Business Negotiation and Meeting Etiquette in Japan

Face to face contacts are important in conducting business. It is more effective to initiate contact through a personal visit than correspondence. Such contacts are usually formal meetings between top executives. More detailed negotiations may be carried out later by those who will be directly involved. During the first meeting you get familiar and communicate your broad interests. You size each other up and make decisions on whether ongoing discussions are useful. At this point you should not spell out the details or expect to do any negotiation.

The traditional greeting in Japan is the bow. Many Japanese businessmen who deal with foreign companies also use the handshake. At the beginning of the meeting the exchanging business cards take place. This ceremony has the outstanding meaning for all further communications. First names are not usually used in a business context. You should use only surname with “Mr.” or “Ms.” But rather better is addressing with prefix “san”: for example “Yamomoto-san”.

An interpreter is always used even in cases when both negotiators know English well, especially if it is meeting of high-ranking government officials. Conservative dress is common for both men and women in public. Most Japanese professionals wear European-style dress more then American. During the hot summer months men often should not wear suit jackets.

If you are supplying distributors in Japan you must deliver on time. An error or delayed shipment, even if it’s not your fault, may damage your company’s reputation with the Japanese company you are dealing with as well as all the companies and customers that it does business with. The Japanese like to launch new products or take other important initiatives on lucky days. The luckiest day occurs about every six days. Japanese calendars usually indicate these days.

Noverbal communications have a considerable meaning. Gestures, nuances, inferences are very important in signaling your intentions. Early business and social contacts are characterized by politeness and formality.

A Japanese negotiator can’t give a quick answer during an initial discussion. No commitment can be made until the group he represents reach a consensus. Do not expect an immediate answer. Negotiations may take an extended period.

A Japanese partner or customer will usually prefer to develop a business relationship in stages, with the limited initial agreement that, if successful, is step by step extended into a broader and more required agreement. So once made a commitment, expect it to be for a long time. If you break it, your reputation will be affected and everyone will know about it. It may be difficult to find another Japanese partner after this happens.
You should be attentive in negotiating with eastern partners.

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