Chinese Patience

For the last few months, it seems that every other conversation I have is about exporting to China: 

Where do you start? Depends upon your product.  

Do I need local partners?  Yes.

Is it expensive? Can be – some of the larger cities have very high costs of living (especially if you want to live to western standards).

What about Intellectual Property rights?  Improving. 

……..

And the Silk Route is thriving - China is currently the world’s largest exporter and set to become the world’s largest importer in a few years according to Minister of Commerce Chen Deming.  Any technology company planning to become a major exporter must include China in their plans.

 InvestNI are organising another Trade Mission to China later this year that is generating a lot of interest.  And although the Republic has stolen a march on everyone by having Vice-President (and soon to be President) Xi Jinping visit last month with a view to increasing international trade (already sitting at €4.5bn pa between Ireland and China), the current visit underway by Liu Yandong, a member of the Chinese Politburo and considered to be the most powerful woman in China, is very positive for Northern Ireland.

I was recently at the Sir Bernard Crossland Lecture in Riddle Hall about “Building Business in Belfast, Bangalore and Bejiing”.  Based on this lecture and my own personal knowledge here are my top tips for conquering China:

1. Best to pitch your brand as an innovative one; Chinese entrepreneurs still regard the West as the bedrock of innovation. 
2. Select your launch location carefully. The regions with the best developed high-tech environments, and where you should first consider setting up an office or finding an experienced, well-connected local partner, are Beijing, Shenzhen, Shanghai and Shaanxi.  
3. Build Relationships slowly and seriously – focus on family, education, culture. 
4. Choose colours for your collateral/presentations carefully.  e.g. Green is a colour we associate with the environment, with spring, with Irishness but in China green is associated with exorcism or infidelity.  Red, Blue, Yellow or Black are pretty good in China (although, probably best not to use them all at the same time!).
5. While English is the recognised business language, do have a Chinese translation on the back of your business card.  Do hire interpreters during on-site intense negotiations.
6. Learn about Chinese business protocol  – punctuality, respect for age, dining etiquette, use of titles, giving gifts, conservative dress code.

And my top tip is Be Patient.  The Chinese live in the world’s oldest, continuous civilisation (c4000 years), their macro-economy operates to 5-year economic plans (the 12^th in modern history is just starting) and they resent the impatience of westerners to conclude business quickly.  They will use your impatience to their negotiating advantage, so take it slowly! 

My associate Norbert Sagnard has just added a new associate in Shanghai – Eurasia Consultis – who are now our local hi-tech commercialisation experts, ready to help your business set up locally with the right foundations.

Geraldine Fusciardi

www.strategy-structure-sales.com

Ideas for Selling Northern Ireland

Now, understand that I don’t mean to sell all six counties – I mean, who would buy them?  Only the Russians, the Arabs and the Chinese have any money these days and there’s not enough bling, natural resources (apart from beauty) or even, sadly, big industry to interest any of them in our little part of the world.    No, what I mean, is selling our products and services with a specific focus on our knowledge industry.    I was recently at IdeaFest at the NISP where about 80 of us were exploring ideas to make NI a start-up powerhouse for science and tech entrepreneurs.  Check out http://www.nisp.co.uk/?p=1913 for an overview.

Here are just some of the sales ideas that we discussed:

1.       The brightest and best need to be attracted into the knowledge economy as both entrepreneurs and professional sales people – we need to change the cultural middle-class focus from valuing doctors/dentists/lawyers above all others and get them to value careers in the job-creating knowledge sector.

2.       Put the market back into research on a regular global basis.  Research should not just be product-led (nor single-company driven).  We need to actively encourage ideas/innovation in market areas that have true global growth potential.  The only way we will know which areas is through regular Market Research on tracking trends around the world and actively encouraging entrepreneurs to develop ideas to meet the fastest growing opportunities (perhaps triggering “second-mover advantage” which many times can be better than “first mover advantage”). 

3.       Everyone needs to sell but not everyone can sell.  Let’s admit this.  Too often entrepreneurs attend a 3-5 day sales course and then everyone assumes (including themselves) they can now sell – not only locally but around the globe.  Would you employ someone to code for you on the basis of a one-week training course?

4.       Establish a Sales Academy to properly embed sales psychology, tools and processes, build exporting expertise, and raise the status of professional sales people. 

5.       Marketing and Sales needs to be more tightly linked in how companies operate and how they are supported – too often I see companies thinking and acting as if these are two entirely different activities (and the grants process only encourages such thinking).

6.       Clustering/Incubation needs to be supported at multiple locations across NI.  While Belfast should be the major hub, we need to encourage and support ideas throughout the north.

Finally, professional marketing and sales support should be on-going for high-growth companies – a combination of hands-on support, mentoring and structuring of their sales activity appropriately.   Once we have identified the high-growth companies then let’s ensure they are supported to achieve their potential.  Now, I would say that, wouldn’t I?  But let’s not forget that key measures of success for companies (and our economy) are sales and jobs, and the first drives the later!  

Geraldine Fusciardi

www.strategy-structure-sales.com

Who's afraid of the sales guy?

I’m petite and highly unlikely to personally inspire fear in anyone (except perhaps my husband!). However, what I am proposing for most companies and their employees is scary. I may look like I am selling software or hardware or mobile applications or outsourced services but what I am really selling is change. So be afraid, be very afraid!

Endless studies have been written about the psychology of change and its impact on sales (a simple Google search will turn up about 26m references). As well as change, prospects are also scared by:




Conflict. Decisions that colleagues or other departments oppose are simply too risky to pursue.
Work. If they think that your solution requires a lot more work on their part, they will not buy.
Failure. If you do not deliver, they will be held accountable for the bad choice.

And the bigger the company, the worse it gets (although they won’t necessarily always admit this!). And exporting makes the situation even scarier. Prospects then have fears about your ability to support them locally, fears about cultural misunderstandings and fears about solution fit to their local needs.

So, how can you minimise this fear?
1. Watch your language – avoid scary words that imply major change (transformation, radical, quantum, dramatic) both verbally and in writing and where possible, communicate in your prospect’s native language.
2. Improve on existing solutions - if appropriate, illustrate how your offering blends with and improves existing practice (small changes). Demonstrate an understanding of local norms.
3. Talk to more people – the more you are known within an organisation, the less scary what you are proposing will appear. This is especially important when your solution crosses departments – try convincing multiple department stakeholders of your value. Build some consensus. Link them with similar staff in your existing customer base.
4. Talk to senior staff – they are more likely to embrace change agendas, understand your value and have more influence on the final decision. By-passing middle management fears.
5. Map out the work-load – Be very clear what work will be required of your prospects and try very hard to actually minimise what they will have to do. Have a Plan B ready. Show how you will “hand-hold”. Build your solution with implementation effort in mind.
6. Build local partnerships – when exporting, this will help allay many prospect fears about your commitment to their country and minimise the potential for cultural misunderstandings.

However, inspiring fear in the gatekeepers of your prospects may not be a bad idea – make them afraid of not putting you through to their bosses.

Geraldine Fusciardi
http://www.strategy-structure-sales.com/