Challenges of the Japanese market Webinar, EU-Japan Center of Industrial Cooperation February 18th, 2014 By Japan Consulting Office (JCO) Olivier van Beneden

About the expert About the trainer: Olivier van Beneden More than 20 years of experience working with Japanese High school and university in Japan, living with a Japanese family 8 years working in a Japanese company in Japan and in Europe 8 years of working as a consultant / trainer at Japan Consulting Office About Japan Consulting Office (JCO) Business people training business people Very practical approach All trainers have worked in a Japanese companies in Japan and speak Japanese fluently .

Table of Content Introduction First contact Meetings & Decision Making First contact Information Exchange Visiting client Customer service Quality & Claims Introduction Contracts Q&A Table of Content Introduction First contact Information exchange Visiting your (potential) client Meetings and decision making Contracts Customer service Quality and claims Q&A

The need to generalize Culture Human Nature Specific to individual Meetings & Decision Making First contact Information Exchange Visiting client Customer service Quality & Claims Introduction Contracts Q&A The need to generalize Specific to individual Inherited and learned Personality Specific to group Learned Culture Universal Human Nature Inherited

Meetings & Decision Making First contact Information Exchange Visiting client Customer service Quality & Claims Introduction Contracts Q&A First Contact Japan is a relationship-based culture: cold-calling is rarely successful Third-party introductions work best Very high technical standards and often unique to Japan Ask yourself: What is your Unique Selling Proposition (USP)? Japanese customers are generally very loyal and will work with you to keep things going in a mutually satisfactory way

Meetings & Decision Making First contact Information Exchange Visiting client Customer service Quality & Claims Introduction Contracts Q&A Information Exchange Why are they asking so many questions and requesting so much information? With a very high aversion to risks, Japanese need to understand the whole process before moving forward, so be ready to provide information which seems irrelevant to you. When receiving the same question(s) several times, make sure to reply consistently every time. As a supplier, you should treat all Japanese requests as “urgent.” Customers are gods in Japan! Information tends to flow upwards (from suppliers to customers) so Japanese customers have a tendency to send very little information back to you.

Meetings & Decision Making First contact Information Exchange Visiting client Customer service Quality & Claims Introduction Contracts Q&A Visiting client Locate the office! Ask your contact for a map or check their website for one. Arrive 10 minutes early Dress conservatively and behave formally Don’t forget to bring a gift Business cards: Present your card with two hands, with the writing of the card towards the receiver. Accept the person’s card with two hands as well, and lay the card(s) down in front of you on the table (do not write on them or play with them!)

Meetings & Decision Making First contact Information Exchange Visiting client Customer service Quality & Claims Introduction Contracts Q&A Meetings & Decision Making Do your homework! Do a bit of research on the company you are visiting Showing testimonials and references usually works well “We have two eyes, two ears and one mouth” so listen more than you speak! If your counterpart does not speak English, find an interpreter. In any case, have your company brochure or other information ready in Japanese. Don’t forget to send a thank you note after the meeting

Meetings & Decision Making First contact Information Exchange Visiting client Customer service Quality & Claims Introduction Contracts Q&A Meetings & Decision Making Nemawashi prior to meeting Less discussion during meeting Decisions are made beforehand, then confirmed during the meeting Disagreement is not displayed publicly Discussion, planning Decision (group consensus) Fast implementation

Contracts: What is a contract? Meetings & Decision Making First contact Information Exchange Visiting client Customer service Quality & Claims Introduction Contracts Q&A Contracts: What is a contract? Contracts in Japan Documents that are vague, brief, which do not foresee conflicts or their resolution Negotiable if the external conditions change Contracts in Europe Detailed documents that foresee conflicts and their resolution Non-negotiable even if the external conditions change

Meetings & Decision Making First contact Information Exchange Visiting client Customer service Quality & Claims Introduction Contracts Q&A Customer service Customers are “God” in Japan. Very high service levels and very demanding customers in Japan. They will have the same expectation from you How to say “no” to a customer? Be prepare to spend a lot of time in “after-sales” services and maintain regular contact with your customer Show your long term commitment

Meetings & Decision Making First contact Information Exchange Visiting client Customer service Quality & Claims Introduction Contracts Q&A Quality & Claims Quality = perfection, no tolerance even for small deviations Show your long term commitment Apologize

Meetings & Decision Making First contact Information Exchange Visiting client Customer service Quality & Claims Introduction Contracts Q&A Summary and Q&A Japan is a unique country whose culture has a profound impact on business practices. You will need to adapt your approach accordingly. Make good use of other modules of this online tool to further deepen your knowledge Gambatte! (“Do your best/have courage” in Japanese)

From offices in Belgium, UK, Germany, Netherlands, France, Hungary, Singapore and Japan we are ready to support your business. For any question, do not hesitate to contact us. info@JapanConsultingOffice.com www.JapanConsultingOffice.com Meetings & Decision Making First contact Information Exchange Visiting client Customer service Quality & Claims Introduction Contracts Q&A