28 Comments Add your own

• 1. Dan N  |  December 11th, 2010 at 8:20 am

  Matthew Harrison’s article reminded of a comment that you made recently about a fundamental difference between profitably producing, marketing and selling a product in China versus the U.S. Those who have succeeded in China have done so by generating value that “even the relatively poor Chinese consumer is willing to pay for.” If you can successfully find the needles in China’s haystack, finding the pitchforks in the U.S. haystack should be a walk in the park…

  I appreciate Harrison’s comments about the relative effectiveness of salesmanship in China. I can see how important this understanding would be when trying to sell to the Chinese. As common as it is in the U.S. for the customer to buy because she likes the salesman, in China it is apparently more so.

  Michael Losier’s trade show exhibiting tip #2: create gender balance, strikes me as not translating directly to the Chinese marketplace. It seems to me that simply balancing the number of men and women in one’s booth may not be as effective as it would be in the U.S. I recall James Fallows mentioning a visit to Mr. Zhang’s booth at a trade show and it was manned with Chinese models.

  I read each of these linked articles carefully after I met with you regarding my sister’s interest in outsourcing production of her kitchen aprons to a Chinese supplier. I found David Dayton’s articles particularly helpful in painting a picture of what sourcing in China entails. Dayton makes the task seem a little less daunting.

• 2. Cassie Bettencourt  |  December 24th, 2010 at 11:57 am

  I found the article “Five Tips for Getting the Most out of Exhibiting at Trade Shows” very interesting. The National Sales Managers at my former employer used to go to American hospitality trade shows multiple times a year, and part of my job was to help them prepare. We definitely kept in mind all five of the tips mentioned in the article. There was a standard photo background they used for their booths, they were prepared with brochures, we usually sent both a male and female manager, etc. However, these articles also made me wonder why my former employer spent so much time, effort, and money on going to domestic trade shows since they are considered to be less effective here. Thinking back, the recaps never made them seem too successful either. Also, the Asian market is a fairly large portion of the company’s clientele so maybe it should have spent more time at the trade shows in Asia to increase their effectiveness. I will suggest this if I end up working for them in the future.

  Also, I found the discussion on “guanxi” to be vital knowledge for someone looking to do business in China. The idea that it is normal for Chinese business people to talk in circles instead of straight lines due to the fact that straight line, direct answers are too impersonal ties in directly to guanxi and the importances of networking and building relationships. I also thought it made perfect sense that such relationships are necessary in China due to the various instabilities of a developing country (the market/economy/government/etc). Patience is definitely a virtue in Chinese business.

• 3. Robbin Forsyth  |  December 28th, 2010 at 10:28 am

  I have been a buyer at trade shows in Asia and the USA as well as a seller at shows in the USA. My experiences are positive on both sides of the table, but I enjoy buying and sourcing much more than selling.
  This collection of articles and videos are good primers on some of the idiosyncrasies to buying and selling in China. The brief discussion of “Guanxi” needs to be expanded on and should be used as an introduction to this section of the blog articles. It took me at least 2 years to really grasp how important face time and building relationships are in Asia to business. The analogy the marketing and relationships are one in the same is as close as can be expressed in the western mindset.
  I thought Harrison’s explanation of the higher importance of sales people in the Chinese hierarchy was interesting. Here in the states salespeople can be considered a necessary evil.
  I also find it interesting that he stresses that company web sites and literature should be bilingual, (English and Chinese) and not just Chinese. On a side note - I keep coming across references that “western” means “better” or higher quality in outside literature. A wise foreign company looking to enter China will remember this and always play up toward the Chinese consumers aspirational identity that branding is critical.
  From the buyer side, to gain maximum performance, (price, delivery, service and communication) from a Chinese supplier one must patiently spend time and exert an honest effort to get to know them. Its not all love and roses per say, but a strong foundation will help partnerships work through the ups and downs of of modern global business.
  Some other good points to take away:
  - Email communication is good because most Chinese, (that understand English) read / write it better than speak it. The time difference makes phone calls difficult so emails are more efficient. Emails should be kept short and concise. Long, complicated communications can become side tracked and important details lost.
  - Michael Loser:
  Only use bar stools in trade show booths to visual distance and hierarchy.
  Equal numbers of men and women sales people at trade shows to draw in buyers of both sexes.
  - David Dayton:
  Plan your daily route through large show halls to effectively see more of the show.
  Always make complete product specs!

  Cheers,

  rbbn

• 4. Tara Millard  |  December 30th, 2010 at 8:17 pm

  The marketing and selling to Chinese Businesses article is very interesting and educational in presenting the stark differences of doing business in China as opposed to America. I found the prestige factor of a marketing professional and a salesperson to be very interesting. Unlike America, where marketing is a highly regarded career, China regards marketing as an elementary prospect that is at most a second thought. The fact that China places hard regard on their sales force shows how important personal relationships are in China. In America, businesses focus on perfecting and displaying a perfectly tuned image, while China places much time and energy into establishing trusting relationships with customers. We, as Americans, cannot expect to succeed in China by perfecting a sales pitch. Rather, we need to drop the act and focus on establishing a personal Chinese relationship with Chinese counterparts.
  The article which gives advice for Chinese Trade shows was very informative. I gained the majority of insight about Hong Kong in general and what a trade show really is. The idea that world distributors attend Trade Shows in China further emphasizes their position as a global power. People flock to Hong Kong for these global trade shows, which in turn enhances local economies and serves as a tourist extravaganza for foreigners. The way I see it, China is definitely clever in its business endeavors. The rest of the world should either take note and follow china’s lead or heed the warning that China is on a rapid economic rise.

• 5. David Hart  |  January 4th, 2011 at 6:06 pm

  I am seeing a pattern emerge through the various articles and videos in these China blogs. Doing business in China is different than doing business in the United States. For a business person to be successful in China, he or she needs to understand the differences.

  While relationships are important in any business setting throughout the world, reading these articles helped me see the significance of relationships in China. One of the articles even mentioned that relationships in China take the place of the Western legal system! Establishing trust in business relationships appears to be critical when conducting business in China.

  I did not realize that trade shows were such a big part of business in China. It does not surprise me that Hong Kong is a city where some of these major trade shows take place. Hong Kong has a great location and is a world class city.

  I find it interesting that one of the articles mentions the importance of face to face meetings. With the increase of video conferencing, it can be tempting to do business online. This article notes that while this can be useful, some transactions or business dealings need to take place face to face in China.

• 6. Katie Moeller  |  January 6th, 2011 at 7:41 pm

  I had a few good learning’s from the video and the readings. First, I was surprised at the rankings of how Chinese like to communicate with clients. There is a high importance placed on conferences and exhibitions in China. It is a completely different mindset than what I am used to. For example, networking was placed near last for the Chinese while I think that would be at the top for the United States. Second, I enjoyed Dayton’s article about getting the most out of your trade show visit. He introduced the “production limitations triangle”: quality product, fast turnaround, and low prices. A person can have two of these but not all three. He said this concept was important to think about and know ahead of time so people know how to negotiate what they want.

  I am surprised how important these trade shows are to the Chinese. I have been to a few fairs for my previous employer and they were a complete waste of time. They’re viewed as a way to earn business and build connections but they provided little benefit in my eyes. It’s interesting there is such a stark contrast to the importance of these shows between the two countries. Maybe we could learn a few things on how to run more efficient and beneficial trade shows from the Chinese.

• 7. Jessica Shayler  |  January 7th, 2011 at 8:37 pm

  I just received a call from a woman who works at Kennedy fitness where my husband and I are members. She noticed we have not been to the gym in a few months (transportation issues) and was calling “to make sure everything was alright.” I could sense her trying to find a common thread and build a connection. She kept yabbering on and on about how she knows how difficult it is to find time bla bla bla, but their professional trainers are here to support you bla bla bla. All the while I was thinking “Yeah, you just don’t want me to cancel my membership. You don’t really care…” I think her main problem was too much talking and not enough listening.

