OK, sounds unlikely, but bear with me...
One of the pleasing changes I discovered on returning to Japan after a few years away was the arrival here of Sarson's malt vinegar. Little portions of fish and chips in paper cones with a dash of vinegar are always popular if I'm hosting a reception. And as of last week the vinegar bottle provides another topic of canape conversation: the brand was acquired by Japanese company Mizukan, along with the rest of the products in Premier Foods' vinegar and sour pickles division. So piccallili goes Japanese!
Quite a few well-known British brands are actually Japanese-owned - Daks, Fray Bentos, Kwikfit. Who knew?! Quite often these changes of ownership go unremarked because, typically, Japanese companies tend to leave things relatively unchanged when they make acquisitions. That may be because things are working well as they are. But it can also be because the challenges of integrating two very different business cultures are a bit too daunting, so it's easier not to try. That means, though, that they miss out on the synergies they might otherwise generate with their existing businesses.
In the past that may not have mattered too much. But a number of factors are driving a surge of interest among Japanese companies in the benefits of developing business skills and behaviours that are more globally compatible. For a start there's the high yen, which is making exports from Japan uncompetitive. Then there's the inevitable shrinking of the domestic market as the population declines as a result of a persistently low birth rate. Add to that the need to develop new export markets to meet rising competition from South Korea, Taiwan and China, plus healthy balance sheets among trading houses, banks and other corporates, and the rush to offshoring and overseas acqusitions is hardly surprising.
According to a recent survey by the Ministry of Economy, Trade and Industry, the biggest challenge by far faced by these globalising companies is in securing and training staff who can function confidently and effectively in a global business environment. That means for a start good English-speaking ability, and some companies, notably Uniqlo and Rakuten, have gone as far as adopting English as their official language, even within Japan. Others have stepped up their training and secondment programmes. But it doesn't stop there: presentation skills, negotiating skills, cultural awareness, and other "soft" skills are also in demand, as are courses that enable Japanese employees to study for or convert their professional qualifications to international standards. And many companies which traditionally have relied heavily on seniority, long working hours and ingrained respect for authority to build a corporate culture and move people up through the hierarchy are now looking for advice on developing leadership skills and talent management systems that will work better with a more multinational workforce.
There is also a whole wave of new companies, particularly in the ICT sector, that have been "born global". Typically led by young, energetic entrepreneurs, their whole ethos is a million miles away from the highly traditional Japanese corporates. But as the HR manager for Gree, a fast-growing mobile games developer that is just setting up in the UK was telling me when I met her in London earlier this month, they are nevertheless struggling to recruit staff in Europe because the Japanese reputation for long working hours and lack of personal autonomy precedes them.
All this adds up to a huge opportunity for British companies in the training and education sector, and for universities, specialist colleges and HR consultancies.
If that's you and you'd like a chance to connect with all those eager prospective customers UKTI Japan is currently planning a Global HR Skills Symposium in Tokyo in September. It will bring together 300 HR managers from Japan's top corporates for a series of presentations, one-to-one meetings and networking opportunities, all in the conference centre of the Nikkei newspaper, Japan's FT-equivalent. A number of UK companies have already signed up but speaking slots and display booths are still available, as is the chance to be listed in a directory of service-providers. Our colleagues in Taipei are also putting together a complementary programme of activities in Taiwan in the same week, for companies that would like to take the opportunity to test another market while they're flying this far.
If you'd like more information please contact commercial.tokyo@fco.gov.uk. This is the start of what we expect to be a burgeoning trend, and early movers stand to gain the greatest advantage.
Sue Kinoshita
Director, UKTI Japan