We enjoyed discussion at “Moshi moshi, Japan?” (held in Geneva on Friday, 17 April) on “How does a Swiss innovative start-up fight to enter the Japanese market?”
Mr. Shaban Shaame, CEO & Founder, EverdreamSoft, an innovative vendor of Moonga, a game soft run over the mobile device, such as smartphones and tablets.
Highlights of discussion
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I found that a large download volume of Moonga, our game soft, from Japan. I thought “Why?”, as I knew that people don’t speak English as default in Japan. This made me to think that there must be a big Moonga market there.
I went to Japan (in 2009) to find a business partner who could translate the game into Japanese and who’d provide graphics for the games. Communication with the Japanese was difficult. I din’t know Japanese and they din’t know English. We managed to negotiate a contract using Google translator, though sometimes English translated by Google function didn’t make sense.
Japanese people are hard workers, more than Swiss people are. However, whether their hard work is efficient is questionable. Some (or many?) people work hard where their boss is near by.
In the Japanese work ethics, a group culture is strong. All the people in the same office stay working till midnight. Some cohesion power must be working.
Consensus is extremely important in the Japanese decision-making at any level.
Is change possible? — Yes but only slowly.
Lay-off is difficult and rare in Japan. Hence employing someone involves a risk to an employer. Mobility is still low in the job market.
Re. Women at work, maternity leave is guaranteed by law but employers don’t like it. Mobbing to women exists in some offices.
Then, we discussed bit coin; what it is, how it works, where can we use it, etc.
Forthcoming meetings —
Friday 8 May, Uchi and Soto, the key concepts of the Japanese relationship building
I had an opportunity to interview with Mr. Anthony LOW, VP, Asia, Oceania and Africa Region of Nestlé.
I was particularly interested in discovering the keys to success in marketing in the regions that have diversified consumer markets, including Japan. Japan is known to be a unique market for its consumer taste and preferences in the food business.
I found there was no miracle. Keys to success were but the very basics of marketing, i.e. the trust, quality, customer insights and long-term interests.
So what’s new?
Yes, there is the reason why Nestlé excels and that lead the company to a remarkable success, the thoroughness. The company’s “Can do” attitude, supported by the thoroughness led to breakthrough in its marketing.
I was happy to be assured that one may succeed in challenging markets by pursuing without compromise to the basic values of marketing, i.e. trust, quality, customer insights and long-term interests. It is not a coincidence that these values are common to the underlying principles of the corporate social responsibility (CSR).
Here is my note:
Keys to success
Customer first, “Can do” attitude = Never say, “No”.
To meet customer requirements in Japan, Nescafé, we changed the product. Changed its recipe from “Instant coffee” to “Regular coffee”.
Barista Ambassador – To facilitate access to Nescafé in offices (where tea and coffee is served less and less, due to limited budget, economic recession, etc.), offered Barista machine free of charge, including service. The customers buy the coffee products or refill from Nestlé.
Test market – Hokkaido. Market size is appropriate.
Shrinking population how do you grow business where the population is shrinking? Aging Elder people’s market.
Visited and listened to the elderly people. Found that loneliness is their major problem. Created “Nestlé wellness club”. With a small membership fee, send a doctor and dietitian to home.
Test market – Hokkaido. Market size is appropriate.
Trust, quality and market insights
To find a new market in a country where you are for more than 100 years. Creativity. Never say, “No”.
Build the trust with consumers
Marketing strategy is different in each country in the AOA Region. cf. Europe – one common market
There are 115 countries in the AOA Region.
There are over 450 different Nescafé’s worldwide.
Long-term strategy
E.g. In India, Nestlé supports WHO to promote the breast feeding. It is not for an immediate benefit. If some mothers could not continue breast feeding, they buy Nestlé’s milk product. Nestlé infant formulae is close to mother’s milk.
“Romance the product”. Nestlé’s marketing strategy
Market test — Nestlé requires 60:40 preferences of Nestlé products over competition
“Then, we ‘romance’ the product to the truth.”
i.e. to make the truth to come to the life.
To find an answer to the question, “Why is this product perceived to be better than competition?”
If consumers says “this chocolate tastes fresh”, to find why is “fresh” important?
Re. Japanese market
There are over 200 KitKats in Japan,
MUST know how to do business in the local market
Perceived value is the key, e.g. Nescafé vs. Starbucks
MUST build the perception on quality. No failure is allowed. Must constantly work on the quality.
Nestlé’s response to the local market, Special-T. A system for the Japanese tea lovers to enjoy good tea without following a procedure to prepare a good tea.
