A.

GREETING AND INTRODUCTION

Greetings
– A bow (‘ojigi’) can be a way of greeting someone, saying ‘I’m sorry’ or even asking for a
favour. This simple gesture can do a lot to help a Western entrepreneur in establishing rapport
with a potential Japanese client. The depth of the bow depends on your counterpart status.
When bowing to an individual who is of higher status than you do it a little lower than that
person to display respect.

– DON’T address your Japanese counterpart by their first name unless invited to do so. Use
the titles ‘Mr’ or ‘Mrs’ or add ‘san’ to their family name; for example, Mr Hiroshima will be
"Hiroshima san".

Giving and Receiving Business Cards

British businesses are advised to have their business cards translated into Japanese
so that they have two sided business cards – one side in English and the other in
Japanese. This is not necessary but can be an advantage.
Present your business card by holding the two corners closest to you with both
hands, with the Japanese- language side facing the person you are passing the card
too.
Tip: having your company logo at the top of the Japanese-language side will help
you to orientate it correctly.
Start the business cards exchange with the most senior member of the Japanese
company/group, bowing slightly as you do so and then continue this ritual in order of
seniority amongst the Japanese staff.
When receiving a Japanese business card, take the two bottom corners that are
presented to you with both hands, look at it respectfully saying “Thank-you”.
The business cards should remain on the table throughout the meeting. Never write
notes on a Japanese business card or fidget or play with it and treat the card with
respect.

Japanese business cards.

Japanese business cards are a must have. Have double-sided business cards printed, with the
Japanese side using the same design elements as the English side. If an executive’s original
business cards are not English, such as for a German, French, or Italian company executive, I
recommend using double-sided English and Japanese business cards for business in Japan.

Carry at least 100 Japanese business cards for a one week business trip to Japan, but expect to
hand out 3 to 4 cards at a small meeting and as many as 10 to 12 at a larger meeting. If
attending a trade-show, expect to hand out 100 or more Japanese business cards each day. If
speaking at a conference, expect to hand out 50 or more cards.

Some very important points to remember:

  Never flick, throw, slide, or push a business card across the table to a Japanese
businessperson, because it implies you have no pride in the company you represent.
 Always present a Japanese business card holding it with both hands, Japanese-
language side facing forward (having your company’s logo at the top of the Japanese-
language side will help align it correctly).
 Accept a Japanese businessperson’s business card with respect, using both hands,
saying ‘Thank you’. Unless a foreign executive speaks Japanese fluently, or wants to
take the risk of a verbal slip, I recommend not to try using a Japanese greeting at a
first meeting. Sometimes it can help to break the ice, but sometimes it can confuse the
Japanese side.
 At most first meetings, the Japanese side will introduce their team in descending order
of rank. I recommend waiting for the Japanese side to start the exchange as it avoids
slighting the senior managers by first inadvertently exchanging cards with their
juniors.
 Never write notes on a Japanese business card. Enter any notes into a phone, tablet, or
a small notepad.
 Never fidget with, play with, bend, or fold a Japanese business card.
 Keep Japanese business cards in a proper carrying case and treat them with respect.
 Always carefully pick up all the Japanese business cards received at a meeting.
Forgetting a Japanese businessperson’s card is a slap in his or her face because it
implies he or she is unimportant. Consider that many of the junior employees at a
Japanese company will be with it for life: one of the lower-ranked employees at a
business meeting today might control a $50,000,000 budget in 10 – 15 years time. A
young man who served me with green tea at Toyota in December 1991, now controls
a $150,000,000 budget, but still remembers that I treated him politely at that first
meeting.

B. MEETING

Punctuality is essential. Japanese believe it is rude to be late.

Business in Japan cannot begin until the exchange of business cards or ‘meishi’ has
been completed.

Business meetings.
In Japan, face to face business meetings are the life-blood of business relationships and the
more successful meetings a foreign company executive attends, the more likely successful
Japanese business will follow. In the previous section about Japanese business culture, we
looked in detail at the Japanese business meeting, but here are some points related to
Japanese business etiquette as it relates to meetings:
  Plan an exact agenda for the meeting. Japanese businesspeople tend to have tight
schedules, so if the Japanese side say the meeting must finish at 4pm they probably
mean it.
 Never use an English-language presentation. Foreign company executives should
always use presentations translated into Japanese.
 Use detailed slides, because from the Japanese side’s perspective, if a point is on a
slide it’s important, if it’s not on a slide it’s probably not important.
 Take printed copies of presentations to the meeting to handout to the Japanese side.
 If a foreign company needs a non-disclosure agreement signed, send it to the Japanese
side well before the meeting. Many Japanese companies do business without written
contracts and are wary of foreign company contracts because of horror-stories they
hear about litigation. If a foreign company executive suddenly produces a non-
disclosure agreement at a first meeting, the Japanese side will probably refuse to sign
it without a legal review and very likely avoid meeting again.
 Always use a Japanese interpreter, not only for the reasons described in the section
about Japanese business culture, but because it shows consideration to the Japanese
side and ensures they will understand the meeting.
 Always telephone 1 – 2 hours before a meeting to confirm attendance.
 Always call at least 45 minutes before a meeting if unavoidably late. Again, Japanese
businesspeople tend to have tight schedules and might need to reschedule.
 Always arrive 10 minutes early for a meeting; 20 minutes if senior executives will
attend.
 Don’t rush to the nearest available seat in the meeting room. There is a Japanese
custom about which party sits on which physical side of the table (it depends where
the door is and supposedly dates back to the samurai era).
 Take lots of notes, because it shows interest in the Japanese side’s views and creates
an audit trail. Japanese companies train employees during induction to note down
everything at meetings; if a foreign company executive ‘forgets’ a discount he or she
promised in an early meeting, the chances are that even a year later, the Japanese side
will have the notes they made at the time to prove it.

Consensus

Japanese society is more group-orientated than in the UK. This value manifests itself in
a whole host of ways you’ll enjoy observing, but the most significant in business terms is
how decisions are made.

It’s rarely effective to press hard for an on the spot call at a meeting even if notionally the
most appropriate/senior person is present. Patience can pay dividends – Japanese
firms often need time to build an internal consensus and often don’t react well to
perceived external pressure.

By the same token, sometimes less is more when it comes to making a pitch – allow
plenty of time for questions of clarification, and try not to be frustrated if these can seem
bafflingly detailed or process-orientated.

Professionalism
Doing and being seen to do things right in Japan is important. The bullet train conductor
will bow in every carriage of the train even if no one is seemingly paying attention.

In a meeting, if your slides don’t advance without an unexpected noise (volume wasn’t
on when you practised), you’ve forgotten to bring the key literature or you can’t
remember the discount you’re prepared to offer, then many Japanese will draw quick
and potentially long-lasting negative inferences.

This doesn’t mean everything in Japan must be super serious, in fact enjoying a drink
together and warbling your way through a Beatles number at Karaoke will definitely be
good for business, but do prepare thoroughly to ensure you take maximum advantage.

C. OFFICE HOUR

Office our: 8hours/day and less than 40hours/weeks

Punctuality
The stereotype is true. Events and meetings in Japan sometimes really do begin at
3 minutes past the hour. Being on time is essentially a given. This deep cultural
point is reinforced by the predictability and reliability of arguably the world’s most
advanced public transport infrastructure.
Unlike in the UK, you cannot establish a rapport at a meeting by grumbling about the
trains because (a) they are always on time and (b) your Japanese counterpart would
expect you to anticipate any possible delays and account for them in your planning.
The best advice is therefore to always plan to arrive early. You’ll be pleased to hear
that there are more restaurants and coffee shops per head in Tokyo than anywhere
else in the world so you won’t be short of something to do, and can sit next to a so-
called Japanese salary-man waiting for his next appointment...

D. NEGOTIATION

The Japanese are non-confrontational.

They have a difficult time saying 'no', so you must be vigilant at observing their non-
verbal communication.

It is best to phrase questions so that they can answer yes. For example, do you disagree
with this?

The Japanese often remain silent for long periods of time. Be patient and try to work out
if your Japanese colleagues have understood what was said.

Japanese prefer broad agreements and mutual understanding so that when problems arise
they can be handled flexibly.
 Using a Japanese lawyer is seen as a gesture of goodwill. Note that Japanese lawyers are
quite different from Western lawyers as they are much more functionary.

Never lose your temper or raise your voice during negotiations.

Some Japanese close their eyes when they want to listen intently.

The Japanese seldom grant concession. They expect both parties to come to the table with
their best offer.

The Japanese do not see contracts as final agreements so they can be renegotiated.

E. DRESSING

Business attire.
For Men. Japanese business etiquette has become less formal, but business attire has not
changed much since I first wrote this section back in 2004.

