Business in Japan: Export & Market Entry Guide

In the next few videos, Dr. Jain shares his experience and research, facts about the unique market in which Japan is. Also shared are the opportunities and challenges of operating in Japan. At the end of this section, the first interpretation documentary, specially prepared for this course, is provided for a better familiarization with Japan as an important country and with its lifestyle.

Friends, before we go further in the course, let us discuss some of the main highlights of the country, especially with respect to the opportunities and challenges in the Japanese market.

The reason for sharing this at the very start of the course is to begin logically, so that you understand the opportunities, challenges, and common mistakes that foreign investors make — mistakes that have led Japan to become known for a high level of failures among overseas investors and traders.

These few highlights, which I am going to share now, will give a very good start to the course and provide the right direction for taking it forward, bringing the right topics and the right knowledge to the table, so that you can gain maximum value from this course.

First, let us discuss the different opportunities that exist in the Japanese market, which still remains a place to explore, evaluate, and find ways and means to benefit from the several opportunities present in this country.

The Japanese market is sophisticated. It is a well-known fact that Japan has a very unique and distinct consumer market where consumers demand very high-quality goods. This is typical of highly industrialized and advanced countries like Japan. Consumers look for superior-quality products, and they are willing to pay the price — they have the purchasing power and the money to do so.

They demand products that are of very high quality — durable and long-lasting. In Japan, there is also a great demand for high-tech, scientific, technological, and engineering products. The reason is that such products from around the world help Japanese manufacturers maintain the superiority of their own manufactured goods.

I will tell you more about this and about Japanese industries — the areas in which Japan excels globally. For example, 30% of the world’s industrialized goods are manufactured in Japan. Japan is a world leader in electronics, automobiles, and even automobile parts. I will talk to you in more detail about these aspects later.

The demand for high-technology, engineering, and robotic products is extremely high, both in B2B and B2C markets. Japan is also committed to adopting the next level of clean energy.

Because of the nuclear plant disasters that occurred in the past, the Japanese government has moved away from nuclear energy and is looking for newer and cleaner ways to meet energy demands. There is a high demand for energy professionals, companies, and innovators in the field of clean energy production.

Companies and individuals with expertise in this area — those who can provide clean energy technologies, equipment, or products — have significant opportunities in Japan.

There is also a very high demand in Japan for the latest pharmaceutical and healthcare products, primarily due to the country’s aging population. Almost 20% of the Japanese population is over 60 years of age, and Japan has the highest life expectancy in the world, about 85 years.

Because of the low birth rate and the reluctance of younger people to marry, Japan’s population is declining. It is estimated that the population will fall to around 100 million by 2050, from the current 125 million.

These demographic realities have forced the country to seek high-quality pharmaceutical and healthcare products for its aging population. There is great demand for capable overseas companies that can supply healthcare and pharmaceutical products — or even set up their own businesses, distribution channels, or production units in Japan. Such companies would be very welcome.

In recent years, the Japanese government has become increasingly open to foreign workers, and new legislation has been passed to protect their rights.

Because of the shrinking population and workforce, Japan is inviting foreign workers, who now form a significant part of Japanese society. These workers are introducing new food habits and seeking their own national food and drink products. At the same time, the Japanese population itself is diversifying its taste for food and beverages.

As a result, there is a growing demand for new types of food and drink products to cater to these emerging tastes and immigrant communities. This presents a new and important business opportunity in Japan. Companies involved in food processing and beverages can find strong demand for their products, whether they operate within Japan or export directly to Japanese importers.

Finally, there is a large market in Japan for gaming and music products from around the world.

I will go deeper into this aspect later in the course when we discuss Japanese society and cultural behaviors — factors that have made Japan the largest gaming market in the world. There is also a strong demand for music products, influenced by certain unique cultural traits and societal behaviors.

At this stage, just understand that there is indeed a big market for computer games and new forms of music from around the world, and Japanese consumers are willing to pay for such entertainment. Although this may seem peculiar, I will explain these aspects in greater detail later, which will help you better understand Japanese society, its people, and the internal challenges they face.

These form some of the very important facts and opportunities about Japan.

Friends, now that we have discussed the different opportunities and merits of the Japanese market, let us now talk about the other side — the challenges that exist, as they do in all markets around the world.

However, the experience of many foreign investors shows that Japan is a particularly difficult market, and the challenges can be enormous.

Later in this course, when I discuss the deeper aspects of Japanese society and the way the Japanese government functions, it will become clearer to you what the reasons for these challenges are and how they can be overcome.

One of the biggest challenges of the Japanese market is that customers in Japan are highly demanding by nature. They look for very high-quality products, and post-sale services require meticulous planning. Dealing with customers in Japan can be quite expensive.

A major reason for this highly demanding nature of Japanese consumers is their distinct and unique tastes and needs. When compared with other developed and industrialized nations, Japanese culture is very different. The identity of the people tends to be somewhat isolated from the rest of the world.

One of the reasons for this is the limited knowledge of English among the Japanese population. Only 3 to 4% of Japanese people know and speak English, which makes them largely isolated from global developments in the English-speaking world. Since English provides access to the latest global knowledge, this lack of familiarity with the language has contributed to their distinct tastes, needs, and preserved cultural identity.

The requirements for foreign investors who want to work within Japan are also quite large in scale. This means that in Japan, you either win big or lose big. The scale required to operate successfully is much larger compared to other markets. The resources and finances needed to establish and sustain a business in Japan are substantial.

The stakes are high — if you succeed, the profits are significant; but if you fail, the losses can also be heavy. These are some of the major barriers to entry for foreign investors in Japan. However, with the right understanding, such barriers can be overcome.

Another very important barrier to entry for foreign investors is the presence of a strong base of local companies that compete aggressively with one another. This makes it difficult for foreign companies to operate without proper preparation and in-depth market knowledge.

Practices like keiretsu — a system of interlinked businesses with cross-shareholding — have traditionally played a major role in Japan. In this system, local businesses buy and hold shares in each other, forming networks that help them trade within their own groups. Such networks also help them absorb market fluctuations and maintain stability during mergers, acquisitions, and financial turbulence.

Although the influence of keiretsu has declined in recent years, it still exists, and banks are often involved in these networks. The Japanese government is, however, working to reduce its impact, making the market more accessible to foreign investors.

Another major challenge foreign investors face is that the usual management theories and practices taught in leading business schools such as Harvard, Stanford, or Cambridge often do not work effectively in Japan.

The Japanese market requires a completely different kind of local thinking and management approach. Those who wish to operate successfully in Japan must be prepared to adapt to this.

One of the aims of this course is to introduce you to the basic management techniques and methods that work in Japan, and to explain how these differ from the conventional Western management styles and methods that most of us are familiar with. Later in the course, I will go into more detail about these differences, which will help you understand the kind of new thinking required to manage people effectively in Japan.

A major reason for these differences and challenges is that Japan was never a Western colony. In Asia, only Japan and Thailand share this distinction. As a result, Japan has preserved its original culture and thinking.

It was only after the bursting of Japan’s industrial and financial bubble in the 1980s that the country realized the need to change, learn from the rest of the world, and integrate itself more closely with the global economy.

Then came globalization and the internet, which took Japan by surprise and forced the government and society to open up further. These three factors — the 1980s financial bubble, globalization and the internet, and Japan’s democratic and capitalist identity — have all shaped its current mix of opportunities and challenges.

Despite being a part of the global capitalist system, Japan’s unique identity and non-colonial past set it apart from most other Asian nations, resulting in both strengths and difficulties for foreign investors.

One of the major challenges foreign companies face when trying to operate in Japan is making a successful market entry. There are many reasons for this, which I will discuss in greater detail later in the course.

However, two major factors have been highlighted repeatedly in past case studies of foreign companies operating in Japan — particularly in telecommunications, consumer electronics, education, and other industries.

The first factor is the highly bureaucratic system of permissions required from various Japanese government authorities. In the past, this system was complex and time-consuming. However, in recent years, new legislation and a more open approach from the Japanese government have improved the situation considerably. Bureaucratic processes are becoming simpler, permissions are granted more quickly, and overall, things are improving.

Even so, bureaucracy still exists. The time taken by different authorities to issue approvals and the presence of numerous procedures for setting up companies continue to pose challenges.

Despite this, Japan has made significant progress in the global Ease of Doing Business Index. It now ranks among the top ten countries in the world, reflecting major improvements and a clear move toward greater business efficiency.

The second major challenge that remains is cultural differences. These lead to differences in management styles, consumer behavior, and stakeholder expectations for overseas companies trying to operate in Japan.

These cultural differences, distinct tastes, and unique habits continue to be a major challenge for market entry and require thoughtful understanding, preparation, and support.

There are also a few minor challenges in the Japanese market. One of them is the high cost of settling down, especially in large cities like Tokyo, where real estate is extremely expensive and the overall cost of living is high.

The working environment in Japan is also quite different from other developed countries. While the official workweek is 40 hours, in practice, most companies demand more than 80 additional working hours per month, often without paying overtime compensation. This reflects a unique form of capitalism, quite distinct from that found in Western Europe or North America.

However, with proper understanding and preparation, these issues can be managed.

Finally, as mentioned earlier, the lack of English proficiency among the Japanese population and the limited availability of foreign food options can make it slightly difficult for foreigners to work in Japan. Nevertheless, with the right preparation and the type of knowledge I will share with you in this course, many of these challenges can be effectively addressed.

Hello friends, welcome to this documentary on the places and cities in Japan.

This documentary series is part of the course on how to do business with Japan.

This is the first documentary of the course, which is approximately 10 to 15 minutes long. You will find many such documentaries in this course that explore different aspects of Japanese culture, places, business, and the day-to-day life of Japanese people.

The purpose of these documentaries is to give you an overview of the several aspects of the country, Japan, and to help you understand its many dimensions.

This first documentary focuses on the major cities of Japan. I am going to give you a sketch of Japan’s geography and take you through its different cities. We will move from one city to another, and I will tell you about each of them.

I will go a little quickly because I want to cover several cities in this documentary to give you a glimpse of their incredible infrastructure, places of interest, people, and famous landmarks. I will also tell you what each of these cities is known for.

First, let me explain the geography of Japan. Japan is a country of islands, with more than 6,000 islands in total. The main islands are four: Hokkaido, Honshu, Shikoku, and Kyushu. In addition, there are several smaller islands on the periphery of Japan. One very famous area, located at the southeastern tip of Japan, is a collection of about 150 islands, with the well-known city of Okinawa among them.

Japan has several major cities — Tokyo, which is the largest and the world’s biggest metropolitan area with a population of around 35 million; Osaka, Nagoya, Kyoto, Hiroshima, Fukuoka, and Sapporo — all of which are key urban centers.

In this documentary, I will take you on a journey to these cities and give you an overview of each one. I will show you some famous and interesting places within them.

I plan to start our journey in Tokyo, which will be our first stop. From Tokyo, we will go to Osaka, then to Hiroshima, followed by Kyoto, Nagoya, and Toyama — a smaller city that is the capital of Toyama Prefecture.

Let me explain what a prefecture is. Prefectures in Japan are similar to states in other countries. Japan has 47 prefectures, and Toyama is the capital city of the prefecture that shares its name. From Toyama, we will travel to Sendai, then to Sapporo, and finally return to Tokyo.

These are the areas I will cover in this documentary, taking you to some incredible places within these cities and telling you a bit about each one.

As I mentioned, Japan is made up of 47 prefectures, which are similar to states in other countries — for example, India has 28 states, and the United States has many as well. These prefectures form the first layer of administrative division in Japan. There are also sub-prefectures, but we will not go into that level of detail.

Some well-known prefectures include Tokyo Prefecture, Osaka Prefecture, Toyama Prefecture, Okinawa in the southernmost part of Japan, and Hokkaido, one of the largest.

In this documentary, I will take you through some of Japan’s major cities. Let us begin our journey with Tokyo.

Before we start, let me show you that about three-fourths of Japan’s area is mountainous, as you can see in the green regions on the map. These mountainous areas are sparsely populated, so most of Japan’s population lives in the coastal areas or in non-mountainous regions, often on islands.

Japan’s geography is unique — a large portion is mountainous, and in many places, snow can be seen for much of the year. There are many natural sites throughout Japan. Because the population is concentrated in coastal areas, some cities are extremely dense, with Tokyo being one of the most densely populated cities in the world.

Let us begin our journey with Tokyo.

We start at the most iconic place in Tokyo — the Tokyo Tower, located in the heart of the city. It is a famous tourist spot, and visitors can go to the top of the tower to see the entire city from above. Tokyo is a vast city with a population of over 35 million.

Tokyo also has the world’s busiest railway station — Shinjuku Station. We will go there later, but first, let’s enjoy the city view from Tokyo Tower.

Next, we are going to Shibuya, home to the world’s busiest pedestrian crossing. This crossing, known as Shibuya Scramble Crossing, is located in front of the Shibuya Scramble Square building — one of the landmarks of the area.

Now, we are at Shinjuku Railway Station, the busiest railway station in the world. This is the main pedestrian crossing that leads to the station. You can see how busy it is. The station building has multiple entries and connects to several train lines across Japan.

Around the station, there are many shopping areas and malls, including the Lumine 2 shopping mall just in front of the station. Shinjuku Station connects five railway lines and links Tokyo to every major part of Japan.

Now, let’s move to another iconic landmark — the Tokyo Skytree, the second most famous tower in Tokyo. I will show you the surrounding area as well.

Settling down in Tokyo, however, can be very expensive. A two-bedroom apartment can cost around ¥800,000 per month in rent, with an initial deposit that may exceed ¥1,500,000. Living as an expatriate in Tokyo can be quite costly, especially when it comes to housing.

Other expenses, such as transportation, utilities, and food, are generally more reasonable and comparable to other Japanese cities. However, Tokyo remains an expensive city overall, particularly concerning the very costly taxis.

