World City Guide

Business

Business Profile
Presiding over the world’s second largest economy, Tokyo is the governmental, financial and administrative centre of Japan. Quick to embrace modern developments and fashions, following the 1868 Meiji Restoration, Tokyo has continued to be at the forefront of trends and technology and remains the country’s most cosmopolitan city. Japan’s current drive towards economic reform and deregulation was initiated in Tokyo and it is here that these measures are having their most immediate effect. Unemployment in the city, at 4.8%, is well below the country’s 5.3% average, while per capita income is over 40% higher than in other parts of the country. The service industry is the key employer in the city, followed by construction.

Most major Japanese companies have their head office in Tokyo and for foreign companies a presence in Japan generally means a presence in Tokyo. Companies in the city include Barclays Bank, Bloomberg, British Aerospace, Citibank, Hewlett Packard, IBM, Kellogg’s, Microsoft, Reuters and Unilever. The main business districts are clustered around the National Diet and Ministry buildings to the south and east of the Imperial Palace. The Metropolitan Government is located in West Shinjuku, Tokyo’s skyscraper office district.

In addition to the emphasis on the service industries and administration, Tokyo is Japan’s publishing and printing centre. Meanwhile, the busy Tokyo Bay port handles a high proportion of the country’s imports and exports. Recent deregulation has eased market entry for foreign companies and increasing numbers are now entering the Japanese market. The Nippon Convention Centre, Makuhari Messe (website: www.m-messe.co.jp/index_e.html), situated halfway between the city centre and Narita Airport, and the new Tokyo Big Sight complex (website: www.bigsight.or.jp/english/index.html), in Tokyo Bay, make Tokyo Japan’s major trade fair venue.

After a slow start, the Internet is now increasingly important to Japanese businesses. Hotel rooms are usually equipped with a telephone line supporting Internet use and international public telephones are equipped with modem jacks.

Business Etiquette
While Tokyoites are generally the most cosmopolitan of Japanese, many will be reserved in the company of foreigners, particularly when called upon to speak English. Whereas almost everyone under 50 has some basic knowledge of English, very few are able to speak fluently. Misunderstandings can easily occur and the use of professional interpreters is advised. Foreigners are not expected to understand the complexities of Japanese etiquette and allowances will be made cheerfully. However, it is worth bearing in mind that shoes must be removed upon entering homes, as well as some offices and restaurants. Also, tips are never expected – the practice is considered vulgar, as is eating while walking. Blowing one’s nose in public should also be avoided (it is, however, perfectly acceptable to sniff). Business clothes should be smart but conservative, with suits a must for both men and women. For men, grey and navy are the favoured colours – brown is looked upon with suspicion. It is probably impossible to be over dressed in Japan and business visitors can expect to be judged by their appearance. Business cards are an essential part of introductions – no one can expect to be taken seriously without them.

Corporate entertaining is done mainly in restaurants and ‘izakaya’ beer halls. Invitations to the homes of business associates are unusual. Drinking (beer, whisky and sake) is very much part of the culture, as is smoking. Corporate entertaining remains largely male dominated and business travellers’ partners are rarely invited to such events. For the most part, foreign buisnesswomen tend to be treated as ‘honorary men’ and it is not unknown for them to be taken to strip clubs. There are remarkably few Japanese businesswomen. Gifts are very important – they need not be particularly large or lavish – and are exchanged with great ceremony.

It is usual to refer to colleagues by their surnames and hierarchies should be respected. Business negotiations may require patience as directness is mistrusted and disliked, thus straight ‘yes’ or ‘no’ answers are generally avoided. Impatience is frowned upon and confrontation is out of the question, as it is considered a sign of gross weakness. Apologies and thanks are very important and should not be rushed. Normal business hours are 0900–1700 Monday to Friday.