there’s no need to fret; Japanese manufacturers provide maintenance services overseas that ensure quick repairs, and they are very efficient when setting up the machinery/facility. This goes to show that inexpensiveness is not the almighty solution. It is important to understand the value of the high-quality and superior maintenance service of Japan-made products.
- When you wish to do business with Japan, I would not go so far as to say that communication in Japanese is essential. Of course that would be preferable, but it is essential to be able to communicate at least in English, the universal language. If you can’t communicate in English, you will need to take measures to make up for it, such as hiring someone who can.
- When dealing with Japan, it is vitally important that you keep your promises and be true to your word in every respect. The basis of business with the Japanese is mutual trust, and a sincere attitude. To show that you have these traits, you must keep your promises. Be on time for appointments. Deliver the promised quality, and deliver on time. If claims and problems happen to arise, do not procrastinate in dealing with them: resolve them efficiently and with sincerity. These attitudes will win you the trust of the Japanese. In other words, take your business seriously.
- Japanese homes are small and cluttered with many gadgets, and new consumption cannot be expected unless it is replacing old goods such as electrical appliances. In addition to this, there are many imports from overseas that are inexpensive and of fairly good quality. The main reason behind Japan’s overabundance of goods is because advancements in technology, improved production efficiency, combined use of people and industrial robots and other factors have improved the production rate in Japan to 16 times what it was 30 years ago. During the same 30 years, the Japanese population has only doubled. This does not make the sale of goods easy in the Japanese market. Be prepared to face a difficult challenge.
- Recently in Japan, we often hear the phrase “slow spending.” The first example of slow spending is “well-thought-out spending.” Japanese consumers are not compulsive spenders, nor do they purchase what they want on the spot. They think over a few times whether they really need the item, and if the decision is yes, they will purchase it, paying very little attention to what it costs. The second example is ”wait-and-save spending,” where groceries and food items are purchased at half-price during near-closing-time price markdowns, and clothes and fashion items sold in department stores are not purchased immediately, but when they go on sale. The third is ”price-check spending,” where the consumer compares prices on a certain product over the Internet, or by visiting various stores, and purchases it at the place that sells it the cheapest.
- To defeat this “slow spending” explained above, it is important in the Japanese market to make the consumer buy goods when they do not particularly want to buy. Measures such as providing new products never before seen on the market, or designing an enticing package that makes the consumer want that product, are essential. A product does not sell well unless there is something about it that attracts the eyes of the consumers. To achieve this eye-catching effect, a deeper study of the Japanese market is necessary.
- Japan suffers from population aging, combined with a diminishing number of children. The current birth rate (the average number of children that one Japanese woman gives birth to in her lifetime) is 1.29, which is far lower than the 2.1 necessary to maintain the current population. In addition, the number of people at and over the age of 65 has exceeded 20% of the entire population for the first time. The Japanese population was expected to begin declining in 2006; instead, however, it has already begun declining this year (2005). And the Japanese elderly are rich; 60% of the assets in Japan are owned by those 65 years of age and over. Therefore, it will be a good idea to produce goods that the elderly want to buy. Also, the elderly dote upon their grandchildren. If asked by their grandchildren, they will buy anything. This means that products for children may also be a good idea.
- It has been said recently in Japan that customer satisfaction is no longer sufficient; customer delight is necessary. For example, a food packaging machine manufacturer received a call from a customer who had purchased the machine, saying that the machine had broken down, and if it weren’t repaired immediately, they would not be able to prepare for sales tomorrow. It was already a little past six in the evening. A sales representative and an engineer rushed immediately to the customer’s store and began repairing the machine, but it did not go well; when the repair was finally completed, it was past 3 am. The sale began at 8 am, leaving only 5 hours for preparation. Now the normal thing would be for the sales rep and engineer to go home, since their job was over and done with. However, they did not go home; they helped with the packaging, and even worked in the store during the sale, to help. The customer was deeply impressed and delighted with their help and their strong sense of responsibility. From this day on, the customer, who had been purchasing packaging machines from other manufacturers as well, stopped using other machines and began purchasing only the machines made by this manufacturer. This is the effect of customer delight. Providing customers with delight through quality and sense of responsibility is necessary.
- In the current age of global/worldwide/borderless society, it is important to pay attention to changes in the world when conducting a business. When the oil price goes up, the price of stretch film for palettes used in transportation also goes up. If young people in China begin to prefer beef and chicken over duck and goose meat, the shortage of raw material will cause an increase in the prices of down for comforters and jackets. The epidemic of bird flu will reduce poultry demand worldwide. If imports of lobsters increase while lobster consumption at parties in Japan decreases due to depression, lobsters that used to only be available at expensive restaurants and hotels will become cheap enough for people to buy and cook at home. Business must be viewed not just from the perspective of the Japanese market, but also from the global perspective.
- In other words, the key point in entering the Japanese market is whether or not you can communicate well enough with partners and buyers in Japan, and whether or not you can create products that meet the needs of the Japanese market. Co-creation with a Japanese corporation is necessary. To realize this, the key is to find a good partner in Japan. Entry to Japanese market is difficult in many aspects, but it is not impossible. Past successful examples of overseas medium and small companies entering the Japanese market with help from our organization prove this to be true. What is important is to not give up, but to continue trying.
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