The CEO of your company recently attended a luxurious Chinese banquet. The seat of honour was hers, and toasts of good fortune echoed around the flower arrangements.

Your new Chinese agent certainly seems to have all the right contacts. Since you met, a budding partnership has quickly evolved. The fax machine has beeped, the e-mails have poured in and an initial product shipment is now making its rocking journey on the Atlantic. The single cause for concern is that it suddenly became very, very quiet….

Of course, there was no real screening procedure, but in China, they say, that business is all about relations. In retrospect, it may seem peculiar that no alternative business partners were considered, but the decision was taken and the investment made.

”Dear X, via my excellent connections in department Y, I can secure that we will have no further problems with customs.” “Please forward RMB 15,000 for a glass sculpture and taxi transportation.”

So that is where the problem was. The customs has made a fuss. 15,000…, well in China this is likely not considered a bribe – things are so different here. It must be dealing with a return of favours.

If anything serious had occurred, you would reasonably have been informed. The sales figures from China do indicate that 10,000 units have been sold, which is clearly more than expected.

Strange thing though, that the product has become so popular with senior citizens. Here in Sweden, only 30-year olds seem to care about it. Could it be that the full-colour advertising images have been misinterpreted? But one can only assume that an image is still nothing more than just an image.

I could continue our story a little bit longer, but I believe that the image is becoming clear by now.
Many companies with aspirations to establish themselves in China are making the mistake to put their fate in the hands of a single business partner or a local employee. And this is done without receiving a second opinion on communication materials, business strategy, or a simple check that there is a shared set of values between business partners and the company. By such neglect, they run the risk of unknowingly committing bribery, to have their brand image distorted, or simply that sales will never take off.

The medicine against this sickness is rather bitter, since it deals with making investments. No one will successfully address China without it. Spend time to find the people who can help you develop your message so that it will reach your Chinese target audience. Make sure that your partner is driven by the same motives that you are. Subject your marketing messages to review by focus groups, so that what you want to say is also being picked up as your real intention.

And yes, please visit China to see for yourself where this gigantic market is headed. If there ever was a time when Western enterprises could gain competitive advantage purely by means of their foreignness, this era is definitely over. With the emergence of a new, proud China with specific market preferences, a thorough understanding of the market and of your own profile is the only way to build success.

Martin Stenberg