Japanese Business Etiquette: How To Do Business In Japan | GlobalDeal
Japan is increasingly becoming a sought after location for foreign businesses. It has a thriving startup scene and is also popular among established companies, who are looking to create partnerships or start doing business in Japan.
The country is known for having culturally influenced, very specific ways of social interactions, which also influences business manners. When looking to do business here, it is important to understand business etiquette in Japan. Being aware of the do's and don'ts of business culture can be key in successfully establishing business relationships.
In this article, we explain the most important things you need to know when it comes to business etiquette in Japan; from cultural traits and business attire to meetings and relationship building.
Habits & Cultural Traits
Business etiquette in Japan is based on habits and traits that are deeply embedded in Japanese culture and society. Here, we will discuss the most notable ones that foreigners should be aware of when doing business in Japan.
Bowing
Bowing is a very evident cornerstone of social interactions in Japan, reflecting respect and humbleness. Professional bows at work are used in greeting, as a gesture of gratitude, or as an act of apology. How deeply one bows and how long depends on the situation: A slight bow of about 15 degrees is common for casual greetings, while a deeper bow of 30-45 degrees is reserved for formal situations or showing deep respect.
Although the handshake is now more commonly used as in greetings, especially with international counterparts, it is not universally bestowed. If the Japanese side does not extend a hand, do not try to force contact. By defaulting into bowing, you accommodate traditional protocol and avoid inadvertently causing discomfort.
Communication Style
Japanese communication relies on subtlety and indirectness. As Japan’s group oriented culture is centered around the idea of harmony, respect, and consensus, open confrontation is often avoided in favor of harmony. This is reflected in Japanese business manners as well: If you ask your Japanese counterpart a question, phrases such as "it is difficult" or "we will think about it" are common forms of polite rejection rather than consideration. In order to understand these cues accurately, pay close attention to tone, context, and non-verbal cues such as body language or pauses. Avoid pressing for explicit answers if the response seems vague. This approach demonstrates respect and helps maintain a positive relationship.
Public Nose-Blowing
Personal hygiene etiquette in Japan frowns on behavior that may be considered disruptive or unsanitary. Blowing your nose in public is considered very rude, especially during a meeting. If you must blow your nose, excuse yourself and leave the room to do so. Always carry tissues and a small pouch to deposit used tissues, as proper disposal is also expected.
Importance of Hierarchy and Roles
Hierarchy pervades Japanese society, influencing interactions in personal and professional life. In corporate life, age and years of service largely influence position hierarchy. The concept “nenkoujoretsu” (年功序列) describes a system in which a person’s position and authority within the organization are based on their age.
In business, seniority usually determines the seating and speaking order, as well as decision-making authorities. When introductions between teams of different companies (as well as internally) are done, this mostly happens in order of rank from senior to junior. It is established practice to show deference to senior members when it is a group that is being addressed, and this should be reflected in all communication.
Business Attire
When doing business in Japan, appropriate clothing reflects respect and professionalism. Business attire is conservative: a dark-colored suit, white shirts, and subdued ties for men, with women wearing modest suits or neutrally colored dresses. Accessorizing too much or using flashy colors is better avoided if one wants to appear professional.
In summer (the rough guideline states May to end of September), the Cool Biz dress-code allows for lighter attire. In those warmer and humid months, short-sleeve shirts without ties and jackets are tolerated, to combat heat and conserve energy. Although the majority of Japanese workers follow the Cool-Biz dress code during the summer months, it is best to judge the occasion and dress according to its formality.
Other critical considerations are fragrances: one should avoid overusing cologne, aftershave, or perfume, as strong smells can be intrusive in nearby spaces. Subtlety in personal grooming means you'll keep within Japanese business etiquette and leave a good impression.
Business Cards
The exchanging of meishi or business cards is one of the most ritualized and meaningful practices in Japanese business, which symbolizes mutual respect and the beginning of a working relationship. Here is some advice to maintain good etiquette when it comes to business cards:
Prepare (Enough) Double-Sided Cards
Have your business cards professionally printed, one side in English, and the reverse in Japanese. It is respectful to your counterpart's language and culture.
