Talking about China

China, what an unknown and diverse country… When I first arrived there on the second of March, the contrast was that big that it was difficult to realize that China was part of the world we live in. I had some preconceived ideas on this country which I posted two weeks ago on this blog, nonetheless, i have to admit  that one must “live it to tell about it”.

After visiting some utilities in China such as Volkswagen  and Mondragón group among others, I was able to draw some common insights and conclusions. All these enterprises recognized the fact that the cost of production in China was indeed much cheaper than producing in their country of origin. Nevertheless, they confirmed that this trend was changing as a result of two main adjustments in government policies. China is starting to move towards a model of production where quality control is starting to become significant.  But also, the country is taking much into account the salaries of the workers with a significant increase in their wages.

Counterfeiting is also considered to be a big issue in China. Even though in some industries this phenomenon tends to happen more easily than in others,  it needs to be said that companies settled in China are always alert and cautious in this regards. For instance, in Mann Hummel Filters, it was highlighted the fact that scrutinizing the products in much detail was  the company´s usual practice when trying to  avoid counterfeiting.

When it comes to the lectures we had in Jiao Tong University, to learn the Chinese culture, values and history helped me better understand the way businesses are made in China. During the first lecture I learned that China needs to be considered as a continent instead of as a country merely because it is so diverse. In the East part of China is concentrated  most of the economic activity as opposed to the West where still business opportunities are not being exploited. Nonetheless, it seems that in the next years this region of China will flourish.

Guanchi was a key word during the entire study trip and it was repeated during the different lectures as well as visits. Having the perfect partner in China is essential when doing business. It is important to work on your long term relationship to succeed.

Mianxi and the concept of face was also another concept that cannot be avoided. It could be described as a combination of honor, reputation, social standing and influence. In China gaining and losing face is considered to be a serious business.

Luxury goods are connected to the concept of face as well. It seems that to certain extent it is  all about showing off. If you have an Audi you will be more prone on getting your business done than if you have a Golf.  Why?  Merely because you will be seen as trustworthy with the necessary money to develop the business.

In my opinion, Joint Ventures are the best option when doing business in China even though other alternatives can be found. After listening to different lectures i have come to the conclusion that it seems the easiest way to penetrate into the Chinese market.

Marketing is also essential to market penetration. It is very important to know what the values and the culture of the Chinese is in order to be able to understand them and to start  doing business with them. It is important to adapt instead of trying to change it. The example of the Melia Group illustrates such situation. What is more, it is important to evaluate who your target is in order to be able to adjust to the “needs” of the Chinese.

To conclude, with Fernando and Marc, we saw how entrepreneurship was priced within China. It is about hard work and responsibility. It is about trying to explore a new world full of opportunities. China is just China and  without any doubt this country is the country.

Comments Off on Talking about China / 15 Mar 2014 por inescamarero
IMSD /

Comentarios cerrados.