For affordable and convenient food, one of the most popular places is 7-Eleven, which has the largest number of outlets across Japan. You can find a wide variety of ready-to-eat food items there.

In another documentary, I will tell you more about Japanese foods, their prices, and take you to some 7-Eleven outlets. You will get to know about Japan’s most famous dishes, such as sushi — the world-renowned delicacy — and many other snacks and on-the-go food items that are an essential part of Japanese life.

Now, let me take you to a very interesting place — the sports district of Tokyo, where sumo wrestling matches are held. This place is called Kokugikan, the world’s largest sumo wrestling arena.

We are now just outside Kokugikan, located in the heart of Tokyo, surrounded by offices and residential areas. Let’s go inside and take a look. You can see that it is indeed the world’s largest sumo wrestling hall.

That was Tokyo.

Tokyo is also famous for several religious sites, such as the Sensoji Temple and Meiji Shrine, which we will not be covering in this documentary. But remember, Tokyo is renowned for these landmarks, along with the ones I have just shown you.

The city’s infrastructure is excellent. Commuting is easy thanks to one of the finest subway systems in the world. Tokyo’s transportation network is among the best globally — but it is also a vast metropolitan area, in fact, the largest in the world.

Geert Hofstede's Cultural Dimensions model is a framework for comparing different cultures based on six dimensions: Power Distance, Individualism vs. Collectivism, Masculinity vs. Femininity, Uncertainty Avoidance, Long-term vs. Short-term Orientation, and Indulgence vs. Restraint.

According to Geert Hofstede's research, the scores of Japan in each of these dimensions are:

1. Power Distance: Japan has a relatively high score of 54, indicating that there is a significant degree of acceptance of hierarchical structures and respect for authority.

2. Individualism vs. Collectivism: Japan has a relatively low score of 46, indicating that it is a collectivist culture that values group harmony and consensus over individualism and self-expression.

3. Masculinity vs. Femininity: Japan has a relatively high score of 95, indicating that it is a highly masculine culture that values achievement, competition, and material success.

4. Uncertainty Avoidance: Japan has a relatively high score of 92, indicating that it is a culture that seeks to avoid uncertainty, ambiguity, and risk.

5. Long-term vs. Short-term Orientation: Japan has a relatively high score of 88, indicating that it is a culture that values long-term stability and perseverance over short-term gains.

6. Indulgence vs. Restraint: Japan has a relatively low score of 42, indicating that it is a culture that values restraint, discipline, and self-control over indulgence and immediate gratification.

In the next few videos, Dr. Jain shared his research and practical ideas to understand the culture of Japan better. Also discussed are tips and techniques to deal with it. At the end of the section, you will find the second documentary on Japan.

Hello friends,

Welcome back to the course.

I can tell from my own experience with the Japanese market and from dealing with business people in Japan that, in my view, the most intriguing part of the Japanese market is its unique culture.

There are many theories about why Japanese culture is unique, and I will talk about them. But before discussing the reasons for the uniqueness of Japanese culture, I will first describe what makes it unique.

You will soon find in this course that one of the major factors and main challenges related to the Japanese market and doing business in Japan is the cultural uniqueness of the country. I will try to explain Japanese culture, describe its characteristics, and show how it differs from other cultures.

In this particular section, I will compare the cultural dimensions suggested by Geert Hofstede, the renowned researcher and scientist in cross-cultural studies, who analyzed and compared the cultures of different countries.

According to Hofstede’s framework, I will compare Japanese culture with that of the United States. You will find the U.S. scores in one column and the Japanese scores in another, across the main Hofstede cultural dimensions. I will explain these dimensions and compare the two countries on each of them.

Let’s begin with the cultural dimension called Uncertainty Avoidance. A higher score in this dimension indicates a strong tendency to avoid unpredictable results or uncertainties related to any action, project, or business. Cultures with high Uncertainty Avoidance scores place great emphasis on thorough pre-project planning, research, and ensuring that everything proceeds exactly as planned, with minimal deviation.

Japan scores 92 on this dimension, one of the highest scores in the world. In comparison, the U.S. score is 46. This shows that Japanese culture has an extremely high level of uncertainty avoidance, which makes it unique. Deviations from plans or procedures are rare, and great care is taken to prevent mistakes.

The second dimension is the Power Distance Index (PDI), which indicates how much a society accepts and expects inequalities in power and status among its members. Higher scores reflect societies with strong hierarchies, where power differences are widely accepted.

If we compare Japan with the U.S., we find that the U.S. score is much below average on the PDI scale, meaning American society is not very hierarchical. Japan, however, is somewhat hierarchical — it can be described as a borderline hierarchical society. Compared with other Asian nations like South Korea or China, which have much higher PDI scores, Japan is relatively less hierarchical.

Thus, we can say that Japanese culture is hierarchical by Western standards but not as hierarchical when compared with its Asian neighbors.

The third dimension is Masculinity vs. Femininity. Japan ranks as one of the most masculine cultures in the world. The U.S. also has a relatively high masculinity score due to its strong individualism, but Japan’s score is significantly higher — 95 compared to the U.S. score of 62.

This high masculinity score suggests a strong emphasis on achievement and competition. However, unlike in highly individualistic societies, competition in Japan is not among individuals but among groups, companies, and business houses. This is because Japanese society is collective in nature, as shown by its low score on the next dimension — Individualism.

On the Individualism Index, Japan scores much lower than the U.S., where the score is 91, indicating that American culture is highly individualistic. Japan, by contrast, is much more collectivist. People value harmony, teamwork, and group consensus. While competition exists, it is at the group level rather than the personal level, making Japan’s culture both masculine and collectivist — a rare combination that defines its uniqueness.

The fifth dimension is Long-Term Orientation (LTO). Japan again scores very high on this dimension compared with the U.S., which has a much lower score. This means Japanese culture is highly long-term oriented. Their actions, decisions, and business strategies reflect patience, persistence, and a focus on the future.

Japanese companies are known for their long-term planning, slow but steady decision-making, and emphasis on market share rather than short-term profits. This dimension explains many cultural traits that contribute to Japan’s business strength and stability.

The sixth and final dimension in Hofstede’s framework is Indulgence vs. Restraint. This dimension measures how freely people express their desires and impulses. Societies with low indulgence scores tend to restrain such impulses, while those with high scores allow more freedom for enjoyment and leisure.

Japan scores below average on indulgence, indicating a restrained culture, while the U.S. scores much higher, reflecting a more indulgent society. I will discuss this dimension in greater detail later, as it is key to understanding Japanese behavior and values.

Understanding these cultural dimensions is crucial because they reveal the uniqueness of Japanese culture, the most important factor when doing business with Japan. Culture can be a major reason for success or failure in the Japanese market.

Finally, let us talk about the context of communication in Japanese culture. Japan is a high-context culture, while the U.S. is a low-context culture.

In high-context cultures, much communication is implicit — people rely on shared understanding, unspoken rules, and nonverbal cues. In low-context cultures like the U.S., communication is more explicit, direct, and verbal, making it easier for outsiders to understand.

This high-context nature of Japanese communication creates challenges for foreigners, as much of what is expected or understood is not spoken directly. However, with proper understanding and cultural awareness, it is possible to succeed in Japan.

Today, the efforts of the Japanese government and the openness of Japanese society toward foreign cultures are making it increasingly easier for outsiders to live, work, and do business successfully in Japan.

Now I will take up these dimensions and their impact on the main characteristics of Japanese culture one by one.

If we start with the Uncertainty Avoidance score of Japan, we find that Japanese culture is bureaucratic in nature. As I mentioned earlier in previous sections, Japanese culture indeed has a high level of bureaucracy. It takes a considerable amount of time to get permission to set up a business or begin factory construction. These permissions take long periods to obtain due to the extensive bureaucratic procedures, which originate from the culture’s high uncertainty avoidance score.

The reason for this aspect of Japanese culture lies in its historical encounters with natural disasters such as tsunamis, typhoons, and earthquakes. Japan has traditionally experienced major natural calamities and has learned to deal with them through high levels of planning, standard operating procedures (SOPs), and preparedness for any eventuality.

This preparedness has become an inherent part of Japanese culture. Because of it, Japanese society is characterized by a very high level of uncertainty avoidance, which contributes to its bureaucratic nature. This tendency often delays the implementation of plans, projects, and business setups. The expectation is that all due diligence must be completed before starting any new business or construction activity. It has become deeply ingrained in the Japanese way of working.

Another characteristic that emerges from this cultural trait is the existence of strict rules and regulations in Japanese society. The high uncertainty avoidance, readiness for natural disasters, and societal hierarchy have created a culture that is highly ritualized. There is a strong prevalence of rituals, ceremonies, and recurring traditional events. The acceptance of these practices as part of everyday life is very high in Japan.

If we move to the second aspect of Japanese culture, related to Power Distance Index (PDI) in Hofstede’s framework, we find that Japan’s score on this dimension is moderate. This makes Japan a borderline hierarchical society — somewhat hierarchical from a Western perspective but relatively less so compared to other Asian societies.

Japan lacks the extended or large family structures typical of highly hierarchical Asian cultures such as China or Korea. Instead, Japanese families are mostly nuclear. This difference contributes to Japan being less hierarchical than many of its neighbors.

Because of this moderate PDI score, meritocracy exists in Japanese society. The general belief is that if you deserve it and work hard, you will be rewarded — either individually or collectively. From an early age, Japanese children are taught that hard work pays off and leads to higher status and recognition. Whatever hierarchy exists in Japanese society tends to reward dedication, effort, and excellence.

However, one result of this above-average PDI score, combined with Japan’s very high uncertainty avoidance, is that decision-making tends to be slow. Careful consensus-building and detailed analysis are part of the Japanese decision-making process.

If we look at the Individualism Index, Japan scores 46, which is below average. This indicates that Japanese culture is more collective in nature. In business and professional life, collectivism is quite strong. Although Japanese families are typically nuclear, society as a whole operates collectively.

There is a strong sense of social responsibility and shame among Japanese individuals, especially when their actions may affect the groups or organizations they belong to. Any socially unacceptable action brings discomfort or embarrassment, reflecting this deep connection between individual and collective reputation.

Because of this collectivist orientation, loyalty to employers is very strong in Japan. Employees tend to stay with the same company for long periods, unlike in China, where job-hopping is more common. Loyalty and commitment to one’s organization are seen as marks of integrity and honor.

While Japanese society is collective compared to Western standards, it is less collective compared to other Asian nations such as Korea and China. A certain level of individualism exists, reflected in the Japanese emphasis on personal excellence, perfection, and responsibility.

Now, regarding Masculinity, Japan has the highest score in the world, making it the most masculine society globally. This high masculinity, combined with relatively low individualism, leads to intense competition among groups rather than among individuals.

This competitive spirit is evident in Japanese social behavior — a drive for excellence and perfection in every aspect of life. Whether it is in art, gift wrapping, or ceremonial practices, Japanese people display exceptional precision and quality. The same commitment to perfection is reflected in business practices and manufacturing. Japanese products are known for their superior quality, and Japan’s industries are recognized among the best in the world.

More than one-third of the world’s high-quality industrial goods are produced in Japan. The nation’s obsession with perfection and excellence has also contributed to its culture of workaholism — another result of its high masculinity.

Turning to Long-Term Orientation (LTO), Japan’s score is visibly high. The prevailing belief in Japanese culture is that life is just a small moment in the long history of humankind. This idea, rooted in mythology and philosophy, influences how Japanese people think and act. The focus is on personal virtues, moral examples, and practical good deeds that benefit society and family.

This long-term outlook is evident in Japan’s strong emphasis on research and development. The country consistently invests heavily in R&D in business, science, infrastructure, and technology. Japanese companies prioritize sustainable growth, continuous improvement, and long-term gains over short-term profits.

In business, this long-term orientation translates into a focus on increasing market share and ensuring stability rather than chasing quarterly or annual profits. This mindset is deeply embedded in Japanese management philosophy.

In later lessons, I will discuss in detail the management styles and practices that align with this long-term thinking and how understanding them can make you more successful in doing business with Japan.

Finally, let us consider Hofstede’s sixth dimension — Indulgence vs. Restraint. Japanese culture is characterized by restraint. People tend to control their desires and impulses. However, this restraint also leads to certain challenges, such as cynicism and pessimism, which have contributed to Japan’s high suicide rate.

In major cities like Tokyo and Osaka, you may see signs that say “Mind Your Sky,” warning pedestrians to be aware of potential suicide jumpers from tall buildings. This tragic reality has led the Japanese government to establish a special Ministry of Loneliness to address the problem. A dedicated cabinet minister has been appointed to find ways to reduce the country’s suicide rate.

The restrained nature of Japanese culture also means that people spend less time on leisure. Combined with strong work ethics, this has created a culture of extreme workaholism. High social norms and strict rules govern society, leaving limited space for indulgence or self-expression.

Lastly, as I mentioned earlier, Japanese culture is a high-context culture, meaning that people do not explicitly explain behaviors, manners, or etiquette. Socially acceptable actions are expected to be understood intuitively.

You must “read the air,” as the Japanese say — understanding unspoken cues and adjusting accordingly. Your awareness, sensitivity, and cultural intelligence will help you align yourself with this high-context culture and succeed in working or doing business in Japan.

Hello friends,

Welcome back to the second documentary of this incredible course.

In this second part, we are planning to go from Tokyo to Osaka, as you can see here. We are traveling from Tokyo to Osaka, and as you know, Tokyo is a very large metropolitan area. In fact, it is the largest metropolitan area in the world, and it takes quite some time to leave its boundaries.

We are currently in the suburbs of Tokyo, heading toward Osaka. The total journey should take around six to seven hours.

