Good Characters, Inc. Blog

We’ve been very busy and I haven’t had time to update this blog at all. However, I just found a great source of information about China at china.alltop.com. I have included the link on Blogroll on the bottom right-hand side of this page as well.

AdAge reports that a new study from OMD Worldwide found that ethnic groups are turned off by ads that rely on stereotypes and caricatures rather than meaningful cultural cues.

Key points that are relevant when doing business in China or with the Chinese:

• “The respondents were saying, ‘We want to see ourselves represented in ads, but not in a stereotypical manner,’” said Pamela Marsh, group director-primary research and insights at the Omnicom media agency.
   
  Comment: This seems to be common sense although there is a fine line between typical and stereotypical.
   
• The ethnic groups agreed that messages should be culturally relevant, but they responded more positively to ads with multicultural cues, such as ethnic characters, phrases, expressions and values, than ads that were simply translations of general-market ads.
   
  Comment: Very often companies simply have their ads and marketing material translated from English to Chinese believing that simple translation will get their point across. Typically it doesn’t work this way. A more reliable method is to use culturally relevant ways to express the same idea instead of merely translating marketing ads.
   
• “Ad relevancy is more about communicating in kind than speaking in a language,” Ms. Marsh said. 
   
• Asians used the internet at significantly higher rates.
   
  Comment: Since the population in China is much greater than in the U.S., it is likely that in a few years there will be more people in China using the Internet than the entire U.S. population.
   
• According to the study, Asian-Americans also rely heavily on word-of-mouth because they are less receptive to ads than other segments of the population.
   
  Comment: Perhaps this is because several generations of Chinese and Taiwanese have endured several wars and various political propaganda. Hence they have learned to place less trust on the media and rely more on word-of-mouth. The good thing is that people are more ready to accept that an undesirable purchase was simply “bad luck” and they do not blame others or start lawsuits. On the other hand, the lower level of trust among Chinese makes life more difficult and less enjoyable. Until recently, you could not make a purchase in China or Taiwan and expect to receive a refund even if the product was defective or didn’t work as claimed. Thus people have to be very cautious before making a purchase.

What do you think?

Original:

• When Targeting Multicultural Audiences, Be Relevant
  OMD Study: Doing it wrong is worse than not doing it at all

Mike Saxon, author of An American’s Guide to Doing Business in China.

Fullerton, California resident Mike Saxon has been doing business in China for twenty years. With an M.B.A. in Marketing and Finance from Stanford University, Saxon traveled to China’s major cities, linking manufacturing concerns in the United States with companies in China. He currently consults with Americans who wish to begin businesses in China. Saxon has put his two decades of experience into a book that is a great resource for anyone who wishes to take advantage of the growing Chinese market.

Q. When you first started doing business in China, what interested you in that part of the world?

My Chinese wife had an import/export business.

Q. When you started, China was not a very big market. What kept your interest there?

Same answer as above.

Q. You have a Chinese name. How did you get it and why?

I got my Chinese names from a professional name giver in China. I got it to make it easier for the people I was dealing with in China to remember.

Q. What is the thing that would most surprise an American doing business in China?

I wrote a book about realities versus expectations.  I don’t know what would be the most surprising, but the one topic that the most people comment about on their first trip is the rate of construction and growth. 

Q. What kinds of foreign-owned businesses should do well in China?

Too many to list.  In manufacturing, China is a new, low labor cost environment, so especially labor intensive goods would most benefit if certain caveats are noted.  In selling to Chinese, luxury and convenience category goods, plus products selling to people with discretionary income and more leisure time.  In investments, people who know how to do down to earth research and separate fact from fantasy.

Q. What product features are most important to Chinese?

A. Quality, appearance, and convenience.

Mike Saxon’s Advice on Exploring Business Opportunities in China

As you may have suspected, China is fast becoming a consuming nation, with a rapidly expanding middle class to sell into.  Chinese consumers are following a familiar pattern.  As they become wealthier, they begin to appreciate the niceties of consumer goods and seek features other than utility, such as quality, looks, image and convenience. Certain fields cry out for development in line with China’s growing consumer sophistication. More people have more leisure time, so entertainment will burgeon. People want other people to recognize their success, so luxury goods will continue to grow.

Beware, though, you can’t go down to city hall and get a business license 15 minutes later upon the payment of a $20 fee.

Obtaining a license in China is a multi-step process, requiring planning, a pert chart, patience, persuasiveness, and money. You need to convince the authorities that what you are doing is needed and that you are a responsible person or company. You will need to satisfy several requirements, including sufficient capital, in China.

Also, remember, the key to any successful business is really knowing your customer.  You may start at a disadvantage in China, so do lots of market research.

 
Visiting China, Hong Kong, or Taiwan? Do Chinese handle business cards the same way as Westerners? What is the proper way to exchange business cards with Chinese? Click on the above image to find out.