The Business Culture In Japan Is Based On The “CUSTOMER IS THE BENEFACTOR” Approach

However, our companies that will take action on trade and cooperation with Japanese companies should have a planned and prepared approach as well as a long-term cooperation objective

Besides the fact that the Japanese market is a suitable market area for Turkish products, there have been positive developments in terms of investment and cooperation of Japanese companies in Türkiye.

However, our companies that will take action on trade and cooperation with Japanese companies should have a planned and prepared approach as well as a long-term cooperation objective, being aware that Japanese companies will ask for very detailed information.

The business culture in Japan is based on the “customer is the benefactor” approach. In B2B business relationships, most Japanese suppliers work selflessly with the purpose of fulfilling the expectations of the buyer companies they are in contact with. Taking into consideration the strong business connections established by the Japanese firms with Japanese suppliers under this tradition, it is understood that they may experience difficulties due to cultural differences when doing business with foreign firms.

It should be borne in mind that the process of starting to establish business relationships with the Japanese may take a relatively long time, depending on consultations with the relevant departments. Regular and periodic visits should be made to the companies with which positive contact has been established or trade has started. Despite the seemingly slow pace of the decision-making process, the decisions taken are implemented quickly and business connections are built for the long term.

Besides the vital nature of the element of trust, the price, standard, design, and quality of the export goods, which are suitable for the taste of Japanese consumers, and delivery on time and in the requested quantities are of utmost importance as well. In the case of products that do not comply with the terms of the contract, commercial relations may be adversely affected.

Looking at the economic relations between Türkiye and Japan, we see that today, approximately 254 Japanese companies have investments or are active in Türkiye. The volume of these activities corresponds to approximately USD 3 billion. On the other hand, the investment of Turkish companies in Japan is around USD 4 million. Between 2014 and 2022, our imports from Japan increased from $3,4 billion to $4,5 billion.

Trade and investment relations between Türkiye and Japan are of utmost importance. Trade between the two countries generally includes areas such as automotive, electronics, textiles, and energy. At the same time, Japan has invested in Türkiye and established cooperation in areas such as industry, technology, and infrastructure.

Between 2014 and 2022, our exports to Japan increased from $381 million to $664 million. In recent years, fish and seafood, iron and steel, food products, and fruit and vegetable sectors have constituted the largest share in exports.

Certain sectors where Turkish investors can take part in the Japanese market and the risks and advantages in these sectors are listed below:

SECTORS:

Automotive and Automotive Parts: Since Japan is a leading country in automotive technologies, Turkish investors can do business in this sector. Establishing joint ventures or production facilities may be advantageous.

Technology and Electronics: Japan is a leader in areas such as electronics, telecommunications, and robotics. Opportunities for innovation and cooperation can be found in these sectors.

Healthcare Technologies: Medical devices, healthcare technologies, and biomedical fields may offer investment opportunities in Japan’s growing healthcare  sector.

 

ADVANTAGES:

Technology and Knowledge Transfer: Japan’s advanced technological infrastructure offers technology transfer and knowledge-sharing opportunities for Turkish investors.

High-Quality Labour Force: Japan has a skilled and educated labour force. This provides an advantage for investors in securing qualified personnel. Innovation and

R&D: Japan has a high level of R&D and innovation culture. This environment may offer an advantage for investors wishing to develop new products and solutions.

 

RISKS:

Cultural and Language Differences: Japan has different cultural and business norms, which can complicate the process of doing business in this market.

Competition and Market Share: Competition is quite intense in the Japanese market. Gaining market share may pose certain challenges for new entrants.

Regulation and Bureaucracy: Japan’s complex regulations and bureaucracy might make it difficult to do business.

Costs: Japan is known to be a country with a high cost of living. The costs of doing business may be high. For Turkish investors, Japan is a market requiring an in-depth evaluation despite offering great potential. Good market research and appropriate business strategies can help investors succeed in this market.

DEIK/TÜRKIYE-JAPAN BUSINESS COUNCIL

Witnessing such developments in the Japanese economy, we wish that an Economic Partnership Agreement be established between Türkiye and Japan. The Japanese business world has been successfully operating in Türkiye for many years. In the upcoming period, they have a high interest in terms of both investment appetite and diversification of commercial activities. Should this agreement be signed, we believe we will make a hefty profit which will turn this appetite into positive results.

In order to inform the Turkish and Japanese business world about the opportunities in the sectors we target as DEİK/Türkiye-Japan Business Council, we held meetings in areas such as the food and agriculture sector, automotive and green transformation with the support of the Japan Business Federation (Keidanren), our counterpart organisation in Japan. With the support of Japan Business Group Türkiye, we hosted senior executives of Japanese companies operating in Türkiye at DEİK, held meetings on their sectors and strengthened mutual communication. In the upcoming period, we consider the introduction of our entrepreneurship ecosystem to the Japanese business world a critical goal in terms of diversification of trade.

As DEİK/Türkiye-Japan Business Council, the most significant event that we will bring together the Turkish and Japanese business world will be the “Türkiye- Japan Business Council Joint Meeting”, which we will host for the 26th time this year in Izmir in cooperation with Keidanren. This event will be attended by top executives of Japan’s largest companies and senior representatives from the Japanese business community in Türkiye. These meetings between Japan and Türkiye add significant momentum to our bilateral trade and investment relations. We are extremely excited to host our Japanese friends in Izmir within the scope of the DEIK-Keidanren Türkiye- Japan Business Council Joint Meeting, which we organised every year until we took a break due to the pandemic. I would like to invite all our business community who do business with Japan and are interested in the subject to this meeting.

Chairperson of DEİK/Türkiye-Japan Business Council, Oğulcan Kemal SAGUN