The main idea of this virtual tour, as part of this documentary series, is to help you become familiar with Japanese people, Japanese culture, Japan as a country, its cities, places, and the lifestyle and day-to-day activities of its people.

In this journey, we are moving along the E1 Expressway, which connects Tokyo to Osaka. We are now entering Kanagawa Prefecture, which is located right next to Tokyo.

This is an interesting place. At one time, Kanagawa was the main center of Japan, though today Tokyo has taken that role. Kanagawa Prefecture still contains some of the most populous areas, which are part of the greater Tokyo metropolitan region.

We are now moving through Kanagawa. I have taken a small detour from the E1 Expressway, but we will soon rejoin it. I wanted to show you a glimpse of life in Kanagawa Prefecture, which is adjacent to Tokyo Prefecture.

We are now back on the E1 Expressway and heading toward Osaka. I will take another detour along the way to show you Mount Fuji and how it appears from the expressway. It is a beautiful sight. This short detour won’t add much distance to the journey from Tokyo to Osaka.

Now we are on that detour — a parallel road to the E1 Expressway that goes toward Osaka. From here, you can see Mount Fuji on the horizon, and the view is truly picturesque. The journey from Tokyo to Osaka offers beautiful scenery all along the way.

Right now, I am stopping near Kyoto City, which is very close to Osaka. The trip has already taken around six hours, and I am looking for some food, perhaps at a 7-Eleven, which is extremely popular in Japan. You can find many 7-Eleven outlets across the country.

I tried to find some food I would like to eat, but today I could not find much vegan food. I had a few light snacks and decided to stop at a food court along the E1 Expressway for some coffee and bread.

This is the food court where I stopped along the E1 Expressway on my way to Osaka. It has already been seven hours of travel.

After having coffee at the food court, I continued my journey and finally entered Osaka City. It took another hour to reach Osaka from Kyoto.

Now we are in Osaka — our destination. This journey was truly exciting. I saw Mount Fuji on the way, and now I have reached Osaka. I have already booked a single room in a hotel here and am on my way to check in.

There are many interesting sights on the way to the hotel. I am almost there now.

Now that we have reached Osaka, let me tell you a little about the city.

Osaka is one of the largest cities in Japan and a major urban area with a lively character and charm. It is famous for its unique dialect and local cuisine. Some of the well-known foods of Osaka include takoyaki and kitsune udon — both specialties of the city. Udon also comes in vegetarian versions. These dishes are famous throughout Japan, but Osaka is their true home.

Another specialty is Taiko Manju, a baked sweet filled with azuki bean paste. Different variations use various fillings, and it resembles an American pancake. Many shops across Osaka sell this sweet.

Osaka also has several famous places of interest. It is home to Universal Studios Japan, the world’s largest aquarium, and the historic Osaka Castle, which we will visit later in this documentary.

The most popular area for nightlife is Dotonbori, known for its dazzling neon signs and vibrant energy. We will explore Dotonbori in the evening.

Osaka is divided into several wards, each containing smaller neighborhoods. My hotel, Hotel Toyo, is located in the Nishi Nari Ward, in a small locality called Taishi.

I booked a single Japanese-style room with a shared bathroom at Hotel Toyo for ¥1,000 per night — quite a good deal. The room is small but neat and clean.

Dormitory-style accommodation is also available in this area for less than ¥500 per night, where four beds are arranged in one room. However, I chose the single room for the privacy and convenience of keeping my belongings safely.

Around this area, many small private shopkeepers offer coin-operated lockers for storing valuables. Some even provide baggage storage services, both manual and coin-operated. Travelers often store their luggage there and stay in nearby dormitories to save money.

For me, this ¥1,000 single room was a good option — private, simple, and affordable. The room had clean linen, a single bed, and air conditioning — sufficient for a short stay.

Before showing you around the hotel, let me show you the map of this area. Hotel Toyo is located in the Nishi Ward of Osaka, near Osaka Bay. The city center is easily accessible from here, thanks to excellent transportation facilities.

Nearby, you will find the Shin-Imamiya Railway Station, which connects to Japan Railways lines, tram lines, and the Nankai Line — all within walking distance from the hotel. This makes it a great location for exploring the city.

From here, we can easily reach Dotonbori, Osaka Castle, the aquarium, Universal Studios Japan, and the Osaka Museum — all within proximity.

That is why I chose this particular area and hotel — affordable, well-connected, and conveniently located.

My goal is to show you Osaka City — its people, their lifestyle, and their daily activities. I will take you through different parts of Osaka so that you can get a real sense of life in this dynamic Japanese city.

Friends, let us first go to the places around the hotel.

I will show you the area around Hotel Toyo.

This is the back side of the hotel; you can see it here.

You will get an idea of how people live here.

One thing you will notice is that people use bicycles in Osaka in a very big way.

In this whole area, you will find a lot of parking for bicycles. That is the main method of commuting in the area.

I will just show you what is in front of the hotel. This is the area around the hotel. I just wanted to show you how people live. Everywhere, in every nook and corner, you will find vending machines where you can buy beverages or flavored milk.

Normally, the vending machines accept ¥50 or ¥100 coins, so you will find most machines set up for these denominations. Accordingly, different items are stocked in the machines. You will find many of these machines, especially during coronavirus times when many shops are closed; people use these machines for daily purchases. Supermarkets are also open. Neighborhood shops are generally closed on days when there is a lockdown, but supermarkets remain open.

I will just show you around this place. We are moving around the hotel, and you can see these ¥100 vending machines. You can get flavored milk, soda, or juices from them.

This is the street where our hotel is located. Next to Hotel Toyo, you can see another hotel, Hotel Reisen, which is a little more expensive, so I did not stay there. I found this area beautiful — a very good hotel neighborhood: neat, clean, and affordable.

If you look at the shops around the hotel, you will find businesses providing local services. For example, this shop offers coin lockers and luggage storage. Using coins, you can store your valuables in the lockers; they also provide baggage storage, which I mentioned earlier. There are many shops in this region because this area is known for one-room Japanese-style hotels and dormitories. Most of these places offer dormitory beds. The typical price right now is around ¥500 per night. I will show you more of this Taishi region in the Nishi Nari Ward of Osaka, where I chose to stay.

Due to the lockdown, many shops are closed, but some remain open, and some supermarkets are operating. I will show you a few places so you get an idea. We are still moving just around the hotel. For example, this restaurant is open and offers food for roughly ¥200. You can get items for ¥200 to ¥250 at neighborhood shops and restaurants — things like small sushi or rice snacks filled with bean paste.

This is another restaurant offering many items under ¥500, where you can customize a meal. You need not worry about food hygiene: most restaurants in major cities like Osaka and Tokyo maintain good standards. Check your budget for food, and rest assured, the food will be hygienic.

Many shops are closed because of the COVID-19 lockdown, but you can see a supermarket here that is partially open for daily needs. This is the kind of supermarket you normally find in most neighborhoods in Osaka. When there is no lockdown, this place is full of life. This square just outside Hotel Toyo was lively before the lockdown, with many people and bicycles parked everywhere. People use bicycles extensively.

This is the Shin-Imamiya mainline railway station. You can catch long-distance and short-route trains connecting many major places in Japan from this station. It’s a very busy station and is within walking distance of the hotel. This is the market area around the hotel, and the market is open. The shops are typically cramped because space is an issue in Japanese cities. You will have to squeeze through the aisles, but this is how shopping works in cities like Tokyo and Osaka. Spacious showrooms are rare and expensive; if you want cheaper goods, you’ll find them in these compact shops. Some shops are closed, and some are open due to the lockdown.

Very near the hotel, there is a metro station — Imamiya Metro Station. That was a short look at life in Osaka. Now I will take you to some of the city’s interesting places. Today we plan to see Osaka’s iconic sites, starting with Osaka Castle. We are now in the compound of Osaka Castle — a beautiful site. Next, we visit the world’s largest aquarium at Osaka Port.

Osaka may be smaller than Tokyo, but it is a beautiful city with its own culture and cuisine. It is famous as the nation’s kitchen. In later episodes, I will share different delicacies that are famous in Osaka. We are just outside the aquarium at the port, and I want to show you glimpses of the port, which is important for international trade, exports, and imports.

Now we arrive at Universal Studios Japan in Osaka. This is a full-day sightseeing attraction; Universal Studios has only a few theme parks worldwide — several in the U.S., one here in Japan, and one in Singapore. Universal Studios Osaka is distinct and offers many shows, pavilions, theatres, and performances; you need almost a full day to see it all. I will give you glimpses of parts of Universal Studios, including the most popular area: the Wizarding World of Harry Potter with its Hogwarts Castle. Entering this area makes you feel like you are in Harry Potter’s world — it’s the most popular section of the park.

We have returned to the heart of Osaka, and this evening we will visit the Dotonbori district, the nightlife area famous for its neon signs. Soon, the sun will set and the neon lights of Dotonbori will come alive. Due to the coronavirus, the crowds are smaller, but you can still see the reputation and charm of this place. Dotonbori is also famous for street food and Osaka specialties — the city’s culinary heart. There is a central canal where you can take boat rides. As night falls, the area becomes more lively with shows, crowds, and boat rides that let you experience the iconic neon signs of the district. Tourists flock to Dotonbori in the evening.

Those were Osaka’s iconic places and the things that make the city popular. There are many other attractions in Osaka, but we have chosen the best for this documentary for the course “How to Do Business with Japan.” The purpose of these documentaries is to make you knowledgeable about the life, business, culture, food, and cities of Japan. These interpretation-style documentaries aim to give you the real feel of visiting Japan and to make you confident about your knowledge of Japan, its people, its culture, and how to do business there.

In the next few video lectures, Dr. Jain discusses the main features of the management style in Japan and how it differs from the management style in other countries. At the end of this section, you will find the 3rd interpretation documentary, familiarizing you deeper into the day-to-day life in Japan and its important cities.

Friends, up till now we have discussed quite a few things about Japan, and you are now clear that the Japanese market is quite different.

It is different from the ways of doing business in many other countries. It is unique. Its culture is unique. Overall, the Japanese market stands apart.

I will talk later about all the aspects related to why Japan is different from other markets. That session will be included in the documentary section, and you can watch that particular episode, which explains why Japan is different from others.

Now, let us talk about the unique features — the distinctive characteristics of Japanese management.

Let us first look at the differences that Japan has, without being judgmental. Let us not judge the people of Japan, the government of Japan, or their policies. Let us first observe what is different. Once we understand what makes Japan different, we can discuss why it is different and what to do about it. Those aspects we will discuss later.

Let us now look at the very distinctive Japanese management features.

If we compare Japanese and U.S. management systems, we can observe some clear contrasts.

First, lifetime employment — it is quite common in Japan but rare in the United States. In the U.S., companies do not offer lifetime employment, and employees frequently change jobs. In Japan, however, there has traditionally been a system of lifetime employment. Companies take care of their employees’ welfare and create systems that encourage people to work with the organization for their entire careers.

Although in recent times these characteristics are beginning to dilute and the line between the two systems is blurring, you can still see these features clearly when working with Japanese companies.

The second aspect is discrimination. Generally, there is no discrimination in Japan based on caste or race. However, there does exist some gender-based discrimination.

Experts say that Japanese companies tend to favor men over women because they believe women are less likely to work for them long-term. It is a practical issue — women often leave jobs due to marriage or relocation, and companies dislike such instability. Thus, gender-based discrimination does exist in Japan, although it is moderate.

In contrast, U.S. companies show very low gender discrimination but are often criticized for racial discrimination, especially against Black people. These are different types of biases, so they cannot be directly compared. Still, experts agree that discrimination in Japan is moderate, while in U.S. companies it is generally low.

The reason I’m discussing these differences is that most people are already familiar with how business works in the U.S. or other English-speaking countries. Comparing the key management features between Japan and the U.S. will help you understand the Japanese market better.

The third dimension of management is recruitment procedures.

In Japan, recruitment is very rigorous. Companies look for the “cream of the cream.” Top companies conduct multiple rounds of interviews to ensure they hire only the best. This stems from Japan’s high uncertainty avoidance score — Japanese culture is highly risk-averse. Employers want to avoid hiring mistakes, so they take their time to evaluate and decide.

In contrast, recruitment in the U.S. tends to be quicker and more need-based. When there is a vacancy, it is filled promptly. Japanese companies, however, will not compromise their process — even if the position remains vacant, they will not hire someone they are not fully satisfied with.

The fourth management feature is employee training.

In Japan, employee training is a continuous process. The belief is that employees who stay for a lifetime are key success factors, and companies differentiate themselves by having highly trained, capable people. Japanese organizations invest consistently in employee development.

In the U.S., training is typically provided “as and when required.” Employees enjoy individual freedom and frequently change jobs, so companies see less value in long-term training investments. This is another area where the two systems differ.

The fifth parameter is workers’ unions.

In Japan, companies usually recognize a single union — known as an enterprise union — within each company. These are not independent unions but are typically formed within the enterprise itself. This system differs from the U.S. and many European countries, where unions are independent and industry-based.

In Japan, enterprise unions work in harmony with management. They aim to balance the interests of both the company and the workers, creating long-term stability and cordial relations. While some debate whether this system provides true labor protection, it has worked effectively in Japan.

Next, let us consider the status of workers.

In Japanese organizations, blue-collar and white-collar workers are treated with similar status. Every white-collar employee starts as a blue-collar worker and spends time on the shop floor. They eat, work, and interact with shop-floor workers until they move into management roles. This creates mutual respect and eliminates hierarchical distance between the two groups.

In the U.S., there is also relatively little discrimination between blue-collar and white-collar workers, although income levels differ. Currently, the shortage of blue-collar workers in the U.S. has even elevated their status in many industries.

The seventh parameter is decision-making.

In Japanese companies, decision-making is bottom-up. Ideas and suggestions originate at the shop-floor level, and these inputs are given great importance. Senior management is powerful but does not interfere in day-to-day operations. They step in only when necessary.

