Welcome to               欢迎参加             Business in               Networking EventOrganizer:主办方
Knock at the DOOR                                 of ChinaBy Yanhong Xi- Researcher in University ofOulu- Lecturer at Oulu...
Building Low-risk Sales                Channels for Chinese Market© Lewel Group Finland Oy | Confidential | Lewelgroup.com
Approaches for SMEs to                                            China                        Highlights:                ...
Partnership with Local                                           Enterprises                        Partnerships with loca...
National Trade Bodies                        Belong to effective national trade bodies.                               • Ai...
Partnering with a Chinese                                     Industrial Park                        Multiple benefits:   ...
Strengthen the ties with                                     multinational buyers                        Having a little a...
Leverage on Chinese                                             Distributors                        First step is to selec...
Leverage on Chinese                                             Distributors                        You can use the follow...
Leverage on Chinese                                             Distributors                        Check out the type and...
Leverage on Chinese                                             Distributors                        Most important: distri...
Leverage on Chinese                                             Distributors                        Contracts should have ...
Coping with Chinese                              Business Culture© Lewel Group Finland Oy | Confidential | Lewelgroup.com
Interested in Doing Business                                     in China?                        Culture facts have certa...
Confucianism                        Harmonious relationships.                               • Aversion to conflict        ...
Face                        Means ”good reputation”, ”respect” and ”honor”.                        There are four categori...
Meeting and Greeting                        Preparation for the meeting                        Business cards are exchange...
Building Relationships                                             ”Guanxi”                        ”Guanxi” includes      ...
Giving Gift Etiquette                        When Chinese want to buy you gifts and ask what you would                    ...
Further Discussions –please join discussion tablesTable 1      Building low-risk sales channels for Chinese market        ...
Thank You!                                             谢谢!© Lewel Group Finland Oy | Confidential | Lewelgroup.com
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Building low-risk sales channels in China, and Chinese business culture

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Building low-risk sales channels in China, and Chinese business culture

  1. 1. Welcome to 欢迎参加 Business in Networking EventOrganizer:主办方
  2. 2. Knock at the DOOR of ChinaBy Yanhong Xi- Researcher in University ofOulu- Lecturer at Oulu University Lewelgroup.com © Lewel Group Finland Oy | Confidential | ofApplied Sciences
  3. 3. Building Low-risk Sales Channels for Chinese Market© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  4. 4. Approaches for SMEs to China Highlights: • Partnerships with local enterprises • National trade bodies • Partnering with a Chinese industrial park • Strengthen the ties with multinational buyers • Leverage on Chinese distributors© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  5. 5. Partnership with Local Enterprises Partnerships with local enterprises? JVs? This strategy works for some, but very challenging. • Identifying a trustworthy partner thousands of miles away may be an enormous drain on management time and firm resources. • When partnerships or JVs get under way, small and midsize foreign firms often find that their views on essential concerns (like governance, equity participation, and operational manage) differ from these with the Chinese. Partners© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  6. 6. National Trade Bodies Belong to effective national trade bodies. • Aid you brand collectively and share resources; • Produce a shared sourcing center to screen possible Chinese vendors; • Offer you experience in locations, e.g. contract negotiations, monitoring suppliers, assess to business networks and good quality assurance. National trade bodies • Hyperlink up industrial parks for SMEs© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  7. 7. Partnering with a Chinese Industrial Park Multiple benefits: Once a member firm had built a sufficiently big business, it could move to its own facilities in the very same industrial park.© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  8. 8. Strengthen the ties with multinational buyers Having a little assistance from their industry peers or multinational buyers, they may possibly realize that theyre able to accomplish far much more in the Chinese market than they ever would by going it alone.© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  9. 9. Leverage on Chinese Distributors First step is to select the right distribution partner. Sourcing for potential distributors through • Recommendations from another firm already established in China, trade shows in China, established matching websites or through Chinese market research consulting firms. • Appoint Hong Kong distributors? Notes: most distributors do not have nationwide distribution coverage but rather on a regional basis with Bohai Gulf, Yangtze River Delta and the Pearl River Delta as the commercial regional centers.© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  10. 10. Leverage on Chinese Distributors You can use the following factors as a reference for a good distributor: • A strong and stable financial background • Quality sales staffs/English speaking staffs • Shows enthusiasm for your products • Having assess to the customers • Right business direction for its distributorship • Appropriate storage of your products • Share the same business goal with you© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  11. 11. Leverage on Chinese Distributors Check out the type and the number of distribution points or outlets it covers, their marketing abilities and their after sales service support. Consider having a different distributor covering each region with different marketing strategies.© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  12. 12. Leverage on Chinese Distributors Most important: distribution contract is detailed and understood due to a lack of Chinese law in relation to supplier and distributor partnership. Contracts signed in China are often in Chinese. It is safer to have a qualified law firm review any translated documents and have the English version of the contracts.© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  13. 13. Leverage on Chinese Distributors Contracts should have the following aspects: • Guard against exclusivity • Agreement on the volume targets • Good exchange and payment terms • Escape clauses based on performance reviews • Cover intellectual protection© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  14. 14. Coping with Chinese Business Culture© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  15. 15. Interested in Doing Business in China? Culture facts have certain influences on business culture and etiquette. Some highlights: • Confucianism • Face • Meeting and Greeting • Building Relationships • Giving Gift Etiquette© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  16. 16. Confucianism Harmonious relationships. • Aversion to conflict • Maintenance of proper demeanor • Preservation of ”face”© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  17. 17. Face Means ”good reputation”, ”respect” and ”honor”. There are four categories of ”face”. It is critical that you give face, save face and show face when doing business in China.© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  18. 18. Meeting and Greeting Preparation for the meeting Business cards are exchanged in an initial meeting. • With Chinese on one side => your company, rank and qualifications you hold • When receiving a card, place it in a case rather than in a wallet or pocket© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  19. 19. Building Relationships ”Guanxi” ”Guanxi” includes • Relationship with the government body, learn to coordinate with the Chinese government (Seeking a suitable local partner may be a shortcut and helping hand in developing your business in China.) • Investors • Partners • Your own staff© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  20. 20. Giving Gift Etiquette When Chinese want to buy you gifts and ask what you would like. Don’t be shy to specify something you desire. Business gifts are always reciprocated. • Seen as debts that must be repaid. • Don’t be frugal with your choice of gift otherwise you will be seen as an ”iron rooster”.© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  21. 21. Further Discussions –please join discussion tablesTable 1 Building low-risk sales channels for Chinese market • How to attract Chinese individual consumers to Finnish products/services? • How to attract Chinese organizational customers to Finnish products/services? • How to find right partners in China? • How can Finnish companies use Finnish/Chinese government’s help to reach Chinese customers?Table 2 Coping with Chinese business culture • How to make a good impression on a Chinese customer from cultural aspects? • What values Chinese emphasize that are different from Finnish ones, and how are they applied in the business world? • What manners special to Chinese culture that Finnish business people have to keep in mind? • How to build right relationships with the right people?© Lewel Group Finland Oy | Confidential | Lewelgroup.com
  22. 22. Thank You! 谢谢!© Lewel Group Finland Oy | Confidential | Lewelgroup.com

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