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  • 标题:Selling to the Japanese
  • 作者:Tai K. Oh
  • 期刊名称:Nation's Business
  • 印刷版ISSN:0028-047X
  • 出版年度:1984
  • 卷号:Sept 1984
  • 出版社:U.S. Chamber of Commerce

Selling to the Japanese

Tai K. Oh

AN AMERICAN used to a direct business style can be frustrated by Japanese executives who say "yes" and mean "maybe" or say "maybe" and mean "no."

The stereotype of the inscrutable Japanese has some basis in fact, and many American executives who want to sell their products and services to Japanese firms, here and in Japan, misunderstand the protocol and misread the signals--and thereby fail to make the sale.

Consider what is involved:

* You must show humility in your approach and establish personal relationships.

* You must demonstrate intimate knowledge of the buyer's business before you even begin to talk about how your firm can meet his needs.

* You may have to wait a seemingly interminable time, by American standards, for an unwritten, legally unenforceable "contract."

And why put yourself through all that? For good reason. The Japanese firms doing business on American soil represent opportunity for U.S. suppliers. Japan's direct investment in the United States has been increasing rapidly. It had reached $4.2 billion by the end of 1980 (the most recent figure available), and more than 1,500 Japanese firms, including 250 manufacturers, had established operations here. These firms need tools, office equipment, services of all sorts. And they are willing to buy American. A 1982 Japan External Trade Organization survey of 190 Japanese manufacturers in the United States showed that nearly half made over 70 percent of their purchases here.

It is an expanding market, and enterprising sales executives are pursuing it eagerly. But U.S. vendors could do better--if they used the right strategy.

The Japanese expect more from their business relationships than Americans usually do. They consider deep, long-lasting personal relationships an even more basic requirement than low prices, punctual delivery of goods and services, and volume discounts. To develop this kind or relationship requires time and a basic understanding of Japan and the Japanese.

Japanese business relationships are broadly based rather than narrowly focused on a single product line. The Japanese expect a seller who approaches them to be knowledgeable about their products, reputation, personnel, competitors and objectives. They are interested in learning the same things about the seller.

The U.S. sales executive who hopes to establish business relationships with Japanese firms must invest considerable energy and effort in learning all those things about his prospective clients. He should make it his goal to know more than his competitors do.

This wide-ranging knowledge helps gain the approval of the Japanese, and it has the added advantage of giving a clear picture of the sales possibilities and limitations in the relationship. Among the many sources of this kind of information are Japanese banks in the United States and, in a few major cities, the Japanese Chamber of Commerce, the Japan Society and the Japan Trade Center.

Making the first approach correctly is important, and selecting the right executive is the first step. An experienced person, conservatively dressed, has the best chance.

Next, identify the manager who would be purchasing your product. Establish credibility beforehand by obtaining proper introductions from respected friends of the firm--other suppliers, customers or banks. Making the first contact in person is essential.

JAPANESE EXECUTIVES offer these helpful hints on getting a relationship established:

* Allow plenty of time for your contacts, and focus on your client's needs and interests rather than on your own product position. Offer assistance even in areas not directly related to your product. After hours, take your prospect out to dinner or to the golf course. Find ways to be helpful on a personal level--for example, give your client tips about America and Americans or help him find appropriate housing and schools for his children.

* Make it your primary strategy to sell yourself (your personality, education, family background and professional experience) and your company (its reputation, history and activities), even if you represent a large, well-known firm. When your Japanese prospect is satisfied that he has met an individual and firm he would like to deal with, he will be ready to hear about your product or service.

* Approach your prospect cautiously. "Decisive" sales behavior is a liability when dealing with the Japanese. Never pressure your Japanese prospect. Instead, encourage a gradual shift in sentiment.

Once an actual sales proposal has been presented, the Japanese decision-making process is ready to begin. Taking the proposal as a starting point, the Japanese usually develop a proposal of their own. They can be expected to ask many questions, even in areas that are not directly related to the product for sale, such as competition, technological change, personnel changes, strategies and technical data.

At this point, their primary objective is to develop harmony rather than to discuss specific points in detail and confront concrete issues. They are willing to take all the time they need to gather information and reach a consensus. American sales executives should not despair: Japanese executives can cite numerous examples of Americans who became discouraged at this point in their negotiations and gave up, losing valuable business opportunities.

DURING THE LONG process of consideration, a sales proposal typically makes a circuitous journey through the various departments and levels of a Japanese firm. Usually it begins among lower-level managers, then circulates among other units that are directly or indirectly affected. When a consensus has been reached, it goes to senior managers for approval. This may take as long as two years.

Although the length of the Japanese decision-making process is a major source of frustration, there is a payoff when the agreement goes into effect. Agreements that have been made quickly often founder because of unforeseen complications, but the Japanese have usually thought everything through so thoroughly that they are prepared to handle whatever comes their way.

Communicating with Japanese executives requires understanding and adaptability on the part of the seller. The Japanese have not developed much ability to deal with social situations outside their own homogeneous culture, so their behavior appears inscrutable and often unfriendly to outsiders.

One basic fact American business people need to know is that Japanese social etiquette comes in two basic patterns: behavior toward superiors and behavior toward inferiors. The Japanese find it hard to accept the egalitarian nature of so many American business relationships. In their system, buyers have superior rank and status and tend to suspect sellers of offering exaggerated levels of service and quality at inflated prices; sellers are expected to maintain a humble posture. Americans who want to sell to the Japanese need to be aware of this distinction. They should display this attitude: I am willing to do somersaults for my Japanese customers."

Moreover, the Japanese seek harmony. This rules out the clear expression of negative ideas. Instead of saying no, a Japanese who wants to refuse something will probably say "I will consider it" or "I will think about it." Complaints are never expressed openly: A Japanese must be allowed to save face when found in error. If a problem surfaces, discussion takes place privately over a drink, and it is never mentioned afterward.

Positive responses can also be hard to read. Expressionless faces do not necessarily indicate lack of interest, and seemingly positive responses may actually be ambivalent. "Yes, yes" usually means no more than "I understand your position," and a nodding head merely says "Yes, I am listening."

AMONG JAPANESE business people, the preferred outcome of negotiations is what might be called a gentlemen's agreement, rather than a formal, Western-style contract. One major Japanese home appliance manufacturer has not had a standard contract with its U.S. suppliers since it set up operations in this country over 10 years ago.

A gentlemen's agreement is little more than a loosely worded statement expressing the mutual cooperation and trust that have developed between the negotiating parties. This may sound uncomfortably vague and weak, but such an agreement has its strengths. It allows a great deal of flexibility in the solution of unforeseen problems: The friendly, cooperative relationship between the parties often leads to better solutions than the detailed prescriptions of a standard contract.

Would this kind of agreement be unenforceable? For the Japanese, the dishonor of breaking a gentlemen's agreement poses a far greater threat than legal action.

In Japan, such agreements are relatively simple to conclude because everyone understands the premises, but in a heterogeneous society like the United States, the parties on both sides at a negotiation may feel safer with the predictable relationships that standard contracts provide. Before seeking to negotiate a gentlemen's agreement with a Japanese client, American sales executives should be sure that they share the Japanese understanding of just what such an agreement entails.

With a basic knowledge of how the Japanese do business, U.S. sellers can feel more comfortable adapting their products, services and approaches to the needs of their Japanese customers.

COPYRIGHT 1984 U.S. Chamber of Commerce
COPYRIGHT 2004 Gale Group

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