Tips on Selling in China

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Tips on Selling in China
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China A Global Giant

• Membership to WTO
• China offers astonishing growth
• Rapidly Expanding Domestic Market
• Here are some tips on selling in China

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Know the market

• There are tremendous business opportunities in
  China, but dont assume that Chinese buyers
  arent looking at other options. Your product or
  service may need to be altered to fit local needs
  or interests. Senior executives in Asia are quite
  accessible, and time spent meeting people before
  entering the market is essential. Government and
  quasi-government organizations have considerable
  influence in Asia and can assist you.
  Additionally, there are consulting and free
  services available to make introductions.

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Hong Kong - A base to enter China

• Availability of a reliable legal and financial
  infrastructure
• 15 flat tax rate
• Ease of establishing a business entity
• Experienced local tri-lingual (English, Mandarin,
  Cantonese) executives and consultants who can be
  hired.

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Learn about Chinese culture

• American and Chinese negotiation styles are
  dramatically different.
• Properly handing your business card (with two
  hands)
• using a Mandarin or Cantonese greeting will go a
  long way toward showing and earning respect.
• Negotiations in China are largely dependent on
  relationships and consensus decision making.
• Allow additional time for consensus building

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Leverage an existing relationship

• Work with a company that already has a Chinese
  presence
• International marketing partnerships are
  effective in Asia only when you build
  relationships and work directly with your
  partners local staff.
• Cultivate zhongjian ren (the intermediary)
  because a gifted Chinese go-between is
  indispensable even after an initial meeting takes
  place.

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Assist your family of companies

• Chinese companies would like to enter the
  American market.
• If you can come up with a way to assist them,
  they may be more willing to bring you into their
  network.
• The person with the best guanxi (personal
  connections) thrives.

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Take care of the people who make introductions

• Maybe someday you will help them out. Or, if you
  can justify paying a referral fee up front,
  mention it. They may say no, no, no. If you think
  its a good idea to thank them in such a way,
  insist on it.
• Chinese are not as straightforward as Americans
  areno doesnt mean definitely no. Two Chinese
  can carry on the insisting-and-refusing game for
  a long time before one party gives up.

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Bend the rules only in special situations

• Most rules can be bent for special situations for
  special people. If one is persistent, has
  endurance and is patient, one is more likely to
  affect the outcome. And although the Chinese
  might not respond to your communications and may
  act as if they are uninterested in what you are
  offering, remember this it is your effort that
  gets noticed, and often the effort is far more
  important than your offering.

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Slow your pace

• Meetings with potential partners over lunch and
  dinner are also occasions to recognize the slower
  pace of Chinese business. Meals in China are
  usually longer than what foreigners are
  accustomed to. Be patient and flexible. The time
  spent with people is a worthwhile investment that
  will pay off in the future.

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Be courteous

• Courtesy and discretion are paramount. No Chinese
  would be eager to deal with peoplewhether online
  or offlinewho do not respect their way of living
  and conducting business. Also, be careful with
  your opinions on politics and government. The
  Chinese may not want to share with you what they
  really think about the government policies unless
  they are very close friends of yours.

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Create Desirability

• Building a large and profitable presence in China
  requires top-quality products that are affordable
  to the masses.
• You have to get to know your customer to
  determine which of your products offer the
  greatest consumer appeal and fit best with the
  local culture.
• Creating desirability is an absolute must.

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Sources

• United States of America China Chamber of
  Commerce
• The United States Embassy in China
• United States-China Business Councilthe
  principal organization of US companies engaged in
  trade and investment in the Peoples Republic of
  China
• South China Morning PostAsias Leading English
  News Channel
• China Internet Network Information Center
• The China Business Review
• The China Commercial Brief, published by the US
  Embassy in Beijing