  This experience highlighted the truth in the Harrison article that Americans are not that great at building relationships as a marketing technique, yet it is these “relationships that are so important in a Chinese business environment.”

  My only experience with an actual trade show is attending the Fall Bridal Fair at the Madonna Exposition Center. In addition to the tips mentioned in the articles (which most sellers adhered to), sellers used other techniques to lure you in as a customer. Those with consumable products (cakes and catering) offered samples. Though this worked against a few bakers. It’s amazing what they want you to pay for sweet cardboard… Also - and I do not know if this was deliberate or not, but it worked - a few prior customers where hanging around a seller’s booth offering personal testimony on how happy they were with the service they received. I saw many customers sign-up that day due to this technique. Finally, some sellers offered discounts for an immediate down payment to “lock in your date.” I don’t respond well to people pressuring me to spend money, so I ignored anyone who pushed this “urgency” too much.

  From one of the Dayton articles, having realistic expectations stood out to me as a general goal to strive for in most transactions, not just at trade shows.

• 8. Brady Haug  |  January 9th, 2011 at 5:09 pm

  Matthew Harrison’s article is a very interesting list of communication guidelines. In conducting business with the Chinese, we must always remember that their culture is drastically different than ours. Cold calls may work in the US, but they will not yield the same results in China. In every marketing class I have taken, the “Four Ps of Marketing” was the emphasis of every class. Harrison posed many clashing ideas such that marketing only consists of promotion in China. Deals are rarely made over the phone and that direct mail can have a substantial impact on Chinese clientele. Just as we saw in the “Brits Get Rich” documentary, sometimes it is worth flying to China because deals almost always will be closed by face-to-face interaction. I think one of the largest takeaways from this article was to show respect and put forth effort. Lastly, as my peers have all mentioned, conferences and exhibitions are much more essential to business in China as compared to the US. By attending trade shows in China, Chinese businessmen interpret you as open and trusting of your product.

  After viewing the video of the China Sourcing Fair, I was able to make a subjective comparison between shows I have attended and China’s shows. I have attended the ASR (Action Sports Retailer) Trade Show as a buyer and visitor. It is a huge production that takes place in the downtown San Diego convention center. It was clear to me that the booths and product presentation are much more upscale operations in the Chinese trade shows. To me, this gives validity to the statement that trade shows are more important in China.

  Of the articles, I found “China Trade Shows: Advice for Visitors” to be the most important. Despite the reading that mentioned language barriers as not being much of an issue, I would still think deals would be readily misinterpreted. The part of the article about questions to consider asking suppliers, made some very important suggestions. For example, often low prices can only be provided by ordering in massive quantities. Issues such as access to production updates and specifications for quality assurance are all items that need to be addressed prior to making a deal. These articles bring to light the differences and important considerations you must think about in attending or showing at a Chinese trade show.

• 9. Tim Easton  |  January 17th, 2011 at 9:00 pm

  The two articles that I found most useful were “Marketing and Selling to Chinese Businesses” and “Five Tips for Getting the Most out of Exhibiting at Trade Shows”. In the marketing and selling article it was interesting to learn that conferences and exhibits were the number one way that Chinese companies liked to be targeted by suppliers. I don’t really have much industry experience so I don’t know if this is unique to China, or is something that is more widespread. I have heard about how large these conventions are, and that the size of the convention centers are absolutely amazing. In that same article it did not surprise me that email was the next preferred way of communication. Email is huge everywhere and I figured it had to be in the top one or two. A surprising thing is that phone is one of the least preferred ways of communication, but it is common to call before you send an email. I understand the importance of making sure that your email is sent to the right person, but calling to verify is not something that I have been taught. In the Five Tips article, I thought that the tips were spot on. I have never hosted an exhibit, but everything they suggested was exactly what drew me in to a particular booth. The one thing that I had not seen was a photo of a person on the literature, although I have seen pictures of the products. All of the articles were useful, but I found these two to be the most interesting. The major take away from this blog is that forming relationships, while doing business in China, is the key to success.

