CHINA BUSINESS CULTURE
Want to do business in China? Here are 8 Tips to SKIP THE TROUBLE
Follow me on instagram: / magnusdettmar
It is the most HARSHEST market in the world
What I mean about that is. This market is the production country in the world. They can produce whatever you can produce, cheaper faster and better. They dont need you, and they will act like it. They will tell you high price, because they know that you have it difficult to check what’s real and what’s note. Therefore, be prepared to work hard for every type of product that you choose, not only
Its all about relationships (Guanxi)
In China, you usually do business with family. Why? Because they can’t run away. Relationships is a huge thing in China when it comes to business, and you ALWAYS have to consider that. Thats why it takes longer time to make business with a Chinese than for example a swede. We dont do business with family, because it might ruin our relationship but here its a safety line to keep business flowing. Thats why you have to build a relationship with them under longer time, buy smaller amount and then increase. Maybe go for dinner with them, give them a gift etc to create guanxi.
Give them incentives
If you are just another buyer, they dont care about you. They just want to get their money and leave. However, if you give them incentives to produce good, make a good service etc with a bigger goal or reward. They will work harder. For example; I told suits by Susan that I will bring them more clients if you give me more clothes, and by that I build that trust with incentives of a bigger return. Also, for most deals that are being made, there are some underlying incentives, such as money, service return, other things that can sweeten the deal.
Its the 80/20 rule
you will always loose towards a chinese. There is no win win situation in China. Whatever offer you give, it always have to be WAY better than the Chinese. I know that a lot of people will react on this, but thats just my expeirnece. You always think, that you will get the most out of the deal. But in the end, its ALWAYS the Chinese getting the most out of you.
EVERYTHING GOES WRONG
This applies to mostly buying things, but also business. When you are buying a service, plan that EVERYTHING can go wrong. By that I mean, if you order for example a watch, there are nothing that is standard as we might think back home. The production can go wrong, the measurment/material might not be as expected, the delivery time will be delayed. Everything that can go wrong, will go wrong. And Im not saying that the Chinese are bad, its just that the expectations are different
Things changes QUICKLY
What I mean about this is payment terms, production time, type of products etc are changing very fast. Thats why you should check up with the producer/business partner way more than you think.
Have an EXTERNAL TRANSLATOR
When doing business in China, you need a translator. However, DONT take anyone that for example a factory offers. Because, usually they have some incentives to sell. The factory usually have a deal with them, that will make everything sound better than it is. Therefore, always use an external translator so at least you can save your self a bit from them being bias in the deal. They might be already, but it minimize the risk
8. IF YOU LEAVE CHINA, YOU ARE OUT
The Chinese has a tendency to not be as reliable when you are not there. They answer less frequently, they are slower etc. They are a bit of a time-server, where they promise to do anything when you are there, but when you are not its not as urgent.
👫Social:
LinkedIn: / magnus-dettmar-25953212
Instagram: / magnusdettmar
Facebook: / dettmarmagnus
🚨 Want to be a Sponsor? EMAIL: [email protected]
Main camera (Canon M50): https://amzn.to/2YBB860
Second Camera (Osmo Pocket): https://amzn.to/2UOYJ23
Third camera (Samsung S10): https://amzn.to/3fu6QZU
Fourth Camera (GoPro): https://amzn.to/3hz2JNO
Fifth Camera (Sony ZV-1): https://amzn.to/37wJJLg
Microphone (Rode Videomic Pro+): https://amzn.to/30Yd8gr
Gorillapod: https://amzn.to/2UOLqP1
Selfiestick: https://amzn.to/30NCKMK
Memorycard: https://amzn.to/2N1m8sH
Style:
Hairwax: https://amzn.to/2BcgkKi
Hairwax 2: https://amzn.to/37APpDX
Skincare: https://amzn.to/30NdXZm
Shaver: https://amzn.to/2UNCsS2
Watch: https://amzn.to/30LoaFv
Sunglass: https://amzn.to/37AByOk
Shoes: https://amzn.to/3dai8AF