The question of how to market and sell to companies based in China is one that is debated endlessly by foreign companies seeking to profit from the huge potential of the country. Some ‘experts’ state that marketing and selling in China is ‘just like home’ whilst others wildly exaggerate its uniqueness.
The principle of ‘marketing’ is less widely recognised in China than in more mature markets. It is commonly seen as a service department for the sales department, sometimes seen as little more than taking care of the logo and brochures.
The salesperson and selling, however, are widely respected in China due largely to the importance placed on relationships in business decision-making. A good salesman must forge relationships and friendships with potential customers, to be respected almost by definition. This also gives rise to a protracted sales process.
Read on for a step-by-step guide of how best to communicate to Chinese buyers:
1. Make an exhibition of yourself
The Chinese business community states that conferences and exhibitions are its favoured way of meeting potential suppliers, with phone calls the most unpopular route. A presence at these events is critical for making new contacts, developing relationships and gaining trust. They also allow Chinese buyers to meet face-to-face (very important) and ask questions, and – crucially – demonstrate a commitment to the local market.
2. Use email to open the door
Chinese buyers tend to react positively to a well-structured, personalised email as a prelude to a detailed face-to-face discussion. Such an email should be accompanied by a soft-copy brochure and preceeded by a phone call. ‘Cold’, non-personalised messages are unlikely to be taken seriously.
3. Create a good first impression online
Clear company websites that convey a company’s ability to deal with Chinese customers are an excellent way of generating interest from Chinese businesses. Whilst many Chinese buyers speak English, translating part of your website is an important means of showing respect as well as rising up the Chinese search engine rankings.
4. Meet them on their own turf
Face-to-face meetings in the workplace are an essential step towards making a sale in most business markets. Only when a face-to-face appointment is secured can it be assumed that the enquiry is a serious one.
5. Get networking
It is true that relationships are important when doing business in China, probably to a greater degree than in Western countries. It is also true that networking can lead to relationships and in turn business.
However, networking and marketing should be seen as mutually complementary in China – one does not invalidate the other and there is a tendency for the importance of ‘networking’ to be exaggerated.
Choose your message
The following advice should be considered when formulating your marketing message.
- Prove your worth. The main requirement Chinese buyers have from potential Western suppliers is to provide market-leading quality, if for no other reason than to justify the higher prices. Communicating superior value is increasingly difficult, as local quality improves and as Chinese companies become better at communicating their quality, and as more international companies recruit local buying staff who are confident in local offerings.
- Prove your expertise. The need to present comprehensive case studies, client lists and past experience cannot be overstated. This is in contrast to many Western markets, where past experience is often mentioned in the vaguest terms and references are rarely followed up.
- Leverage your heritage. In many cases, the Western ‘brand’ represents quality, and at the very least provokes curiosity; this is an advantage to many Western companies seeking to enter China.
- Keep the customer satisfied. Chinese buyers are demanding in terms of service requirements on issues as diverse as lead time, availability after-hours and technical service, so make sure you communicate the reliability of your service effectively. There is also a reluctance to deal with companies that have no physical local presence.
