Phoenix Direct Management – Tokyo, Japan Review

MARCH 2018: THE EXPAT PERSPECTIVE

There are many reasons to love living in Tokyo. Expats have long had a fascination with the city which has been ranked the best city in the world for three years running by Monocle magazine. What makes a city livable is subjective, but certain things can be agreed upon, like safety, cost of living, ease of accessibility, cleanliness and access to green spaces. And with the 2020 Olympics fast approaching, one of the most well run cities in the world is doing everything possible to clean up its act.

Foreigners love living in Japan. Tokyo has the highest number of Michelin rated restaurants in the world, there are bars everywhere and after work drinks are a regular part of work life. The city is colorful and quirky, combining the buzz of a big city and the charm of small localized neighborhoods. The vast number of banks and multinational companies have a presence there, and the expat community is lively. Gaijin (foreigners) are welcomed as honored guests. Locals expect them to make mistakes and are forgiving as long as people seem to be trying.

THE LAND OF THE RISING SUN

The country was originally called Nippon, or Nihon. This originated from Imperial Chinese and translated directly as “sun origin”, since from the Chinese perspective, the sun rose over Japan. The name remains relevant for this futuristic and innovative city. The city seems to vacillate between a futuristic movie set and a trip into the past and one can feel like a time traveler moving among the neighborhoods, where Shinto temples adjoin high-rise automated parking lots.

ADJUSTING TO EXPAT LIFE

Most expats thrive in Tokyo, once they adapt to the local culture. Living spaces are compact, the community is extremely homogeneous and English is less common than other major cities. And while rents are high, an efficient transportation system allows people to live easily without a car and most other expenses are relatively low compared to local salaries so one can live comfortably and affordably. The expatriate community tends to concentrate in the city center and there is a lively social scene. The crime rate is low, and unlike other large international cities, locals don’t scam foreigners or take advantage of them.

SOCIAL ORDER

Westerners arriving in Japan are shocked by the societal differences they encounter. While youth is revered in the West, the elderly are highly respected and people in senior positions must be treated with deference. Seniority and societal rankings are an important element of business organizational structure. Women in management should expect some challenges with older employees. Japanese people are reserved and overly polite in their interactions, one of the reasons that Tokyo functions so well, despite being one of the densest urban environments in the world. The Asian concept of “face” is also important, and interactions are structured to avoid the possibility of anyone losing face. The general formality is jarring at first, but once foreigners internalize these concepts their daily life becomes much smoother.

ETIQUETTE TIPS FOR DOING BUSINESS IN JAPAN

Young Japanese are comfortable with western business cultures, but older generations tend towards local customs and traditions. Kaizen is a concept that underlies Japanese business culture. It refers to a constant drive towards self-improvement. Japanese don’t expect Westerners to understand all elements of their culture. As long as they are making an effort, that shows Kaizen. Phoenix Direct Management includes the following tips at the conclusion of their training review:

• The traditional greeting is the bow, but locals expect foreigners to shake hands.
• Wait to be introduced. It is viewed as impolite to introduce oneself.
• When invited to a private home, remove one’s shoes before entering and put on the slippers that are left by the door.
• The eldest person in any group is always honored. To show respect, they are served first and drinks are poured for them in meetings and social situations.
• Giving gifts is a common ritual and helpful in establishing business relationships
• People are more attentive to non-verbal forms of communication. Be mindful of posture, tone of voice and facial expressions.
• Office attire is formal business wear.

ESTABLISHING RELATIONSHIPS

Many of the same rules apply to both personal and business relationships. Successful expats have healthy balance in life and strive to expand their networks both professionally and to make friends. Again, it bears repeating that there is a high level of formality and politeness in society. Personal space is respected, and relationships take time to grow. Do not ask personal questions when meeting someone for the first time. Westerners also need to get comfortable with silence, which requires patience. People in Tokyo are open to bond with westerners, but bear in mind it will take several meetings to establish trust. Japanese are non-confrontational and it is best to avoid aggressive public debates or disagreements. Calm and humble behavior is respected in a work environment, as is seniority. Young go-getters need to temper their aggression to be successful here.

ABOUT PHOENIX DIRECT MANAGEMENT

Phoenix Direct Management is a privately owned boutique investment firm based in Tokyo, Japan. They service an elite clientele seeking exceptional returns, the highest level of service and offshore and expat investment solutions. Their elite team combines the best of local and international talent from a multidisciplinary background. Interested investors are welcome to contact the company and arrange to speak to an Investment Advisor to review their global holdings and answer any questions.