Negotiations in Japan – patience wins

Most people are certainly aware that the Japanese are different from us Germans. This also means that different rules apply to negotiations in the Land of the Rising Sun, which many Germans often find difficult.

The first contact – decisive moments

If you don’t know each other yet, this means saying hello. And you don’t have a second chance to make a good first impression. So no Germanic firm handshake. In Japan, you bow. However, in international business life, it is now also customary in Japan to simply shake hands. This is followed by an exchange of business cards. They are handed over with two hands while standing without any obstacles between the partners and in such a way that the other person can read them straight away. The lower-ranking person starts, in the case of buyer and seller the seller. Then you study and appreciate their content. Under no circumstances may they simply be put away. If entire delegations are presented, rank determines the order, with the highest-ranking person going first. At the negotiating table, it is best to place the cards in front of you, which also makes it easier to identify the participants.

Who is sitting opposite me?

Japanese negotiating delegations are generally larger than in Germany. 4 to 8 participants are quite normal. They are selected according to their function.

Negotiation style

Germans tend to negotiate one thing at a time in an assertive manner. In Japan, the focus is on the relationship and harmony. Things are correspondingly formal and ritualistic there, while Germans take a businesslike and time-oriented approach. They prefer to get to the point as quickly as possible. The Japanese, on the other hand, first have to establish a relationship and create harmony, which can sometimes take time, but is essential for building trust, without which no business can be concluded.

How do I convince?

Once a basis of trust has been established, it’s all about the arguments. It is important that the Germans can convey to the Japanese that they are interested in a long-term business relationship. Appropriate references are also helpful and important and, of course, price and quality also play a major role, whereby quality does not only include purely technical aspects.

Communication – thin ice

Ultimately, of course, everything depends on communication. Any good will is eliminated if the negotiation is disrupted by careless words or gestures. And this is where the Japanese differ greatly from the Germans. Germans prefer open, straightforward communication. Problems must be clearly addressed, discussed and solved. If something doesn’t work, you say so. The Japanese are different. They prefer indirect communication with the aim that each participant can save face and harmony is maintained.

“No” – “No?”

In Japan, it is very impolite to say a clear “no”. It disturbs the harmony. In Germany, on the other hand, it is absolutely fine if there are good reasons for it. Of course, there are in Japan too. That’s why the Japanese “disguise” their refusal, for example by saying:

  • Deferring responses (“We will check this”)
  • Saying yes, but only expressing that you have understood the question, not agreement
  • Silence
  • Counter question
  • Indefinite statements (“That’s difficult”)
  • Ambiguous statements (“Yes, but we are not sure”)
  • Digressive answers
  • Leaving the room
  • Criticism of the question

All these actions can confuse Germans, who generally understand what is being said but not what is being said.

A few more tips

  • In Germany, the tie-less casual dress style is becoming more and more popular. The Japanese are more formal. This also applies to women, who should dress conservatively.
  • Take your time and don’t be impatient. The Japanese make decisions collectively and it takes time to get everyone on the same page.
  • Don’t be surprised if Japanese people sometimes take long pauses (sometimes lasting several minutes) during negotiations. These are used to process the information and formulate an answer. Most Germans feel uncomfortable doing this because they are not used to it and sometimes suspect something bad.
  • Japanese people make less eye contact than Germans. Don’t let this put you off, it is both a custom and a sign of respect.

Intercultural training Japan

As shown, the topic of negotiations in Japan is a broad one. The modest tips in this blog are just the tip of the iceberg. Careful preparation through intercultural training in Japan with a focus on negotiations should be a clear must for successful negotiations in the “Land of the Rising Sun”. This investment will pay for itself!

Picture of Ekaterina Beekes
Ekaterina Beekes

Academy Director

Global Cultures

Academy for Intercultural Management

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