A critical mistake for Western companies in Japan is pursuing a transaction before a relationship. The Japanese business culture requires building deep trust and rapport as a prerequisite for any deal. The long courtship is a litmus test for commitment, not just a formality.
When selling cross-culturally, it's better to admit you're not an expert. Do your research, but also state that you understand you don't live in their world and what you've learned may not be perfectly accurate. This humility builds more trust than pretending to be a cultural insider, which can backfire.
Trust isn't just an emotion; it can be built methodically. First, use repeated exposure to move from being a stranger to a known entity. Second, before making a key point, establish a baseline of shared values to create an environment of agreement.
Unlike the transactional US market where the offer is king, success in the Middle East hinges on building relationships. Factors like shared nationality and personal character can be more influential in the sales process than the product itself.
Formal cultural diligence can be staged. A more authentic assessment comes from informal settings. Observing how a target CEO and their team treat service staff reveals their true character and provides a powerful, unfiltered indicator of cultural compatibility or potential red flags for integration.
Expanding into the US, the speaker found that American professionals excelled at presenting themselves. Enthusiastic meetings rarely converted to business and impressive interviewees didn't always perform, revealing a deep cultural gap where conversational enthusiasm doesn't equate to commitment.
While traditional sales emphasizes being liked, CFOs exclusively buy on trust. They don't need a personal relationship, but they must believe in your competence and the integrity of your numbers. Focus on building data-backed credibility, not just personal rapport.
Don't assume a sales call's purpose is universal. In some cultures, like Vietnam, the goal is deep information exchange, and meetings run long. In others, like Spain, the focus is on relationship-building over extended, informal dinners. Misreading this core objective will lead to failure.
Successful, long-term vendor relationships are built on cultural alignment and a shared vision, not the lowest bid. Intensive due diligence should focus on finding a partner who is transparent, trustworthy, and willing to innovate and grow with your organization. A mismatched culture will lead to revisiting the selection process within a year.
Assessing cultural fit can't be done in a formal, time-crunched diligence process. Snowflake approaches M&A like dating, building relationships with companies over time. This long-term engagement allows for genuine discovery of values and operational style, de-risking the 'cultural diligence' aspect of a potential acquisition.
When recruiting in Japan, understand that candidates are typically more risk-averse and passive. Unlike in the U.S. where talent weighs the opportunity cost of *not* joining a high-growth startup, Japanese candidates often prioritize stability and risk management.