The UFC Struggles For Marketplace Traction In Japan
Written by Ross Everett   
Sunday, 18 April 2010 08:01
The UFC is of borderline relevance in "The Land of the Rising Sun". This isn't to disparage the UFC, which has done a great job growing MMA in North America and parts of Europe. Simply stated, the UFC is well below at least a dozen MMA, kickboxing, boxing, sumo and pro wrestling promotions in terms of importance to Japanese fight fans.
by RossEverett


The UFC is of borderline relevance in "The Land of the Rising Sun". This isn't to disparage the UFC, which has done a great job growing MMA in North America and parts of Europe. Simply stated, the UFC is well below at least a dozen MMA, kickboxing, boxing, sumo and pro wrestling promotions in terms of importance to Japanese fight fans.

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. One approach for the UFC would be for White to take a back seat in their 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.

Dana White's 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 they're 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 they're 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.

About the Author:

Ross Everett is a freelance writer and highly respected authority on World Cup betting. His writing has appeared on a variety of sports sites including sportsbooks and sportsbook directory sites. He lives in Las Vegas, Nevada with three Jack Russell Terriers and an emu. He is currently working on an autobiography of former energy secretary Donald Hodell.