• 10. Kristine Spencer  |  January 29th, 2011 at 6:12 pm

  “Marketing and Selling in China” was especially interesting to me because I was a marketing concentration for my undergrad at Cal Poly. The preferred ways of hearing about a product in China, with conferences and exhibitions being the most preferred was very different from what I was expecting. Now I am aware that if I am ever trying to sell a product in China, conferences are said to be a great way to make sales, relationships, and gain legitimacy in China. It is important to realize that the second most preferred method, email, is very different from emails in the US. What we see as an efficient, factual email would be seen as a “cold” email in China, and would probably be sent to the trash.

  The China Sourcing fair looks like the place to be! It looks huge, very clean, well organized, and like a great place to meet suppliers. The “Five Tips to Getting the Most out of Exhibiting at Trade Shows” stresses the importance of creating the right atmosphere and place to make relationships at the exhibit, which I thought was helpful. I couldn’t help but think that you wouldn’t necessarily find the cheapest prices at these tradeshows. Watching Vance, the King of Kitchens from “Brits Get Rich in China”, buy a quarry and working directly with the manufacturers seemed like the least expensive, but the most labor intensive, way of finding a supplier in China. The list of possible questions from Smart China Sourcing to ask suppliers would be very helpful if I were trying to find a Chinese supplier. From all the articles it seems like trade shows are a great way to get your foot in the door, but is by no means a guaranteed method of making millions. I have never been to a large trade show, but my parents have been to the Food Expo in Las Vegas many times. A supplier always stands out when they have something small, fun, and representative of who they are to give out to potential customers. I thought it was a clever idea to give potential customers a bag, with your logo and giveaway of course, to carry all of the things they collect at the expo.

• 11. Ashley Ogden  |  February 1st, 2011 at 9:52 pm

  Having been to many trades shows before (as both an exhibitor and as a customer), I know firsthand how overwhelming and exhausting they are for both the exhibitors and the customers. Walking around the trade shows day after day can wear you out and giving the same “speech” about your product a hundred times a day can get boring.
  These articles give some good advice to consumers on how to wade through some of the information and shows to get to the things they really are looking for. It is nice to know what to expect when going to a trade show in a foreign country, since a lot things are vastly different. I agreed with the advice that you should have a game plan of who, what, where you want to see during the show to save on time. The article about following up after the trade show was important and pointed out that the trade shows are just the beginning of the process, not the whole thing.
  The article “Marketing and Selling to Chinese Businesses” did a good job of the differences in marketing strategies between the US and China. China’s business traditions are vastly different, but not impossible to learn.
  I also liked the five tips for exhibitors. When customers are walking past hundreds of booths a day, you need to stand out in every way that you can and then make them remember you when they leave. Too bad we won’t be able to experience an Asian Trade Show during our trip.

• 12. Jason Jay Sharma  |  February 5th, 2011 at 3:59 am

  The Consumer Electronics Show (CES) and the Electronic Entertainment Expo (E3). Those are the only two trade shows / expos that I know much about that take place in the United States. I am aware the Europe holds numerous car expos and Asian has many electronics related shows, but I’ve never heard of a sourcing expo before reading about them. I have seen a lot about trade shows and expos that take place in Japan, specifically, that look like they are large productions with hefty budgets. All I know is that I want to attend one!

  Matthew Harrison’s “Marketing and Selling in China” was quite insightful, and it helped to solidify what I have previously learned about marketing in the Asian market. I was excited to see that “guanxi” was touched upon finally–it’s something I learned about as an undergrad in international classes at Cal Poly, but was surprised it had yet to show up.

