Japan - US Business News

When it comes to Japan, most companies only see $ signs

When it comes to Japan, some companies think they just have to enter the market and the money (Yen) will just pour in.  

Earlier this year, I was approached by a company in a rush to enter the Japanese market with their web based business. Their competitors were there making money so they needed to get there fast. 

Most companies with no history of operating in Japan only see dollar signs when thinking of entering the Japanese market. Although there are tremendous benefits to entering the market, companies need to open their minds up a bit more when even considering the possibility of entering this vastly different market and culture.

Be realistic is what I say. Find the help and the information you need to make a successful entry into the market to ensure that you have staying power. Bigger companies have not done this and with all their might and money, failed miserably.

The first problem this company had was their very unrealistic time line for entry into the Japanese online retail market.

Their second was that they wanted to translate their current website site content directly into Japanese without thought of rewrites or taking into consideration culturally sensitive writings. They were thinking that 'one size would fit all', in this case, that just putting Japanese text on their website would be enough. 

They also did not consider setting up payment structures to handle orders from their prospective Japanese clientele. They thought it would be just like in the U.S, accept credit cards and that would be enough. Not so. Although credits cards are gaining more popularity in Japan, they are nowhere near as prevalent as they are in the U.S.

And what about logistics like taxes, different payment options that are specific to Japan like postal accounts as opposed to checking accounts in the states?

They had not considered the customer service aspect either. How would returns of merchandise be handled or other issues that arose with products? Initially maybe this could be handled from the U.S. but with no one in the company able to speak Japanese what would happen if there was a serious issue from the beginning?

They were really just focused on the potential money to be made without thought of the work they would have to put in before they even entered the market and sold anything.

It is a common error that many make when dealing with Japan or any foreign market.

I am not saying that all of these things all had to be decided on and implemented from the start. A phased approach is fine. Start slow and build. But they things had to at least be on the radar and had to be considered with a plan of action in place for implementation and there were somethings that absolutely had to be in place at the start. 

In the end, after telling them this, they admitted that a company they were using had pretty much told them the same things especially about their unrealistic time-line. They didn't or didn't want to believe them so they were looking for someone to tell them differently. I couldn't. That would be setting them up for failure.

 The Japanese market is possible to crack. But you have to do the work needed to ensure your success from the start.

• Perform due diligence
• Have some sort of plan in place or at least an outline of one
• Have a reasonable time line for entry
• Listen to the experts, especially if you have no experience of the foreign market you want to enter
• Be realistic in your expectations 

If you do it right, it will be worth it. Good Luck!

Anime (ted) in America

On August 9, there will be dancing in the aisles of the Kinokuniya book store in NYC. Well sort of. But there will be pandemonium of sorts.

In keeping with the desires of a large portion of its clientele, the Manga and Anime loving bunch of  youngsters and oldersters (new word) alike, Kinokuniya  is hosting a meet and greet session with the premier Anime producer, Yuji Nunokawa.

Kinokuniya’s mission to open the doors wide on Japanese culture takes another step as it introduces this prolific creator and producer to fans in the U.S. Nunokawa-san will be talking about his 30 year career in anime production as well as showing clips from the popular Naruto, Bleach and Yu Yu Hakusho series.

  

Be a part of the fun. Pop into Kinokuniya Book Store, located at 1073 Avenue of the Americas (6th Avenue), near 41st Street in New York City this coming Saturday at 4pm.

Education is a Bubble that Never Bursts

The Japanese government is seeking to triple the number of foreign students in Japan by the year 2020.

As someone who started their Japanese business career as an exchange student at Kansai Gaikokugo Daigaku in Osaka, I applaud this initiative. I only ask that the government try to reach that number much quicker. The Japanese government needs to add a sense of urgency to this campaign.

When people think of Japan, they think of it being inaccessible, the language is too difficult, and that it is too different to name a few. 

Cafe Success in Absinthe

This is an Osaka success story. I hope to write many, many more.

Café Absinthe is a new model for doing business in Japan today. Miho Irie and her husband, Dmitri Farberov saw a café space for rent one day several years ago and decided to take a chance. Naming it Absinthe also came by a chance thought and good timing. Absinthe had just become legal in Japan.

Chance. Tradition has its place but more and more Japanese are choosing to create new businesses and entering new fields like never before. Osaka is not what it used to be 10 years ago when I lived there and that is good. There are more people out there realizing that if they want success in business, they have to create that business themselves.

The Farberovs didn’t have much guidance or business 'know how' when they began. They started and grew their business by ‘trial and error’ as we call it in the states.  They worked hard and learned from their mistakes. Issues that came up were handled by hardwork and common sense. 

Ode to Osaka

I have a special place in my heart for Osaka, Japan. I simply love it.  I love the people, the glorious food, the night life and most of all the spirit of city and the region, Kansai. 

This is where my education of Japan began all those years ago at Kansai Gaidai. It is where I lived with the coolest Japanese family I have known. It is where I had more fun that anyone should be allowed and met some of the most wonderful people, both Japanese and foreign that I will ever know. It is such a large part of my life. Living in Osaka has given me so much.

When I started my business, I originally wanted to focus on helping only companies in Osaka do more internationally. I was tired of my city being thought of as a kind of back water town in terms of business on the international front—please do not take offense at this. It hurts me to say it. It hurt me to realize it when I lived there for all those years and it hurts me now still because I wonder what keeps a larger number of the companies in Osaka from being on the international front. 