This bottom-up approach helps gather practical insights and encourages teamwork. It improves product quality, efficiency, and output. Listening to the people at the operational level gives Japanese companies a strategic advantage — and they are proud of this system.

In contrast, U.S. companies generally follow a top-down approach, though employees are free to voice opinions or offer ideas. Ultimately, however, decisions rest with top management, whose focus is typically on financial results, shareholder value, and performance metrics.

That said, the decision-making style in U.S. companies can vary by industry and leadership style. Some leaders encourage a blend of both approaches — a balance between top-down and bottom-up decision-making.

Most people familiar with English-speaking business environments already understand how American management works. But by comparing it with Japan’s unique, structured, and culturally rooted system, we can better appreciate what makes the Japanese management style distinct — disciplined, collective, long-term-oriented, and deeply human-centered.

Now we will discuss a few of the remaining parameters when comparing the management style of Japan with that of U.S. companies. The three parameters we will talk about are the nature of the workers’ groups, employee welfare, and internal recruitment.

First, let us look at the nature of the workers’ groups — what kinds of workers are there and how labor is managed. Here, we are not talking about blue-collar or white-collar distinctions, but rather about permanent workers, temporary workers, or a mix of both. This also involves understanding labor laws, employee welfare, and recruitment practices.

In Japan, workers’ groups generally comprise core workers, who are expected to work with the company for a lifetime, and peripheral workers, who are not permanent staff. The system of peripheral workers has evolved in recent years. These workers are hired or released based on company needs — a “hire and fire” approach within this category. Thus, Japan’s workforce is divided into two main groups: permanent (core) and temporary (peripheral) employees.

In U.S. companies, however, this system is not very common within the U.S. market itself, though some American companies operating overseas may follow this two-tier workforce model. In Japan, it is now a very common and well-established practice.

Next, let us consider employee welfare — the focus Japanese companies place on their employees’ well-being.

The Japanese management style emphasizes providing employees with an excellent working environment and a variety of welfare benefits. The focus is not primarily on high compensation, which is usually determined by seniority and years of service. Instead, companies offer a comprehensive welfare package, including low-interest or interest-free loans, affordable housing facilities, free transportation, free lunches, and medical facilities at little or no cost.

This welfare system also serves as a mechanism for Japanese companies to maintain better control and stability among their employees. The loan system, in particular, acts as a strong motivating and binding factor, fostering loyalty and long-term association with the organization. Providing such benefits is a very common and well-accepted practice in Japanese management.

Finally, let us talk about internal recruitment, another key aspect of the Japanese management style.

When vacancies arise at higher levels, Japanese companies typically prioritize internal recruitment — selecting candidates from within the organization before considering external applicants. This is a very prevalent practice in Japan. Only when no suitable internal candidate is available do companies look outside the organization.

In contrast, U.S. companies focus more on finding the best match for the job, regardless of whether the person comes from within or outside the organization. The selection depends on the required job profile, skills, and experience. Often, the consensus in U.S. firms is that certain positions should be filled by external candidates to bring in fresh ideas or expertise, which is a very common practice.

To conclude, the Japanese management style is indeed unique — but there is nothing unusual or wrong about it. It simply reflects Japan’s cultural values and organizational philosophy.

Understanding this management approach is crucial for anyone who wishes to succeed in doing business with Japan.

Hi there!

I hope you are doing well and making great progress in this course.

I wanted to take this small moment to congratulate you on your remarkable progress in this course. Your dedication and commitment to learning have truly impressed me.

I have been following your journey closely, and I must say, I am delighted with the efforts you are putting in.

This course is part of the VJ Export-Import Mastery Courses Series, a collection of 28 different courses in the area of export-import management, designed to equip you with the knowledge and skills needed to excel in the field of international trade.

On my part, I am committed to helping you expand your learning journey by providing access to more similar courses in the series. At the same time, I have a small request for you as well.

Your feedback is incredibly valuable in refining this course and ensuring it remains world-class and the best it can be. I kindly ask you to leave a rating for the course along with your feedback if you have not yet done so.

Your input will help me continue to improve and tailor the course to meet your needs and those of future learners.

Thank you once again for your dedication and enthusiasm. Keep up the fantastic work you are doing, and remember, I am here to support you every step of the way.

Together, let's continue on the journey of learning and growth.

In the next video, Dr. Jain discusses his analysis of the common mistakes that most businesses make when investing their time and money in the Japanese market. They generally have the habit of blaming the country for their own failures and lack of preparation.

Friends, whatever we have talked about in the earlier episodes — the highlights of the market, the merits and demerits of the Japanese market, the challenges, opportunities, and the different types of approaches required for foreign businessmen who want to work in or trade with Japan — all these aspects have been discussed.

The failure rate, as I mentioned, is quite high. If you look at past cases of foreign investors who have done business in Japan, many of them failed. It is therefore important to discuss the common mistakes made by foreign investors at the very beginning, so that we can proceed with this course with a better understanding and clear goals.

Let us now discuss the common mistakes made by foreign businesspeople while dealing with Japan.

One of the major mistakes foreign businesspeople and companies make when entering Japan is a lack of preparation. Many assume that since Japan is a democratic, developed, and wealthy nation, there is no need for special preparation. They believe they can learn things on the go and that Japanese people will adjust to their ways of working.

This assumption is completely wrong — and it is one of the biggest reasons for failure. A lot of time is wasted waiting for Japanese people to adapt to foreign business styles, which simply doesn’t happen.

Lack of preparation is a very big mistake.

You must ask yourself:

• Do you know what is required to succeed in Japan?

• Are you ready to think differently?

• Have you prepared yourself to adapt to a different way of thinking?

• Do you understand the local procedures for operating in Japan?

• Have you done proper research beforehand?

Many of these aspects will be covered in this course to help you overcome this lack of preparation.

For instance, understanding the sophisticated Japanese consumers — their habits, needs, and expectations — requires homework. Most foreign companies fail to do this, and that becomes one of the key reasons for their failure in Japan.

Another very important and often ignored area is the lack of effort to understand Japan’s high-context culture.

Foreign investors and businesspeople rarely put in the effort to study and understand Japan’s cultural nuances. In this course, we will take a deep look at the Japanese culture and learn the methods of understanding culture — methods that can be applied to other countries as well, but are especially useful for Japan.

Do you understand how to operate within a high-context society like Japan?
Do you understand its peculiar culture — its people, history, food, religion, habits, and daily life?
Do you know how the Japanese think, why they think the way they do, and how their thought processes differ from those in other parts of the world?

Having this level of cultural understanding is essential when doing business with Japan.

Finally, another critical issue is the lack of basic knowledge about Japan itself.

Many foreign investors fail because they do not understand even the fundamental facts about the country — its demography, geography, political structure, economy, or industrial landscape.

For example:

• Do you know the reasons behind the successes and failures of past foreign investors in Japan?

• Do you understand the factors that led to those outcomes?

• Do you have basic knowledge of Japan’s cities, their populations, cost of living, and regional differences?

These are the foundational facts you must know.

In this course, I will help you acquire this knowledge. We will focus deeply on understanding what Japan is — its places, people, culture, economy, and industries.

By the end of this course, you will have a clear and thorough understanding of Japan, its society, and its business environment — a foundation that will make you better prepared to succeed in doing business with Japan.

In the next two special documentaries prepared for this course, Dr. Jain provides firsthand experience with Japan, its important places, food, and culture.

Friends, my stay in Osaka was really very eventful and informative, and I truly enjoyed my time there.

It is now 6 a.m., and I have just started my journey to Hiroshima. I am leaving Hotel Toyo and taking the route towards the north of Osaka along Road No. 11, which passes over the Yodo River.

This is the Yodo River. We will be crossing it and passing by Osaka International Airport in Toyonaka.

Osaka is known as the “Nation’s Kitchen” or “Japan’s Kitchen” because it is famous for its dishes and culinary specialties.

We have just crossed the Yodo River and are now moving towards Osaka International Airport in Toyonaka. This is Osaka International Airport, and afterward, we will join the E2 Expressway, which goes to Hiroshima.

As I mentioned earlier, Osaka is famous for its delicacies and food culture. The Dotonbori district, where I took you earlier, is especially famous for its street food. Many people visit Dotonbori in the evening to enjoy Osaka’s special dishes. I will have a separate session and documentary on Japanese food and Osaka’s specialties.

We have just passed Osaka International Airport and are crossing another river, the Ena River. We are now on the bridge over the Ena River near Osaka.

We are now out of the Osaka metropolitan area, which is quite large. Having crossed the Ena River, we are heading toward Hiroshima. On the way, we will pass through some famous smaller towns, such as Fukuyama.

At present, we are in Ikeda. It should take around five hours to reach Hiroshima. This route is known as the Kinki Expressway, or the E2 Expressway.

We are now in Hyogo and have stopped here for some refreshments and relaxation. This is a beautiful place surrounded by lovely trees.

There are speed limits on Japanese highways, but people generally do not follow them strictly. Traditionally, Japan has very low speed limits — rarely more than 100 km/h even on expressways — but drivers often go faster.

This is a rest stop with paid parking. I will have some refreshments here. I am hoping to find onigiri, and if I can get a vegetarian version, I will try that along with some coffee. Prices at these stopovers are generally not high — I can have all these items for less than ¥500.

There are a couple of small shops and a mini supermarket where you can buy various items. There is also a fuel station here, and I was looking forward to refueling. The petrol price is ¥170 per liter, and I will get my tank filled. I paid approximately ¥2,000 for a full tank.

I am now passing through Suwama near Okayama and approaching Fukuyama, which is actually very close to Hiroshima, a suburb of the city.

It has been around four and a half hours since I left Hotel Toyo, and I am now very near Hiroshima. There is a turn here for the Hiroshima Expressway, while the E2 Highway continues further.

Japanese drivers are very disciplined. They stay in their lanes and follow all traffic rules, although the speed limit is often ignored.

This is the Fukuki Tunnel on the Hiroshima Expressway. It is one kilometer long. In Japan, you will find many such tunnels everywhere because, as I mentioned before, three-fourths of the country’s landmass is mountainous. Tunnels in Japan range from half a kilometer to as long as 53 kilometers.

I have now reached Hiroshima, and as you can see, it looks like any other small, peaceful town. There is a Family Mart nearby where you can buy a few essentials.

This is Hiroshima Township.

Hello friends,

Welcome back to our documentary series, the purpose of which is to help you understand the culture, infrastructure, economy, business etiquette, arts — in short, everything about Japan.

This series of documentaries in this course will help you understand the Japanese market better.

In this particular episode, I will be talking about Japanese food in the range of ¥1,000 — how you can have your lunch, dinner, or breakfast for around ¥1,000, and what items you can buy within this range.

I will discuss some common dishes of Japan, their names, and their prices. I will also talk about the specialties of Osaka.

Why Osaka? Osaka is called the Nation’s Kitchen, meaning that the food in Osaka is the most specialized in Japan. People from across the country come to Osaka to eat.

Osaka has countless restaurants and even an entire district — the famous Dotonbori — known for its nightlife, delicious food, and local specialties. While some of these dishes are found elsewhere in Japan, most of them originated in Osaka.

We had already visited Dotonbori earlier, where I showed you glimpses of the evening atmosphere, and the same district is equally famous for its food.

First, let me show you two great lunch combinations you can buy for approximately ¥1,000 or less.

If you go to convenience stores, which are found all over Japan — especially 7-Eleven, which is extremely popular — you will find plenty of affordable meal sets. I mentioned earlier that 7-Eleven stores are located in almost every corner of major Japanese cities.

At 7-Eleven, you can buy a meal set that includes fried rice, ramen, gyoza, and a sweet dish like mitarashi dango.

• Gyoza are dumplings made from flour batter and filled with vegetables — very similar to what we know as momos.

• Chahan is Japanese-style fried rice.

• Mitarashi Dango is a sweet rice patty flavored with a sweet soy glaze.

You can buy all these four items for less than ¥1,200 — and depending on what variety you choose, possibly for under ¥1,000. This is a very good option.

Another great set you can try from convenience stores like 7-Eleven is the Onigiri Set.

Onigiri are very common in Japan — rice balls filled with bean paste, meat, or vegetables. You will find them everywhere, just as you find samosas in India or burgers in America. There are many varieties of onigiri available.

You can pair this with Tonjiru, which is miso soup with vegetables. Tonjiru comes in many varieties and can also be purchased from convenience stores like 7-Eleven. You can heat it in-store using the available microwaves.

Another very common Japanese dish is Nimono, which consists of boiled vegetables cooked in different ways. There are several varieties of Nimono available.

You can also add Mitarashi Dango as a sweet dish. With these four items — Onigiri, Tonjiru, Nimono, and Mitarashi Dango — you can have a complete lunch for less than ¥1,000.

These are two good suggestions for travelers to Japan who want to enjoy authentic and affordable food.

Many of these options have vegetarian versions too. If you find it difficult to get a vegetarian option in convenience stores, you can go to small neighborhood eateries, where they can prepare customized vegetarian dishes for a slightly higher price.

Now, let’s talk about Osaka’s specialties, especially those found in the Dotonbori district in the evenings.

A very common specialty of Osaka is Kushikatsu.
These are deep-fried skewers of crushed vegetables or meat. Each stick costs about ¥100 (around $1).

Another famous and delicious dish is Kitsune Udon, which costs between ¥400 and ¥500. You can easily find a vegetarian version. Kitsune Udon consists of noodles (ramen) in a light broth topped with two pieces of deep-fried tofu and some vegetables.

A very popular and tasty Osaka dish is Takoyaki — deep-fried flour batter balls filled with vegetables, seafood, or meat. Three pieces of Takoyaki generally cost around ¥150.

