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An argument now being expounded by a number of management 'gurus' is that relationships don't matter in China anymore. I seriously disagree.
Whilst building relationships may not be necessary to do business with the new breed of Chinese entrepreneur, the significance of a relationship is when things go wrong with quality or delivery!
The second most common mistake made by US companies hoping to sell to China is attempting to import their sales process along with their products and services. The Chinese do not respond well to the typical qualify, present and close sales process. Dr Charles Lee, who grew up in China and emigrated to America where he worked for AT&T Exxon and Xerox says “it's all relationship”. When you are selling things based on relationships it is the feeling which is more important rather than the content. ‘Whom you buy from, rather than what you buy'. AT&T damaged a personal relationship with a vice premier and was barred from doing any business in China for a period of time.
Companies that are successful in China mix East and West, bringing together western quality, technology and service plus strong relationships.
As propounded by Jiang Zemin - "The world is in a time of profound change. The State must wisely balance equity, efficiency and promote China's fine traditions whilst absorbing the positive aspects of foreign cultures." |
