web analytics
July 29, 2014 / 2 Av, 5774
Israel at War: Operation Protective Edge
 
 
News & Views
Sponsored Post
IDC Advocacy Room IDC Fights War on Another Front

Student Union opens ‘hasbara’ room in effort to fill public diplomacy vacuum.



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.

SocialTwist Tell-a-Friend

Current Top Story
Some of the missile fire comes from launchers planted in cemeteries, mosques, schools and hospitals. This is an aerial photo of one such launch in Beit Lahiya earlier this week.
Sleepless in Rishon Lezion, IDF Attacks in Gaza Continue
Latest News Stories
Some of the missile fire comes from launchers planted in cemeteries, mosques, schools and hospitals. This is an aerial photo of one such launch in Beit Lahiya earlier this week.

While Israelis couldn’t sleep in Rishon Lezion, IDF pilots were busy making sure Gaza terrorists were awake Monday night as well.

Rami Levy in one of his supermarkets.

Without fanfare, supermarket magnate Rami Levy has been quietly unloading truckloads of food and basics at the homes of all the fallen soldiers…

05_04_51---Candle_web

After killing 5 IDF soldiers, Hamas terrorists tried to steal the soldier’s bodies.

Israeli Prime Minister Binyamin Netanyahu and U.S. Secretary of State John Kerry, dining at the Prime Minister's residence, Jan. 4, 2014.

Kerry’s performance panned by Israeli public, media, and even the PA. Why fury directed only at the Israeli government?

Netanyahu and IDF Chief of Staff Gantz announce Israel will not stop the war until all terror tunnels are destroyed.

This is probably the first time in my life I’ve seen an IDF barber. Who knew we even had them! (Notice he’s using an electric shaver!)

2:29am Multiple rocket sirens towards Tel Aviv-Yafo, Rishon l’Tzion, Bat Yam, Holon….

The IDF spokesman has released the names of the soldiers who were killed this evening.

Bibi said: “Death from above, death from below,” will not continue to threaten the people of Israel.

IDF soldiers killed five terrorists who attempted to infiltrate from Gaza Monday evening near Nahal Oz in Sha’ar HaNegev, foiling another attack.

Intelligence minister meets journalists in Jerusalem, compares Gaza to Judea and Samaria as proof that quiet begets quiet.

Another massive missile barrage made it clear Monday night Hamas has no interest in a cease fire.

Moslem Brotherhood considered enemy number one in Cairo; Gaza branch responds to slight by firing at Israel.

Hamas terrorists attacked their own people Monday, with short-fall rocket fire exploding at Al-Shifa hospital in Gaza.

A Hamas rocket attack on the Eshkol region has murdered numerous Israelis…

Is MK Zoabi planning to copy her “rebbe”, former Balad MK Azmi Bishara, by skipping the country?

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.

    Latest Poll

    Do you think the FAA ban on US flights to Israel is political?






    View Results

    Loading ... Loading ...

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: