Erik Nelson, President Nelson Architectural Stone Inc.

Company Profile
www.nelsonarchstone.com
Who are your clients? US-based landscape architects, architects, interior designers, owners, developers (commercial and residential), general contractors and masons

What is your mission? Provide high-touch, innovative stone solutions, from design development through job execution and material delivery.

What problem do you resolve? Provide owners, designers and builders a turn-key solution for affordable cut and finished natural stone.

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

We bridge the gap between US projects, design teams and developers (the demand) and the stone quarries and factories in China (the supply). With Nelson Architectural Stone team speaking Chinese and having years of expertise in US design and construction management, landscape architecture, and in stone fabrication, quality control and international logistics, we connect the players and parties to create a win-win.

The US team can rely and trust Nelson Architectural Stone to provide exceptional service and delivery and communication processes, as well as some of the most exquisite natural stone available.

How a Western company can find a reliable Chinese supplier?

Two ways:

1. Do it yourself. Spend years getting to know the industry professionals, visiting factories and offices, working on proposals, having meals, and getting to know each other. Trust is critical, in our opinion, to long term success. But so is clear understanding of goals and objectives, as well as the logic behind decisions and processes.
2. Utilize or partner with someone who specializes in the industry and who has spent years doing the above.

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

Patience, understanding and opportunism. Balance between ensuring western company policy and procedures are communicated and understood, but recognizing the opportunities to modify the plans when it is in the best business interest of the company (i.e. the client or investors). Cultural differences can and will be overcome with patience and persistence for the mutual benefit of both the western and Chinese partners. Be prepared for some difficult and stressful situations along the way that will inform how you change your approach. If you show leadership, professionalism, and follow-through, but involve your Chinese partners in discussions and solutions, the start-up process will not only be smoother, but more fruitful.

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

It boils down to communications and trust. To achieve this requires personal experience and face-to-face business relationships.

Risks include:

1. Financial – is the company financially sound? Will they go out of business and disappear into the night?
2. Quality – will we get what we ordered?
3. Schedule – generally speaking, this is a derivative of #1 and #2. If quality material is available and the company is financially stable, schedule is not a problem in our experience.
4. Government – closures of entire regional operations across an industry can occur for safety, environmental studies, international events/visitors or construction projects. There can be power outages and quotas that close operations, as well as local governmental and business politics, permitting, labor relations, etc that can slow or stop work.

What kind of advice could you give to Western companies: how to effectively sell Chinese products?

Make the product a status or service symbol. From the time western business people and products started entering the Chinese market, having someone or something perceived as expert or top of the line sells.

How usually do you prefer to conduct negotiations?

Face to face for large projects. Phone, email are typical for more common projects.

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

Sales and operations managers.

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

I was offered a kickback for a contract while living in China and insisted that this was not acceptable in the US and for the company for whom I worked. The contractor found out through casual conversation that I liked bananas though and for the rest of the job, about every 3 weeks, I would find a very large bunch of bananas on my front step.

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

Working in China for western firms or projects or vice versa (Chinese projects in the US) offers an incredible opportunity for cultural exchange. The language, culture, friendships, and experiences — good and bad — give everyone a new world view. There is a short window of opportunity, perhaps one generation, before some of these cultural differences become more blurred as more Chinese businesses expand internationally and more western firms move into China.

Take advantage of your time and plan an extra day or two in your trips to get to know your business partners and their friends, co-workers, family and their city. They will appreciate it.

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