Doing Business in Japan: Understanding the Culture and Challenges
When doing business in Japan, it is crucial to understand the local culture and challenges. In this article, I want to share my experiences of working and living in Japan so that readers can gain a deeper insight into Japan’s business environment and cultural differences. By sharing my personal story, I hope to assist enterprises and entrepreneurs who are interested in entering the Japanese market to have a better understanding of this unique and challenging market.
Doing Business in Japan: Understanding the Culture and Challenges
Japan has a rich culture with a DNA that’s deeply rooted in conservatism. Japanese people are known for their focus on optimization and attention to detail, but not so much for value creation and innovation. When it comes to doing business in Japan, understanding the cultural norms is critical to your success.
Trust is the center of doing business in Japan, and it takes time to build it. Connections are also essential, and products come second. If you’re thinking of implementing a product-led growth strategy (PLG), think again. In Japan, a sales-led growth (SLG) approach is almost the only way to succeed.
Localization is also crucial when doing business in Japan. From website and packaging design to the technology used, everything needs to be discussed in detail. However, this also means that you can’t expect to get your business up and running quickly. Building trust takes time, and patience is key.
Hiring in Japan can also be challenging. People are often hesitant to join foreign startups, given the lack of trust. Overcoming the language barrier is another obstacle that you’ll need to navigate. Many tech-focused media outlets, such as TechCrunch Japan and Tech in Asia, have pulled out of Japan due to COVID-19. However, Bridge remains a reliable source of information.
In Japan, having a “middle man” is crucial for getting things done. Everything needs to be referred to through a middleman, and it takes trust to get referred. People won’t vouch for you if you’ve only met them once or twice. Therefore, building strong relationships and finding a trustworthy local partner is key to your success.
To win trust in Japan, it’s crucial to work with people who have good Japanese fluency or hire a local translator. Also, it’s worth noting that Corporate Venture Capital (CVC) has become increasingly active in Japan in the past five years. However, the startup ecosystem in Japan still lags behind that of other countries, such as Taiwan. Old money is struggling to understand the new economy, and CVCs typically prefer not to be lead investors.
In conclusion, doing business in Japan requires patience, trust, and a deep understanding of the culture. By taking the time to build relationships and understanding the nuances of the market, you can achieve success in this exciting and unique business environment.