Also, make sure to always carry an adequate amount of business cards, even on short visits. Several dozen may be enough for a three-day visit, but for larger events, such as trade shows, a few hundred business cards may be needed. Having a card case helps to keep your cards in pristine condition and be easily accessible.
Exchange and Treat Cards with Respect
Business cards are exchanged with both hands and a slight bow. Present the card with the Japanese side facing upwards and facing your counterpart. Have a thoughtful look at the card before putting it away, and do not put received cards in your pocket. Instead, place the received card carefully on the table in front of you or store it in your card case with care. Never write on a business card (for example during the meeting), as this is considered very disrespectful.
Follow Hierarchical Order
Cards are exchanged in order of seniority, with the most senior member of the Japanese team going first. Mirror this structure with your own team in order to align with their customs.
Honorifics and Naming Conventions
The Japanese state their surname first, followed by their given name. Use the honorific "san" at the end of their surname, such as "Tanaka-san". Do not call them by their first name (unless that is how they introduced themselves) and never attach "san" to your own name.
Respecting these practices signifies your cultural sensitivity in light of a good foundation that the business relationship will face.
Meetings
In Japan, face to face meetings are a critical part of building business relationships. Making sure meetings are successful is therefore pivotal when seeking business partners. Meetings tend to be well organized and have to be prepared well in advance. Here are some tips to help make a good impression and ensure a fruitful meeting.
Prepare and Share the Agenda
Send out a detailed agenda in advance of the meeting, allowing participants enough time to translate and prepare for the session. This will improve productivity of the get-together, avoid miscommunication and help adhere to the schedule.
Handle Documentation Early
If an NDA is required, this should be provided long in advance of the meeting to allow adequate time for translation, review and approval. In Japan, written contracts are not always made between business partners, and requiring a signature on the spot will likely lead to discomfort and mistrust.
Research Names and Titles
Familiarize yourself with participants' names and titles; know who is senior to whom and practice their names in order to avoid mispronouncing them.
Arrive Early and Observe Seating Etiquette
Arriving early, at least 10 minutes prior to the meeting, is expected as good business manners in Japan. If you will inevitably be late, call at least 45 minutes before the meeting starts, as Japanese business people often have tight schedules. When entering the meeting room, wait to be seated, as seating is often a function of status.
Adapt Communication Style
If the meeting is being held in English, speak slowly and clearly, allow for pauses to digest the content and prepare materials in Japanese. Clarify in advance if the Japanese side will have their own interpreter, or if you should organize one. If the meeting is held in Japanese, bring an interpreter along. If the interpreter is organized from your side, they will be able to fill in cultural nuances in addition to pure translations, taking account of the typical Japanese indirect communication style.
Plan Presentations Thoughtfully
When planning the meeting schedule and length of presentation, account for additional time that might be needed for translations, explanations, and questions during the presentation. For the presentation slides themselves, be aware that In Japan, it is common to have “dense” slides with a lot of information on them. Information that is not written on the slides will likely be considered unimportant.
Provide printed documents for meeting participants, such as company brochures or profiles if it is a first meeting. For subsequent meetings, bring printed versions of the slides that you are planning to present.
Maintain Professional Conduct
Avoid controversial topics like politics, religion, or personal family matters if there is initial smalltalk. Show interest by taking notes during the meeting and respecting periods of silence or pauses, which often indicate thoughtfulness rather than disinterest.
Avoid pointing directly at individuals while discussing, as this is considered rude. Make sure to defer to the seniority of attendees, and do not criticize anyone, including competitors.
If any snacks or drinks are offered, accept them thankfully, as this means accepting hospitality.
