Russell Buchanan, CEO, MMP Group Australia

Company Profile:
www.cnkissconsulting4u.com

Tell in a ONE sentences about business with China: Cross trade B2B consulting for 1st port of call link to and from Australia, China and Global
Who are your clients?
Australian baby/infant milk powder producer, high end boutique jeweller, Australian property developers, Chinese Architectural lighting design company Beijing UK5A etc
What is your mission?
To introduce Global, Australian and Chinese businesses for JV, distribution and investment through our network of guanxi in China and Australian companies wanting to enter the Chinese market.
What problem do you resolve?
Firstly, assess if China is the right choice and if now is the right time to enter the market, then we link companies with local business and government entities when requiried. If problems arise we deal with them as a go between. Usually we see the problem before it happens like a movie script. Playing your part to our advice/direction is our way of making problems not occur. Communication problems are the most common problems we resolve.

What kind of problems between Western companies and Chinese manufacturers do you see?

Certification and quality control is the most common issue for gaining trust. Trust and confidence that meetings are fruitful and lead to real business as the first impression is so important especially in China. Guanxi is forming a business relationship and generally western companies need to know that it takes several meetings before you can really start talking Dollars and Yuan trade with the decision makers. Bridging the culture gap is the most important issue/problem to solve no matter how good the Chinese speak english at meetings and dinners etc.

Our new initiative is to produce video webinar style infomercials for the Chinese audiance to give maximum exposure for the western client and show a broad view of what companies stand for and want to achieve.

We will be linking with Austrade and Austcham to launch this initiative for western companies plus Chinese companies wishing to enter the western market for cross trade, this is a win win formula for all involved.

How a Western company can find a reliable Chinese supplier?

You must have both western and Chinese people on the ground in China. Both have seperate jobs and compliment each other for the principal companies interests in China. The options may seem endless but making the effort to target specific areas/zones that make the same product will streamline the confusion that such a wide choice presents. Government input is always the best way to go to target the right proven companies and manufacturing/supplier zones.

What is necessary for TOP managers of western companies for start-up business with China?

Local Chinese people on the ground. Again complimented with western people who have been in China for some years to deal with day to day issues that are in any new start up in any country. If you don’t, you will lose time and money with a headache to follow. Old heads needed for young business shoulders.

What are the risks while working with a Chinese manufacturers and with what they are related?

Communication and responsibility through a system determine whether the risks are high or lowered as once again the communication gap can be an obstacle. Who makes the decisions for the go ahead of the production of a product must be on the shoulders of the head office overseas. The risk of something going wrong is then in the hands of the head office and safeguards any unwanted decisions and costly mistakes made without authority or full understanding of specific requirements.

What kind of advice could you give to Western companies: how to effectively sell Chinese products?
Certification is king. Quality control and keeping up with new global standards for new orders is needed to make sure you are not stuck with out of date or illegal goods through new standards changes. The latest is for toys etc in Europe.

How usually do you prefer to conduct negotiations?

First contact is always by email followed by a back up phone call just to make the company aware that there is some interest in doing business. Company profile and requirements are in the brief, and I mean brief. To much information can be seen as to hard to deal with and just more work for whoever reads it. Suggesting a meeting in the email at their convenience will make the follow up phone call warmer especially if your buying lunch/dinner after the meeting.

This invitation should only be extended after the first meeting date is confirmed by the consultant who is the middle man or bridge between the two parties. Negotiations are best done through us until both parties are eager to commit to deal making. This keeps all information, comments and suggestions logged for the records if ever an issue of confusion or forgetfulness occurs. Part of the service is to keep both parties accountable for their intentions towards each other at all stages from first contact through dated records, emails etc.

Who usually makes main decisions? International sale manager or director of the company?

Major decisions where money and specifications is concerned should be done with the advice of the Company Director unless predetirmined that the International sales manager has the authority. That’s the advice we would give for new business decisions where as repeat business decisions can be delegated to the International sales manager who we suggest would be western.

Could you tell us a short interesting story from your experience, which shows difference of the Chinese and Western business culture?

Currently we are monitoring an Infant milk powder company from Australia who has had to revise their plans due to changes in the certification rules that has seen them invest half a million dollars in business set up of import and offices in Gaungzhou and Shanghai. They are currently now waiting for their label to be passed before the product. Generally the product would be tested and verification of the label against product contents would occur later. Sometimes you have to understand that the way things are done in Asia/China are not the same way as the west, grin and bear it. Patience and tolerance is the key. It will be OK.

And the last question. What would you like to tell to our audience?

China is a developing nation with great prospects for those who are diligent from the start. Not all companies in China are as up to speed or do things as we would like. Culture and new non Chinese personel are something that can create great influence on the Chinese as most are more than interested in foreigners and western lifestyle. This should be used as a bridge, but equal interest in Chinese lifestyle and some knowledge about Chinese culture will go a long way to make all feel at ease and part of the same team for the long haul.

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