A special sweet dish of Osaka is Taiko Manju, a pancake-like sweet shaped like a drum. It is filled with jam or sweet red bean paste (Azuki). It usually costs less than ¥100.

Another famous Osaka dish is Okonomiyaki, also called the “As You Like It Pancake.” You can customize it with your preferred fillings — vegetables, meat, or seafood — and choose whether to make it sweet or savory. It costs around ¥400 depending on the ingredients used.

Japan is known for many things, but when you explore more deeply, you discover that Japanese food and the Japanese palate are truly unique. Every city in Japan has its own food specialties, but none compare to Osaka — the true Nation’s Kitchen.

In the next few videos, Dr. Jain shares some important areas to focus on and the tips and techniques for ensuring business success in Japan. At the end of this section, you will find an interesting case study on Vodafone's failure in Japan.

Welcome back, friends.

In this course, my objective was to give you a graphic description of the situation in Japan, the main characteristics of the Japanese market, and how it differs from other advanced markets we are familiar with. It is indeed quite different, without any doubt. And this difference itself represents an opportunity.

How can this opportunity be tapped, and what is required for success in Japan — that is what I want to discuss now.

Not to be taken lightly, the most important quality a person can have in Japan is common sense. This is crucial because nobody will guide you. Nobody will tell you things, even if they know them. The Japanese may appear friendly — and they certainly behave in a friendly way — but by nature, they do not divulge much.

You cannot assume that just because someone has not said something, it doesn’t exist. That assumption doesn’t work in Japan. This is why knowledge of facts, familiarity with the country, and a deep understanding of Japan are essential.

This is one of the reasons why, in this course, I have included documentaries — to interpret the country for you, make you familiar with it, and give you the feeling of having actually visited Japan. The purpose of these documentaries is to orient you with the country — its infrastructure, the life of its people, its culture, food, and business environment.

The main goal of these short documentaries is to help you acquire factual knowledge and become familiar with the Japanese market.

Along with this familiarity, common sense is equally important — particularly the ability to observe keenly and maintain a strong presence of mind.

You will soon realize why presence of mind is vital. The Japanese culture is unique, and your observation, awareness, and interaction with people will help you build relationships, which are the cornerstone of success in Japan.

Presence of mind helps in building relationships — and relationships are everything in Japan. As we progress further in this topic, you will understand just how crucial this is.

Knowledge of local customs, along with common sense, is equally important in building business relationships. However, the problem is that nobody will tell you explicitly what to do — not even simple things like dress codes or behavioral norms. You have to observe, learn, and read the air.

This concept of “reading the air” is typical of Japanese culture. The air does not speak — you must sense it. You need to understand what is expected of you without being told. Initially, this is difficult, but with time, you will learn.

You must make the Japanese understand that you can “read the air.” Otherwise, they will quickly notice and quietly discuss among themselves that you cannot. They are very perceptive in this regard.

It is not that the Japanese dislike outsiders or feel threatened by different cultures. The issue is that most foreigners fail to observe, understand, and “read the air” in Japan.

That is why I say common sense is vital, along with factual knowledge about Japan, familiarity with its customs, and the avoidance of assumptions that people will guide you. Even local employees you hire may not tell you everything. They will assume that you already understand and can read the air.

Interestingly, even foreign professionals who become successful in Japan adopt this style — they, too, stop explicitly communicating everything they know.

Such assumptions lead to time-consuming and expensive mistakes for foreign companies. I will take up a case study of Vodafone at the end of this session to illustrate just how costly these mistakes can be.

Experts agree that the three most important success mantras in Japan are:

1. Preparation

2. Information gathering

3. Planning

Preparation means knowing the systems and procedures — how to set up a business, obtain government permissions, manage legal and financial matters, and build local support.

Information gathering involves developing a strong familiarity with Japan and understanding its business and market dynamics. However, market research in Japan is quite different. In most countries, we rely on verbal communication from respondents. But in Japan, people do not express themselves verbally in the same way. You must observe and “read the air” to gather information.

Planning is also crucial. Even if you understand 60–70% of the reality by using your intellect, observation, and common sense, careful planning is needed — financial planning, timelines, level of involvement, and local recruitment. Without solid planning, entering the Japanese market can lead to significant loss of time and money.

It is also essential for anyone doing business with Japan to be aware of Japan’s trade policies — past, current, and emerging.

After the economic bubble of the 1980s burst, Japan went through a prolonged slowdown of nearly two decades. Prime Minister Junichiro Koizumi initiated major reforms across the economy, but after his tenure, the pace of reform slowed. Later, Abenomics continued with similar policies but at a reduced pace.

The key point is that the Japanese government recognizes the need to align its policies with globalization and the internet-driven economy. The internet has brought immense change — more than the system had planned for — and Japan is adapting.

Understanding how the government forms trade and industrial policies, which sectors are open to foreign investment, and where new opportunities lie is crucial.

The government is increasingly open to foreign investments, particularly in new and strategic industries. You should focus on these sectors where Japan seeks to encourage international participation.

Among existing industries, sectors such as telecommunications have received special attention. A notable example is Vodafone’s $20 billion investment in Japan when it acquired 100% of J-Phone, Japan’s third-largest telecom operator — a case we will discuss shortly.

Building relationships in Japan remains one of the most critical success factors. Many things cannot be learned from books or even by observation alone — you learn them through relationships.

The Japanese business environment is also influenced by traditional networks like Zaibatsu (financial conglomerates) and Keiretsu (interconnected business groups). While Zaibatsu no longer exists, Keiretsu relationships remain strong. Understanding and positioning yourself within these networks requires strategy, merit, and patience.

Having local help with the right attitude is essential. The Japanese government is also improving laws and protections for overseas workers, making it easier to collaborate with locals.

Finally, doing business in Japan requires patience and long-term commitment. It also requires substantial investment, but without patience, even large sums of money will not guarantee success. Companies looking for quick results will find Japan a difficult market.

Lastly, knowing Japanese business etiquette is very important. You will find many resources on this, and I will also share some key points in the next section. While etiquette can be learned easily, it plays a vital role in building credibility and relationships in Japan.

What are the common business etiquette that differ slightly from those in other advanced countries, such as those in Europe, the USA, and many English-speaking nations?

The first and most important thing is to always carry plenty of business cards whenever you attend any business activity in Japan. In the first meeting, it is essential to exchange what is called a Meishi — the Japanese word for a business card. Exchanging Meishi is a must.

In general, you should use a business card in every interaction. If you are unsure whether you have already exchanged cards with someone, it is better to offer one again, just as naturally as you would shake hands. Offering a business card is a very common and expected gesture in Japan.

Experts often say that if you attend a business meeting without a business card, it gives the impression that you are unemployed. That is how important the business card is in Japan.

The second important aspect is documentation. Your documentation should be detailed, accurate, and impressive. It should clearly represent your company, your intentions, and your credibility as a potential partner. Include figures, statistics, and all relevant data. Each document should be self-explanatory, leaving no room for confusion or doubt. In Japan, documentation must be perfect.

The third critical part is preparation. Preparation means knowing about Japan and understanding its way of working. Especially if you are going for a meeting, you must plan your travel. Public transportation in Japan is extremely punctual. For example, in cities like Tokyo, subway schedules are maintained with precision unless disrupted by unforeseen events such as a suicide on the track.

Preparation also includes ensuring your company website is up to date and professional. You can be certain that before a serious meeting, your Japanese counterpart will have thoroughly reviewed your website. One valuable tip is to include an option to translate your website into the Japanese language. Doing so makes it much easier for your Japanese partner to understand your company and will greatly improve the quality of your meeting.

Homework is another vital part of preparation — research the company you are meeting, their history, products, specifications, and the people you will interact with. Know their credentials, past experiences, and key achievements. This background knowledge helps build credibility and trust.

Seating arrangements in Japan are also somewhat unique. In Japanese society, seating during business meetings, seminars, or even in vehicles follows a specific protocol. Every situation has its own seating order based on hierarchy and relationships. While people may not explicitly tell you where to sit, you are expected to “read the air” — you can find guidance online about standard seating plans in Japanese business culture. Typically, guests are given the better or more honored seats.

There are also some daily behavioral rules that, while common worldwide, have particular nuances in Japan. For example, public displays of affection, such as kissing, are not viewed positively. Throwing objects, even playfully — such as tossing a book or a bottle — is also considered inappropriate. These actions, though common in Western countries as signs of friendliness or humor, are not well-received in Japan.

Additionally, sneezing in public should be avoided as much as possible. Always carry a handkerchief with you to cover your nose if needed, as sneezing openly is considered impolite.

Having discussed these business etiquette, there is no need to worry too much about memorizing every rule. Japan is changing, and its business etiquette is evolving with time. Japanese professionals are learning from international practices as well.

It is most important to observe and adapt — understand that these etiquettes must be interpreted in the context of a modern, evolving society and the changing perspectives of both Japanese culture and the government.

As I just mentioned, let us take a small case study about investment in Japan.

One of the major opportunities in Japan today is mergers and acquisitions, which are actively taking place and represent a significant potential for foreign investors. The Government of Japan is increasingly open to allowing foreign participation in many industries, even though a large portion of current mergers and acquisitions still occur between local competitors and domestic companies.

However, there remains a vast scope, many gaps, and numerous possibilities for foreign investment.

One prominent example is when Vodafone acquired J-Phone in the early 2000s. J-Phone was Japan’s third-largest telecom operator, and the transaction was valued at almost $20 billion — a major, high-value investment. Vodafone acquired a 100% stake, making it a complete takeover.

J-Phone was the first company in Japan to introduce the camera phone, a groundbreaking innovation that became a massive success.

However, despite this, Vodafone eventually failed in Japan. After years of mistakes, misunderstandings, and false assumptions about the Japanese market, local people, and customers, Vodafone struggled to adapt. It lacked proper preparation and failed to understand Japanese consumer behavior.

Finally, Vodafone sold Japan Telecom / J-Phone / Vodafone K.K. to SoftBank at a much lower price, suffering significant losses.

Now, the most interesting part of this story lies in the facts. Vodafone’s failure had nothing to do with the often-cited “closed nature” of the Japanese government. This is important because many foreign companies that fail in Japan tend to blame government barriers or bureaucratic restrictions.

Each case needs to be analyzed individually to determine whether government restrictions played a role in the failure. But in the Vodafone case, that was not the issue.

SoftBank successfully turned around the company within just six months of the acquisition. This was not due to any special government support or preferential treatment — it was purely a matter of better business decisions and execution.

There are numerous research papers and analyses on this case, and almost all of them conclude that Vodafone’s failure stemmed from two main reasons — both related to a lack of preparation, poor assumptions, and a misunderstanding of the Japanese market.

The two key reasons were:

1. Failure to make further investments
   Vodafone did not invest sufficiently in expanding the mobile network infrastructure. Japan required extensive network coverage and new investments in technology and equipment. Vodafone, having already spent $20 billion on the acquisition, was unwilling or unable to invest further.
   This reflected a failure in planning — paying a huge acquisition cost without setting aside capital for critical follow-up investments.

2. Failure to offer mobile handsets suited to Japanese customers
   Japanese consumers are known for being highly demanding and tech-savvy. J-Phone had built its reputation by introducing camera phones, setting high expectations among customers. After Vodafone’s acquisition, consumers expected even more advanced features and innovation.
   Vodafone failed to “read the air” — to observe and understand what kind of handsets were being preferred by Japanese consumers and what competitors were offering.

SoftBank quickly identified these two shortcomings and acted decisively. It invested heavily in expanding the network infrastructure and introduced the right types of mobile handsets to meet Japanese expectations.

Within six months, the company’s fortunes reversed.

This became one of the most successful business turnaround stories in Japan — and a powerful example of how preparation, cultural understanding, and smart execution determine success in the Japanese market.

Having said that, what is happening in the Japanese market is that it is a unique market with distinct characteristics. It is definitely quite different from many other advanced markets.

However, the fact remains that Japan is a very attractive and large market with good possibilities.

What are the things to look out for, finally? The negative sides of Japan include the observed strong bureaucracy, which indeed exists. There are specific reasons for this bureaucratic nature of the Japanese government.

Tasks such as getting permits, obtaining utilities like electricity or water connections — all these processes take time. The complexity of paying taxes also adds to the challenge. These delays are largely the result of Japan’s strong bureaucratic system.

Contract enforcement, too, can be a lengthy process, sometimes taking more than a year. The contract enforcement laws are not particularly favorable for new businesses.

We have already discussed the distinctive nature of Japanese culture. There is nothing to be alarmed about; one simply needs to understand the characteristics of Japanese culture and how to work within it.

We have also discussed local competition and the historical business networks or cartels that have existed in the Japanese market. These began long ago in the form of Zaibatsu, the financial conglomerates that were later dissolved. In more recent times, Keiretsus have existed, and many still continue today.

Within these Keiretsu groups, companies often prefer to do business with each other, even if it means paying higher prices or accepting less favorable terms. They continue these dealings simply because they belong to the same group. While such practices still exist, they are much less dominant today, and things are gradually changing for the better.

The nature of Japanese customers also presents a challenge. They are extremely demanding and have specific expectations that may not be revealed through traditional market research. You must “read the air” to truly understand what they want. A different approach to market research is required in Japan.

We have also discussed the Japanese management style, which is very unique. These aspects form the main challenges that must be dealt with, but they are not impossible to manage.

There are also many positives in the Japanese market. For example, obtaining loans and credit in Japan is much easier than in many other countries. Japan has well-defined and strong investor protection laws, which is a major advantage, along with robust intellectual property rights laws that can be enforced relatively quickly.

Being an archipelago of more than 6,500 islands, Japan has a highly developed system for cross-border trade, which operates efficiently and smoothly.