Coordinate Your Team
Determine in advance specific roles for each member of the team, and who will be the speaker for which subject. This helps to ensure the communication in the meeting will go smooth and conflict-free. Japanese society is group-oriented, and they prefer to avoid open conflict. Any disagreements are usually debated privately, and discussing openly during a meeting might be seen as disagreement within your team, inferring unreliability.
Follow Up Promptly
After the meeting, send a follow-up message a few hours later or the next day, thanking them for their time and summarizing the key points discussed. This will also help to ensure everyone is on the same page, which is especially important in a setting with potential language or cultural barriers.
Following these protocols is a reflection of your cultural awareness and will help in building trust and solid business relationships.
Decision-Making Takes Time
Unlike in some other cultures, decisions are rarely made in meetings. Usually, they serve to convey information and set the stage for internal deliberations that occur privately among decision-makers. As decision-making in Japan involves a lot of hands and requires going through several loops, it is usually a relatively long process. You should therefore not set high hopes in receiving an immediate yes or no response from a first meeting. Wait until the follow-up communication to determine the situation.
The Importance of Relationship Building & Patience
Building strong relationships is a fundamental principle in Japanese business. As Japanese prefer to build long term business relationships, the initial phase of getting to know each other as a person is crucial. Usually, relationship building will come first before serious business discussions. Success in finding an business ally therefore lies more in interpersonal trust and rapport than in the actual business matter. Here's how to approach relationship building with the Japanese effectively:
Social Engagements
Focus on getting to know the person usually precedes formal business aspects. It is therefore common to shift to social gatherings after formal business meetings in the initial phase.
After the serious and very formal meeting sessions, these social gatherings have a very different vibe, with everyone being more open. These leisurely settings allow participants to connect on a personal level. As alcohol is involved, the loose atmosphere might seem odd and inappropriate for business settings to people from other cultures. But this is a crucial aspect of how Japanese go about relationship building. Going along will show your desire to do business together and provide you with trust and respect from the Japanese.
When participating, advise your host about your dietary restrictions in advance. The same goes for alcohol - informing the host in advance in case you do not want to drink will help avoid uncomfortable situations.
Consistency in Representation
Trust is developed over time as interactions are made regularly. In Japan, good business relationships start with relationships with the person. Sending the same representatives to meetings allows the other company to get to know them better, and prove reliability and dedication.
Gifting as a Gesture of Goodwill
It is customary to bring a small, thoughtful gift, such as a souvenir from your home country, with you when meeting your counterpart for the first time. This will contribute to leaving a long lasting impression on the Japanese side. Gifts should be wrapped and presented in a discreet bag and handed over with both hands. Offer the gift after the discussion, before you leave the venue. It will later be opened in private.
Attention to Details
When meeting your Japanese (potential) business partner, make sure to wear clean, nice socks. This can prevent embarrassing moments if the location - such as a restaurant or teahouse - requires you to take off your shoes.
Another useful fact to know: LinkedIn is barely used in Japan. Instead, people often use Facebook to connect with coworkers and business partners. As you might be asked to connect on Facebook, make sure to adjust your privacy settings on personal content that you would not like to be seen in a business setting in advance.
Adapting to such cultural subtleties underlines respect and effort, which are extremely important in building trust and developing relationships in Japan.
Get Support from an Expert in Japanese Business Etiquette
For foreign businesses looking to succeed in Japan, understanding local business etiquette can make all the difference. While Japanese professionals are aware that their customs may differ significantly from those in Western countries, they appreciate when foreigners make an effort to understand and respect their ways. Mistakes in etiquette will often be forgiven, especially if they are made with genuine intent and humility, but being well-prepared shows respect and commitment.
Expert advice may help a great deal in understanding such subtleties of culture. Companies like GlobalDeal can support you with Japanese business etiquette to get ready for meetings. We can teach you what to do and not to do, how to prepare for meetings, and how to establish good relationships in Japan. In addition, you can reach out to us for support with various tasks such as Japanese localization, connecting with relevant companies, as well as coming up with a strategy on how to best enter the Japanese market.