With a rising middle class, China certainly has the potential of becoming a top global market for consumer goods. However, many foreign businesses only find themselves exiting it soon after arrival.
1.Absence of unbiased Feasibility Study before plunging in
2.Lack of understanding of Local Market and Culture
3.Blanket implementation of Management and Marketing Practices from home without proper adaptation
4.No Mid and Long -term Strategy, just trying to make a fast buck
5.Failure to do as the Chinese do while in China…
To save face is an important part of Oriental culture, as harmony is regarded as the key to accomplishing anything and everything socially. Here , I am talking about face-saving not only for an individual but for people he is dealing with as well.
To this end, usually a compromise is reached so everyone is happy. But, if that’s not the case, try to agree to disagree graciously and leave the back-door open and, above all, make sure you do not embarrass the other party especially in public.
This is something you’d better master in daily life, business and otherwise.
There has been much talk about shifting manufacturing from China because of rising labor cost etc. The process, however, will be gradual and not likely impacts China greatly at least short-term due to :-
1. Well-established supply chain not available elsewhere for now
2. Fully-developed logistic infrastructure
3. Pool of skilled and trained labor
4. Rising productivity and manufacturing efficiency
5. Stabilization of RMB, China’s currency with its recent appreciation losing momentum
In an effort to provide better environment for patrons, it is reported that the management of Beijing’s public restrooms will see to it that no more than 2 flies will be seen at any time within the facility.
Alas, what if the 2 are not of the same sex! The number of flies there will multiply by many folds in no time.
To be on the safe side, I would suggest that they change the 2 to 1.
Getting things done in China is challenging, to say the least.
Often, it is not what you know but who you know. In China, this is known as “Guanxi” meaning Personal Connection or PR with Chinese Characteristics.
Like it or not, deals are done thru it every day.