Insolvency resolution in Japan is also much better than in many other markets. Within 365 days, it is possible to resolve a company’s insolvency, and the recovery rate is almost 90%, far higher than the global average.

The market size is large, and although customers are demanding, the sheer scale of the market offers great potential. Once a business model proves successful, the possibility of expansion is very high.

Currently, a lot of mergers and acquisitions are taking place as part of the ongoing restructuring of Japan’s economy and businesses. While most of these M&As are between local companies and competitors, there are several areas where opportunities for foreign entities to acquire or merge with Japanese businesses are becoming easier.

It is indeed the right time — things in Japan are changing for the positive.

In the next few videos, Dr. Jain has used the previous learning of this course to build a practical profile of Japan as a high-potential, large exports market.

Hello friends,

Welcome back.

We have discussed several aspects of the Japanese market in the previous sessions of this course. Some documentaries were also included.

Now, we are learning about Japan and trying to understand it from multiple perspectives. We have seen the day-to-day life of the people, the challenges and opportunities, and the management style and culture of Japan.

Let us now review these insights and look at Japan as an export market.

Some people focus on exporting to Japan, and there can be many modes of export. It can be simple trading — selling goods without setting up a business in Japan — or it can involve opening a branch office in Japan for distribution, or even deeper business involvement. There are several possible ways to export goods to Japan.

If we look at Japan from this perspective — as a country and as a potential export market — the first thing to consider is the current business situation from the export point of view.

Secondly, we must understand the business culture of the people, specifically the business community, the importers in Japan. These are the people who matter to your products. They are the ones who can help in distributing your products and will have an active interest in promoting them, depending on customer demand and the overall business climate.

Another important aspect is the banking and finance sector — what kind of support can be expected from Japanese banks and financial institutions? What types of organizations exist that can assist either importers or exporters through credit lines, trade financing, or similar facilities? These are important considerations, just as they are in any other advanced economy.

We must also look at the sources of information and support available from agencies in Japan for setting up a business. This includes understanding the steps involved in business establishment, the associated costs, and whether these costs are comparable to international standards — particularly those in other advanced countries similar to Japan.

Finally, and very importantly, we need to identify the sources of accurate and reliable information about Japan — including market data, government policies, and economic statistics. It is necessary to know which agencies provide this information, who can assist in data collection, and what media or news channels are active and credible in Japan.

These are some of the key dimensions to consider when evaluating Japan as an export market, and that is what we are going to discuss now.

We have discussed several aspects of Japan from different perspectives while talking about the business situation in the country. At this stage, considering the geopolitical context, the global post-COVID-19 environment, and several new challenges the world is facing, Japan too has been impacted in its own way.

What, then, is the current business situation in Japan?

One very important characteristic of the present business environment in Japan is that the government is opening up. Despite certain political instability—such as the resignation of Prime Minister Shinzo Abe and the succession by one of his close aides who continues with the policies of Abenomics—the Japanese government is moving toward greater openness.

From an export market perspective, Japan today is becoming more welcoming to foreign investment and international business participation. Although some political shifts may lead to minor policy adjustments, the pressure on the Japanese government remains strong to open up the economy even further.

It is important to understand that Japan has always been open to foreign business. The barriers that investors often cite were rarely deliberate government policies; rather, they resulted from a lack of understanding and preparation by foreign investors. There is no fundamental design that restricts entry into the Japanese market. Japan was open, it remains open, and it continues to improve.

The government is introducing progressive legislation to protect foreign workers and employees and to make procedures for visas and business operations simpler and more transparent for companies and traders. Japan also has a full-fledged ministry and dedicated organizations that provide information and assistance to anyone interested in investing or doing business in Japan—even those looking to export to the country.

While the government’s stance is positive, the Japanese customer remains a different matter altogether. Customers are shaped by culture, tradition, history, and collective behavior, none of which can be changed easily by governments or marketers.

The Japanese consumer is demanding but wealthy. They have high disposable income and significant assets. In fact, the Japanese government has often expressed difficulty in guiding citizens on how best to invest their savings, given the immense liquidity and low interest rates in banks.

For exporters, this presents a great opportunity. Japanese customers have money but seek exceptional quality, durability, and innovation in the products they purchase. To appeal to them, exporters must communicate—clearly and credibly—that their products meet these high expectations. This requires thorough research, careful planning, and accurate information gathering.

Many businesses fail in Japan because they assume it operates like other advanced markets. It does not. Japanese customers are among the best in the world, but also among the most discerning.

Japan maintains excellent trade relations with countries like India, South Korea, Vietnam, China, Australia, and the European nations. Logistics from nearby Asian countries are especially well developed, allowing fast and cost-effective shipping. The Japanese archipelago, with its multiple ports and well-connected islands, makes inland transport and customs clearance exceptionally efficient.

All these factors—combined with strong purchasing power and a stable consumer base—make Japan one of the most attractive and unique export markets in the world.

Although some political uncertainties persist, such as debates over Japan’s defense policies and its constitutional limitations on military action, these do not have a direct impact on trade and investment. The political transitions—from Prime Minister Koizumi to Abe, and now to Suga—have been smooth, with no major disruptions.

Even when internal disagreements arose, such as over the legislation allowing Japan to maintain a stronger defense posture, the continuity of governance ensured economic and business stability.

In summary, the Japanese market remains stable and predictable despite occasional political debates.

The uniqueness of Japan lies in the fact that business decisions are made based on value propositions. Whether dealing with importers, distributors, or retail chains, the most critical factor is to demonstrate clear value. If your offer presents genuine value—through quality, innovation, or reliability—progress will follow.

The current business environment in Japan demands exactly that: value, trust, and understanding.

The government is encouraging overseas investors and traders to operate in Japan. But to succeed, you must read the air, understand the local dynamics, and make informed decisions—because in Japan, no one will guide you unless you understand it yourself.

Talking about the business culture, we have already discussed a lot about Japanese culture. However, certain points should be remembered and reviewed as far as the business culture of Japan is concerned. It is very much based on formal relationships and formal interactions. Business relationships and partnerships are protocol-based. There are certain protocols, planning, and homework that are emphasized by the Japanese people. This remains a key feature of Japanese business culture.

Another very important thing that a practical person can tell you is that during the day, whatever meetings are held—usually not early in the morning but mostly in the afternoon, especially with foreign partners—the Japanese counterparts may display a certain reluctance to provide descriptive or useful information. They often expect you to understand those things by yourself.

However, the practical experience is that during evening dinners and drinking sessions, you can actually get some very useful information. This is another very interesting and relevant part of Japanese culture.

If you really want to build relationships within the existing local networks, you must focus on post-evening activities in Japan. This is one of the ways to enter into the relationship network of Japanese businessmen. It is a very important and practical feature of Japanese business culture.

We have also discussed several times that the business culture, as well as the people of Japan, however polite they are, do not want any conflict with anyone—absolutely no direct conflict on any issue. Their communication and interactions are mostly indirect. They will not say things very directly or in black and white. There will always be shades of grey in whatever they communicate, if at all they say something.

You have to read the air. You have to understand things by observing and experiencing them. This is one of the reasons why, in this course, I have included certain documentaries to show you what Japan truly is—so that you are able to read this air, understand Japan, and engage in conversations that connect with the Japanese people.

You should be able to show that you know Japan—that you have visited the country, seen different places, know the highways, the food joints, and the main dishes of Japan. These are the things you should be able to talk about with Japanese people.

In fact, one of the reasons people in Japan often shy away from speaking with foreigners is that they find it difficult to discuss Japan with someone who knows nothing about it. They do not know what to say or how to connect.

Business meetings in Japan are not purely about business. They are not limited to discussing specifications, terms, and conditions of contracts. The Japanese prefer conversations that touch upon Japan itself—its culture, places, and things close to their hearts. They are not very interested in hearing extensively about your country. To some extent, yes, they may be curious, but after a while, they want you to know about Japan and talk about it.

You have to understand their world and speak their language—not just linguistically, but culturally. This is the reason why this course has been developed in such a way: to help you learn these nuances and move in that direction.

Then, if we talk about the business environment in terms of banking and financial support for businesspersons, especially foreign businesspersons, they should know that Japan’s financial system is very mature. The banking sector is extremely well-developed.

There are several large Japanese banks, both national and regional, along with many international banks that operate in major economies around the world. All of these are present in Japan.

Among the three major national financial groups of Japan are:

• Mitsubishi UFJ Financial Group (MUFG)

• Sumitomo Mitsui Financial Group (SMFG)

• Mizuho Financial Group (MHFG)

These are the mega financial institutions at the national level. Similarly, there are regional financial groups such as the Yokohama Financial Group, Fukuoka Financial Group, Chiba Financial Group, and Hokuhoku Financial Group.

These financial groups provide a wide range of support, including loans, credit facilities, and various financial products. One must understand the diversity and sophistication of these products to make the best use of them.

As mentioned earlier, Japanese banks are flush with liquidity. They are actively looking for reliable partners who can productively utilize their funds. This creates a strong opportunity for businesses in Japan to access liquidity, loans, and credit facilities through a variety of banking products.

Japan has more than 100 regional banks and over 20 international banks operating within the country—all major global names are represented.

There is significant competition between international banks and local Japanese banks, which leads to similar terms, lower interest rates, and easy access to loans and credit.

This makes Japan one of the best and most supportive financial environments that any businessperson—local or foreign—can find in an advanced economy.

If you wish to learn how to set up a new business entity in Japan, the next few lectures will be very handy for you.

Now the next question that comes is where to go for setting up in Japan, where to get this information, and where to learn what needs to be done for setting up a business in Japan.

What are the different ways of setting up a business in Japan? It will definitely depend on your product line, your vision, and your method of entering the Japanese market — what kind of goods distribution you want, and what kind of partnership you plan to establish.

With complete knowledge of Japan, you have to design your own market entry strategy and set it up accordingly. You will find various options and windows available for this purpose.

What needs to be understood here are the steps involved in setting up a business. How can you find this information? I will explain the resources available where you can get this information, and the step-by-step flowcharts that describe the various options and the support available.

It is also important to understand the costs of setting up a business in Japan. You need to gather information about the cost of hiring local personnel since you will need employees to operate in Japan. Cost must be considered beforehand because everything starts with cost. You need to know the cost of hiring, the cost of setting up, and how these costs compare with similar activities in other countries.

One of the best places to get information about setting up a business is the organization sponsored by the Japanese government — the Japan External Trade Organization (JETRO).

JETRO has been working for many years to promote investment and business collaboration with Japan, under its motto “Invest in Japan.”

This organization is becoming increasingly important for international businesspersons. It provides detailed information about the steps to set up a business in Japan, including flowcharts that explain processes such as business establishment, obtaining visas, setting up offices, hiring personnel, or even constructing factories or warehouses.

All this information is available through JETRO’s comprehensive guides and resources. These Japan-specific procedures may differ from those in other countries, but JETRO clearly explains each step. It also offers guidance on the laws and regulations governing business establishment and product distribution in Japan.

If you are focused purely on exporting, JETRO also provides information about tariffs and non-tariff barriers, along with references and consultation options. Many of these services are available free of cost.

Another important area covered by JETRO is visa and residency information. The organization provides guidance on different types of business visas, residence statuses, and procedures — including applications for certificates of eligibility, visa acquisition, working statuses, temporary visitor visas, and re-entry permissions. All of this information is available on JETRO’s website, and you can contact them by email for consultation.

JETRO also provides detailed information about taxation in Japan, human resource management, labor laws, and recruitment procedures. It lists recruitment agencies that offer English-language services for foreign investors, along with templates for labor contracts and details about average wages.

Additionally, it covers information about trademark and design protection systems and intellectual property rights, which are among the strongest in the world. As discussed earlier, Japan’s intellectual property laws and contract enforcement timelines are among the most efficient globally.

All these valuable resources are available on the JETRO website: https://www.jetro.go.jp/en/invest.

It is the most reliable and comprehensive source of information for anyone interested in setting up or expanding business operations in Japan.

There are some things that are really very useful on the JETRO website, particularly those related to cost estimation in Japan.

The cost of setting up a business is an important factor, and you need to work out some basic ideas about the expenses you will incur. For this purpose, several model cases are explained on the JETRO website.

For example, one model case is based on the most common type of new business operations established by foreign firms entering the Japanese market with an initial staff of only two people — one person from the foreign firm, who typically serves as the Managing Director, and a second person, a Japanese national, working as a manager-level or mid-level employee.

In this model, the company makes use of a temporary office to establish a corporate or branch office and later moves into a permanent office. All the premises in this example are rented. The Japanese representative stays at a hotel or a monthly contract apartment during the preparation period for pre-incorporation compliance. Once the company registration is completed, he moves into a permanent residence.

Applications and notifications are completed by professional service providers.

In this example, the features of the model include a two-person staff and a temporary office for about three months. The JETRO website states that the initial cost in Tokyo for setting up a subsidiary company is about USD 121,000 to 131,000, while for a branch office, the cost can range between USD 70,000 and 80,000.

The breakdown of these costs includes several components such as:

• Company registration costs

• Company seal and professional fees for registration and notifications

• Paid-up capital as per protocol

• Visa-related expenses

• Office setup, rent, and security deposit

• Real estate brokerage charges

• Hiring local personnel (approximately USD 20,000)

• Housing setup for the foreign national (approximately USD 6,000)

These cost estimates are based on JETRO’s research and practical experience. According to their findings, when business costs in Japan are compared with those in major global cities, they are not very high.

For example, Tokyo’s business costs are comparable or even lower than those in Hong Kong, where real estate rents are much higher. Singapore’s costs are similar. Compared to New York, Tokyo fares better in terms of office rent and personal expenses. It is also more economical than San Francisco, London, and Paris.

These comparisons show that Tokyo and other Japanese cities such as Osaka, Nagoya, and Yokohama are not prohibitively expensive for setting up business operations.