  While all the background information has helped me to look forward to a show in China in the future, David Dayton’s “After the Show” article was the most interesting to me. I was curious to understand how attendees would go about conducting business once the show had completed. It’s strange to me that for sourcing shows that attract international audiences, such a difference between Western and Chinese cultures still exist. I would have assumed that the Chinese hosts and exhibitors would conform to the business style of the cultures that come to them in order to close more deals and make future sales.

• 13. Randy Camat  |  February 7th, 2011 at 1:48 pm

  I didn’t realize how much work gets put in to preparing for these trade shows. The articles were very interesting and offered valuable insight. I have only been to small trade shows. I can’t imagine the size and quality of products that China has to offer. What was interesting from the articles was the high preference for communicating with Chinese clients to be at conferences and exhibitions. It makes sense for Chinese clients to prefer conferences and exhibitions due to the possibilities of attracting serious partners and making large-scale deals/orders. Not only can the information from the articles be applied to trade shows, but any type of fair/convention that involves meeting with people and giving/getting the right information. While I was reading the articles, I kept thinking about how the information – ranging from tips to what to expect before, during and after the trade shows – could be applied to the job fairs that ASI or other colleges host on campus.

• 14. Sarah Weinzapfel  |  February 9th, 2011 at 12:30 pm

  I’m not very familiar with trade shows. That’s probably because they aren’t as popular over here as pointed out in Matthew Harrison’s article. I was surprised by how important they are in Chinese business. I found the “China Trade Shows: Advice for Visitors” and “5 Tips for Getting the Most Out of Exhibiting at Trade Shows” the most interesting. I liked that the 5 tips article was so concise. I was surprised at how thorough the Advice for Visitors article was. I felt like it was a one stop shop for information on doing business in China. It gave so much information and even outlined questions to ask. Obviously more research than one article should be done if you’re participating in trade shows and probably even more than reading seven, but I felt like these articles gave valuable information and starting points on doing business in China. I thought the “guanxi” concept mentioned In “Marketing and Selling in China” was quite interesting. This wasn’t the first time I had heard of this concept; it had been brought up in my HR class last quarter and the same importance was emphasized in this article as it was in class. I think Harrison is right when he says it’s a concept most foreign to Americans. As we learned in HR, if it is not a concept studied closely, understood, and respected, it can get you and your business in a lot of trouble. I think a seller or buyer deciding to participate in a Chinese trade show should have a very long checklist and make sure they give their expectations a reality check.

• 15. Tyler Sereno  |  February 9th, 2011 at 7:04 pm

  The video on trade shows in China was very insightful. You can really see just how great they are and each person that was interviewed had nothing but good things to say about the trade show. It is very interesting how serious trade shows are in China compared to ones held in the United States. There are so many stands and so many people looking for business. The video was a real eye-opener for how intense these trade shows can be. There is so much competition in one place. Research is crucial for a successful visit to one of these trade shows.

  In the video about The Brits getting rich, Tony had a stand and location at what seemed to be one of these trade shows for his cushions. He had to worry about attracting customers and stopping people from spying on his products.

  The article explaining five tips to getting the most out of your visit to tade shows was very helpful. I would be interested in visiting one some day and I will definitely keep these five tips in mind. It would be cool if we got to visit one on our China trip.

• 16. Anthony Kallioinen  |  February 9th, 2011 at 8:49 pm

  It is interesting that Chinese marketing departments are sometimes referred to as ‘Spending Departments.’ This says to me that there is some distaste for the idea of marketing. Is it possible that the Chinese, do not want to copy how American market their wares? Or is our concept of the 4 P’s too ambitious?

  In china “a good salesman must be adept at forging not only relationships, but also friendships with potential customers. This makes a good salesman respected almost by definition…” This shows the importance of personal conversation taking place before business – a stark contrast to the American way. I think most Americans would laugh if we told them that the term ‘salesmen’ is defined as someone who generally forms good relationships with customers that often turn into meaningful friendships. We are much more used the idea of ‘It’s not personal, its business.’

