Conducting business with Japanese companies - 10 important points

These are common practices in Japanese business. It is important to observe these ten points when negotiating and when actual exports start.

Quick response to any inquiry

There are many cases of Japanese companies contacting by e-mail but not getting any response from you. Even if you cannot answer immediately, let them know that you need some more time. Sincere response is the key to build a good relationship with Japanese companies.

Work with an importer to modify your product

If you get any business opportunity with a Japanese company, foster close lines of communication and work on gaining a deeper understanding of the Japanese market. Ask their opinion on flavour, aroma, colour, quality, ingredients, production method, packaging, labelling of your product.

Have the importer check related regulations

If it's processed food that you're exporting, a potential importer should send some samples for inspection agency, as inspections on additives, residual pesticides are required. Once these samples pass inspections, the product can be imported for one year in principle, as long as ingredients and production methods stay the same.

Have Japanese label and brochures ready

In Japan all food products are required by the Japanese Food Hygiene Law to have a Japanese label on them. This will contain product information, ingredients and the importer information. Discuss with your potential importer.

Making small Japanese labels in the form of stickers to place on the package will be sufficient for the first shipment. Then cooperate with them to develop brochures including product information and serving suggestions in Japanese, to facilitate Japanese consumers' understand and attract their attention.

Strictly meet delivery deadlines

A Japanese company will make sales plans according to the delivery date of which prior notification has been received. If severe delays occur not only will the importer lose respect for the company but also the product itself, and this can affect future sales. Prove a stable supply

This is particularly important for the commercial use of a product. When shortages of any product arise, confidence in the product will be lost, and it can be expected that the importer will levy severe disciplinary measures such as a cessation of trade or payment of penalty compensation.

The importer will expect the export of your products to proceed according to whatever plans decided upon; if the plans change close communication is very important.

Provide a stable price and quality

Although it is important for any product to be priced competitively, it is also important to maintain a stable price and quality to conduct business with any Japanese company.

Respond promptly to any requests or problems

As the preferences of Japanese consumers may differ from those in your country, it is necessary to adopt measures quickly if any request or quality complaints arise. The cause of the problem should be investigated as soon as possible and the results of the investigation should be conveyed to the importer. Japanese companies tend to demand results quickly as this is one of the Japanese traits.

Adopt counter measures beforehand to prevent claims

During the approximate one month shipment period for example, the rolling motion may damage a product at sea. It is possible to avoid breakages by either using reinforced cartons or airbags inside the container. In particular, the first shipment requires special care.

Patient sales practice

Japanese business considers the relationship of mutual trust to be very important. An importer is very cautious during business negotiations as once trust from the consumer is lost the damage can be irreparable. Importers normally check the quality of the product over a long period of time and like to build a relationship with the producer.

Japanese companies like to take time before they enter into any kind of business contracts, but once the contracts are in place the business will run for a very long period of time.

(Courtesy: JETRO Colombo newsletter)