Omi merchant’s teaching (Three-way satisfaction principle)

(Photo: Two merchants from Omi hit the road / Source: itochu.co.jp)

“When doing business, you have to make sure that the seller, the buyer and the society are all satisfied.”

This is a famous teaching of Japan from a group of merchants called Omi merchants back in the Edo period (16 Century). They were based in an area called Omi, mid-west of Japan (today’s Shiga-Prefecture).

This teaching dates back to over 400 years but seems still valuable for successful and sustainable businesses.

Its essence is clear that the business should be based on the long-term relations and with a respect not only to the client but to the society as a whole. 

Interestingly, Omi merchants brought forth several famous companies in Japan today, including Itochu Corp. or Marubeni Corp., (both are Japan’s giant trading companies with annual sales of $50-100 billion). Even Toyota Motor Co. had a strong bond in its origin and received much influence from them.

In the case of Itochu, they say in their homepage that they are the Omi merchants’ bloodline and act with the spirit of “three-way satisfaction”.

As you may remember that during the bubble economy in 80th, the business was a zero-sum game where the winner makes the loser.

In today's business, companies are asked their trade to be mutually prosperous among the stakeholders, and seriously thinking their social responsibility, just as Omi merchants practiced 400 years ago.

When I see “the three-way satisfaction principle” I come to know that, in the end, the basis of success in business is unchanged either by time or location, so the wisdom from the old days is worth listening.