China is an economic superpower and has a great economic impact on Japan. Even companies that do not expand overseas cannot escape the effects of this. They may become competitors or business partners in the future. Let me introduce the characteristics of our business in China.
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Chinese companies who are good at maneuvering
There are quite a few Japanese companies that are having trouble communicating with Chinese companies. It is mostly due to cultural differences between China and Japan. In China, there are many people who are good at negotiation, and those who are good at negotiation are the top.
In particular, the negotiating skills often used by Chinese businessmen are to get them involved at their own pace. For example, one of our strategies is to invite them to our company’s home and negotiate with them so that they can have an advantage.
It is also one of the negotiation techniques to try to proceed the negotiation with the number advantage by getting the same number of people. Basically, the art of negotiation is used to advance your own opinion, so you don’t neglect to collect concessions beforehand.
This kind of bargaining technique may give the impression to the Japanese that it is somewhat unfair. But it’s also an action that takes negotiation seriously. Rather than denying the other person’s way of doing things, it’s more positive for you to know the other person’s way of doing things and think about your own way of dealing with them.
To do “”good fight””
Negotiation is generally considered a field that Japanese are not good at. However, negotiating with each other can lead to higher levels of business. What should we be careful about in order to benefit each other as “”good fight”” instead of avoiding negotiations?
Language must be a major issue in expanding overseas. Some business owners may think that there is no problem if there is an interpreter, but in negotiations, it may be easier for the other party to proceed with the negotiation advantageously by not knowing the language.
Of course, Chinese is a broad language, so it’s difficult to learn everything. However, even if it’s just a gesture or a greeting, using Chinese is highly likely to gain recognition from the negotiating partner. It’s also useful to know the numbers and proper nouns. Learning even a little bit of Chinese can also help you communicate your enthusiasm for your job.
From the Japanese point of view, the Chinese way of thinking, in which they do their best to win, is often forceful. However, if we deny a discussion that is powerful and loud, we cannot negotiate.
Even if your partner comes out bullish, you don’t have to shrink from him/her, but accept it calmly and with a sense of distance as if it were business culture. Even if they use every possible means to get you to do what you say, be sure to say “”No.”” to them.
Implicit understanding and telepathy, which are also known as Japanese trends, do not work in business with China. Don’t forget to check the details of the contract without ambiguity. If you have any opinions, please don’t hesitate to speak up. I recommend that you leave enough evidence about negotiations and contracts.
What are the patterns of going to China and failing?
No matter how much we prepare in advance to enter China, unfortunately, there are many cases where our business does not go well and we withdraw. We have summarized the characteristics of businesses that tend to fail in China.
Every company has confidence in their products. However, I will fail if I believe that the good points of this product will definitely be conveyed. What suits the Japanese doesn’t necessarily suit the Chinese. No matter how good a product is, it may not succeed if you fail to promote it.
Marketing is essential to expanding our business. However, some companies are trying to expand overseas with little knowledge of China. Because of that, the target of selling becomes ambiguous.
Consultants and local partners are very helpful in expanding into China. However, some of the partners have quality issues. I recommend you to find a reliable consultant even if it is expensive.
Summary
Japan’s declining population is accelerating, and its growth potential as a market is declining. Therefore, some business owners will give up on the Japanese market and look to China. However, doing business in China is not an easy task. You’ll have to overcome a number of hurdles to succeed. Think of it as investing some time and money to succeed in China.
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X-HUB TOKYO
Webマガジン編集部
企業の海外進出に関する
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