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THE STORY | PICTORIALS | MARKET-ORIENTED VIEW INTO MAINLAND CHINA
Dashboard
• 1992 first trip to Beijing
• 1994 first contract in Beijing
• Lived in Beijing over 15 years
• Chinese provinces: 19 of 31
• EU to China: 59 visits
• Countries visited: 43
• Meetings in 20 countries
• Presentations in 14 countries
• Over 720 flights, 276 hotels
• 2017 World Tour, South Pacific
• 2024 Helsinki
"Chinese mentality is different
- but no fear about it"
--BeijingMan
Q: Key differences in China?
Education. Guanxi. Face.
Hierarchy. Sensitivity.
Respect. Media. Net.
Business, selling/buying.
Partnerships. Motivation.
Communication. Indirectness.
Information availability.
Mentality. Values. Culture.
Middle way. Different.
Q: China for StartUps?
Possible. You need tech,
a problem and a solution.
Strong story, growth potential
and path to profitability.
Good Guanxi and ability to
put Chinese pieces together.
You must learn fast, and
then be fast.
Q: China for SMEs?
SMEs seldom have resources for
Guanxi. SMEs face fierce price
competition as they have no
brand, meaning low margin.
China's scale is an enabler
but it must be understood.
Scale requires skill, risk taking,
thinking big and Guanxi.
Problematic for SMEs.
Partnerships are needed.
Q: China for MNCs?
Most MNCs succeed in China
if not competing with SOEs.
Manufacturing for export, and
for sales in mainland markets.
Q: Talents available?
Yes but there is culture, education system difference.
1. How to find real talents?
2. Then, how to motivate?
Q: Innovated in China?
Glorious past. But now
hard-working, coming.
Have willingness to learn.
Have respect the knowledge.
Good in cost reduction by
redefining products, processes.
Good in finding short-cuts.
Tech related innovation is
happening, rapidly improving.
Q: Indirect communication?
For Chinese smart way to
communicate, can be exciting!
In families, workplaces,
meetings and negotiations.
For foreigners timeconsuming.
Verify translations.
If Chinese hold a strong
position in negotiation, they
can become very direct.
Q: Sharing information?
Information availability is not
fluent. Info is an asset,
give and expect to receive.
Access to info needs Guanxi,
for foreigners difficult.
Q: Personal responsibility?
Usually avoided with 'ifs,
buts, excuses and conditions'.
Group responsibility.
Learn what it means.
Q: Problem solving ability?
Not bad. But systematic
approach, preventive planning?
Communication? Guanxi?
Q: Front Door or Backdoor?
Chinese are masters removing
blocks by using backdoor.
Rule-of-law born foreigners
don't know about backdoors.
And there always is.
Q: Details or concepts?
More detail oriented,
technical details wanted.
Abstract conceptual views
not wanted, value not seen.
Q: Readiness for teamwork?
Every Chinese is expected to
be head taller than the others.
Trust and sharing is difficult.
Management and motivation
are 'art' in China.
Q: Progress by plan?
Chinese approach is step
by step. After each step
re-evaluate, then next step.
Guanxi needs flexibility,
not format or schedule.
Q: Risk taking, decisions?
Chinese have learned to
avoid mistakes and to seek
Confucian middle way.
Reward is a booster.
Q: Results oriented?
Result counts, but mainly
based on real reward.
Q: Guanxi in Mainland?
It is more than connections,
LinkedIn, Facebook, WhatsApp
or Starbucks together.
It's business art, insurance
and career enabler.
It's differentiation in situation.
It's exchanging favors.
It's private, it needs care.
Learn about Guanxi, accept
that only Chinese can master
it, their own ancient Yi.
Q: Is MoQi important?
Build MoQi, "silently agree"
makes working smooth.
Enables invisible support
and increases productivity.
Q: Chinese and emotions?
Poker face reputation!
But often low threshold
on controlling emotions.
Critical situations may
trigger emotional reaction
not followed by reasoning.
Exceptions exist.
Q: Face saving problem?
The Face wins the facts.
To admit a problem is complex
issue. Pride vs loss of face.
Key factor of Chinese mind.
Q: Red Face, White Face?
Have critical interests?
