* Spring 1994 In this issue: Feature Article: Pitching in Japan The Translator's Craft: A Company by Any Other Name... Insights:The Art of Nemawashi The Cultural Connection:Don't Break the Wa Culture Swings a Mighty Bat in the Japanese Marketplace "Making Inroads," a front page story in the April 15, 1994 Wall Street Journal, recounts a wave of recent successes by American companies selling in Japan. The current economic and political situation makes this an excellent time for Americans to sell there. Still, many Americans who make sales all over the world consider Japanese buyers particularly difficult to satisfy. There are many explanations offered for this, including culture. Here Japan Insider looks at a few of the cultural factors involved in selling in Japan and their implications for American companies. History In feudal Japan, merchants ranked lowest of the four social classes, after samurai, farmers and artisans. While the class system has long been abolished in modern Japan, the assumption remains that the seller starts any interaction in a lower position than the buyer. In Japan's hierarchical society, this means that the seller must show deference to the buyer in many ways; the seller uses more honorific language, bows lower, goes beyond the letter of the contract when difficult arise, entertains the buyer in restaurants and clubs, and gives gifts in mid-summer and at year-end, to name just a few examples. Implications for Americans:Japanese buyers rarely expect Western sellers to follow all of the Japanese customs. However, a relentless spirit of service and meticulous execution are absolute musts. Simply put, selling in Japan is hard, time-consuming work. Societal Structure In Japan, no person or company can function effectively without broad and deep connections to others. It is critical to maintain and expand one's ties and cultivate the favor of others at all times. Any lapse in fulfilling one's obligations causes a loss of reputation (or "face") that can damage one's chances for success. Unlike the United States, where it is common to try several jobs or even professions before finding success, in Japan there are few second chances. Everyone plans carefully and works hard to make the most of any opportunity. Implications for Americans:Japanese customers worry whether the threat of losing face motivates non-Japanese suppliers enough to elicit the same extra efforts the customer can expect from Japanese suppliers. A long track record of going the extra mile for your customer every time builds the trust that confers "insider" status and makes orders flow more easily. Business Organization In large Japanese organizations (the target of many American sellers), information concerning choice of suppliers for important purchases is typically gathered at fairly low levels in the company. Data is digested and passed upward with recommendations. This process may b repeated any number of times, depending on the size of the purchase. Heavy demands for all kinds of information are placed on prospective vendors throughout this period, which can last a very long time. Implications for Americans:American sellers often make their pitch at too high a level in Japan. Since there is rarely a single key "decision maker," it is better to meet all the requirements of the "window" that is opened to you. (Requests for proprietary information may of course be refused, although an apology preserves harmony.) It is a good idea to cultivate a wide net of contacts in your target company and at third parties, such as banks and government ministries, who can help you wield influence. Cultural factors in Japan make it hard for any newcomer, American or Japanese, to sell there. Once a channel is established, however, culture can work in your favor. In Japan's relatively stable corporate environment, you can expect to deal with mostly the same people for many years. In the rare case when faces change, new personnel will be fully briefed on the entire history of the relationship with your company. If you continue to anticipate and satisfy the requirements of your Japanese customers, they will tend to be loyal buyers who will not easily jump to your competitors. A COMPANY BY ANY OTHER NAME... Company names would seem to be rather simple to translate, yet they often require extensive research by the translator. Any error in rendering a name, whether on a business card, slide presentation or legal contract, can cause trouble and embarrassment for the incorrectly named party. A company name represents a legal entity. As such, an American firm must be rendered phonetically in Japanese rather than literally translated. For example, General Electric becomes "zeneraru erekutorikku," not "ippan denki." The phonetic characters used to write zeneraru erekutorikku are called katakana, and their use signifies that a word is of foreign (i.e., not Japanese or Chinese) origin. Terms such as "Inc." or "Incorporated" should also be rendered in katakana : "Inku" and "Inkooporeiteddo." The Japanese term for a limited stock company, kabushiki kaisha, should never be used in the translation into Japanese of the name of an American corporate entity, unless a subsidiary kabushiki kaisha has indeed been formed in Japan and is the entity in question. Finally, any prior translation into Japanese of an American company's name should be matched, for differing translations can result in a loss of credibility for the company. Some large Japanese companies have official English translations of their names; for example, Mitsui Bussan is always rendered as "Mitsui & Co., Ltd." If an official translation cannot be found in a reliable source, then the Japanese name should be spelled out phonetically in English letters. The names of smaller, less well-known Japanese companies pose a different problem. In Japan, names are normally written with Chinese-derived characters called kanji that have several possible pronunciations but no visual clue as to which one to use. The correct reading must be learned for each occurrence. Professional translators use special dictionaries and other tools to track down obscure names, but in some cases the client must supply the name or make do with theor's educated guess. Fortunately, Japanese has many polite words of address that can be substituted when one does not know the name of the other party. We will be covering these in a future issue. _________________________________________________________________ When doing business with a member of a large affiliated group of Japanese companies (keiretsu), be sure to supply your translator with the full name of the Japanese company. Your customer may be called "Mitsubishi" among your American staff, but in Japan there are over twenty companies that are "Mitsubishi": Mitsubishi Corporation, Mitsubishi Bank, Ltd., Mitsubishi Electric Corporation, etc. THE ART OF NEMAWASHI Cultivating Business in Japan In Japan, a country short on resources and long on people, the only way to accomplish anything significant is through the cooperation of others. Nemawashi is one common technique used to secure that cooperation. The word literally means "prepare the new ground for the roots of a transplanted tree." It refers to the behind-the-scenes one-on-one lobbying that must be done to get a positive decision on a proposal from a large Japanese organization. Nemawashi is often conducted after hours, when a Japanese person feels more comfortable expressing his or her personal views on a business matter. Here tips for effective nemawashi are offered by Michihiro Matsumoto, author of numerous books on cross-cultural communications. Matsumoto teaches English language in combination with martial arts in Tokyo. Having served as a top-level simultaneous interpreter at the U.S. Embassy in Japan, he is an expert on timing one's moves in U.S.