Factors
That Lead to a Successful China Market Entry:
Prepare, Prepare, Prepare: Companies must
learn about the conditions for doing business in China; cross-cultural
differences that affect interaction, negotiation or relationship
building regardless of the entry strategy they plan to use. These
factors will impact the abilities of any company to do business
in China.
Cultural barriers and Opportunities: Companies
need to understand that effective business and personal relationships
(Guànxì) are the essence of success in China. These
relationships must be built and they are not disposable once a contract
has been won.
Commitment: Companies
are expected to demonstrate to the Chinese that they are committed
to helping develop the Chinese market in the long term. Other foreign
competitors are making this commitment and are being well received
by the Chinese.
Understanding and Adapting to Chinese Needs:
Companies that adapt their marketing
and sales strategies to help the Chinese meet important policy
goals are more likely to be well received. Important goals include
investment, producing foreign exchange, and providing technology
and western management skills.
Aggressiveness:
Companies must pro-actively pursue opportunities, relationships
and contracts in China (within the law) rather than waiting to
be offered opportunities by the Chinese.
Quality People: Companies
need human resources that understand China and Chinese business
conditions.
Flexibility and Patience:
Companies must understand that the Chinese way of doing business
is often slower than that in the United States or most other Western
countries. It takes time to build relationships, go through intermediaries,
satisfy Chinese negotiators at several levels, and obtain countless
approvals from several levels of government. Companies may not
achieve the fast results they may hope for, but over time will
obtain much more than they expected. Don’t expect to go
to China for a week and return with orders.