An example of adapting to the taste of local market.
Originally tried with black tea but failed. Found that The Japanese wanted to take the green tea that match individual taste.
You can’t do cheap business in Japan. Currency rate is not in our favour while price of imported materials are rising (e.g. Cacao).
We can’t compete over the price. We create premium values.
Japanese consumers pay for the premium.
E.g. Kitkat – Those that use local materials cost less than others that use much Cacao.
Appeals to the emotion
Pepper – a robot that reads 80% of your emotion. It selects the best coffee for you. Technology invented in France, produced in Taiwan and the license bought by Softbank (one of the leading mobile phone operators known to be vanguard market strategy in Japan.
You are cordially invited for “Moshimoshi, Japan?“, Geneva on Friday, 13 March.
“Moshimoshi, Japan?” is an informal meet-up with people who are doing business with Japan. Though Japan is a fascinating market, its business culture is nothing like others. In addition, handling the culture well is the key to success with Japan.
South Entrance, Shinjuku Station, Tokyo
What are other people doing to work well with Japan?
What works and what doesn’t?
What breakthrough did other people make?
Let’s exchange experiences and discuss over coffee!
Mr. Shaban Shaame, CEO & Founder, EverdreamSoft
on “Japanese market for innovative startups“
Participants: Anyone interested in business with Japan.
Date and time: From 18h00 to 19h15, Friday,13 March
Place: Starbucks, Rive, Geneva central area
Languages: French and English
Organisation fee: CHF 10.-
Please register: By e-mail or phone call to Yoshiko Kurisaki, Europe-Japan Dynamics
“Moshi moshi, Japan?”, held in Geneva, 13 February 2015
Serge, who worked as a recruiter of the Japanese in Tokyo for two years, was the theme setter this time. We learned interesting insights on Japanese candidates and discussed their work mind-set.
Photo by Haruko SATO
Key words:
Foreign companies want to hire the Japanese, as the Westners are too aggressive for the Japanese culture.
The Japanese are very timid in speaking English. A non-Japanese recruiter must speak Japanese.
Three major challenges; 1) to convince a candidate to meet me for the first time, 2) fear of change, and 3) strong loyalty to the present company, even if he wants to change it.
“It is almost a babysitting” — Must accompany the candidate from A to Z; from listening to his fear of departure, his partner’s opinions, through to how to explain his departure to his boss.
Women candidates were more autonomous then men and less fearful.
“Responsibility ” for the Japanese: A killer word of his boss, “Do you leave your responsibility?”. The sense of “responsibility by the Japanese is much stronger than Europeans’. It’s a life commitment. Some candidates change their minds at the last moment, due to the sense of loyalty to the present company coupled with the sense of “responsibility”.
Japanese employers are much more submissive to their employers than Europeans.
A recruiter must establish the confidence with a candidate first. Empathy is important. Drink after works.
Thank you very much for all the people who participated in the meeting.
Forthcoming meetings —
Friday 13 March, Japanese market for innovative start-ups
Friday 17 April, Uchi and Soto, the key concepts of the Japanese relationship building
Friday 26 June, Negotiations with Japanese companies (To be confirmed)
Participants: Anyone interested in business with Japan.
Tme: From 18h00 to 19h15
Place: Starbucks, Rive, Geneva central area
Languages: French and English
Organisation fee: CHF 10.-
Registration: By e-mail or phone call to Yoshiko Kurisaki, Europe-Japan Dynamics
You are cordially invited for “Moshi moshi, Japan?“, in Geneva on Friday, 13 February
Tokyo Sky Tree
“Moshi moshi, Japan?” is an informal meet-up with people who are doing business with Japan. Though Japan is a fascinating market, its business culture is nothing like others. In addition, handling the culture well is the key to success with Japan.
What are other people doing to work well with Japan?
What works and what doesn’t?
What breakthrough did other people make?
Let’s exchange experiences and discuss over coffee!
Mr. Serge Biro, Head of IT Recruitment, SCS hr solutions
on “The Japanese mindset seen from a recruiter“
Participants: Anyone interested in business with Japan.
Date and time: From 18h00 to 19h15, Friday,13 February
Place: Starbucks, Rive, Geneva central area
Languages: French and English
Organisation fee: CHF 10.-
Please register: By e-mail or phone call to Yoshiko Kurisaki, Europe-Japan Dynamics
We enjoyed the first meeting of “Moshi moshi, Japan?”, held Geneva, 23 January 2015.
Tokyo railway station conserves its history surrounded by hi-rise buildings
Anne opened the floor by presenting her experience with a sales team in Tokyo. All the people around the table shared his/her experience and insights on Japan.
