Difficulties when doing business in a foreign market.
WAGAS Basics - Soft Landing
To address these key issues the basics soft-landing program shall include staff members who will be dedicated:
Translators and linguistic experts understanding foreign cultural differences.
Marketing & Communication
Marketers specialists in domains pertaining to brand awareness and communication needs.
Relocation experts to achieve a smooth transition for foreign staff.
IT infrastructure with servers on-site fully protected with specialized equipment
Office Spaces and Accommodations
Providing office spaces and accommodations facilities
Orchestrating & animating social environment within the innovation parks
– Foreign companies need to consider before entering the Chinese market the cultural difference. Cross-border trade requires minimizing cultural differences from one country to the other.
– Cultural misunderstandings arising from miscommunication are one of the biggest challenges which foreign companies face in China. Although there are an increasing number of Chinese people highly proficient in English, it is uncommon to find someone who understands the subtleties of the language and possesses a strong enough understanding of both Chinese and western culture to navigate delicate business negotiations.
– WAGAS has witnessed numerous instances where heads of foreign companies make a trip to China, have several productive meetings, and return home with strong business prospects. While communication between the foreign and Chinese companies goes smoothly at first, things start to break down as business issues get more complex and the Chinese side has difficulty explaining to the foreign company business practices that are unique to China in a way that is understandable to a western audience.
– What started as a promising prospect for both sides often breaks down due to misunderstandings. To avoid such problems, it is important to have an international team in place which can bridge Chinese and western cultural differences.
– To succeed in China, a company must realize that it cannot take the same business model, which may have served well in their own country, and simply apply it to the Chinese market. They will need to be flexible and adjust to a country that practices business according to “Chinese characteristics” deeply related to is traditions. Due to these differences, many business practices in China do not always conform to commonly accepted international standards.
– Without a presence and close supervision in China, it will be difficult for the company to ensure its best interests are being advanced by its agents and employees. To understand these cultural differences, it is important to learn sophistication to grasp the complexities of this market. Therefore, it is a requirement that all candidates commit to send a minimum of two staff members on-site to bridge the gap with local teams.
– Finding the chief information officer (CIO), expert to scale the IT infrastructure, in a Chinese company is often hard. Historically regarded as simply a support role for the business, CIOs were pushed three to four levels down in the organization and attracted little talent (which instead went to Internet start-ups). A typical Chinese company spends only 2 percent of revenue on IT versus international benchmarks of around 4 percent. As these companies struggle to bring technology into the core of their operations, they need massive amounts of help to do so. The cost of good IT talent is already soaring. Most companies will be unable to solve their technology challenges for themselves.