In this course, my objective is not to provide detailed figures or step-by-step data but to guide you toward reliable resources where you can obtain accurate and up-to-date information.

The JETRO website offers genuine and research-based information prepared by experts with many years of experience. This information is available completely free of charge. You can even send emails to JETRO to get answers to specific queries that may not be directly addressed on the website.

This initiative exists because the Japanese government wants foreign businesses to engage with Japan. Japan needs international partners, and Japanese companies themselves are among the most internationally oriented and well-prepared for global collaboration.

Friends, the next point I want to discuss with you, when considering Japan as a potential export market, is about the different sources of information, because that is where you can begin your research.

As I mentioned earlier, the most critical actions for anyone interested in the Japanese market are planning, information gathering, and preparation. To do that effectively, it is essential to know the sources of different types of information.

For example, if we talk about government, business, and trade information, we refer to details related to government policies, available support from the Government of Japan, business associations, chambers of commerce, and the benefits of membership in specific, trade-related organizations such as those in the automobile or electronics industries.

The most useful and authentic resource for all this is the Japan External Trade Organization (JETRO).

As discussed earlier, JETRO is one of the finest and longest-serving organizations that promotes trade between Japan and international investors. It is the most reliable source of information on Japan.

The JETRO website, which is also available in English, provides information about all types of trade-related topics, including exports, overseas expansion, investment in Japan, WTO matters, innovation, start-ups, cross-border e-commerce, certification standards, IPR, human resource utilization, and imports.

You can also find country-specific information for Asia, North America, and Europe — including details about bilateral trade agreements or regional cooperation. All these statistics and data are available on the JETRO website, making it the first stop for planning and information gathering.

Other important government sources include the:

• Ministry of Economy, Trade and Industry (METI)

• Ministry of Finance

• Ministry of Foreign Affairs

• Ministry of Internal Affairs and Communications

Additionally, there are specialized organizations such as the Indian Chamber of Commerce in Japan and the Indian Trade Portal, which provide valuable information for Indian exporters about trade with Japan and other countries.

For those exploring information related to banking and finance, there are several key associations:

• Japanese Bankers Association

• Regional Banks Association of Japan

• Second Association of Regional Banks

• International Bankers Association (which includes around 20–25 major international banks operating in Japan)

• Commodities Futures Association of Japan

• General Insurance Association of Japan

• Investment Trusts Association of Japan

• Japan Financial Services Association

• Japan Securities Dealers Association

• Japan Venture Capital Association

• Life Insurance Association of Japan

• Private Equity Association of Japan

Exploring these sources will make you more confident about doing business with Japan.

To stay updated with ongoing developments, it is highly recommended to subscribe to English-language Japanese newspapers such as:

• The Japan Times

• Asahi Shimbun (English Edition)

• Japan Today

• News on Japan

• Metropolis

For example, The Japan Times provides extensive information — national news, opinions, government policies, political and business changes, and updates on Japan’s relations with neighboring countries like China and Korea. Many articles are free to access, and paid subscriptions are also available.

Several printed resources remain highly valuable for doing business with Japan. Among the best are those published by JETRO, including the Directory of Doing Business in Japan. Copies of this directory can often be found in national trade libraries or at your country’s Chamber of Commerce.

Other useful printed materials include:

• Directory of Japanese Databases (1998/99) – Published by the Database Promotion Center of Japan. Often available in trade libraries or Japan-related chambers of commerce in various countries.

• Japan Handbook – Published in London and Chicago, with a regional series titled Regional Handbooks of Economic Development Prospects for the 21st Century. It provides historical and economic insights into Japan’s development.

• Japan Shinbun – A comprehensive resource offering descriptive information on all aspects of contemporary Japan, including special reports and economic data.

• Japan Trade Directory – Published by JETRO and available in most chambers of commerce or central trade libraries.

• Japan Company Handbook – Includes information about companies, banks, and industries registered in Japan.

If these printed resources are not sufficient, you can explore additional ones online through the same platforms. These sites also provide lists of available printed materials, which can be obtained through your country’s Chamber of Commerce, Trade Promotion Bureau, or Japanese Trade Consulate.

These printed materials should not be ignored — they complement the online and digital sources already mentioned and provide valuable, credible, and often historical insights into doing business with Japan.

Now, the next very important thing to understand is what the trade barriers are for the exporting community from anywhere in the world.
You may be originating from any country, but it is essential to understand the different trade barriers that exist in Japan. Understanding both tariff and non-tariff barriers is very important.

If we talk about tariff barriers in Japan, they are typically based on the ITC HS code and the CIF value, meaning the tariff rates are determined based on the CIF value as per the Incoterms 2010 and 2020. Japan maintains tariffs and restrictions on certain items, including agricultural products, for which an import license may be required.

In addition to these restrictions and tariff rates, Japan has free trade agreements (FTAs) with many countries. For example, with India, Japan has the India-Japan Economic Partnership Agreement (2011), which was valid for ten years, until 2021. This agreement abolished duties on nearly 90% of traded items between India and Japan.

Similar FTAs exist with other countries as well, so it is important to check whether your country has a bilateral free trade agreement with Japan. Under such agreements, exporters can enjoy duty benefits, making their products more competitive and attractive to Japanese buyers.

Japan also provides GSP (Generalized System of Preferences) benefits as per its tariff policy, which grants duty concessions on goods from developing countries.

Another very interesting and important feature of the Japanese tariff system is its self-assessment system. Because of this, the clearance speed of goods in Japanese ports for both exports and imports is among the fastest in the world. Japan has one of the smoothest import-export clearance systems, and it takes only a few hours to import goods and very little time for export clearances.

Japanese port infrastructure is among the best globally, and its tariff barriers are not prohibitive. They are in line with other advanced countries and conform to WTO guidelines.

For example, the Japan Customs Tariff Schedule, based on ITC HS classification, includes 97 chapters. If we pick a product like pharmaceuticals, we find that the tariff rates vary by country.
For instance, exports from Singapore, Mexico, Malaysia, and Chile to Japan are duty-free, and there are specific country-based tariffs, GSP rates, and WTO tariffs clearly listed.

All this information is publicly accessible, and the link to this website is provided in the resource section of this lecture. You can view all tariff rates for different items, even up to the eight-digit HS code level.

Now, talking about non-tariff barriers — these include market access barriers, which are often perceived by people doing business with Japan as being restrictive. However, most of these barriers are informal in nature.

For example, local relationships, networks, and business groups (sometimes referred to as cartels) can make market entry challenging for outsiders. But these are not formal restrictions and are not government-imposed. They are part of Japan’s social and business culture.

Such networks, long-standing market shares, and brand loyalties can make penetration into the market difficult for new entrants. In addition, the high-quality expectations of Japanese consumers act as natural barriers. These factors are deeply rooted in Japan’s culture, legacy, and demography.

Formal restrictions mainly exist for agricultural products, which is also true in most advanced economies such as those in Western Europe and North America.

Japan’s customs laws, regulations, and import processes are strict, and therefore, they need to be clearly understood before doing business there. Import licensing may be required for certain products, and the list of such items can be found on the JETRO website.

Labeling requirements are also very specific in Japan. For example, food products must have stickers showing detailed contents. Items like electrical appliances, soaps, aluminum foils, plastic films, kitchen utensils, cleaning materials, bathroom fittings, certain furniture, hot water bottles, and cosmetics are subject to special labeling regulations.

These requirements, however, can be managed with proper preparation and understanding.

Now, regarding business risks, apart from dealing with demanding customers, the lack of preparation is often the main cause of failure. However, the Japanese market itself is not risky if approached properly.

Japan has very strong intellectual property rights (IPR) laws, so your trademarks, copyrights, and product formulas are fully protected. Theft or duplication of intellectual property is extremely rare, making Japan one of the safest countries for businesses concerned about IPR.

However, contract enforcement and dispute resolution can take longer time in Japan compared to other advanced countries, which is a minor business challenge. On the other hand, insolvency proceedings in Japan are much faster, typically resolved within six months to one year, and the recovery rate is among the highest in the world.

Overall, the Japanese market is not risky if you are well-prepared, understand the culture, and can demonstrate the quality, durability, and innovation of your products.

In this course, my goal was to help you understand the Japanese market innovatively through case studies, lectures, and documentaries. The purpose of these documentaries was to acquaint you with Japanese life, culture, food, and business environment — offering a real feel of Japan.

Throughout this course, I discussed the unique culture of Japanese people and the reasons behind it, the opportunities and challenges in the market, the banking sector, the role of the government, trade barriers, and sources of business information.

I aimed to make it easier for you to understand Japan and to help you gain confidence in doing business there.

I am sure this course has helped you understand the business environment in Japan, appreciate its market dynamics, and identify strategies for success.

I will continue to add new case studies and resources to this course, and since you have lifetime access, you will always receive updates.

Whenever new materials are added, I encourage you to review them carefully, as they will further enhance your understanding of Japan and support your success in doing business with the country.

Thank you very much.

In the next few videos, you will find a discussion on an interesting recent case study about establishing supply chains for premium-quality Tuna exports to Japan. At the end of the case study, an assignment is provided for the students to review their learning about Japan through this course.

Hello, friends.

Welcome.

In this episode, I am going to discuss with you one case study that is related to the exports of tuna fish from India to Japan.

This case study is about Mr. Gupta of Gupta Enterprises, who is based in Mumbai.

Let me tell you that this particular case study is inspired by real events, but the names and the locations, and other things have been changed. The technical facts are based on real incidents.

The idea of this case study is for educational purposes, for learning, and for a better understanding of the concepts.

This case study is about the tuna exports from India by Mr. Gupta of Gupta Enterprises, which is based in Mumbai.

Mr. Gupta has been in fish exports and fish-related products exports for more than 15 years, and he was already exporting to countries like the US and the UK, but he was very keen to get into the Japanese market, and for some reason, he was not able to get the business. He was trying a lot with Japanese importers, especially; he was interested in exporting tuna because that was one thing he was already exporting to the US and UK, and a few other countries, and he got very good responses from the overseas buyers for his tuna business.

He wanted to expand his tuna business to Japan, and he had been trying for the last four or five years, but he was not getting into the Japanese market. He was not able to understand why he was not getting a response.

Later, he realized that to enter the Japanese market, he really needed to understand the market. He had to understand the importers, the culture, and things that may not be directly related to fish, but about the Japanese market, about Japanese business, and how business is done.

After a long time, he realized that he had to learn everything about Japan; only then would he be able to understand how to get into the Japanese market. He studied Japan. He studied the business culture of Japan. He studied Japanese government policies and several case studies about the Japanese market. Within three to four months, he felt confident about dealing with Japanese importers and how business happens in Japan.

He then realized that somewhere he was making a mistake. He was not able to create the right strategy for expanding his business into Japan, and he was now more confident about it.

He was looking for a good opportunity in the sense that he understood that the normal type of tuna business — tuna fish of quality that sells at around $1.50 to $2 per kilogram — probably was not the product that would get him entry into Japan. He understood that Japanese importers require premium quality with a strong value proposition. He was looking for that important formula and the product that could convince a Japanese importer that it was a unique value proposition. He was searching for the right supply-side opportunity.

While looking at business advertisements in one of the leading newspapers in India, he saw an advertisement by the Lakshadweep administration promoting tuna fish harvested in Lakshadweep. Lakshadweep is a group of around 35 islands, a union territory of India, located almost 250 to 400 km off the western coast of India. It is a very small union territory with a total landmass of just 32 km² across the islands. Only ten of the 35 islands are inhabited; the rest have no resident population and are dependent on fisheries.

A seminar was to be held by the Fisheries Department of the Lakshadweep administration, inviting people involved in tuna exports and fish exports. Mr. Gupta immediately sensed an opportunity and registered for the seminar, which was to be held next week. He booked his ticket to Agatti Island in Lakshadweep and reserved a hotel where the seminar would take place.

He visited Agatti. Agatti Island has an airstrip. The island is very small — about 7.5 km long and 1.5 km wide. The seminar was to be held on this island, and Mr. Gupta booked the hotel for two days at the same venue.

At the seminar, Mr. Gupta found the presentations by the Lakshadweep Fisheries Department very interesting. They said that tuna harvested from the 20,000 km² catchment area of Lakshadweep has the potential to yield approximately 100,000 tons of tuna every year. Because there are virtually no industries on the islands and a very small population of about 70,000 people who depend mostly on deep-sea fishing, the catchment area is free from industrial pollution and chemical contaminants — an organic harvesting environment.

The second important point presented was that the fishermen of Lakshadweep use traditional methods that are internationally certified as organic and sustainable for harvesting tuna. This certification is a very good selling point. Although the price of Lakshadweep tuna is higher than average — for example, if mainland tuna sells for around INR 125 per kilogram, Lakshadweep tuna might cost around INR 200 per kilogram — the quality is premium, organic, contaminant-free, and carries an internationally recognized sustainable-catch tag.

This opportunity aligned with what Mr. Gupta had been seeking. He extended his stay, spoke to officials about processes and requirements, conducted research in Lakshadweep, and made contacts within the fisheries department. With this information, he returned to Mumbai and shared the opportunity with his Japanese contacts, whom he had been in touch with for many years.

One Japanese contact showed interest in the Lakshadweep organic tuna. The contact noted that handling is critical in tuna: as soon as tuna is caught, it must be treated so that the skin color and other features do not change; it must retain its original color and freshness. After these discussions, one of the Japanese importers invited Mr. Gupta to Tokyo for a presentation with a group of importers.

Mr. Gupta prepared carefully and took a direct flight from Mumbai to Tokyo. At Haneda Airport, he was greeted by the interested contact, who took him to a hotel near the airport and arranged a meeting with a consortium of importers primarily based in Toyosu, the world’s largest fish market.

