japan 3 keys to success - philippe huysveld - gbmc - octobre 2014

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JAPAN :3 Keys To SuccessWith Philippe Huysveld, GBMC (Global Business & Management Consulting)www.gbmc.biz

AS FEATURED in www.EUbusinessinJapan.eu(EU-Japan Centre for Industrial Cooperation)

http://www.gbmc.biz/

http://www.eubusinessinjapan.eu/


Which One Are You? I am a business executive of companies:

approaching the Japanese Market, reviewing their options in terms of Japan Entry Strategy, already exporting to Japan (Indirect Sales) or, already established/doing business in Japan (Direct Sales).

Therefore, my interest/concern is: I want expert tips/guidance/coaching I am surrounded by people talking about launching

business in Japan. What’s this all about? I already know I want to start business in Japan!


What You’ll Learn Here …

1. The cultural side of Business in Japan2. Why go to Japan?3. Three Keys for Success4. How to Get Started and to Set up a Profitable

Japan Campaign5. Other recommendations6. How to Get my Personal Help for Free!


For Those Who Don’t Know Me… EU-Japan Business Consultant, Japan Expert & Coach,

Trainer & Lecturer on Japan Business With a double business and engineering background,

with a MBA degree from Kyoto University, offers 20 Years of business experience in Japan and Europe

Registered as a Japan expert and writer of 4 Japan-related market reports for the EU-Japan Centre for Industrial Cooperation. Check: http://www.eubusinessinjapan.eu/support/huysveld-philippe

Writer of 2 eBooks (see further) and various publications on Japanese Business, Economy and Culture.

Passionate about introducing businesses to Japan

http://www.eubusinessinjapan.eu/support/huysveld-philippe

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The Ultimate Survival Guide for Business in Japan To support your business plans in Japan, I have

written “The Ultimate Survival Guide for Business in Japan”. Of course I recommend it!

You can buy it from various e-commerce sites. More details available from our website : http://www.gbmc.biz/GBMC_Publications.html

If interested in the History of the Japanese Economy, I also recommend (in French): "Lecture Economique de l'Histoire du Japon"

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Why go to Japan? Experience the need to improve your product quality! A Source of potential company growth (reinvent yourself !) A key mature market, with a high level of per capita income

giving Japanese consumers considerable purchasing power A key to other Asian Retail Markets There are Opportunities for products/services offering luxury

(high-end retailers), style (fashion items), convenience (e-retailers) & high-value (lifestyle, health, env.)

A Great Retail Laboratory !!!!


Left out or confused?

Go deeper into the Japanese market but feel you are wasting precious time?

Have a Japanese partner but it is not working as it should be?

Deals have gone nowhere, or emails remain unanswered?

Low trust of new markets/partners/countries? Stuck in some way?


In Japan already but…

Lack confidence and trust Not performing as well as you would like The clock is ticking and no results yet? Find the culture off-putting and oblique Cannot get a straight yes or no There are many silences and smiles ….


Basics about Japan In Japan, there is another dimension for

Time Quality Reactivity Service

Therefore, you should Implement the “Cross-cultural 4Ps” in your Marketing: Patience Presence Presentation Perspective !!


How do Japanese behave?

Collectivism and group spirit: to create certainty and harmony. The decision-making process is consensus-oriented. “Do your best” (in order not to fail), rather than “be the best”. More communal & less individualist than in the West

A strong hierarchy, to create certainty, often based on seniority, synonymous of experience and wisdom (as taught by social ethics of Confucianism). Importance of vertical relationships. Compliance with protocol rules


How do Japanese behave? (2)

An accurate control of the uncertainty, as well as a desire to eliminate it, in order to create a sense of security in the society.

A strong division of roles between genders (although the situation has been changing)

Harmony: not losing face but saving face, preserving the surface of things

Japan is a country of monochronic culture, individuals generally doing only one thing at a time (in stages).


KEY#1: BE PATIENT!

Wanting to wrap up everything quickly? Aiming for quick decisions, signed & sealed

contracts? Thinking you can sign off and leave the rest to the

team or partner? Forgetting that business in Japan is PERSONAL? >>Involve yourself and Keep a Long-term approach!!

"Money grows on the tree of Persistence." (Japanese Proverb)


The key question for Japanese potential clients is: Can I do business with you (the “gaijin” or the

outsider) in the long-term? Can I introduce you to my network as a

credible business partner? Are you someone that understands our rules

and ways of doing things? Will you stick out or come over as excessively

pushy? Will you stand by in tough times?


So how can you fulfill these requirements?

Be present and show patience + commitment Constructive attitude at all times: do not show

anger or frustration during meetings. Pay attention to “how you say it” as much as to

“what you say”. Build business relationships over time in a Long-

term approach. Build networks of obligations, trust and respect

Watch the doors open when you adapt to the local customs & culture


So how can you fulfill these requirements? (2)

Reference: read my paper "Outside one's confort zone - in the Country of the Rising Sun".

