The UFC Is Irrelevant In The Japanese MMA Marketplace

The UFC is of borderline relevance in Japan. This isn’t to disparage the UFC, which has done a great job growing MMA in North America and parts of Europe. It’s an effort to put Dana White’s claims of Zuffa’s 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 Zuffa’s 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. Furthermore, Japanese business places a great emphasis on teamwork and collaboration. For US businesses seeking to enter the market, a certain degree of partnership with existing Japanese firms is almost de rigueur. MMA fans can see the biggest problem Zuffa may face from a mile away–their reticence to enter into co-promotional agreements. While their public disdain for co-promotion was a major sticking point in their negotiations with Fedor Emelianenko, it may very well be a case that they didn’t want to do business with M-1 Global. To a certain extent, its difficult to blame them. On the other hand, the UFC worked with Germany’s largest concert promoter (MLK) to enter that market with a fair degree of success. They’d be well advised to seek some sort of a partnership similar to their German initiative to help smooth their way into the Japanese market.

Hierarchy: Japanese business and, for that matter, Japanese culture, is almost ridiculously hierarchical. The societal reverence for age, experience and accomplishment in Japan is well known, and that’s often a difficult concept for American companies and businessmen to grasp. Much of the reason for this is the relative openness of US culture, particularly as it relates to business. US businesses love mavericks and Horatio Alger stories. That accounts for much of the business media’s fascination with Dana White and they’re 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 doesn’t 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 Lorenzo Fertitta–who has much more conventional business experience from his time in the casino industry–and perhaps Marc Ratner, widely respected for his time at the Nevada Athletic Commission.

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 aren’t intended for any substantive decision making to take place. Instead, they’re 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–”We’re 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 they’re not considered a major fight promotion in that country. They must understand that they’ve 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.

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