Japanese Companies Forge New Business Relationships - The Nissay Business Conditions Survey

Japan has long been known for business practices typified by keiretsu relationships and rebates tofavored customers. But foreign criticism of the lack of transparency， coupled with a shifting industrialstructure have pushed Japanese companies to revise business practices and relationships with a grow-ingsense of urgency. One of the key factors in this transformation has been information technologyand the growth of electronic commerce， providing a new framework for business-to-business transac-tions.

The latest Nissay Business Conditions Survey (conducted in August jointly by Nippon Life InsuranceCompany and the NLI Research Institute， with 3，627 responses from companies nationwide)， focuseson recent changes in business-to-business (B2B) transactions.

The survey finds that many companies are increasing their number of business partners across all typesof transactions from procurement to sales and financial transactions. Factors playing a role in this trendinclude an increase in multiple small-lot transactions， and shortening of delivery times.

Factors determining the choice of business partners are shifting from an emphasis on perpetuatingexisting business ties， to seeking partners who can provide business solutions and planning capabili-ties，and after-sales service.

Companies are introducing e-commerce at a steady pace， and expect its growth to lead to lower pro-curementcosts， shorter delivery times， and more intense competition.