Succeeding in the Chinese Market

China is one of the most important markets in the world, but what are the keys to success?

China is a market that cannot be ignored today. In the space of 30 years, it has risen to the rank of the world's greatest powers. Many companies want to develop there. In this newsletter, I will try to decipher, with the help of my experience, the keys to success on the Chinese market. Each month, I will give you tips, feedback and significant experiences to help you break into this market.

In this first part, I propose 7 ways to better understand the Chinese market:

1. The notion of GUANXI 关系: the network

In China, the network is essential, much more so than in France. It is quite possible in France to conclude a contract without having met before. In China, with a good professional network, everything can go very quickly, you have to be able to enter this circle of friends or professionals, and take the time to get to know your contact. I remember during a meeting with a Chinese client, he told me several times that "relationship is everything in China". You have to work on your network and above all take the time to meet your partners, a discussion over a traditional Chinese meal is often one of the methods for forging links. Do not hesitate to talk about your family and ask questions about your personal life, the Chinese are very open on this subject. It is very common for the Chinese to ask about salary, or information about private life.

My friend's friend is also my friend!

Tip: The best way to develop your network is to participate in trade fairs.

2. Keeping Face 面子

One of the main rules to know when communicating with the Chinese is that you should never make the other person "lose face".

The truth is sometimes difficult to hear when it is not favourable. In China, it is better to say banalities than things that might offend a person's ego, his love of a country, his belief in a system or his pride in his culture. You will notice that corporate speeches in China are always very smooth, very positive and rewarding.

Compliment and challenge your interlocutors. Let them know that you have confidence in them.

Tip: be sincere with your interlocutors, avoid hypocrisy.

3. Know the Chinese language and culture 了解汉语和中国的文化

Before taking a step towards negotiation, it is really wise to take the time to get to know the country and region in which you will be operating. The most being mastering the language to break the ice and promote exchanges, but simply saying expressions like "你吃饭了吗" literally, have you eaten?", an expression that is close to our "are you okay?" allows you to start the discussion easily. Chinese people have a lot of respect for people who learn their language or culture, so you will gain a lot of points in your relationships.

4. Negotiation 谈判

Chinese people are very strong in business, and try to negotiate constantly. It is better to always announce slightly higher prices at the beginning, and then give discounts to the customer, because Chinese are very price sensitive. To counter this argument of lowering prices, I use this expression "一分钱一分货" Yi fen qian Yi fen huo which says that quality products pay the right price.

Associating the contract with a firm and definitive commitment: for the Chinese, the contract is only a stage in the negotiation. The French consider the contract framework to be definitive. For the Chinese, on the other hand, it is bound to change according to events and information.

Tip: don't lose your patience even if it is severely tested, getting angry in front of a Chinese person means losing all credibility. Any show of strength is perceived as a weakness.

5. The business meal 商务餐

The purpose of the meal in China is instead to melt this protective shell to bring out feelings of friendship, joy, trust. The foreigner wishing to integrate into the various Chinese business circles will have to understand that even if the supreme goal of these copious meals is to finalise a contract or obtain help, the immediate objective will always be to spend a moment of fun and relaxation, a moment where the various people present will get to know each other, to trust each other.

6. Be generous and humble 要大方和谦虚

China is the land of gifts. So don't forget to give them to your contacts. This is an essential step towards building trust. If you offer them typical French items, they will appreciate and be grateful. There is no need to offer a very expensive present, for them it is the intention and the symbolism of the gift that counts.

If you invite your Chinese contacts to a restaurant in France, do not skimp on the means! The meal is an essential step in the socialisation process, a must. Abundance is the key word, the aim is simple: to ensure that your guests have a pleasant time. Nothing more (there is little or no business talk)!

Humility is a great quality in China, pride is on the contrary very badly seen in China, try if you can to emphasize your interlocutor.

7. "In Rome do as the Romans do" "入乡随俗"

This Chinese proverb speaks for itself, and it means that we need to adapt to the local market. For example, in the wine sector, Chinese consumers like red wine with a fruity and slightly sweet taste and a high alcoholic degree above 14.00%, some French companies have understood this and produce vintages especially for the Chinese market.

As a bonus, here are the 10 rules to succeed in China: (english version)

1. Relationship is everything

2. Relationship is everything

3. Everything is possible in China

4. Nothing is easy

5. Patience is the key to success

6. The answer "Yes" is not necessarily an indication of agreement or confirmation

7. "You don't understand" China means disagreement

8. Signing a contract means the beginning of the real negociation

9. When you are discouraged, think about the rule #3

10. When you don't know what to do, think about the rule #1 and #2.

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