How to Gain Entry to Japanese Markets
President Bush’s recent trip to Japan, dampened by his bout with the flu and tense discussions with big-business leaders, prompted many small-business owners to wonder whether he might have fared better if he’d taken a group of open-minded entrepreneurs along.
Knowing how tough it is for big business to crack the Japanese market, is there any hope for a small business? The answer is yes--if you are patient, flexible and willing to learn how business is really done in Japan.
“In the U.S., buyers and sellers are pretty much equal in social status, but in Japan, the customer is God,” said Christopher Engholm, author of “When Business East Meets Business West,” published by John Wiley & Sons.
Another key difference: While price is king in America, the relationship between two companies is more important in Japan. American business people don’t realize that Japanese business relationships are carefully forged to last a long time. According to Engholm, changing suppliers is a major decision for a Japanese company, even if what you are offering is cheaper and better.
The Japanese also believe in keeping business at home whenever possible.
Cheryl Rowley, a West Los Angeles interior designer, learned this the hard way when she was hired to take over the furnishing of the 600-room Yokohama Grand Inter-Continental Hotel.
“All of our design specifications were written for U.S. goods,” Rowley said. “But countless times, the Japanese owners made decisions to use Japanese-made products even though they cost more or were not always the highest quality.”
After much discussion, she was permitted to order U.S.-made furniture for the hotel’s public areas and buy American accessories and lighting fixtures. However, the carpets were Japanese-made, and all the guest room furniture she designed was produced by Japanese craftspeople. One of the most challenging aspects of the project, which brought in a six-figure fee to her small firm, was dealing with strict chains of command. “The people I worked with were terrified by my need to make a decision right away,” said Rowley, who adjusted to the decision-making style.
For comprehensive, practical trade information, consider attending the 5th Annual Asia/Pacific Business Outlook Conference, March 16-18 at USC. There will be more than 150 workshops and seminars to attend. The fee is $850. For registration information call (213) 740-7132 or fax a request to (213) 740-7559.
Southern California business owners interested in trading with Japan can attend a course offered by the Japan External Trade Organization (JETRO) and the Greater Los Angeles World Trade Center Assn. The class meets the next four Thursdays, from 7 p.m. to 9 p.m. at the World Trade Center in Long Beach. The fee is $95. For further information call Harumi Kamekawa at JETRO, (213) 624-8855 or the World Trade Center Assn. at (213) 680-1888.