  It seems that these exhibitions are a screening process of sorts; only the companies there are willing to make the expense necessary to be there are the ones that are committed to the local market. It makes sense then that exhibitions are the favored way for buyers and sellers to meet. The trade centers are huge! Due to the great size of China, and because they are the manufacturing department of the world these events gather up all of the buyers and suppliers in one location multiple times of the year. These factors are what creates this huge networking event. Every business wants to be there because there are so many people in attendance which creates exposure, awareness, and makes value creation possible on a large scale.

  The ‘Five Tips for Getting the Most out of Trade Shows’ article was very helpful. It provided specific and practical examples of how to get more out of a trade show if you are an exhibitor. (Sitting on a barstool will keep you at eye-level with most visitors. Create gender balance. Less is more when it comes to displaying your literature. Offer carry bags. Use a photo). These are all clever ways to ‘get your foot in the door’ with potential clients. I hope that we get to visit a trade show. I will be interesting to watch for the implementation of these tips.

  I liked the long list of questions any buyer should be familiar with before visiting a trade show. (Price, Quantity, Payment terms, Lead time, Customization, References, Certification/Regulatory Approvals, Quality Assurance / Quality Control, Production updates / Quality Monitoring, Factory or Trading Company, Visiting the factory, Export License). This reminds me of preparing for an extensive discussion in my negotiations class. One must be familiar with all of the issues at hand to compare how suppliers are meshing their needs with yours. These exhibitions probably provide a buyer with many options, strengthening their ‘walk-away’ power since there are so many suppliers around.

  It is important though to keep the trade shows in perspective. I like what the ‘Getting Maximum ROI’ article illustrated: that the example company interested in going to an exhibition assumed that “…regardless of where they went business would be business.” The purpose of trade shows is to facilitate future business relationships over the closing of actual business deals. We, as Americans must learn to see China not through our eyes, but how China actually is and how it operates independent of our culture.

  Another interesting point is about not simply using the trade for your benefit, but ‘how’ to use the trade show to your benefit. Knowing where to go, who to talk to and how long to size up each business is essential to maximize your ROI. I liked the bit about using other buyers to gain information, like working together as one large group; the shared mentality of ‘buyer’ creates a type of bond that should be utilized and networked with.

  I would have never known about Chinese trade shows before this blog. It is intriguing to me that this is the preferred method for business networking because I have never been to a giant exhibition like this. It was refreshing to see that the Chinese also least favor the telephone as the method to learn of a supplier’s product or service.

• 17. Jessie Wilkie  |  February 15th, 2011 at 9:36 am

  “Marketing and Selling to Chinese Businesses – Part 1″ opened up with two examples and condemned both of them as being wrong! I thought that this was a good hook. Then it went into the 4Ps, which reminded me of classes that I’ve taken in the past. The most interesting part of this article though was that it emphasized how much Chinese like trade shows and conferences, then email, etc. It almost seems like more of a passive, but social way of doing business (as contradictory as that sounds).

  The YouTube video did a great job of showing me what this trade expos look like. They look a lot nicer than I expected. They also have such a wide variety of international vendors and international shoppers. It’s definitely a global affair. I thought it was interesting that a lot of the vendors didn’t really present there stuff anywhere else other than these fairs, but that makes them more exclusive. I would love to see one in Shanghai if the timing works out!

  I thought all of the Smart China Sourcing articles were informative and I hope that we do get to go to a trade show in Shanghai so that I can put all this information to good use! I’d love to practice negotiating with suppliers on issues like (price, quantity, quality assurance, export license, etc.) Through this negotiating, I’d also be gathering information about the supplier and learning about their business (whether a factory or trading company, someone that speaks English, etc.) I guess we’ll just have to wait and see if we can go!

• 18. Will Moeller  |  February 19th, 2011 at 8:01 am

  The big takeaway from this and the preceding blogs in general is that doing business in China is vastly different than in the United States. Furthermore, if you’re an American and you want to do business in China, do your homework first.

