Find sales agents or sales representatives in Japan

For a lot of products working with a local sales agent or with a dedicated sales representative can be a good solution.

Especially if you have a customized product or service, or you want to work with a number of resellers in the country, an agent can be the one connecting these parties to your organization abroad.

Agents can be individuals, but I often recommend to work with established companies who already have a good network and where you are not dependent on just one person.

Set up your sales force in Japan

Japan is known for its unique blend of traditional and modern culture. As of 2023, Japan has a population of about 125 million. It is notable for its technological advancements, rich cultural heritage, and influential economy.

Japan’s economy, with a GDP per capita of around $40,000 USD in 2023, is one of the most advanced in the world. Major industries include automobiles, electronics, robotics, and manufacturing. The country is also known for its strong emphasis on research and development.

Japan’s primary imports are machinery and equipment, fossil fuels, foodstuffs, chemicals, and raw materials for its industries.

Key cities include Tokyo, the capital and world’s largest metropolitan area; Osaka, known for its modern architecture and nightlife; Kyoto, famous for its historic temples and traditions; and Yokohama, a major port and commercial hub.

WHAT DO YOU NEED TO KNOW ABOUT JAPANESE BUSINESS Etiquette?

The business approach in Japan springs from its culture. The Japanese follow a group culture where the welfare of the society is its prime goal. It is based on ‘Honne’ and ‘Tatemae’, the difference between one’s true feelings and what a person displays in public. Personal opinions are sacrificed at times, according to the expectation of society. Hence, harmony is their top priority.

The Japanese believe strictly in hierarchy and are courteous to the core. They give importance to human relationships and mutual trust. These are the fundamental aspects of their culture that colour their business transactions and negotiations.

WHAT ARE SOME NEGOTIATION TACTICS IN JAPAN?

It is helpful to be aware of business procedures and etiquette before initiating business with the Japanese:

Japanese follow hierarchical order even at the initial stages of discussion. They prefer to deal with their equivalent counterpart.
Business cards are a must, clearly indicating the position held. The cards are to be offered with both hands to show respect for the parties.
The Japanese prefer an introduction to the business party through a known third source.
Discussions are more through written word and visuals as the Japanese are people of few words.
All business discussions are group oriented. Great emphasis is given to human relationships; any decision making involves all members.
Discussion and decision making are usually slow.
Any language or action that hurts or negatively influences reputation can deter proceedings.
Strict etiquette is followed; excuses are not accepted. Apologies are accepted and discussions are tinged with extreme courteousness.
At the same time, any favour is valued and repaid. The Japanese accept appropriate gifts as a mark of appreciation and value it greatly.
Peaceful and calm negotiations mark their meetings. They hesitate to say no and there are periods of total silence which may indicate either their acceptance or their disapproval.
Business meetings require a formal dress code.

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Alternatives for working with agents in Japan: local offices or distance selling

If you don’t want to work with agents, you can always set up a local office yourself or try to sell your product from abroad. This all depends on the product or service and the ease to reach the right buyers. Be careful with the contracts that you close with agents. In many countries their status is well protected and you can’t take their recurring income easily away from them.

Agents

Agents represent you in the country and have a limited negotiation room.
They often sell not only for you, but also for other parties.
A good agent already has a network in your target market and can start selling directly.

Local offices

Local offices are a costly option, but give you full control on your sales.
You have to send someone over and hire local staff and office facilities.
This gives the opportunity to do local marketing and business development from within the country.

Distance selling

If you product can easily be delivered and serviced from abroad (like software) this may be a good option.
Video conferencing is more accepted now and can limit travel.
Lead generation may be done with SEO, advertising and email marketing.

How to convince an agent to work for you?

I always put a lot of emphasis on drafting a good distributor pitch. Even if you already have great sales materials for your end-users, this often does not make clear what the benefits are for a potential agent, distributor or retailer to work with you.

When you approach potential sales channels with your standard documentation, chances are high that they are holding of. If you make it crystal clear what are the benefits for them, like in the example presentation, you will get a much higher response rate.

Please note that it helps to put concrete data in your presentation. You may think it is sensitive, but just know the secret is in how you achieve the rotation or the low returns level, not in the data itself. So share it here, in order to get the right attention.