Mr. Gupta arrived at the hotel, prepared for the presentation the next day, and ensured it would be perfect. He designed the presentation to incorporate what he had learned about the Japanese market, Japanese business practices, and the value proposition of the Lakshadweep tuna. Doing business with Japan had been his dream for more than five years, and the presentation could make it possible.

The next day, he was picked up by his contact and taken to Toyosu Market. Toyosu, which replaced the old Tsukiji market in 2018, is modern, sophisticated, and massive — an almost 400,000-square-meter complex with auction halls, wholesale and retail areas. Many importers have offices in the market complex, and Mr. Gupta was impressed by the scale and modernity.

The presentation was arranged in a conference room within the market complex. Below the conference floor are many wholesale fish stalls; visitors are not allowed into the halls for hygiene reasons, but viewing galleries allow observation of the activity and auctions.

Mr. Gupta presented to five or six Toyosu importers, explaining that Lakshadweep tuna is organic, chemical-free, and that he could supply at least five tons daily by air from India. The importers showed visible interest but did not disclose their thoughts. Mr. Gupta’s presentation lasted almost three hours, with many facts and statistics. He explained tuna exports from India, the size of the Japanese market (about $20 billion per year for tuna), his existing business with the US and UK, and the premium nature of Lakshadweep tuna. He proposed an exclusive arrangement to supply the Lakshadweep variety through his company if the importers could commit to at least five tons per day.

He also indicated an approximate CIF Tokyo price for the premium Lakshadweep tuna. After the presentation, the Japanese importers were reserved and noncommittal. The contact who had invited Mr. Gupta returned him to his hotel and mentioned that the importers typically require at least two days to decide on trial orders or initial commitments. If Mr. Gupta was willing to wait two days, they would discuss it.

Since Mr. Gupta wanted this Tokyo deal — Tokyo being the world’s largest market for tuna and Toyosu the leading fish market — he agreed to extend his stay for two more days and wait for the final answer and any negotiations.

Friends.

Mr. Gupta stayed in Tokyo for two days, and he visited some very interesting places with some of his other business contacts. His visit to Tokyo was his first time, and he really wanted to see certain places in Tokyo. He spent a good time in Tokyo learning about Japan and about doing business with Japan.

It was a little longer wait for two days. He was just waiting for any confirmation from the importers from the Toyosu market.

In the evening of the second day, he got a call from his main contact, the main importer, who wanted to meet him for dinner in one of the restaurants. Mr. Gupta went there as advised by the contact. The contact told Mr. Gupta that the five-importer consortium was willing to do this business. He gave a sheet — the final sheet — which was finalized by all five importers of the Toyosu market, and they were keen to start business. They wanted to start with a daily supply of five tons for 90 days, and if everything went well, the duration would be extended further.

The sales sheet given by his contact in Japan from the Toyosu market stated that the consortium was willing to offer a price of ¥1,000 per kilogram of tuna fish of the Lakshadweep variety, and they were willing to give the order for a five-ton daily supply to be sent by air with direct flight from any major Indian port to Tokyo. The validity of the contract was six months, but the supply was valid for 90 days only. This was a trial-order arrangement and, if successful, would be extended orally.

The payment terms offered were 15 days’ supply value to be paid as an advance on a CNF basis, and the balance by direct bank transfer 15 days after the last air waybill date of the 30-day supplies. For every 30-day supply, whatever the last (30th) day’s air waybill date was, within 15 days, the balance would be transferred directly to the bank. There was no letter of credit.

There were other conditions. Use of straw packing material was prohibited. Proposed packing had to be cleared with the importers, as they had a definite preference; this would be confirmed by videos sent by Mr. Gupta before shipment. Goods should be marked according to normal commercial practices with metric weights and measurements only, and a Japanese translation text was required on the markings.

A certificate issued by an approved authority in the country of origin, India, in this case, stating that the animals were free from designated infectious diseases was required. Mr. Gupta had already completed this formality for the USA and the UK. Fax signatures were not permitted. Typing and other errors in documentation should be avoided at all costs, as these often result in serious delays and complications at the point of entry in Tokyo.

The documentary requirements listed on the sheet included a commercial invoice: a minimum of three signed copies by the supplier, including marks and serial numbers of the packages, description and quantity of goods, CIF value (this correction was clarified by the contact), place and date of preparation, destination and consignee, name of the vessel, import license number (to be provided by the importer), and conditions of the contract relating to determination of value. It was strongly recommended, whenever possible, to include the HS commodity classification of the goods to be imported. Complete invoices and packing lists should be forwarded promptly to the importer by airmail.

Regarding insurance, air insurance from the main Indian international airport to Tokyo was not to be paid by the seller, hence CNF. A copy of the insurance certificate against the importer’s recurring insurance policy would be provided by the importer. The air waybill was required in ten copies (one original and nine copies) to be sent by airmail to the importer; a fax copy should be sent without delay after shipment. Packing list: two copies. Certificate of origin for GSP concessions must be issued by the diplomatic officer at the Japanese Consulate in India.

Other requirements included a health certificate from the country of origin by an approved authority (the Fisheries Department of the Lakshadweep administration in this case), a complete text and representative video of the fish catch and the handling post-catch (this formality was one-time only), no food additives at any stage, and chemical analysis certificates proving absence of unwanted chemicals in the fish.

The note given to Mr. Gupta was valid for seven days. He could review the note and, if any discussions were required, enter a Zoom meeting after returning to India. He could also send a fax or request a video conference with the importers. Mr. Gupta thanked the contact person — the main importer, who had been in touch with him for a long time. He then left Tokyo the same night and returned to Mumbai.

Many thoughts were running through Mr. Gupta’s mind. He reviewed the note several times and tried to identify potential challenges in the offer. He had almost seven days to reply and confirm the business, and he was quite happy to have a concrete offer from the importers. The offer was on the proper letterhead of the importers’ consortium and signed by all importers, which made it credible.

He immediately prepared a cost sheet. According to his calculations, the CNF Tokyo price offer of ¥1,000 equated to approximately INR 680 per kilogram. The cost of buying ex-Agatti airport and export packing was included, along with the requisite handling by the Lakshadweep fishermen, who would be trained in handling (a one-time training for the cooperative fishermen, supported by the Fisheries Department).

Mr. Gupta’s research suggested that the Lakshadweep ex-Agatti price could be kept below INR 200 per kg for the foreseeable future, barring any major price jumps. He confirmed this with the Lakshadweep Fishermen’s Cooperative and key fishermen. He also negotiated with airlines operating from Agatti. A comfortable freight price of INR 50 per kg from Agatti to Bangalore by chartered flight was possible; Air India Alliance offered a concessional rate, given the return leg would carry essential commodities for the islands. From Bangalore to Tokyo on a regular cargo flight, Mr. Gupta initially obtained a price equivalent to ¥360 per kg, which he was able to negotiate to about INR 245 per kg.

He included incidental costs — training, documentation, certification charges, and Fisheries Department formalities — estimating other costs at around INR 5 per kg. The total cost to deliver at Tokyo airport amounted to INR 500 per kg versus a receipt of INR 680 per kg. This left Mr. Gupta with a gross margin of INR 180 per kg. For a daily supply of five tonnes, the daily profit worked out to roughly INR 900,000 (nine lakh rupees).

There were challenges: this was a first-time deal, Japanese customers are very demanding, and Mr. Gupta wanted the order to continue beyond the 90-day trial. He was optimistic about both current and future profits but remained concerned about potential cost overruns and the strict documentation requirements in the sales sheet.

Mr. Gupta took two to three days to review the note, consulted many people, and even revisited Agatti Island to discuss the likely difficulties and challenges for the 90-day trial. The Fisheries Department of the Lakshadweep administration pledged full support.

Mr. Gupta had to decide whether to accept the deal. This case study requires careful brainstorming and application of the lessons learned in this course. I would like you to attempt the assignment that follows this case study in the next lecture and submit your answer in the assignment section. Your submission will be reviewed by me, and after review, I will share my solution and comments.

At the end of the assignment, you can view a video I uploaded discussing my views on this deal, its challenges, and opportunities. In your assignment, please outline the challenges and opportunities you see. If you believe the cost estimation contains errors or potential overruns, mention those. Also, analyze any documentation and procedural challenges related to tuna exports to Japan as noted in the sales sheet.

Thank you very much.

Congratulations on completing this important exports mastery skills course. Watch the concluding remarks by the instructor in the next video.

Friends, in this course, my goal was to innovatively help you understand the Japanese market through different case studies and lectures, and I also introduced certain documentaries on Japan.

The purpose of these documentaries was to acquaint you with Japanese day-to-day life, culture, food, and some hard-to-find knowledge about Japan, helping you to truly feel and understand the country.

In this course, I talked about the unique culture of the Japanese people and the reasons behind it. I discussed the opportunities and challenges available in Japan. I explored Japan as a potential, huge export market. I discussed the banking sector of Japan. I explained the role of the Japanese government in relation to business activities in Japan, including trade barriers, tariff barriers, and non-tariff barriers. I also discussed various sources of information available for understanding Japan.

Overall, I aimed to make it easier for you to understand Japan and to become more confident while doing business there.

I am very sure that this course has helped you to understand the business environment in Japan, and you are now able to appreciate the existing situation — the nature of the customers, the reasons for Japan’s unique market characteristics, and what can be done to succeed in Japan.

I will be adding more case studies to this course in the future, and this course is available to you for a lifetime. Whenever I add new case studies on doing business with Japan, I will keep you informed.

It is not that once you complete this course, it ends there — that’s not true. I will continue adding new resources, and whenever you receive updates, I encourage you to go through the new additions, resources, or case studies.

I am very sure that this course will continue to help you deepen your understanding of Japan and build a successful career in doing business with Japan.

Thank you very much.

Hello to you!

Today, I have some appreciative comments for you.

I want to take a moment to congratulate you on fully completing this course.

Your dedication and perseverance throughout this journey have been truly commendable.

Completing a course is no small feat, and I am incredibly proud of the progress you have made and the knowledge you have gained along the way.

I also want to remind you that this course is just one piece of the puzzle.

It is part of our larger VJ Export-Import Mastery Courses series, consisting of 25 courses that I mentioned earlier as well.

These courses are designed to provide you with a comprehensive understanding of the export industry.

On my part, as I mentioned earlier, too, I am committed to helping you expand your learning even further by giving you access to more similar courses in the series. On your part, I again have a small request for you.

Your feedback and rating are incredibly valuable in refining this course and ensuring it remains world-class.

I kindly ask you to leave a rating for the course along with your honest feedback, in case you have not done so yet.

Once again, congratulations on completing the course.

Keep up the fantastic work that you have done in this course, and remember, I am here to support you every step of the way.

Personally! Even after you have completed this course, you can reach out to me anytime for any mentoring or support that you may need.

Thank you very much.

Based on the learning objectives and content of this course, "All About Doing Successful Business in Japan," students may benefit from pursuing certifications that enhance their knowledge of international business, cross-cultural management, export-import trade, and Japanese culture. Below is a list of relevant international certifications students could consider:

International Business and Trade Certifications

1. Certified Global Business Professional (CGBP)
   Offered by NASBITE International, this certification covers global business management, global marketing, supply chain management, and trade finance, aligning well with the topics of setting up and managing business in Japan.

2. Certificate in International Trade and Finance (CITF)
   Offered by The London Institute of Banking & Finance, this certification is ideal for understanding trade finance and the banking support mentioned in your course.

3. Certified International Trade Specialist (CITS)
   Provided by the International Import-Export Institute, this certification focuses on the intricacies of international trade, which includes market entry strategies, similar to Japan as an export market.

4. Export Professional Certificate
   Offered by the International Chamber of Commerce (ICC), this course provides insights into trade barriers, business risks, and export market strategies like those discussed in your course.

Cross-Cultural and Business Management Certifications

1. Intercultural Management Certificate
   Offered by various institutions (e.g., Hofstede Insights), this certification focuses on analyzing and adapting to cultural dimensions, including Japanese culture, as highlighted in Lectures 6–9 and 13–14.

2. Cross-Cultural Competence Certificate
   Available through online platforms, this certification teaches students to manage cultural differences effectively, enhancing their ability to navigate Japanese business etiquette and management styles.

3. Certified Manager (CM)
   Offered by the Institute of Certified Professional Managers, this certification equips students with global management skills, including aspects of Japanese management features.

Specialized Certifications in Japanese Business and Culture

1. JLPT (Japanese Language Proficiency Test)
   While not directly tied to business, learning Japanese language skills complements understanding Japanese culture and can enhance business relationships.

2. Japan External Trade Organization (JETRO) Programs
   JETRO offers various training programs and certifications focused on Japanese market entry, trade, and investment strategies.

3. Keio Business School Executive Programs
   Short certifications offered by Keio University in Tokyo focus on Japanese management and business practices.

Export and Logistics Certifications

1. Certified Customs Specialist (CCS)
   Relevant for understanding trade barriers and compliance in Japan, this certification helps navigate Japan’s strict import-export regulations.

2. Certified Export Specialist (CES)
   Focused on export compliance and logistics, this certification aids students in mastering export operations, like the Tuna case study discussed in your course.

3. Global Logistics Associate (GLA)
   This certification is suitable for students looking to understand supply chain dynamics in markets like Japan.

Entrepreneurship and Business Etiquette Certifications

1. Certified Business Etiquette Trainer
   A certification in business etiquette equips students to train others or improve their own understanding of Japanese business norms.

2. Entrepreneurship and Business Setup in Asia (Certificate)
   Offered by some regional trade bodies, this certification aligns with lectures on business setup and settling costs in Japan.

These certifications partially align with the themes of this course and provide students with valuable credentials to enhance their skills and careers. Let me know if you'd like specific details on accessing any of these certifications!

Continue to the practice test in the next lecture. It will be very helpful for appearing in the above certification exams.