The opportunity of
the Chinese market is no longer to be proven. But many venture there too
quickly, skipping the steps.
Whether you are in importors or in exporting with China, what are the main mistakes not to make in doing business with the Middle Kingdom?
Whether you are in importors or in exporting with China, what are the main mistakes not to make in doing business with the Middle Kingdom?
1- Wrong choose your partners
When you look at
the Chinese market, everything looks promising. As everywhere, however,
some partners will be blameless, while others will cause you to suffer delays
on payments, deliveries, quality defects ...
This is a serious problem. The amount of corporate
debt has risen sharply in China in recent years. So much so that 80% of
businesses in China are affected by late payments.
It is therefore
best to avoid 100% virtual negotiations: meet with your partners and carry out
the checks that are useful to you.
Depending on the
nature of your business, it may be essential to use sourcing firms, which can
become real partners.
2- Neglecting the language barrier
Nothing worse than a customer who makes no effort.
If you know a little about the language or you use a Translator in Chinese,your partners will be as grateful as they are admiring, and will certainly be much more open to negotiations.
If you know a little about the language or you use a Translator in Chinese,your partners will be as grateful as they are admiring, and will certainly be much more open to negotiations.
Keep in mind that trading in China by speaking only
English can bedifficult. However, investing in an
english enhancement is a good idea.
Try to have the
best possible accent. In China, as in other Asian countries, the way a
syllable is pronounced can change its meaning. This affects their
understanding of English, and having a strong French accent can be a real
problem.
3- Believing that China rhymes with low quality and low prices
In China, the
middle class is growing rapidly and is going up market. Gone are the days
when "made in China" were only mediocre. If Chinese products
remain cheaper than European goods, the difference is blurred: quality
improves.
Notably thanks to
beautiful companies, the most media of which are in the technology and
communication sector: Xiaomi, Huawei, Lenovo. Their products compete with
the best.
This is one of
China's major trends in recent years: the upscaling. We know Lenovo for
computers, several brands for e-cigarettes... For more and more
industries, quality comes from China, not Europe. This is a fundamental
trend that is bound to grow.
4- Mal balance the balance of power
You must not lose
in your negotiations. Bargaining is common place in Asia and trading is
often expected.
You need to
position yourself on an equal footing with your partners. Beware of the
misstep, it's all about skill. The art of negotiation is a profitable
talent.
You will be far
from your home market and your habits. A loss of benchmark may weaken
you. Know how to surround yourself, especially if this is your first trip
to China.
5- Focus on business by neglecting the human aspect
Don't give up your
good manners and your life skills to a faster transaction. Chinese social
relations are based on harmony, hierarchy and respect, so put the forms in your
interactions.But above all, find out about Chinese habits, so you don't get
surprised.
China has several
millennia of existence, Chinese culture is rich and deep. Too many
foreigners forget it, don't make that mistake.