Key words:
“We wanted the branch in Japan to adhere to the global process. The Japanese team said, ‘yes’, but in practice, there was no change. They continued doing it in their own way as before.”
“To do business with Japan, one must meet people regularly, say, 3 to 5 times a year.”
“Meeting with the Japanese in informal opportunity is important.”
“It is annoying though that one must think what’s behind all the time.”
“Be careful, the Japanese don’t say ‘No’, but say it in very different manners.”
“Japan is at the highest end of the ‘High context culture’. Emotional intelligence counts in communication.”
“Stay open-minded, accept what it is and build the trust, before business.”
Thank you very much for all the people who participated in the meeting.
Forthcoming meetings —
Friday 13 February, The Japanese mindset seen from a recruiter
Friday 13 March, Japanese market for innovative start-ups
Friday 17 April, Uchi and Soto, the key concepts of the Japanese relationship building
Friday 26 June, Negotiations with Japanese companies (To be confirmed)
Participants: Anyone interested in business with Japan.
Time: From 18h00 to 19h15
Place: Starbucks, Rive, Geneva central area
Languages: French and English
Organisation fee: CHF 10.-
Registration: By e-mail or phone call to Yoshiko Kurisaki, Europe-Japan Dynamics
At the beginning of the new year of the sheep, you are cordially invited for the first meeting of “Moshi moshi, Japan?” to be held in Geneva on Friday, 23 January.
“Moshi moshi, Japan?” is an informal meet-up with people who are doing business with Japan. Though Japan is a fascinating market, its business culture is nothing like other cultures. In addition, handling the culture well is the key to success in business with Japan.
What are other people doing to work well with Japan?
What works and what doesn’t?
What breakthrough did other people make?
Let’s exchange experiences and discuss over coffee!
Mme. Anne Van Walleghem, Head of Compensation & Benefits, Global HR, Nobel Biocare, will share her experience on “How do we work with Japan over the distance?”
Participants: Anyone interested in business with Japan.
Date and time: From 18h00 to 19h15, Friday,23 January
Place: Starbucks, Rive, Geneva central area
Languages: French and English
Organisation fee: CHF 10.-
Registration: By e-mail of phone call to Yoshiko Kurisaki, Europe-Japan Dynamics
Do you know an invisible trap in doing business with Japan?
In appearance, Japan is not different from Europe; modern buildings, fancy cars and people dressed like Europeans. In reality at work, however, the country is very different.
What have Swiss business people learnt from their experience with Japan? Europe-Japan Dynamics interviewed fourteen (14) Swiss business people who had the first-hand business experience with the country.
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Tokyo Station (The south entrance)
Overall, all the people interviewed like the Japanese as business partners and in a personal relationship. All think the Japanese reliable, polite, engaged and respectful to others. Many experts appreciated a long-term approach taken by the Japanese as this attitude creates better values in business.
That said, all the experts said that communication and a long time needed in decision-making had been considerably large challenges. Challenges in communication go beyond language issues. Even though both Swiss and Japanese speak good English, Swiss business people were puzzled by the Japanese reaction, as typically expressed by one manager, “I was often not sure if my Japanese business partners understood me.” It often takes a few years for Swiss people to understand how to interpret the Japanese “Yes” in the Japanese business cultural context.
“Ringi sho” – An important process in Japanese decision-making
A Japanese way of decision-making is another big challenge. The Japanese spend a long time in Swiss standard to reach a conclusion, and it is difficult for the Swiss to find who the decision-maker is.
Swiss business people see a good point in the Japanese decision-making, though. “The strength of Japan is that once agreed, the decision is firm and all the people work exactly as decided”, one interviewee said.
Despite these challenges, many Swiss companies are running successful business with Japan. They have learned through experience many clues for success. For example, it is important to ensure mutual understanding by asking questions step by step, and follow up on important matters. Soft and informal communication is “Must”. Some went out for a drink after work to discuss business matters with his Japanese clients. Or, some other played golf with Japanese business partners in weekends. Yet other visited museums or travelled outside Tokyo in weekends to better understand the country.
The study found that the common success factors are; to respect and accept different values, as one interviewee said, “Japan has its own way of doing things”, to be extremely patient, and to build the mutual trust before pushing business. The interviewees emphasised large advantages of doing business in the Japanese language, or at least, to work with a Japanese person who knows business. The centre of the matter is business culture, more than a language. Understanding the culture and value-set embedded in business is critical, even though it is not as visible as other concrete business matters as finance, products, R&D, or sales & marketing.
