Taming The 'Dragon'

Tuesday 6 May, 2008

by Natividad Hernandez-McKernan

For Australian entrepreneurs looking to take their businesses to Asia, expectations are running high. By understanding and having an awareness of a variety of differences you can make the most of the opportunities available.

Have you ever been tempted to take on the Dragon and expand your business into Asia - or are you happy enough to let your competitors pounce?
Asia is vast, the population is huge and it's certainly a lot closer to do business with than Europe or the Americas. But it is close only in distance ... not in culture. Never assume that your products and/or services will match the same needs and wants as they do in Australia.
China and its population of 1.3 billion people is on a massive growth curve and the four Asian Tigers: South Korea, Taiwan, Hong Kong and Singapore have all maintained enviable growth rates over the last decade. This translates to higher household incomes and more purchasing power. But wait... before you book your flight to Asia, consider the following facts:

• Asia is diverse. Each Asian country has its own unique culture, characteristics, language, customs, traits, etc.
  
• The region is non-homogenous in the variation of  purchasing powers, lifestyle, attitudes, consumption patterns, etc.
  
• In every aspect (economically, politically and culturally), it is different from Australia and the number of languages spoken is hugely diverse.
  
• Marketing goods and services in Asia will always be a continuing challenge, particularly as consumers continue to become more discerning, sophisticated and demanding.
  
• Doing business in Asia requires patience, investment in time and capital and a good network of contacts.
  
• "Guangxi", or personal trust in relationships, is an important and overwhelming factor in establishing businesses in China and the rest of the Asian countries. This concept is in fact more complex and goes beyond a two-party relationship which most Westerners find difficult to grasp. Nevertheless, it remains a pre-requisite for the business relationship (relationship marketing) as opposed to the transaction approach and international mass marketing.

It is not easy to build a business in Asia. One can't really tame the almighty Dragon and even multi-national companies that are long established and successful in the region are constantly challenged by the ever changing trends and consumer demands.
Notwithstanding these countless obstacles, Australia is well placed geographically to exploit numerous opportunities that are there for the taking.

Here are a few things to consider prior to launching into the Dragon's lair:

• Get expert advice. Australia is a multi-cultural society and establishing your very own global network or "guangxi" can link you to Asia prior to making the major leap.
  
• Make an effort to understand the culture of the Asian country you intend to do business with.
  
• Link up with Austrade and the major banks and financial institutions for advice.
  
• Outsource to an international marketing firm or consult with experts who have solid experience in Asia.
  
• Attend trade shows with a focus on trade with Asia.
  
• Invest in good and solid research, the internet has revolutionized our access to cross cultural information.
  
• Finally, have an abundance of patience and a realistic approach to measuring your success and ROI.

An understanding and appreciation of all these will prepare you for the challenges that await you in Asia and will assist you in adapting marketing strategies and preparing the right marketing mix.  Understanding and addressing the differences in culture between East and West will be invaluable in your attempt to negotiate deals with your potential partners or customers.
And don't just rely on "An haeng un" or "Zhù n¨« háoyùn". Good luck never held a candle to good preparation!

Source:ceoonline.com