1 / 13

Strategic Insights for Doing Business in China

Learn essential strategies for successful business dealings in China, including avoiding contracts, respecting cultural nuances, handling cash transactions, utilizing rebates, choosing the right cities, conducting consumer research, managing multiple distributors, positioning as premium, leveraging online platforms, and fostering NZ Inc. relations.

sigourney-wyatt
Télécharger la présentation

Strategic Insights for Doing Business in China

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Chinese Ten Commandments By Paul O’Brien Ex CEO Easiyo

  2. Summary: • No contracts • Saving face • CoD, NZ$, TT • Rebates • Just one city • Consumer research • Multiple distributors • Make premium • On line important • NZ Inc. necessary

  3. No Contracts • They won’t honour them. • The negotiation starts when the contract is signed!! • Contracts my be valid for that day….not in a few months • Almost impossible to enforce • Threaten Government investigation if swindled • MoU more useful “ you do this, we do that”

  4. Saving Face • Don’t believe anythingfrom China, especially docs/certs • Family take precedence way before Kiwi businessman • Relationships are important, but still family first • Lies are not really lies, just saving face • Protocol and etiquette still important, let them save face

  5. Cash in Advance • NZ $ transactions preferred over RMB • TT better than L/C. • Never give credit…..the Chinese don't. • If they can’t afford to pay up front be careful

  6. Retro Rebates • Give retrospective rebates instead of discounts, say 5% • Link them to marketing spend • Watch receipts closely ( get them translated ) • OK to give rebate in stock, say 7.5% to 10% • When visiting the distributor, check on their marketing spend and go to their warehouse. • Always visit retailers when in market.

  7. Just One City • Just one city is big enough eg Wuxi, Nanjing, Tianjin, Shenzhen, Qingdao, Hangzhou, Dalian. • Many cities over 10 million people • Tier 2 and 3 have great spending potential • The further away from Beijing the more affluent • Distributors are mostly regional focused

  8. Consumer Research • Consumer research very important(this is not NZ) • Route to market critical • Sensory testing may be needed if F&B • Packaging changes may be needed • Do quant and qualitative ideally • Tier 2 & 3 cities too

  9. Multiple Distributors • Get multiple distributors with some exclusivity, NOT ONE DISTRIBUTOR. • Many will ask for whole China exclusive • Beijing and Shanghai are just so different • Keep the relationships competitive • Promote the best ones, stop supplying the worst ones • Review 6 monthly

  10. Make Premium • Make your product or service PREMIUM ‘We are expensive!’ • Chinese love showing off brands ( conspicuous consumption) eg phones, cars, handbags, clothes etc • The most expensive product in a sector is desired • Don’t discount, better to rebate later

  11. On Line • On line can be better than retail egTaobao • Get flagship on line mall • Courier transportation is cheap and efficient • Watch web site stealing and non approved sites • Blogging sites can be inexpensive PR • Auckland University IB Dept. can help

  12. NZ Inc. • NZ Inc. is critical particularly F&B • Build it around your USP. • Use NZT&E where possible, eg video links, photo’s • Subsidise distributor trips back to NZ to breathe culture • Offer trips as incentives, part of the rebate.

  13. Conclusion • Thanks for attending. • If you get stuck in China call me. • Paul O’Brien phone 027 591 7061 • Questions/ comments??

More Related