When the most important for your supplier is the money, you as a buyer should care by your self for the quality…Welcome to China!!!
Rodrigo Espinola F., International Business Director Golden Island Group (HK) Co. Ltd.
Company Profile:
www.sutrader.com
Who are your clients? Companies or privates who are planning or actually buying/Selling in Asia any goods or service.
What is your mission? Make for them the business easier.
What problem do you resolve? We solve or negotiate any kind of problem, We just do what our customer would do in this situation, we act under our customer idea but with our experience.
What kind of problems between Western companies and Chinese manufacturers do you see?
The most important problems are 3.
- Manufacturer in China normally are not professional and even most of time have not much experience in the field.
- The language it’s a big barrier to the normal understanding of the parties.
- Chinese are not Creative or good to make any decision at short time when a problem shows up, and worst is that they want to be always right and even don’t let you explain them anything.
The big point here is the culture they have to live, to make business, to be friends, etc.
And now we need to add the “Love for the money” they are getting, in China now is nothing more important that have money.
With all of this factor we can conclude that make business with people that is not prepare for this, who just like more money and who is not understanding 100% what I need to buy….Then it is not so easy as go trough internet and find a supplier to make business in China.
How a Western company can find a reliable Chinese supplier?
There a many good factories in China, the problem is that the good factories in China are already full booked for work or have price very high, but in the other hand to pay less you need to care by your self about the quality, delivery time, etc.
But is not just a problem from the supplier, also are there some buyer whom are willing to buy everything for cents and the only way for the supplier to sell for cents is to make a bad quality good.
Chinese supplier is never going to tell you that they cant do it, they always say yes to everything and at first moment we think, WOW it is great, but then the problems shows up and never delivery at time, or the samples are not similar to the finished product, etc.
The best way to meet supplier is in the Fairs or trough a Trader Services Company as SUTRADER.COM
What is necessary for TOP managers of western companies for start-up business with China?
That’s all depend on the kind of product or business the company is willing to do in China.
We think that is nothing more important to understand than Chinese consumer behavior and culture, it is for sure very different than the local consumer they already have on theirs countries.
What are the risks while working with a Chinese manufacturers and with what they are related?
The big problem is that they laying to you all the time, so you need to be in there and see by your self how to fix the problems and teach them how to do it the next time.
Within the time we got very good factories making items for our customers but we where there everyday if it needed and always trying to make it easier for them and for our customers.
Is not easy make business with a Chinese Manufacturer if you are not here or if don’t have somebody who care for it!!
What kind of advice could you give to Western companies: how to effectively sell Chinese products?
Get closer to your Supplier, come to China and visit him, let him know how much you appreciate his hard work, and make them fill like a Emperor….But always keep in your mind that you are who have the control of the business, because if there is something that Chinese don’t know is how to manage an uncontrolled situation.
How usually do you prefer to conduct negotiations?
We have the Knowledge and the experience to do that, we how to treat them and how to get better deals, but we just do it when our customer need it or ask to us to do it, the most important for our company is not get over our customer decisions and always get the better deal for them, as good as they would do if they are in China at this moment.
Who usually makes main decisions? International sale manager or director of the company?
It is depend on the company structure, here in China normally the Director just drink tea and make lobby so the big decisions should be tacked by the International Sale Manager…But it is not like this in most of the cases here in China, because for the Int. Sales Manager will be a big risk to make a wrong decision so he will think for sure it is better the Director take the final decision and for sure he will do it. There is a big problem, normally the director doesn’t have much information as the Int. sales manager has, so is very possible that the decision of the Director became a bad decision.
For sure that take decisions in China is for Chinese workers the worst part of their jobs, no body like to get here the stress to make a decision.
Could you tell us a short interesting story from your experience, which shows difference of the Chinese and Western business culture?
Yes sure, we can be here sharing experience for long time, lol.
One day, I was walking back to my home and going in to my building met a kid with a big turtle on his hands and I asked him, do you know what animal is it?
And he reply to me, ” my daddy told me that cost 1.000 RMB (Chinese currency)”.
Here you can figure up how important is now the money for Chinese, that a father explain to the kid the cost of the turtle and not that it is an animal and you should care because it is alive!!
Another time I was eating in a business dinner and they push me to try the SEA CUCUMBERS, of course I did it, and then when they ask me if I like it, I replayed NO, of course not, it is awful…at this moment the whole table was looking to me and start to ask me how I can;t like something so expensive….and my natural reply was….Because I don’t eat money I eat food and there are someones good and other that I don’t like it!!
This is a important experience to share with people who is willing to sell in China, because here the behaviors are very different than in western countries.
What would you like to tell to our audience?
Ten years ago was very easy to make business in China, day by day to make business here in China is getting difficult, the people is getting to rude and foreign doesn’t have the same benefit as before.
Now the only way to make business here is getting somebody here everyday taking care for your business without this people here is not much what you will do here in China.
I Invite you to visit our web site and contact us with your idea or requirement for your business with China and Asia, we are open to listen and help our customer every day and in every problem.

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COMMENT FROM LINKEDIN
David Cai
• I think it comes down to communication (lack of) and having a better understanding of the culture. Simply think that “I say so” and “they should understand and do what I said” is just not going to work.
COMMENT FROM LINKEDIN
Ck Lam
• 3 answers:
1.Try to educate them.
2. Learn the Chinese language.
3. Come up with a counter-solution that works.
If all fails, try to join them ?
Bob Lutes
• 1. Develop a relationship with the manufacturer before you do business with them. Know what you want so you can tell your manufacturer.what you want. Make this part of the relationship building process. Start slowly, work with them to implement improvements until you get what you want.
2. Hire an interpreter to help you communicate. Learn Mandarin.
3. They can be more creative and able to solve problems that you realize. The important thing is to have an established relationship that allows them the freedom to act. It requires encouragement from you when they take the initiative, even when they fail. The initiative taking needs to be separated from the outcome.
As far as always being right, I have never run into this. I have always found the Chinese reasonable and wanting to improve their products and processes. Try treating them with respect and see where it leads you.
Richard Xu
• Fully understand the problems of 1., 2., 3., and actually you can list more but it’s all about the culture difference, which is the working experience from more than 25 yeas being in top MNC. That’s why I told each of the young guys of my friends/relatives who were going to study abroad that “the most important thing is to get into the culture behind the language and the high-tech”. We need more Chinese who know well the western culture and vice versa, to help here. And it’s a very interesting thing and there are a lot of funs!
Anna Roshchyna
• You described some part of the business society in China which you has faced by now.
To follow with you points:
1. Example. All the electronics and toys, including Fisher brand and all Apple products, are manufactured in China by very big and highly professional vendors.
The differentiation comes on the basis
- of the price a customer is expecting to pay for a product and
- what future relationships are following from the business with this particular customer for a Chinese manufacturer. I would add, this is a very common for Asian markets.
2. The language is a very big barrier, and the cultural misunderstanding is a huge pitfall for the foreigners.
The only way to smooth the process is to make some research before getting there and to have a west-minded Chinese mediator, who would be able to prepare & support the negotiating team not to get into trouble. And this is again is a big thing.
3. The third problem is a logical consequence from the first two points, so can be partially solved on the management level. But here I need to mention that the size of a vendor has its influence on the speed of any transactions: the bigger the company the longer it takes to go through the vertical of decision makers.
Chinese are smart people: check the history, and watch them now