Episode #244: The Craziness Of Sales In Japan

Japan’s image as a sophisticated country with a solid, unique traditional culture is well placed. For example, every year around 130,000 Shinkansen bullet trains run between Tokyo and Osaka, bolting through the countryside at speeds of up to 285 kilometers an hour and boast an average arrival delay of 24 seconds. Think about that average, sustained over a whole year! Such amazing efficiency here is combined with basically no guns, no drugs, no litter, no graffiti, very little crime and the people are so polite and considerate. If you step on their foot in the crowded subway cars, they apologise to you for getting their foot in the wrong place. If you drop your wallet there is a close to 100% chance of you getting it back, intact. Considering all of the above and with the biggest concentration of Michelin three star restaurants in the world, no wonder Tokyo is the best city in the world to live in. Once Covid is contained, put Japan on your bucket list folks, you won’t regret it. Yet sales professionalism is still so far behind, by Western standards.

I am going to make incredibly broad, general statements here, but actually they are true for most salespeople in Japan. How do I know this? We have been teaching sales training here since 1963 and these are the things companies consistently ask us to fix. Let’s highlight a few things which may surprise you about sales in Japan.

1. Asking for the order is avoided. Saying “no” is culturally taboo, so the best way to avoid having to say it or to hear it, is to save everyone’s face and leave the outcome deliberately vague. There are shelves of books in English on how to close the sale, many are in translation, but not a great take up here as yet.

2. When the seller meets any resistance from the buyer, the first reflex is to drop the price by 20%. Western sales managers would be apoplectic if this was the default objection handling mechanism. Here defending your price, through explaining the value, is thrown overboard and simple price point reductions are the preferred lever.

3. Objection handling skills are weak, because the seller sees the buyer not as a King but as a God. The seller’s job is to do everything God wants. The salespeople are predominantly on base salary and bonus remuneration arrangements, so not much commission sales “fire in the belly” going on here.

4. Salespeople love the spec, the data, the detail and are not so keen on the application of the benefits. How do we know this? I am a buyer here too and in they come bearing their catalogue, flyer or their slide deck to take me through all the details. Surprisingly, they never rise above the spec waterline to talk about value or benefits or how to apply the benefits. It is the same in our sales classes and we see this phenomenon in the role play sequences. Salespeople struggle to think about what the spec represents in terms of the benefits to the buyer.

5. This opens up the can of worms about understanding buyer needs. By any definition, getting straight into the detail of the product or service, without asking the buyer any questions, is insanity. Yet this is normal here. So much for all that slick American consultative sales jive. We are back to the God problem. The seller must not brook God’s displeasure by rude behaviour, such as asking questions about what are their firm’s problems.

6. Ergo, the buyer completely controls the sale’s conversation. They demand the pitch be made straight up, so that they can lacerate it, to make sure all the risk has been cut out. Buyers are incredibly risk averse in Japan. This a zero default, no errors, no mistakes business culture. This is great as a consumer of course. However, the seller is not considered a partner here, more of a slave to the buyer’s every whim and demand.

7. So the Japan business sales process is pretty “refined”. There are only three steps. The salesperson opens with their pitch, then we move immediately to client objections. Next, the buyer will get back to you, but probably not. How does any business get done here? Please see the next section!

8. Sellers really prefer to concentrate on existing clients, rather than running around trying to find new clients. They rely on the firm brand to do all the prospecting work, rather than their skill as a professional in sales. Hunters are a rare breed of salesperson in Japan, as everyone prefers being a farmer. This is probably true of everywhere, because obviously it is much easier to keep the business going, than to start a new piece of business. Japanese salespeople just take it to new heights of speciality.

9. Salespeople never think to ask permission of the buyer to ask questions. Such a simple thing, but so hard to break out of your own cultural context to actually execute. Once we teach them how easy it is, the scales literally fall from their eyes and they become true believers in asking questions, before introducing anything about the detail of their solution line up.

The first foreigners who lived in Japan in the late 19th Century often described Japan as a “topsy turvey” world, because so many things were opposite to what they were used to back in Europe and America. The differences are what makes it so fascinating and why I have been here for 36 years and am never leaving. These differences are also a big business opportunity too, as many companies have found, including ourselves. See you over here after Covid!