 From October thru April, most Japanese businessmen, especially senior managers,
executives, and salarymen, wear dark navy, charcoal gray, or black suits, with white
shirt and subdued tie.
 Do not wear black suit, white shirt, and black tie because that is funeral attire.
 Japanese businesspeople tend to wear formal coats in the winter months of December
thru February, and Burberry-style short raincoats in March and April.
 From May thru September, Japanese businessmen swap their dark suits for light gray
suits.
 Japanese summers are hot and humid, so most Japanese men wear half-sleeve shirts
during the summer months. Japan’s popular “salaryman Prime-Minister” Koizumi
passed the ‘cool biz’ regulation in the early 2000s, which allowed government male
employees to forgo ties and unbutton their collars. Private companies followed, thus
few Japanese salarymen (except salespeople) wear ties in summer. Some companies
might insist their male employees wear ties to summer meetings, so to avoid
embarrassment I recommend wearing a tie to such meetings and then asking if it’s
acceptable to remove it if the Japanese side are more casual.
 Japanese businessmen generally have well-groomed short hairstyles.
 Avoid wearing too much aftershave or cologne in a meeting.
 Consider that most Japanese companies do not allow male employees to wear beards
nor to shave their heads.

For Women. Sadly, little has changed for women in Japanese business since I first wrote this
site over a decade ago: in fact not much has changed since I started business in Japan in
December 1991. Successive governments talk of encouraging women in the workforce, but
industry’s interest often seems more focused on bringing mothers in their late 30s back to
pressing photocopier buttons in humdrum office jobs, than in encouraging any real parity for
women in the workplace. The idea of promoting women to senior management jobs, even in
Japan’s internet companies where one might expect faster evolution, still has a long way to
go. Many Japanese salarymen, senior managers and executives still don’t find it easy to relate
to female executives, and it can present problems for such executives from the US and
Europe.

Each of us, male or female, must make our own decisions about how and to what extent we
adjust our image to suit our company’s business needs and goals. Based on having worked in
Japan with and for several foreign female executives, the following are my recommendations
for any female executive who wants to avoid being treated below her corporate level:

 Look strong but avoid looking too glamorous.

 Wear shorter or tied back hair.
 Wear trouser suits or longer skirt suits with seasonal colors as described in the section
above for men. Venture Japan does not impose a dress-code on female employees but
I notice they always wear trouser suits for external business meetings.
 Avoid bright handbags in meetings; it’s better to use an executive briefcase or
shoulder-bag.
 Avoid wearing too much perfume.
 Consider that most Japanese companies do not allow female employees to wear
jewelry, above the knee skirts, or high-heeled shoes in the office.
 – Regarding dress code for men: in the period October-April, wear dark suits (navy
or black) with white shirt and subdued tie; from May to September wear a grey suit.
 – Do not wear black suit, white shirt and black tie because that is funeral attire.
 – For women: wear shorter (or tied back) hair, trouser suits or longer skirt suits with
seasonal colours as for men.

F. INTERACTION

Business Meetings
It is preferable to have an agenda for the meeting set in advance so ANYONE has a
chance to translate it into their own language and prepare what they want to discuss.
This is particularly advisable if there is going to be a language barrier.
Product brochures and a company profile should be taken with you when you visit a
Japanese company for the first time.
When you have been shown to the meeting room, wait to be seated as there are
customs regarding where people sit based on their position in the company.
When introducing themselves the Japanese say their surname or family name first.
For example, we say John Smith; they say Tanaka Hiro (Tanaka is the family name).
When referring to someone, the Japanese use the honorific term “san” after the
person’s name. For example, you would then refer to Tanaka Hiro as Tanaka-san.
Do not call a Japanese person by their first name unless you are very good friends.
In business dealings, the honorific form surname + san should always be used. The
Japanese respect our Western habit of using our first names but they will follow it
with the honorific “san” e.g. John-san as a sign of respect. Or they may address you
using the Western form Mr/Mrs/Miss + surname.
The Japanese tend to take lots of notes during meetings as this is seen as good
business etiquette. It indicates interest in what the other party is saying.
The Japanese tend not to use non-disclosure agreements (NDA) but if you need one
signed, send it well in advance of the meeting. If you produce an NDA at the
beginning of a meeting or negotiations, the Japanese side will be embarrassed,
 probably refuse to sign it until it has been legally reviewed (which can take weeks)
and avoid meeting again.
Consider investing in an interpreter to ensure you gain maximum value from the
business meeting.
The Japanese will only do business with your company if they feel that they can trust
YOU as an individual. Building this relationship is important so it is advised not to
send different members of staff to each meeting.
Since the development of a relationship is so important, expect to go out for drinks or
dinner with your clients on some occasions. This is a much more relaxed
atmosphere (than a board room) and you can get to know each other better. It is not
common for spouses to be invited out for business dinners.

Hierarchy and Respect

The characters for ‘teacher’ in Japanese literally read ‘someone born before you’.

