The land of the Rising Sun’s fame is ever-growing. Birthplace of major automobile constructors and major tech companies, the country is not giving up on his leading role in worldwide innovation.
Japan has a population of more than 126 millions and a GPD per Capita of $42,700 which is growing at a rate of 1.5%, not a very great rate since it places Japan only a 174th in the world on GDP growth. But the inflation and unemployment are low at 0.4% and 2.9% respectively. Furthermore, the growing sectors in Japan are the automotive, shipbuilding’s, biotech’s, nanotech’s, renewable energies, semi-conductors, optical instruments, and robotics industry.
92% of the Japanese population are internet users but only 39% own smartphones positioning it at the 6th and 23rd place in the world respectively. Japanese use of social networks are similar than the smartphone users, at 51%.
The world bank ranks Japan Easy of Doing Business at 34 over 190 countries. As you can see in the infographic, Japan wins points thanks to its easy of resolving insolvency, getting electricity and trading across borders. But the difficulty comes from getting credit (made harder by the absence of credit registry coverage), enforcing contracts (which will take at least a year) and protecting minority investors.
Doing business in Japan can be very different than in any other countries. Thanks to our local partner there, you can find some insights below on the Do’s and Don’ts of doing business in Japan.
- Always be on time
- Dress formal
- Clarify everything, and be as specific as possible
- Always fulfill your commitments
- Listen more than talk. Always give the impression that you value and respect people’s input
- Don’t consider Japan as fortress: they are constantly looking for high-performance, eco-friendly and safety increasing solutions
- Don’t underestimate the level of investment (human resources, budget) that would be required to achieve the goals
- Don’t take any immediate decision, even to save time. Always request additional time to consider an offer
- Don’t deny your responsibility when problems arise
- Don’t see responsiveness and proximity with your partner as an option
Japan’s path to development and innovation doesn’t seem to give signs of halt and continues to attract many foreign investments. Cetana, a partner of Beeleev, is a company that helps companies develop international from Japan. Jean-Michel Mollier, founder of Cetana, gave us a very interesting overview and insights on the matter:
“The negotiations on the Japan – EU Trade agreement that started in 2013 were finalized on December 2017, paving the way to a new potential for EU firms that already export over €58bn in goods and €28bn in services to Japan every year. Agri-food products, electrical machinery, pharmaceuticals, medical devices, transport equipment, textiles, and forestry products are among those sectors that will be given further promotions. Moreover, the forthcoming Olympic games have already demonstrated the benefits in the long run of such a big event, in a country well known to be “innovate-alcoholic”.