-Japan negotiations. * Consider situations (time, place and occasion) before abstractprinciples. * Organize your thoughts before persuading others, but be prepared to change them if the situation so demands. * Hang tough in person-to-person dealings. (Enthusiasm and sincerity count for more than technique.) * Market your long term commitment first, your product second. * Let others talk so that they find themselves involved in the project. * Get an early start to give nemawashi time to grow. * Don't overlook the follow-up. * Let others subtly realize you are carrying a big stick, and look prepared to swing it when the chips are down. * Be patient and ready to eat crow when you must. * Try not to over-win in negotiations. Remember, to win is to lose. From THE UNSPOKEN WAY by Michihiro Matsumoto. Published by and copyright 1988 by Kodansha International Ltd. Reprinted by permission. All rights reserved. Matsumoto's aphorisms may seem to float between the obvious and the enigmatic, but they provide a glimpse into the Japanese style of communication and persuasion. As nemawashi forms the very core of consensus-building, it behooves any businessperson in Japan to study its principles well. _________________________________________________________________ BUSINESS TIPS JAPAN INSIDER THANKS EVERYONE WHO ENTERED OUR TRAVEL TIPS CONTEST. First Prize goes to Martin Schrage of Xanalog Corporation (Woburn, MA), who suggests that business visitors skip their hotel's breakfast and visit a neighborhood coffee shop. The set breakfast menu (mo-ningu setto) is typically one third the cost of a buffet at Western-style hotels, and the atmosphere provides a pleasant way to ease into the rhythm of Japanese business. For this money-saving and culturally adventurous advice, Martin will receive his choice of a videotape from the series Working With Japan, a $395 value. Tape titles include Preparation, First Meeting, Negotiating, Business Entertaining, Women in Business and Managing the Relationship. (Anyone interested in these tapes may call 1-800-USA-JAPAN for more information.) Carl Thong of Epitope (Beaverton, OR) wins honorable mention for recommending the Daiichi Hotel in Osaka (near airport bus, airline ticket offices, train station, underground restaurants and an ATM machine that takes American cards). Carl will receive a $25 gift certificate from Sasuga Japanese Bookstore. Honorable mention also goes to Steven Wardell of Harvard University, who writes, "The ease with which foreigners can use Tokyo's clean, fast train and subway sytem to arrive within half a mile of any destination belies the confusion of the rest of the trip. . . Be sure to have your destination fax you a detailed map of the route from the station." Congratulations to Martin, Carl and Steven, and thanks for the goodice! _________________________________________________________________ DON'T BREAK THE WA: Direct "No" is a No-No in Japan In Japan, business circles tend to overlap, and the same people often must deal with each other again and again. In this tightly-knit environment, people who are skilled at maintaining harmony are viewed favorably. In business, as in other realms, various mechanisms have been developed to prevent confrontation and to protect the feelings of the "losers" in a situation. Everyone knows that the same players could find themselves in opposite roles next time. One such mechanism is the avoidance of a direct "no." In Japan, it is rude to refuse something directly, whether it be tea or a major business proposal. Such a refusal breaks the surface harmony ("wa") and is taken as a rejection of the person making the proposal, not just the content of his or her offering. Successful players in Japanese business make elaborate, polite refusals. A direct translation might read as follows: "Regarding your proposal that you send an engineer to our plant for two months to assist in the development of the new component: we truly appreciate your offer to go to such effort and expense, and it is a very good idea, but unfortunately it is our company policy to prohibit such joint work at our facilities. Indeed, we refused a similar request from a German company last year, so I am afraid that it is not possible for us to accept your excellent proposal at this time. Perhaps we can consider it in the future." In terms of actual business result, there is no difference between the above and the legalistic exchanges more typical of Western negotiations (e.g., "we cannot accept item 4 but we will give you what you want on item 7"). To be sure, the former takes more time, but from the Japanese perspective, it is worth the trouble to avoid leaving any scars when declining something. Extra effort spent on a polite refusal maintains harmony with the other party and leaves the door open for further fruitful exchange. The flip side of this custom is the unspoken "no." Many American negotiators fail to recognize this essential facet of communications in Japan, and become frustrated with their Japanese counterparts as a result. A good rule of thumb is: if you are not getting a clear "yes"-demonstrated by actions as well as words-you are probably being turned down. At this point, it is best to probe for possible problems the other side is having with your proposal. If you think you can identify the problem, ask a question such as, "Is there a problem with the delivery date (or price, or specifications)?" Given an escape from the uncomfortable position of having to say "no," the Japanese party will likely jump at the chance to say, "Yes, there is a problem with the delivery date." Now you have the information you need to try to make the deal happen, as well as a Japanese party that feels that you understand their concerns. Your sensitive handling of the situation will be appreciated and will make you a more comfortable business partner for the Japanese, now and in the future. _________________________________________________________________ JAPAN INSIDER Copyright 1994 Japanese Language Services, Inc. All rights reserved. PUBLISHER AND EDITOR: Carl Kay JAPAN INSIDERLanguage Services, Inc.186 Lincoln Street, Boston, MA 02111-2403 Phone: 617-338-2211 Toll-free: 800-USA-JAPAN Fax: 617-338-4611E-mail: insider@japanese.com World Wide Web: http://www.japanese.com _________________________________________________________________