Respect for those older and/or in more senior positions is a fundamental aspect of

society which naturally reaches into business. Don’t therefore be tempted to address

most of what you say to the person who speaks the best English as they will

frequently be further down the food chain

Language

It is advised to keep in mind that English is not widely spoken in business and
government so an interpreter is generally required. If a meeting is conducted in
English, be sure to speak slowly and clearly and do not use regional dialects,
colloquialisms, idiomatic expressions or humour.

G. BODY LANGUAGE

 Japanese do not generally use handkerchiefs or tissues and do not blow their nose in
public; neither should foreign company executives. In part this habit arises because
Japanese companies do not generally give paid sick-leave other than paid annual
vacation, thus Japanese businesspeople are very sensitive about coming into contact
with anyone who might be ill.
 Don’t try to grab a Japanese businessperson by his or her hand to give it a hearty shake at
first meeting. Many Japanese seldom shake hands and might be so uncomfortable doing
so that they might avoid meeting again. It’s best to bow as Japanese do.
 If a Japanese businessman offers his hand then don’t use too much pressure during a
handshake.
 Don’t try to high-five a Japanese businessperson unless you know him very well,
especially not in front of his colleagues because it might embarrass him.
 Don’t pat a Japanese man on the back or shoulder; even his mother and father might
never have done so.
 Don’t make small-talk about politics, religion, or family.
 Japanese businesspeople have very strong pride in their company and expect a foreign
executive to similarly be proud of his or her employer, so never make derogatory remarks
about co-workers.
 Don’t badmouth anyone, including competitors because a competitor might be the
Japanese side’s next meeting.
 Always smile, act pleasantly, be willing to learn, ask a lot of questions about the Japanese
side’s business vision and plans.
 Don’t ask questions about the Japanese side’s private or family life.
 Do not grab your host’s hand when first meeting and give it a hearty shake – many
Japanese seldom shake hands and can be so uncomfortable doing so as to avoid
meeting again!
 Do not use large hand gestures, unusual facial expressions or dramatic movements.
The Japanese do not talk with their hands. Never pat a Japanese man on the back or
shoulder.
 The American ‘OK’ sign (thumb and forefinger shaped like an ‘O’) means ‘money’ in
Japan.
 Laughter will normally indicate embarrassment or distress, rather than amusement.
 Never make derogatory remarks about anyone, including your competitors and own
employees.


H. ATTANDING INVITATION

What You Don't Know Can Hurt You

We all know that a business is an important tradition in Japan, especially at the first
meeting. What can possibly go wrong when giving a small gift? Many things, it seems:
Flowers such as lilies, lotus blossoms and camellias are used for funeral services and
should, therefore, be avoided. The same applies for any white flowers. Potted plants also
carry negative superstitions. And buying a set of four of anything is deemed unlucky. The
number nine is also inauspicious. Furthermore, if you send Christmas cards, avoid red, as
funeral notices are customarily printed in red.

– Offering gifts is a very important part of Japanese business protocol. The emphasis is on
the ritual itself rather than on the content of the gift.

– Before accepting a present, it is polite to modestly refuse it twice before finally accepting.

– Gifts are opened in private to avoid the ‘loss of face’ of a poor choice.

– If you receive a present, be sure to reciprocate. Presents in pairs are considered lucky.

– It is a serious mistake to offer the same gift to two or more Japanese of unequal rank.

– In the presence of a group of people, offering a gift to one person and failing to do so to the
others is also an offence.
– Foreign, prestigious branded items, frozen steaks, pen and pencil sets or a simple
commemorative photograph are good choices.

– White flowers of any kind should be avoided. Giving four or nine of anything is
considered unlucky.

– Red Christmas cards should also be avoided, since funeral notices are usually printed in this
colour.

– If you are invited to a karaoke bar, you will be expected to sing. It doesn’t matter if you
are out of tune.

– When finishing a meal, leave a small portion of food on your plate to indicate that you
enjoyed it. Slurping your noodles and tea is encouraged in Japan.

I. BUSINESS STRATEGY

Hard Sell Doesn't Sell

A hard-sell approach will not succeed in Japan. Replace the high pressure, confrontational
approach with a more gentle, persuasive presentation that showcases the virtues of what
you are proposing. Find points of agreement and build on those. Don't drive too hard on
decisions and deadlines. Understand that the Japanese decision-making style is by
consensus—trying to speed up the process may appear to be disrespectful of their way of
doing business. Rather than be impatient, try to see the long process as an opportunity to
build trust and cement the relationship

Creativity
The Japanese are the archetypal early adopters and love new ideas, one of the
reasons why innovative British companies and IP-hungry local corporations make
such great partners. In your efforts to be culturally sensitive then, don’t lose the
unique edge you’ll bring with you or the different perspective that could make the
deal work.