You Cannot Underestimate Japanese Language in Business in Japan – Japanese Businesses vs MNCs Operating in Japan

Though I would not say it is the first priority as in my previous post, for MNCs operating in Japan, language is usually named as the first obstacle for their market entry into the Japanese market and being successful.  And it is true you cannot underestimate language issue in doing business in Japan.

Only very limited Japanese people are fluent in English.  That is even those working in large MNCs operating in Japan.  That is why translating/localizing documents and tools into Japanese is “must” in all businesses and occasions.  Whenever you are to have a meeting or event involving non-Japanese speaker(s), interpretation is the issue you need to think about / solve.

Japanese companies and business professionals also say language (English) is the first challenge they face in going global.  Similarly, language is not the first priority but it is an obstacle they need to overcome.

Language is a tool of communication in doing business.  Without it, no way you can be successful in your business.

But, it does not mean you always need to be fluent in Japanese to succeed in business in Japan.

This is one of the topics I have covered in my two eBooks I wrote, which was published by StartiaLab, a leading Japanese eBook publisher in November, 2015.

English version: 7 Things to Know to be Successful in Business in Japan

Japanese version: 世界を相手に勝つための教科書 – グローバル社会で事業を拡大する7つの方法と8つの事例

This article was originally posted on Megumi Oyanagi’s Blog About Japan

Obstacles in Going Global is Not Only Language – Japanese Businesses vs MNCs Operating in Japan

For MNCs operating in Japan, language is usually named as the first obstacle for their market entry into the Japanese market and being successful.

Also, Japanese companies and business professionals also say language (English) is the first challenge they face in going global.

Well, to me, it is yes but no.

Regulations and rules such as tariff and laws, whether applicable for all industries or of a specific industry is the primary barrier.

They shape the external business environment and the game rule each player play the game / do business.

They determine whether you can do a certain business in a specific country or region.

What is tricky is that some rules are not necessarily clear / written down and thus difficult for foreign investments to fully understand and comply.

For overview and some details with a few examples, please kindly refer to two eBooks I wrote, which was published by StartiaLab, a leading Japanese eBook publisher in November, 2015.

English version: 7 Things to Know to be Successful in Business in Japan

Japanese version: 世界を相手に勝つための教科書 – グローバル社会で事業を拡大する7つの方法と8つの事例

Going Global in Globalized Economy – Japanese Businesses vs MNCs Operating in Japan

The background or reasons for global includes market situation (size, quality, positioning etc.) as in the previous post.

And of course, it is more than natural in today’s global economy in which capital, goods, people and information moves around the globe.  How they moves around the globe with such an ease has completely changed how we live as well as how we do business.

Although I did not really mention this in English version eBook, when talking going global from Japan / going global positioning Japan strategically, “Japan Brand” might be something you could leverage for your business success depending on what kind of business you are engaged in, whether Japanese or non-Japanese companies/businesses.

These are the kind of things I had in mind in the two eBooks I wrote is all about, which was published by StartiaLab, a leading Japanese eBook publisher in November, 2015.

English version: 7 Things to Know to be Successful in Business in Japan

Japanese version: 世界を相手に勝つための教科書 – グローバル社会で事業を拡大する7つの方法と8つの事例

I get inquiries about Japan market entries via LinkedIn and this is just a small example of how we can get information and work/do business beyond boundary.  And, when I did a 90 minutes seminar in December 2016 in Japanese about the same theme as my Japanese version eBook, the attendees were amazed to know how I interact with business professionals around the globe! 

The organizer have finished making their monthly brochure for March 2016 including a session about my seminar and the printed version should be sent to me shortly…

Why Going Global is Hot Now (1) – Japanese Businesses vs MNCs Operating in Japan

In short, for Japanese companies, when the Japan domestic market is saturated for most established products industries, products & services, Japan market size is unlikely to grow yet shrinking with aging population, they are forced to go global.

That has been the trend even for FMCG companies that were slow in going global unlike companies of automobile and electronics.

As for MNCs, it is about looking at the Japanese market from a bit different perspective.  Although emerging marketing may seem more attractive than the Japanese market, Japan is still a country you cannot ignore.

Actually it can be an ideal market to develop a new business model and roll out worldwide, positioning Japan as a “test marketing” country.  This is because expectation of Japanese consumers are the highest in the world.

These are the kind of things touched on in the two eBooks I wrote is all about, which was published by StartiaLab, a leading Japanese eBook publisher in November, 2015.

English version: 7 Things to Know to be Successful in Business in Japan

Japanese version: 世界を相手に勝つための教科書 – グローバル社会で事業を拡大する7つの方法と8つの事例

I get inquiries about Japan market entries via LinkedIn.  And, it was interesting to see Japanese attendees were very attentive when I did a 90 minutes seminar in December 2016 in Japanese about the same theme as my Japanese version eBook.  The organizer have finished making their monthly brochure for March 2016 including a session about my seminar.

The participants were very attentive, and what really attracted their interest is that there can be a way of creating business in such an aging Japanese market – after all it is about how you perceive market without “barriers” with out-of-the-box way of thinking.

How to be Successful in Going Global – Japanese Businesses vs MNCs Operating in Japan

Simply put, Japanese businesses finally do business not exclusively targeting their Japan domestic market and consumers; i.e. make market entry in other countries and grow their business.

As for MNCs, it is the same thing from the other standpoint; i.e. enter and penetrate the Japanese market and grow their Japan business.

Both are quite a challenge when the market, customer behavior and their needs, regulations, business manners and customs, culture and everything is so different by country/region.

However, the essence or “key approaches” for the two are the same.  What is different are “how to apply the key approaches” for each market in an appropriate way.

This is what the two eBooks I wrote is all about, which was published by StartiaLab, a leading Japanese eBook publisher in November, 2015.

English version: 7 Things to Know to be Successful in Business in Japan

Japanese version: 世界を相手に勝つための教科書 – グローバル社会で事業を拡大する7つの方法と8つの事例

I get inquiries about Japan market entries via LinkedIn.  And, it was interesting to see Japanese attendees were very attentive when I did a 90 minutes seminar in December 2016 in Japanese about the same theme as my Japanese version eBook.  The organizer informed me that they have just finished making their monthly brochure for March 2016 including a session about my seminar, which made me recall this incident.

“Going Global” is indeed a hot topic worldwide.