When I first started doing business across Asia — from Japan to the Philippines — I quickly realized something: Japan isn’t just “another market.” It’s a completely different mindset.

Many global companies fail in Japan not because their product is bad — but because they don’t understand how Japanese people think, trust, and choose.

In this article, I’ll share my experience and insights from opening businesses in both countries, and highlight the cultural and business differences that make Japan truly unique.

The Power of Reading the Air

One of the biggest cultural shocks for me was the difference in communication style. In Japan, people communicate with subtlety. Reading the atmosphere (“kuuki wo yomu”) is essential. Opinions and feedback are often delivered in indirect ways, sometimes vague or roundabout. It’s not just social — it extends deeply into business.

When I opened a restaurant inside a new luxury mall called Parqal in Manila, I saw this difference clearly. Things that are taken for granted in Japan — being on time, keeping promises, anticipating your counterpart’s needs — were often missing. Staff and partners in the Philippines were more relaxed, casual, and expressive.

That doesn’t mean one is better than the other. But it shows how important it is to localize not just your product, but your business mindset.

Cultural Exposure Is Limited Inside Japan

Another challenge is that many Japanese people grow up with very little direct exposure to foreign cultures. Unlike countries like the Philippines, where people regularly interact with others from different backgrounds, Japan tends to be more culturally insulated.

For example, in the Philippines, most people see restaurants primarily as places to eat. Around 90% of Filipinos do not drink alcohol during meals or linger at the table for long conversations. Instead, it’s common to go to a separate bar afterward to socialize and drink.

This may sound like a small detail, but these subtle cultural norms shape customer expectations and experiences.

Inside Japan, due to the lack of multicultural environments in daily life, it’s very rare for people to encounter and internalize these differences. Without firsthand experience abroad, it’s difficult to fully grasp how these small habits impact service design, marketing, and even interior layout.

The Quality Expectation Gap

Japanese customers have one of the highest expectations for quality in the world. It applies to everything: hospitality, hygiene, interior design, packaging, and service.

In Japan, a clean bathroom, precise greetings, and beautiful presentation are the baseline. In many Southeast Asian countries, even upper-class consumers are often surprised by how much attention to detail Japanese businesses demand.

That’s why many Japanese entrepreneurs feel it’s hard to expand abroad. They worry other countries won’t meet the same standard.

But in reality, it’s not that the overseas market is impossible — it’s that Japanese companies often carry these three hidden obstacles:

Why Japanese Companies Struggle Overseas

1. Language barrier & mindset
Even with great products, many Japanese people feel uncomfortable speaking English. The grammar is different, and cultural shyness leads many to avoid trying.

2. Believing “good products will sell themselves”
Japanese brands often believe that if they make something excellent, the world will naturally recognize its value. But overseas, marketing, storytelling, and emotional connection often matter more.

3. Lack of strong incentives to go global
Japan has a strong domestic market with good infrastructure and safety nets. Many businesses simply don’t feel the pressure to expand internationally.

The Opportunity for Global Collaboration

Despite these challenges, there’s a growing number of successful cases where foreign entrepreneurs partner with Japanese makers, restaurants, and creators.

By combining Japan’s world-class quality with global marketing and local insight, the result is a powerful business model.

For example, Korean entrepreneurs are often quick to adopt Japanese restaurant concepts, adapt the branding, and sell it globally with social media and stylish packaging. They don’t try to make the best product. They try to make it sell.

That’s the key difference.

Final Thoughts: A Business Model With Global Potential

Doing business in Japan is fascinating. But even more exciting is creating a global model that fuses Japanese quality with international strategy.

If you’re a foreign entrepreneur, consider partnering with a Japanese brand or founder. If you can bridge the marketing gap, you have a unique chance to build something no one else has.

Japan is still slow to expand outward. That’s exactly why there’s opportunity.

The world knows “Made in Japan” means quality. What it needs now is someone who can sell it in a way the world understands.

And that could be you.