The UFC Is Irrelevant In The Japanese MMA Marketplace
The UFC is of borderline relevance in Japan. This isnt to disparage the UFC, which has done a great job growing MMA in North America and parts of Europe. Its an effort to put Dana Whites claims of Zuffas inevitable worldwide dominance into perspective. Without traction in the #2 fightsport market in the world, UFC’s hopes for ‘world domination’ are doomed to failure.
Here are the three essential qualities for doing business in Japan, along with an analysis of what they mean to Zuffas efforts to build the UFC brand there:
Group Orientation/Collaboration: Japanese businessmen are notorious for sublimating their individual talents and personalities to the greater good of the group. For US businesses seeking to enter the market, a certain degree of partnership with existing Japanese firms is almost mandatory. The UFC worked with Germanys largest concert promoter (MLK) to enter that market with a fair degree of success. Even if the UFC didnt want to go promote with one of the major players in Japanese fight sports, theyd be well advised to seek some sort of a partnership similar to their German initiative to help smooth their way.
Hierarchy: Japanese culture, including business, is almost ridiculously hierarchical. The societal reverence for age, experience and accomplishment in Japan is well known, and thats often a difficult concept for American companies and businessmen to grasp. US businesses love mavericks and Horatio Alger stories. That accounts for much of the business medias fascination with Dana White and theyre quick to celebrate how a former aerobics instructor is now the most powerful man in MMA and the driving force of a billion dollar company. That storyline doesnt play as well in Japan, however. One approach would be for White to take a back seat in UFC efforts to promote in Japan in favor of Zuffa co-owner Lorenzo Fertitta and perhaps the widely respected former Nevada Athletic Commission director Marc Ratner.
Respect: Even among seedy elements like fight promoters”and even the underworld”respect in business dealings is essential in Japan. In a typical Japanese business deal, the first few meetings arent intended for any substantive decision making to take place. Instead, theyre used for evaluation of your professionalism or, as the Japanese like to put it, to determine your suitability for conducting business with. Considering that Dana Whites first introduction to the PRIDE staff and to the Japanese fight public was a press conference where he made the statement”more in reference to the proposed bouts between UFC and PRIDE fighters than anything else”Were going to kick your ass. At that moment, PRIDE as a promotion died. The people that worked for PRIDE had no interest in helping White profit from the promotion. More significantly, he became little more than a clown to the Japanese public”like Money From Government Grants shill Mathew Lesko without the funny suit. To succeed in Japan, the UFC must realize that theyre not considered a major fight promotion in that country. They must understand that theyve got to win over a skeptical public, but before that they have to win over a skeptical Japanese business community. They might be able to run their company like Tony Soprano ran the garbage collection business in the US, but that approach applied to Japan will leave them exactly where they are now”on the outside looking in at the huge, fight crazy economy.
Dana Whites fanciful stories about corrupt promoters and Yakzua gangsters out of Quentin Tarantino movies might amuse his sycophants in the MMA media, but countless US companies including fight promotions have done business successfully and profitably in Japan. The UFC might be able to convince the clueless US media that theyre making progress in Japan due to a deal on a low profile TV network or more recently a big ad campaign on a Japanese social networking site but theyre currently spinning their wheels and going nowhere. The only way that Zuffa will be able to become a factor in the worlds #2 MMA market is to do what every other company has done to be successful there”learn how to understand the Japanese approach to doing business, and play by their rules.
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