web analytics
July 6, 2015 / 19 Tammuz, 5775
At a Glance
News & Views
Sponsored Post


WIN SOME, LOSE SOME

Israeli Companies Just Can’t Make It in the Japanese Market

Israel's share of Japanese imports is a mere 0.11%, compared to 0.27% of the rest of the world's imports.
Japanese visitors in Jerusalem's streets show their love for Israel, but they don't buy Israeli goods.

Japanese visitors in Jerusalem's streets show their love for Israel, but they don't buy Israeli goods.
Photo Credit: Yossi Zamir/Flash90

Israel and Japan are celebrating sixty years of diplomatic relations, and so, a week ago, the Israel-Japan Chamber of Commerce marked the occasion with a festive event. But the current commercial ties between the two countries gives less cause for celebration. Israeli businesses find it difficult to understand the Japanese market and Japanese companies are not in a hurry to reach Israel, The Marker reported.

“I have been exporting diamonds to Japan since the sixties,” said Shmuel Schnitzer, Vice Chairman of the Israel-Japan Chamber of Commerce. “Japan is a nation with whom it is a pleasure to do business. When you play according to their rules, the Japanese client will be more loyal to you than any other client in the world. He will remain loyal to you even when a competitor offers merchandise at a lower price, and he won’t switch suppliers.”

Another exporter, selling water infrastructure, has been experiencing difficulties breaking into the Japanese market. “We joined up with a trading company, which, by and large, is how you do business in Japan,” he said. “We approached our targeted clients – beverage and bottling companies. We also tried to connect with engineering companies in the water business. Procedures in Japan are very lengthy, costly and difficult. The culture gaps are enormous. I’ve been to Japan twenty times. I’ve learned that not only do I not understand the Japanese, but I have no chance of ever understanding them.”

Israeli exports to Japan are still modest, and according to that exporter, the main obstacle is the Japanese perception of technology and marketing. “We haven’t succeeded in explaining to the Japanese concepts that are practiced in other parts of the world. One of the central issues there is the concept of time. Procedures are conducted from the bottom up, and nothing happens without consensus. Reaching a consensus depends on every single employee understanding the product or proposal. There is only a technological approval after this entire process is completed.”

The same exporter added that there are definitely language comprehension difficulties. “In one of the rounds of talks, they said ‘yes,’ but meant ‘no.’ Plus, they prefer locally-produced good. If there is a comparable Japanese product or technology, they will prefer it.”

Another obstacle preventing penetration into the Japanese market, according to the exporter, are the high prices. From his experience working in another company, he said, but “the potential is tremendous and the minute you penetrate the market, it’s a real success.”

Trade between Israel and Japan is volatile and varies between $2.5 – $3 billion annually. About 25% of this is Israeli export and the rest import. Cars (mainly Toyota and Subaru) make up a significant part of the imports. Last year, this included machinery and equipment. According to informed sources, the increase in car imports is a result of car imports by Intel as part of their investment in their Kiryat Gat, Israel, plant.

There was a marked decrease of 13% in trade with Japan (down to $1.4 billion) in the first half of 2012 in comparison with the first half of 2011. Exports dropped 8% to $341 million; imports dropped 15% to $1.1 billion. A 38% drop in automobile imports is predicted.

“We haven’t managed to crack Japan,” said Shauli Katzenelson, chief economist for the Export Institute. “Our rate of penetration into Japan stands out negatively compared to the rest of the world. Our share there is a mere 0.11% of their import, compared with our overall percentage of the world imports, which stands at 0.27%. Even when allowing for Japan’s huge oil imports, our situation there is not good.”

Roni Burstein, chairman of the Israel-Japan chamber of commerce and a Kikoman importer for more than 20 years, said “the problem at the moment is not with the Japanese but with us. If Israeli companies give Japan a high priority, which means investing in entering the market, in the end it will pay off, even if it takes a long time. It’s a market of 130 million homogeneous consumers. Once we get in, we won’t be easily kicked out.”

About the Author:


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

No Responses to “Israeli Companies Just Can’t Make It in the Japanese Market”

Comments are closed.

Current Top Story
Future guard? Arab child with Hamas headband aims toy rifle on the Temple Mount after prayers in the Al Aqsa mosque.
CNN Promotes Old City on Verge of Extinction Due to ‘Political Tension’
Latest News Stories
Firefighting over Ein Yael, Jerusalem

Firefighters fought a large fire in Ein Yael, Jerusalem, located opposite the Biblical Zoo, and up the road from Malcha Mall.

John Kerry says in Vienna today what he said in Switzerland three months ago.

Reporter Laura Rozen: “How many ways can I say significant progress made but important differences remain?”

Future guard? Arab child with Hamas headband aims toy rifle on the Temple Mount after prayers in the Al Aqsa mosque.

CNN put the UNESCO site at the top of the list, implied Israel it to blame for its being “endangered but failed to mention Jordan’s responsibility.

No eating today.

In three weeks, the Fast of the 9th of Av will be on the 10th of Av.

Netanyahu falsely accused Bennett of signing a coalition agreement that returns more power to Hareidim.

US-led talks with Tehran appear to have reached a deal on sanctions relief: but what about access to Iranian nuclear sites?

Arab leaders realize the existential threat posed by ISIS: Tunisia is at a state of emergency; Egypt has declared “war.”

Six terror fugitives were arrested by IDF soldiers overnight in Judea and Samaria.

PM Netanyahu this week identified ISIS and Iran as Israel’s primary threat. It is a planetary threat that carries the promise of peace.

Temple Mount activist Rabbi Yehuda Glick talks peace in Istanbul with a state official and on A9TV with Islamic scholar Adnan Oktar.

Yifat Shoham, one of the longest-running directors of Leumit HMO in Arad, has passed away. Baruch Dayan HaEmet.

Once again, rioting Arabs succeed in preventing Jews and other visitors from entering the Temple Mount.

Kerry spent the Fourth of July talking with his Iranian counterpart, Mohammad Javad Zarif.

Thirty Policemen escorted a total of 21 neo-Nazi in the “anti-Jewification” protest that flopped.

ISIS released a video of a modern-day replay of the thirst for blood in ancient Roman amphitheaters.

The woman who once kissed Suha Arafat has a different attitude when it comes to funding her campaign for president.

More Articles from Jacob Edelist
F130210FFMS04

“Over-exposure of security and intelligence activities may seriously harm state security.”

Handle of a footed marble basin decorated with Seilenoi heads, the 1st century BCE.

Lionized as “the greatest builder in human history,” King Herod was also demonized for his cruelty and his shady religious origins.

“We expect continued firing of hundreds of rockets in the coming days.”

The plan is to stagger their recruitment, to allow IDF manpower officials to study the process.

Hamas called the meeting to try and avoid further casualties.

Some of the supervised, ‘bug-free,’ leafy vegetable growers are using higher levels of pesticides than allowed by Health Ministry standards.

Iranian Defense Minister Ahmad Vahidi said on Sunday that Iran has in its possession UAVs (unmanned aerial vehicles) which are far more advanced than the one which the Hezbollah recently sent into Israel.

Last Sunday, Netanyahu told Likud ministers he plans on adopting part of the report without relating to broad legal interpretations, to avoid international criticism. Still, the proposal will add legal flexibility and remove bureaucratic obstacles, making Jewish construction in Judea and Samaria considerably easier.

Printed from: http://www.jewishpress.com/news/breaking-news/israeli-companies-just-cant-make-it-in-the-japanese-market/2012/09/10/

Scan this QR code to visit this page online: