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by Yuga Koda
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Posted in Nihonium Blog

The Ringisho Method: Japan’s Unique Sales Process

Understanding cultural nuances is crucial for the success of sales in Japan. Within the Japanese context, the Ringisho method and the Nemawashi concept are two integral components that shape the sales landscape, each contributing unique insights into the intricacies of doing business in Japan. The Ringisho method is a manifestation of Japanese business culture.

Understanding the Ringisho Process and Nemawashi Concept in Sales

Japanese business has a highly consensual decision-making process. The Ringisho method, deeply rooted in Japanese business culture, emphasizes meticulous documentation, hierarchical approval, and relationship cultivation in sales. Complementing this is the Nemawashi concept, which involves consensus-building through informal discussions and pre-meetings to garner support before formal decisions are made.

Key Components of the Ringisho Process:

1. Formality and Precision of Ringisho: Japanese sales proposals are meticulously documented under the Ringisho method, showcasing features, pricing structures, and implementation timelines with precision, hence the importance of a solid company introduction deck. This is why Japanese websites have a “Download Document” CTA, which is rare in other countries. This formal approach underscores respect for the client and the business relationship.

2. Hierarchical Decision-making: Decision-making in Japanese companies follows a hierarchical structure, requiring approvals at multiple levels. The Ringisho process ensures proposals are scrutinized and approved by relevant stakeholders.

3. Relationship-oriented Approach: While formal documentation is essential in the Ringisho process, relationship-building is equally crucial. Sales professionals invest time in nurturing relationships with clients, understanding their pain points, and aligning solutions with their business objectives.

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How Nemawashi Plays into the Ringisho Process

Nemawashi directly translates to “circulating the root.” Nemawashi is about laying out the groundwork, so any proposed changes get approved or dismissed before the final decision. This lobbying is common in the Ringisho process and occurs by facilitating informal discussions and consensus-building before formal proposals are presented. Nemawashi operates in parallel with the Ringisho process, allowing stakeholders to express concerns and gather support through informal channels before making formal decisions, leading to smoother approvals — with the informal collaboration, Nemawashi helps foster trust and cooperation among stakeholders, paving the way for smoother decision-making. That being said, the need for Nemawashi is a result of the strict and labor-intensive Ringisho process. All the work will go to waste if the final decision is made against the proposed changes.

Contrasting with the US Sales Process:

In contrast, the US sales process is characterized by its agility, and emphasis on rapid decision-making, often driven by individual authority (single department) rather than hierarchical approval.

1. Agility and Adaptability: US sales professionals excel in adapting their approach to the needs of each client swiftly. They prioritize agility, responding to inquiries promptly, and tailoring solutions to meet specific requirements without extensive formal documentation or hierarchical approval processes.

2. Pitching and Persuasion: American SaaS sales culture places a premium on pitching and persuasion. Sales presentations, product demonstrations, and case studies are leveraged to showcase the value proposition and differentiate offerings, often without extensive consensus-building.

3. Shorter Sales Cycles in the US: While there isn’t universal data comparing sales cycles between the US and Japan, anecdotal evidence suggests that sales cycles tend to be shorter in the US. Factors such as market dynamics, consumer behavior, and the prevalence of sales enablement tools contribute to faster decision-making processes in the US.

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Conclusion: Japan’s Changing Sales Landspace

The sales process is picking up in agility, especially for companies that are aggressive in adopting SaaS solutions. The current SaaS sales process is still between Japan’s traditional and strict Ringisho method and the US’s agility-focused sales style (learn more about B2B SaaS sales here). That being said, software adoption with a strong urgency for digital transformation. As Japanese companies move towards a more mindset, there may be increased agility in their buying process.

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