A Journey to the Gardens of Japan

The following article is by Adrian Bennett,  a lover of Japanese Gardens. Although this is mainly a business blog, I have a Culture and Education category because sometimes in the midst of a stressful business day, it is nice to take a break and walk through a beautiful garden, literally or figuratively. 

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Little did I know that when I began volunteering a couple of days a week in the Japanese garden at the Brooklyn Botanic Garden that ten years later I would be publishing articles -- in Japan itself --  about gardens in Japan. And so, for the first time, an article with my photos about a lovely garden in Tokyo’s Taito Ward, appeared in this year’s May 30th and June 27th editions of The Japan Times.

The article is about Asakura Choso Kan, the former home of sculptor Fumio Asakura (1883 - 1964), often referred to as the “Rodin of Japan.” You can see his works for yourself in a large room in the house, which is open to the public. The three-story building combines Western and traditional Japanese designs, and entirely enclosed within is a lovely garden open to the sky with water welling up into it from an underground spring.

Reinvention Series Recap

Smaller companies that want to survive in business today need to reinvent themselves in order to better compete both locally and internationally.

The Smaller Japanese and U.S. firms are in Need of a Reinvention lesson series is a set of guidelines for these companies to use in order to better compete both at home and globally in today's economy.

By closely examining their business and understanding their current state, these companies can devise strategic steps to take to get them where they need to be in order to remain competitive.  

By employing each lesson, smaller Japanese and U.S. companies can identify areas that are in need of improvement, identify changes that need to be made, discover possible new opportunities and revenue streams and devise a strategic plan of action to achieve greater success. 

Lesson 1:  Assessment
Lesson 2:  Utilizing Technology
Lesson 3:  New ways to Market your company
Lesson 4:  Developing New Markets for Products and Services
Lesson 5:  Making and Implementing Decisions
Lesson 6:  Troubleshooting Problems
Lesson 7:  Developing Employee Skills

Now more than ever, smaller companies need to employ new methods to improve their chances of staying in business and enjoying continued success. Take bold risks and be flexible.

Best wishes for your renewed success!

Reinvention: Developing Employee Skills

Without skilled workers, a company will not survive. Without developing the talent that you have, a company will not grow. This is especially true for smaller companies.

Companies should encourage workers to take courses in relevant new technologies, offer on the job training to help them better perform their job functions and help them develop new skills that will allow them to move up in the company.

By doing this a company can increase the chances of retaining good workers and keeping the company’s knowledge base intact. 

Workers have more opportunities these days. Job satisfaction is the buzz word and it is not only about money. If a worker is not happy in their job, they will leave. If there are not challenged and learning in their position, they will move on to another company. If they are not treated well, respected and valued, they will leave.  

Reinvention: Troubleshooting Problems

The quicker a company can resolve problems that arise the better off they will be. 

Companies have to be smart in dealing with problems and issues. Often times, they go for the quick fix or the short term solution which leaves them vulnerable in the long run because the problem returns or persists.

This is comparable to coming into the office each day and seeing a puddle on the ground and just mopping it up, time and time again instead of fixing the leak in the ceiling that is causing the puddle.

If a software solution needs too many ‘work-arounds’ (added temporary fixes) to complete its functions, then it’s time to throw it out and come up with a new solution that works more efficiently and effectively. 

Problem solving is not always an easy process but if companies follow these steps, it gets easier: 

1. Identify the problem
2. Investigate the cause of the problem
3. Devise a solution that will eradicate problem
4. Implement the complete solution
5. Perform checks to make sure that the solution is working

Reinvention: Making and Implementing Decisions

ACT! Taking action is key. I once heard it said that making a bad decision and acting on it is better than making a good decision and not acting on it. I agree. With the bad decision, you can then act accordingly to correct it.

Through my observations over the years, smaller companies spend a lot of time trying to make the ‘perfect’ decision and therefore oftentimes leave things too late when needing to make a change. Make a decision and act on it. If it doesn’t work out, then take action again and correct it. If company stays undecided and doesn’t do anything, that is the worst thing for their business.

Once a course of action is decided on, whether it is the use of a new technology, a marketing strategy or deciding to enter into a market, begin at once. Put ideas, plans and programs into actions steps.

Management in smaller companies must also involve their employees in decision making and implementation. Utilize employee input in the process. Let each employee know why certain decisions are being made. Let them know that with the changes taking place, it is not being done with lack of care or concern for them and how they will be affected. Also, if a decided course of action is not working, it is often an employee who is first to see it. Their input and feedback can be extremely valuable.

By their nature, smaller businesses have inherent strengths that help them when it comes to making and implementing decisions. They can take action quicker, adjust to changing conditions faster, and are more flexible.

Making good decisions is key and implementation of those decisions is the most important use of the key.

Lesson 6 of our Reinvention series will appear on Wednesday: Troubleshooting Problems 

Previous articles in this series:

Introduction: Smaller Japanese and U.S. firms are in Need of a Reinvention

Lesson 1: Assessment
Lesson 2: Utilizing Technology
Lesson 3: New ways to Market your company
Lesson 4: Developing New Markets for Products and Services