Japan is known for being polite, but that doesn’t always translate to fairness in business. We’ve seen it firsthand.
Sometimes large companies, whether intentionally or not, push smaller or less experienced companies too hard. It can happen quietly. It can happen systematically. And if you’re not paying attention, it can trap you in agreements that are impossible to sustain.
We’ve been there, on both sides of the table.
What We’ve Seen Working with Big Companies in Japan
- Demanding steep discounts simply because the smaller company needs the deal
- Delaying payments far beyond agreed terms
- Adding packaging or service requirements after contracts are signed
- Slipping vague terms into contracts that shift risk
- Pressuring partners to accept unfair terms without pushback
- Imposing unmanageable order sizes or conditions
- Refusing to work with newer or smaller players
These tactics are often disguised as “industry standard” or “non-negotiable.” But if you’ve been in Japan long enough, you start to recognize the pattern.
These situations aren’t always framed as bullying. Sometimes they’re presented as “the market standard” or “non-negotiable.”
One public example of this dynamic was the high-profile case of a 7-Eleven franchise owner in Osaka who challenged the company’s demand to operate 24 hours a day despite severe labor shortages. His pushback led to a lawsuit, public scrutiny, and eventually, changes in company policy. Read the full article here.
Why Big Companies Push Too Hard in Japan
- They hold most of the leverage — and they know it
- Foreign and small companies often don’t know what’s negotiable
- There’s an expectation smaller players will endure for access
- Smaller companies fear missing their shot, so they over-accept
We’ve been there. And it’s part of why Japan Startup Advisory exists.
How Japan’s Business Environment Favors Large Companies
- Long Payment Terms: 60–120 days is not uncommon
- Returnable Goods: Suppliers bear the risk
- One-Sided Contracts: Skewed legal and operational terms
- Tenant Disadvantage: Higher deposits and tougher terms for small players
- Procurement Barriers: Exclusion based on scale, not quality
How We Help Clients Avoid These Traps
We don’t just help clients enter Japan — we help them avoid the traps.
- We advocate during negotiations
- We’ve pushed back when terms weren’t fair
- We’ve advised walking away from risky deals
Not every big company is a bully. We’ve worked with some great ones.
But the imbalance is real. And we help our clients see it clearly — before it’s too late.