Article published in pages 5 and 6 of "Trade Flows and Cultural News", the Belgium-Japan Association Newsletter (December 2013 edition): http://www.bja.be/pdf/tf/Number101.pdf

http://www.bja.be/pdf/tf/Number101.pdf


Free Strategy Session Bonus

Please list up your questions For answers and personal guidance, discuss one-

on-one with me (TEL/Skype meetings) Spots are limited, so apply now to avoid

disappointment. Book an appointment at:

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KEY#2: RELATIONAL MAINTENANCE

Japanese retain a wealth of information on people and maintain, through an extensive network of friends, colleagues, customers/suppliers, close personal relationships

Invest in relationship building (socialising after work) to become an insider. For sorting out problems in a constructive way, face-to-face discussions are always preferred. Don’t discuss something delicate over the phone!

Entertainment: Business does not stop as soon as the meeting is over: « wining and dining » still play an important role. So do not avoid it!

Gift-giving: Essential for the development of goodwill and trust: it expresses the wish to keep the relationship going


What’s the difference with Western networking?

Westerners build up organic relationships usually AFTER contract is signed. Contract is first stage in completion of other relations

In Japan, social network building come FIRST Strong personal relationships and obligations lead

to deals. Indirect communication and relationships-based business style are key elements

(Tea/alcohol) drinking and non-business topics are also part of the assessment process.

Build your own local network!!


How to Connect with Japanese? Reference: read my paper about cross-cultural

management issues and negotiation with Japanese.

Japan: The Sumo-Way of Negotiating, “StoriesJapan.com” Blog, August 1, 2013Check: http://storiesjapan.com/japan-the-sumo-way-of-negotiating/#

http://storiesjapan.com/japan-the-sumo-way-of-negotiating/

http://storiesjapan.com/japan-the-sumo-way-of-negotiating/


KEY#3: BEING LOCAL & ADAPT Many foreign companies neglect to localise their brand and

operations The Japan Market is different and new entrants need to adapt

to local specificities. For example, high-level service expectations.

“Okyaku-sama wa kaki-sama desu.” Or “The Customer is God.” Especially for foreign retailers and B2C merchants in direct

contact with Japanese consumers, it is important to understand and adopt a Customer Service Mindset specific to Japan called “Omotenashi”.

Solutions are Adaptation, Commitment, Competitive intelligence and Local knowledge


Competitors are local & regional players Have their own Competitive intelligence Understand local consumer behavior better Have lower cost bases and more customer

feedback Have long experience of targeting to local

Japanese tastes" It is not the strongest of the species that survive,

nor the most intelligent, but the one most responsive to change. " (Charles Darwin)


How can you compete with local Japanese companies? Find out everything you can. Immerse yourself

in customs, etiquette & culture of your target market (s).

Partner with strong local partners. Leverage their knowledge of local tastes and of medium-tier and lower-tier growing cities

Think globally but operate locally


How can you compete with local Japanese companies? (2) When requested, adjust quality

standards/product specifications/pricing/lead time. Why do it? Because Japanese competition is probably doing it too. That’s what it takes to remain competitive in the Japanese market and it often pays off in the long-term!

“Customer responsiveness is a critical component of one’s competitive advantage in Japan.”


How to Adapt your Marketing? References: check out the following articles of

mine: Guidelines for B2C Marketing in Japan, EU-

JAPAN CENTRE FOR INDUSTRIAL COOPERATION, March 2014 Newsletter, page 13. Check: http://www.eubusinessinjapan.eu/library/publication/article-guidelines-for-b2c-marketing-in-japan

Guidelines for B2B Marketing in Japan, EU-JAPAN CENTRE FOR INDUSTRIAL COOPERATION, Octobre 2014 Newsletter, page 16. Check: http://www.eubusinessinjapan.eu/library/publication/article-guidelines-for-b2b-marketing-in-japan

http://www.eubusinessinjapan.eu/library/publication/article-guidelines-for-b2c-marketing-in-japan

http://www.eubusinessinjapan.eu/library/publication/article-guidelines-for-b2c-marketing-in-japan

http://www.eubusinessinjapan.eu/library/publication/article-guidelines-for-b2b-marketing-in-japan

http://www.eubusinessinjapan.eu/library/publication/article-guidelines-for-b2b-marketing-in-japan


Other Recommendations Don’t rely too much on second chances (rebuilding or

starting over). Try to get it right from the start by carefully planning.

When setting up business in Japan, especially involving entity issues, seek appropriate legal/professional counsel.

When going for Indirect Sales, carefully select the right partners, dedicated, who are ready to prioritize your products.

When going for a M&A, beware of Human Resources & Change Management issues

When going for a JV, keep the Japanese cultural touch of the operation: what counts most is to be local.


In short

Implement these 3 Keys to build success Focus on quality, service, social networking,

building trust and long-term relationships Think Global, operate Local and feed competitive

intelligence into all your plans Create a successful business strategy specifically

for Japan and Japanese customers This is just the starting point of your Japan project.

For further guidance, we can help you."A helpful companion is as good as a coach" (Japanese Proverb)


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