Role playing is common
in Chinese negotiations.
Features, commercial terms.
When in strong position,
Chinese can be direct.
Chinese can say 'NO'.
Q: Corruption, bribery?
Complex issue, fight
continues. But taking
a cut is not considered
as a crime, by all.
Factors: mindset, rules,
transparency, Guanxi,
auditing, approvals.
Q: Competition in China?
Fierce, not always fair,
sometimes unhealthy.
Besides price and features
it's Guanxi, Treat and Brand.
Learn Chinese sales process.
Learn about bidding process.
Learn what is essential in
Chinese sales presentation.
Learn the idea of meetings.
Learn Chinese image and PR.
Learn about the gift process.
Chinese businesses have
certain culture advantage.
Q: Sourcing in China?
Find a real Industry Expert,
he/she is the key in finding
required quality at
rock-bottom price.
Otherwise, overpay.
Q: Joint Venture in China?
Wanted for value-add and
for mainland market access.
Risk of competitor creation.
Q: R&D unit in China?
• Localization of products
• Chinese standards
• Research projects
• Cultural findings
• Inventions and patents
• Lower cost
• Society relations
Q: Mission, vision, strategy?
Careful with all business
and industry specific
words. Their exact meaning
may not be understood or
clear in mainland China.
Ask for a business plan, and
wait, and watch others take
that opportunity.
Q: Chinese mentality?
Market economy develops
rapidly but Chinese
mentality changes in
slow motion.
Recruit with thought.
In meetings Chinese advance
until rock solid resistance
reached.
Q: Gamblers by nature?
Chinese are born gamblers,
have gambling mentality,
feel good when gambling.
Reward motivates.
Q: Chinese bureaucracy?
Has scale, width and depth.
Might become a roadblock.
But situation is improving,
basic procedures often
available via the Net.
Q: U.S. or EU style?
China goes towards U.S.
business style. Power of
money and marketing gets
mixed with Guanxi and
privileged information.
Economy and Markets
China's economy mix
- 1/3 SOEs
- 1/3 Chinese private
- 1/3 Foreign investment
Q: Foreigners weak point?
No doubt the Chinese way.
Chinese say about
foreigners:
Even if you tell them, they
still don't understand.
HQ abroad can become
barrier as they lack
insider's view and realities
about Chinese speed and
way of business conduct,
mentality.
China consultants abroad
(foreigners or Chinese)
seldom have practical
expertise about situations
in Chinese industries.
Most have never made
transactions in China (key
in learning the 'way').
Q: China Myths, Mysteries?
No mysteries, no myths.
Guanxi, money, mentality,
career, partnerships.
China's potential was released
when it joined WTO in 2001.
Teleste China 2010-2012
Chief Representative China, a cable TV network vendor. Listed in Nasdaq Helsinki. Sales to mainland Chinese markets. Partners. Guanxi. Biddings. Cable TV network customers in 26 of 31 Chinese provinces. Business development. JV process for manufacturing.
HappyHan Co. 2006-2009
Co-Founder of HappyHan Company in Beijing, a China venture. Sold in three years.
Nokia China 1998-2005
China Business Development (BD) for seven years. Nokia China's size tripled as it took China market leadership.
• BD in Nokia Networks
• BD in Nokia Mobile Phones
• BD in Nokia Research Center
Market share. Partner evaluations. Talent search. Strategy. Sales. Re-organizing. Patent Grant. Change implements. JV process Nokia-Neusoft for software.
Nokia China project
PrePaid Service 1998-1999
Duration: 12 months
Target
To activate PrePaid system and service in China.
Challenge
To enable anonymous prepaid mobile communication in China.
Result
China Mobile in Beijing got the first PrePaid SIMcard package and service platform. PrePaid helped Nokia China to grow market share with wide portfolio of mobile phones.
Nokia China project
SMS Texting 1999-2000
Duration: 18 months
Target
To activate SMS texting service in China. Internet connection to China Mobile's mobile network. New way to communicate. Opportunity for Portals and Developers for innovations.
Challenge
To enable new way for communication in China.
Result
SMS texting helped Nokia to take market leadership in China with the best texting UI in its large portfolio of phones. Market share growth. Birth of creative industry.
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