  Doing business in China correctly is a daunting task. From what I gather from these articles and videos, first, you need to select the right trade show. Second, you need to begin researching the buyers and suppliers in attendance. Then, you have to reach out to them to ensure they will in fact be at the trade show and have a representative who speaks English. From there, you visit with them at the trade show. The laundry list of questions cover simple logistics topics you may not even think to ask an American supplier. After the trade show, you have to maintain the relationship you built.

  However, I’m reminded of the motto “In China, anything is possible, but nothing is easy.” That certainly seems true of trade shows. The point that stuck out to me was that finding a supplier at a Chinese trade show means gaining a significant competitive advantage over your competitor. You have to find them first, or your competitor will.

  In sum, this just makes me look forward to reading the book China Streetsmart.

• 19. Chris Bruns  |  February 19th, 2011 at 8:19 pm

  The youtube video was a real eye-opener. I have been to smaller trade shows and browsed booths with new products and new suppliers, but I have never seen so many booths before. Additionally it was amazing to see the draw of countries both attending and working at the fair as well as how many industries were involved. Additionally the 5 tips for getting the most out of trade shows had some great guidelines, especially the carry-bag idea. With all of the free samples and cards and information pamphlets something like a carry-bag with the company’s logo could really pay-off. Of the listed links the one that I got the most out of was ‘China trade shows: Getting maximum ROI.’ I thought this article really broke things down of what to expect and how to go about getting the most out of the experience. It also addressed my main concern which was the information overload at a place like this. The section titled ‘Get the right information’ spoke to how to laser in on what would work for your needs and really digging to down to look deeply not only at the suppliers but the other buyers there with you. I think that as I continue in business that I will have to attend more of these trade shows, especially since they are really prevalent in the agriculture industry.

• 20. Kyle R.  |  February 19th, 2011 at 8:35 pm

  This posting definitely has a large amount of information available for someone wanting to learn about and/or experience a trade show in China. The video clip was good at giving a visual representation of what actually is offered at Chinese sourcing fair. I am amazed at the variety of products that one will find at these shows. It makes sense that these trade shows are so developed and utilized in the manufacturing countries such as China. This allows for a safe and neutral setting for a buyer and seller to interact. It’s also very beneficial for buyers to price, negotiate, and compare between various product providers. I believe that trade shows in China are utilized more than in the United States, primarily because it simplifies the supplier search for Westerners.

  Matthew Harrison’s article on marketing and selling to Chinese businesses was also very informative. He exposes some of the cultural norms that exist in China while explaining how to understand and work with the locals. I found it interesting how he went through each type of communication and explained when it should be used. In regards to networking, I like how he touches on the fact that it is the most misunderstood aspect of Westerners doing business with the Chinese. It seems like networking in China can be more effective than it is here in the United States; and to be successful in China, one must focus more attention to building strong relationships with the Chinese business people.

• 21. Ben Raymond  |  March 3rd, 2011 at 9:37 pm

  This material made it clear that business is done a little differently in China. I have heard this before but it was nice to see some statistics backing it up as well as comments from real people with similar experiences. Trade shows seem to be the preferred method of being targeted by suppliers. This may be different that the Western way of business but this speaks to the Chinese’s value of the business relationship. One event that that reminds me of these trade shows are the job fairs hosted by Cal Poly. Its a similar concept because you can find all the businesses in one place and you get the chance to start a relationship with the recruiters much like the Chinese do with suppliers. When the Western world does business, the focus is on the product and the terms. The Chinese put the relationship first and I think this is very important to keep in mind while interacting with them on our trip.