Last but not the least, human resource factors are far from negligible. Having a cultural competence is essential to do business with Japan. Underestimating the importance of cultural management in business may cost much.
About the study — From April to July 2014, Europe-Japan Dynamics interviewed fourteen (14) Swiss business people who had first hand experience with Japan. Their industries varied, including legal, financial and human resource services, pharmaceutical, academic and luxury goods sectors. The author is very thankful to the 14 people who were willing to spare time and thoughts for the study.
For a free copy of the synthesis or consultation on your business issues with Japan, please call or write to —
The Japanese Art is the finest in the world and so is the service, including luggage handling by the airport limousine.
Arriving from Europe at Narita International Airport, Susan was surprised at the tag attached to her luggage at the bus stop of the airport limousine. It was her first business travel to Japan. (The luggage may look funny but it’s for her business travel.) A man at the stop asked her hotel, and marked a green circle on the name printed to the tag. On the tag, the names of the ten hotels are neatly listed and printed (see photo). These are the hotels at which the bus will stop by along the way in downtown Tokyo.
When the bus arrived at the hotel, Susan’s luggage was taken out without mistake. If it were some other countries, which may include some in Europe, Susan would have had to keep her eyes on her luggage to make sure that it would be taken off at the right hotel. In Japan, Susan had nothing to worry about.
It may be a small experience but gave a strong impression to Susan to understand how much attention is paid to the detail and the Japanese standard of the perfect service.
It is said that the Japanese works in a group. What does that mean to you? There is always a risk to take a simple statement on one culture such as this word by word. The statement could help you if you interpret it in each case you may encounter. A simple statement may not help if you interpret it in your own cultural context alone. Nancy recently had an experience to understand what “the Japanese works in a group” could mean to her.
Financial District in Geneva
Nancy works for a large travel agency in Switzerland. She is in charge of business travels of large accounts. Her company has travel, and event & entertainment logistic departments. Nancy belongs to the travel department.
One day, she asked me, “Yoshiko, why does my Japanese customer always put me in copy of his messages for the subject which I’m not involved in? I know him well as I take care of his business travels, but this is too much. ” “What happened, Nancy?” “He asked me a few months ago if my company could organise an important event for his company. I introduced my colleague, Ingrid, who works for the event & entertainment department. Mr. Suzuki, my customer, and Ingrid started discussion on the event. That is fine. My problem is that he always puts me in copy of his e-mails! I don’t need to be informed on the ongoing discussions. It’s Ingrid who is in charge of the event logistics, not me. I can’t help him.”
I’d understand why Mr. Suzuki always puts Nancy in copy. He trusts Nancy as she has been helpful for him, whereas Ingrid is new to him. He most probably thinks that Nancy should be in the communication loop on his discussions with Ingrid. In his eyes, Nancy introduced Ingrid to him. Therefore if he gets some problem in organizing the event logistics, he’d ask Nancy to help.
Mr. Suzuki’s behavior is popular in Japan. People share tasks in the workplace in Japan. Each person has his/her assignment but the boundaries of responsibilities are not always clear-cut. People work by sharing responsibilities. The decision-making is largely based on consensus, rather than on decision by one person who is delegated some levels of responsibility. Under such circumstances, it is not unusual that four or five or even more people are in copy of e-mails exchanged on one subject. If someone is missed out from the loop, he/she would be upset. People are comfortable to be kept in copy, even though the subject matter may be only marginally relevant to them.
In such a work culture, it is safe to keep all the people informed, even some may only be remotely involved. For Nancy, it is on the contrary. Boundaries of responsibilities are clear in Europe, or at least clearer than Japan. In her eyes, the event support for Mr. Suzuki is solely under responsibility of Ingrid. Nancy does not need to know what’s going on with it or can’t help Mr. Suzuki in her position.
That said, Nancy’s emotional intelligence tells her that Mr. Suzuki wants to keep her in copy. “It’s OK”, she thought. She just let the e-mail exchange going without stepping in the discussion.
A few months later, Nancy went to the airport to see-off Mr. Suzuki, who was leaving Switzerland to assume a new position back in Tokyo. Being a travel agent, Nancy usually doesn’t do the same for other customers. When I asked why she did it, Nancy said, “When Mr. Suzuki had advised me that he was going back to Japan, I read his mind. He wanted me to say ‘Thank you and good bye’ at the airport. He was a good customer, so I thought it’s OK, I’ll do. ” Nancy well assessed her customer’s mind-set! Assessing what’s in other person’s mind is very important in communication with the Japanese.
