Selling to China Is An Uphill Battle But You Can Succeed

Guest post by: James Chan
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The "C-H-I-N-A" formula for selling services or products to China - By James Chan

China’s $3.3 trillion economy has been built largely on exports to the rest of the world. Those who have tried to export American goods and services to China face heavy obstacles. With $1.8 trillion in foreign currency reserves, China can now afford the best. Its market offers real opportunities for American companies who want to export and expand.

But, to succeed in selling to the Chinese, U.S. companies must know the following seven things.

1. Your agent is your first “customer.” Finding a China sales agent is an important first step, but it is only the beginning. You need to convince your agent that there is money to be made selling your products. Unless your agent is convinced that your products are a stepping stone to a better life and more opportunities, he or she will not be motivated to sell for you.

2. Your ideal agent must be an expert salesman, not just an expert. The most common pitfall among U.S. companies in selling to the Chinese is to hire a technical expert who knows their products. The ideal salesman in China should be an expert “operator.” He or she may not have to a technical expert.

3. Let the Chinese do the selling. Your role is to recruit, train, and support your salespeople in China. A good Western manager knows when to go to China and when to let your Chinese sales people take the lead.

4. Don’t compete on price. When people in China say that “Your price is too high,” they are either trying to negotiate with you or they are the wrong targets. Price is only one of several factors in your success in China, as it is in the U.S. American companies are rarely the low cost vendors, you have to be clear and direct about how you are better.

5. Learn to guard your secrets and train your staff. Your customers in China may also be your competitors. It is not enough that you hire lawyers and use contracts to protect yourself. You must guard your own trade secrets and make sure that your employees are keenly aware of piracy.

6. Emotional intelligence is what works in China, not just intelligence. The Chinese feel proud when they can successfully “reverse engineer” your products so that they don’t have to “depend” on you. Learn to make them feel good buying from you—as opposed to feeling “defeated” that they’ve “failed” to copy you.

7. Respect inspires loyalty, and, in the long run, sales. If you make your own agents and customers feel respected, they will give you critical market information and orders. But if they don’t perceive that you respect them, they shut you off from the market.

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The "C-H-I-N-A" formula for selling services or products to China - By James Chan

About the Author: James Chan

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James Chan, Ph.D., is president of Asia Marketing and Management (AMM), a Philadelphia-based consultancy specialized in advising U.S. firms on exporting American-made products and services to China and forging business relationships there. Since he founded his practice in 1983, James Chan has advised more than 100 U.S. companies in expanding their businesses in Asia. To view his background online, go to AsiaMarketingManagement.com. He is author of the book, Spare Room Tycoon at SpareRoomTycoon.com. Dr. Chan is the expert interviewed by three financial managers in the 60-minute DVD titled "Secrets of Business Success in China." The 60-minute DVD is a teaching tool for business schools and international executives. It is available on Amazon.com here.
Click here to visit James's website.

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Selling to China Is An Uphill Battle But You Can Succeed

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