Like all markets, China plays by its own rules. Some of your current sales approaches might fail in the Chinese market, whereas some might work just as well as they do in your own country. Many Western executives test their methods in China through trial and error. But to help prevent any unwanted teething problems, we’ve put together a quick list of tips for success when expanding your business in China.
- Exhibitions: Conferences and exhibitions seem to be held in much greater regard in China than in the West. Attendance at key exhibitions is essential if you want to be seen as a serious player in the Chinese market. Returning to these events repeatedly over a number of years shows that you’re in the market for the long-haul, and can be taken seriously as a potential partner.
- A China-friendly website: With over 400 million online users in China, it’s crucial to have a well-structured website in Chinese which clearly outlines your products and offering. Potential clients will likely visit this website before meeting you and will form an opinion based on how China-friendly your business is as a result. We also recommend working with a Chinese translator who understands the digital landscape, rather than trying to adapt the website yourself.
- Local sales representatives: China is a massively relationship oriented country and key relationships need to be nurtured over the course of years. This relationship-building process is difficult to manage from a distance. If you’re regularly selling in China, it pays to have local people on the ground who speak the language, know the culture and who can react quickly to client demands. Deciding between a local distributor or hiring these people yourself will have implications on a tax, compliance and growth level. So make sure to thoroughly research your options before committing to one or the other.
- Quality: You are unlikely to be able to compete against local companies on the basis of price, so it’s best to focus on quality instead. Western companies are valued in China for the superior quality they represent. So display confidence in your product and back it up with results.
- Telesales: Although communication via the phone is important – this is usually for making initial contact, arranging meetings, and gathering background information, etc. It is unusual to try to ‘sell’ over the phone as the sales and relationship-building process are so tightly interconnected. Phones are useful but only up to a certain point. Regular face-to-face contact is the key to success.
- Respect: A level of respect is important in any business partnership, but the Chinese put more emphasis on it in ways that Westerners sometimes struggle to grasp. Hierarchy plays a big role in business proceedings, to the point where it is rare for anyone to question the decisions of their superior. It’s also important to nurture the relationship – known as ‘Guanxi’ – and to regularly ‘give face’ to your Chinese counterpart wherever possible. For more detail on these nuances, you can read our other blog: The Philosophy Behind Chinese Business Culture.
- Make Yourself Available: Chinese business people believe that business contacts are friends, and friends should be available as and when they’re needed. If you’re new to the Chinese market, you should know that you’re expected to stop what you are doing and help, even if you are in another meeting or if it’s the weekend.
- Communicate clearly: Be thoughtful of your use of language in China. Do not assume your host has always understood what you have said (even when they tell you that they have) and never be afraid to go over things several times. The Chinese will very often go over issues many times – even when speaking in Chinese amongst themselves. So speak slowly, use basic vocabulary, and keep written materials concise.
China is potentially a highly lucrative market which could redefine the future direction of your company. However, the sales cycle in China can be long. So you need patience, management bandwidth, local knowledge and cash flow to achieve lasting success. If you’d like to learn more about expanding your business in China, feel free to get in touch with us.
