What Does A China Ready Company Look Like? - Part Two
For the second part of this mini-series, we’ll delve deep to what it takes to have a “China-fied” company. What it means to truly understand the underlying aspects of doing business in China, and to be one with its market. We would like to share the utmost importance of tailoring your company’s culture to better serve China’s business landscape. If you missed the first part of this article, you can find it here.
A CHINA READY COMPANY IS A “CHINA-FIED” COMPANY
We’re talking flexibility and willingness to operate and adapt in another culture. Say for China’s cultural and linguistic variety. Their writing system roots from symbols that represent concepts. It’s wise to opt for a brand name that maintains phonetic similarity like in the case of BMW: 别摸我 (bié mō wǒ), which means “don’t touch me” that expresses how valuable and exquisite the Chinese consider the car is. Think of it as a quintessential aspect of your mindset if you’re gearing your business towards China.
To put it in the simplest terms: Design your operations model to not only do well in China but to also be one with its market. What worked for your company might not fit China’s puzzle pieces. Find the balance that gives your company the status that you have envisioned throughout the country.
Expect the cultural change, and tap into your inner resources of creativity and innovation. A company ready for China does not equate to having success in China. Adaptation is a crucial step, as you are wading your way through a rapidly emerging business landscape, and with that, accept that your role as a market player is not yet clearly and sharply defined. Be ready to put in the time and work to remake your organization.
Having a “China-fied” company means treading carefully through their approach before making a valued investment in China. Don’t seek to be understood, seek to understand. You have to understand the fundamentals of consumer understanding. Look to modernize, not to westernize. How? Collaborate with locals, and dig deep to find meaning in your company’s role in the market for Chinese consumers.
One example is about LinkedIn’s campaign in China. Have you heard about the Great Firewall of China? Facebook, Google, Youtube, Twitter, and Instagram are all banned in China. But how is LinkedIn even allowed and successful?
It’s because LinkedIn chose to play by China’s handbook. Not only did they adapt with its market, but the local team operates LinkedIn in the Chinese way. And to add to that? They heavily invested in building relationships and working with China’s local players.
Aside from having a good perspective and positive mindset in China, being a China ready company also means having good relationships (Or Guanxi). The process is more art than science; relationships first, and business second. For example, Shanghai Volkswagen (SVW), which is a joint venture signed between Volkswagen AG and a group of Chinese partners, has forged a strong relationship with its suppliers; therefore, they can get required parts with high quality and urgent shipment from its suppliers, which contribute to the steady success of Volkswagen in China.
When your company sails out to do business in China, You have to understand the path to success in China requires an acceptance that your company is entering the market on the long tail end. If you take care of the little things—the bigger things will take care of itself.
