by Bjc Chartier

Created on: May 14, 2008   Last Updated: June 13, 2009

In China You Say?

Well interesting part of the world to do business in. A few years ago a small company named Proctor & Gamble entered this marked with some toothpaste and other stuff. What they discovered is that their market research missed the target and that tbe Head & Shoulders shampoo was the big seller. Why? Well most chinese people have dark-hair. Hence if any had dandruff, a sure-fire remedy would be Head & Shoulders shampoo.

Dealing with any Asian culture represents a cultural shift from the usual. This is a part of the world where people are either poor or rich and where many governments deal under the table rather than above-board like most North American firms. Some years ago a U.S. telecom company was doing work in Vietnam and were dismayed to discover that the only way to expedite getting permits to run telecommunicatioin lines was to bribe local government officials. While we would be shocked by this practice, it is fairly common in some countires. Sometimes it may even be expectee.

These differences in culture or values should not mean they are bad places to do business. In fact they can be great places to either export to or from or even consider manufacturing your goods. The key is understanding the norms of the environment you plan to do business in and adjusting your business model to those norms. Failure to do so could mean years of pain with little gain. Hire locally. Find a person who is familiar with the local practices of doing business in China. This individual should be comfortable at both federal and provincial levels and be well versed in the rules and laws that goven both. Link this individual closely with a person in your company that is in the know and well-versed in your coroporate culture. This is important as some of the things that are requested from China could contradict your Code of Conduct or other policies. This may require that somethings are re-visited or re-written. In North America, we have no biases about gendre when it comes to pay or hiring. In China, it is quite uncommon for a woman to hold a decision-making role or have some say in corporate decision making. That is a cultural difference that North American companies may have to adjust to. While not normal in North America, it can be a common practice in China.

Doing business in China is interesting and sometimes frustrating. The frustration is something that spurns from a lack of understanding or by applying our standards to a business culture that is built on different standards. Either way not adjusting could mean failure to execute or to be able to show a good return on investment. It is not necessary for frustration to set-in. Adjust, learn and ask questions. Doing so will mean you have a better chance of succeeding rather than failing without trying.

Best of Luck

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