Doing Business in Japan

In Japanese business culture, the exchange of business cards, known as Meishi Koukan, is a highly significant and formal practice that carries great importance. Correctly conducting this exchange is crucial for successful business interactions in Japan. Business cards should include information printed in Japanese on the underside and should feature your title. There is a specific order to giving and receiving cards, starting with the most senior officer and working down to the more junior members. Business cards should be presented and received with both hands, with the Japanese side facing up. Japanese culture regards business cards as embodiments of their owners and requires them to be treated with respect, including careful examination, proper placement during meetings, and avoiding writing on or leaving them behind.

Consensus building, or Nemawashi is one of the most important decision-making tools prevalent in Japanese management processes, despite it being more time-consuming. The business culture in Japan demands nemawashi which requires the building of consensus using one-on-one discussion with decision-makers and stakeholders prior to the associated formal meeting. This is not driven by opportunism, but rather a profound belief that engaging decision-makers in a more vigorous and honest preliminary discussion will get people on the same page and enable the main meeting to run more smoothly. As a result of the detailed-conscious process of Nemawashi, negotiation and decision-making may take longer than westerners are used to and may require more patience as a result.

In Japanese business culture, bowing is a highly formal and ritualized greeting, with the depth and duration of the bow reflecting the seniority of the person being greeted. This contrasts with Western culture, where handshakes are common, and a slight head bow can be a sign of humility. During a bow, it's important to avoid making eye contact, as this is considered impolite. Additionally, when addressing someone, it's customary to use their surname followed by "San" in Japan's business culture.

While corporate gift-giving is carried out with caution in the west, due to its links with corruption and bribery, it’s an important and respected part of business culture in Japan. It communicates respect, friendship, and appreciation and the surrounding ritual is more important than the actual gift. As with business cards, present the gifts with two hands and avoid gifting too early in the relationship as it could be viewed insincerely. The gift should be boxed, (if appropriate) and wrapped and should ideally have some personal relevance to the recipient, but gifts from your home country or culture are especially well-received.