Fay is the Founding Chapter leader for KEA Guangzhou. Fay has spent the last five years in Guangzhou working at Utahloy International School where she developed and implemented a programme to teach Japanese to non-native speakers. Prior to moving to China Fay taught papers in International Relations, International Business and Asian Studies in the Bachelor of International Studies programme at the International Pacific College (IPC). She also had experience working as an export manager overseeing the export of high quality New Zealand food and beverage into Japan.
Having lived in China for the best part of five years, I have seen many enterprising companies attempt to enter the Chinese market. Below is a list of the 10 most important tips for anyone thinking of coming to China:
1. Accept that any entry into the Chinese market will take longer than you think. Setting up a company office here or establishing local partnerships takes time – a lot of it.
2. Have a clear direction for entering the market. Is there a long term market opportunity for your product in China? Have a clear idea of what you want to achieve.
3. Be prepared for miscommunications and frustrations. The Chinese business culture is very different to what you are used to in New Zealand. Add the extra barrier of different languages and you have a recipe for some confusing business interactions.
4. Due Diligence: check everything. Enlist a third-party to check company accounts, IP infringements and highlight any other concerns. Even if you are introduced to a company by a friend or business partner, always do your own due diligence.
5. Do not believe you know everything about China after visiting for one week. Many expats who have been living in China for 20+ years will be the first people to admit they can always learn something new about the way business is done here. Always remain on your toes and never think you know everything. With this in mind, learn all you can about China before you visit. Learn some of the more obvious business etiquette rules.
10 tips for entering the Chinese market from Fay Drummond:
6. Make connections before you visit. NZ Trade and Enterprise offer services for New Zealand companies entering the Chinese market. Get on the KEA website and find some networking events to attend while you are visiting. Make contact with agents, suppliers and manufacturers and create your own schedule of visits. Always line up multiple options, including a number of factories to visit or local partners to consider. Do not just take the easiest or first option. Don't waste a trip to China just to visit one connection.
7. Get your business cards translated into Chinese. And bring a bunch of them!
8. Don't automatically assume Beijing or Shanghai are the places to start. Work out the best entry point for you and your company by researching each potential market.
9. Prices are never set in China. Negotiating is part of the business game here. Never accept the first offer.
10. Spend time here. Spend time with your supply chain, supplier, manufacturer, local partner. Nothing beats time and relationship building when entering the Chinese market. Fay Drummond Manager, QSC China www.QSCChina.com
Appropriate gifts to give when doing business in the Chinese market: New Zealand Wine
Mercury Bay Estate 2011 Rose www.mercurybayestate.co.nz
UMF5+ Manuka Honey www.honeynz.co.nz Lambs placenta cream
Lanocrème Body Lotion plus Ovine Placental Protein
www.lanocreme.com Manuka Honey Lipbalm
Wild Ferns Manuka Honey Lip Balm www.wildferns.co.nz
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New Zealand lollies
Pascall Licorice Allsorts www.cadbury.co.nz
