How can the keiretsu system of industrial family groups affect my business in Japan?
The keiretsu, or industrial groups, system need not affect you negatively in Japan, but it is wise to do some homework to determine to which keiretsu, if any, your Japanese partners belong. The six huge horizontally consolidated industrial keiretsu are centered around a main bank and a general trading company, and are comprised of dozens of firms from various industries. Many firms do not belong to these huge groups, but may control or be part of a distribution or manufacturing group such as the Seibu Group or the Toyota Group. Companies do not deal exclusively with other “family” firms by any means, but long-standing relationships between the companies do exist, and may affect your relationships with Japanese partners or potential customers. Section II of our Unmasking Japan course, on Inside the Japanese Company, covers this topic in greater detail and includes specific strategies and advice for American firms.