• 22. Matt Streiter  |  March 4th, 2011 at 11:53 am

  The article makes the comparison of how business is done in the states and in China. The overall theme is that Chinese businessmen like to personalize their relationships with their partners or clients. Hosting meetings, events, personalized emails, and phone calls all seem to be the norm in China. My experience back at home is that we prefer quite the opposite. Even myself, if I am not friends or close with someone and they give me a call, I assume that there is something wrong or an important issue needs to be addressed. In the U.S. we generally like to be time efficient by getting things done and moving on which would be negatively perceived oversees.

  The video was very interesting to me being that I have never been to a trade show or even really ever seen any footage from one. If I was a new company or introducing a new product it seems these shows would be a great way to get your name out in conversations on a large scale. Hearing from some of the visitors and reading some of the previous posts you can see that people have uncovered great opportunities by finding new technologies at these shows that were not previously known. In China, where transactions are attempted to be personalized, this is a great way to see your potential clients face-to-face and build rapport on the spot. I know that shows like these do exist in the U.S. but I would assume that they are probably not as successful as the ones in China due to the American culture.

• 23. j hurley  |  March 5th, 2011 at 1:05 pm

  Those look like some good sized trade shows. I have been to a few small trade shows in the U.S., but once again it looks like business outside the U.S. is a lot different.
  Communication is key and plays a large role in marketing, selling and buying. Culture plays a large part in communication and these articles help explain how to watch out and be aware of the differences.
  Bottom line here is that in business situations, whether a China trade show or not, do your research and know your stuff about both products and the people.

• 24. Amanda Podesta  |  March 8th, 2011 at 12:07 pm

  Don’t really know if this is similar but we just recently had the World’s Nut Expo held in China. People in the business were not impressed. It was just a flood of sharks [Chinese] with no track record in the industry that smelled blood [money]. Agricultural commodity trading is truly about connections and relationships— from all the cultural guidelines you read, China should have understood this and excelled. Instead the expo’s failure in cementing new ties in China indicates more that with business, with China, it’s just about making money.

• 25. Chris Fung  |  March 8th, 2011 at 10:01 pm

  Looking at the videos and all of the articles about what goes into a trade show over in China, we can see how much more involved Chinese businesses (and foreign ones) are with them than over here in the United States of America. Coming from Asian heritage, I can see how much more importance the Asians put on the face to face meeting and connection between two (or more) trading partners than companies do here in the U.S. I guess that is a cultural thing since I can remember stories about how my ancestors from China did many business dealings with people they knew and trusted. In the U.S., business dealings seem to be done more on the basis of price, specs, deadlines, credibility, etc. and less on the intangible elements in business.

  The only trade show that I’ve ever experienced was the AAIA / SEMA show in Las Vegas, NV. It was a showcase of automotive suppliers where they had booths hoping to sell to both OEM and aftermarket companies. I would imagine it was quite large, even by China Standards since it occupied two convention centers. However, walking around the booths, especially those from different countries, I can see how seriously they took the event. They all had tables and booklets out to showcase their parts and the options that could be done in their manufacturing plants and negotiations could be done on the spot. This was probably a big event for the smaller companies because it offered an opportunity into the American automotive part market and could be the moment where their products could meet the need of an American retailer. Also, as we have discussed in other blog posts, the Chinese have really stepped up their game when it comes to the quality of products they manufacture. The stigma of Chinese and cheap goods is still prevalent in American minds; however many companies have met and been awarded ISO 9000 / 16949 quality standards. A company that has achieved these international quality standards really wants to be a world class competitor and is almost necessary to compete internationally. It was really impressive to know how many companies are out there and how much is manufactured overseas nowadays.

• 26. JP Salazar  |  March 12th, 2011 at 4:48 pm

  Throughout our preparation for this China trip, I have started to pick up on a reoccurring message. That business in China happens differently than business here at home. In Harrison’s article about marketing in China, he states that the Chinese see marketing as not very useful or relevant in selling a product. They view marketing as part of promotions and a superfluous one at that. I found it very interesting that many Chinese think of marketing as a “spending department,” especially since we have just taken our marketing class where we are taught the strengths and capabilities that marketing has in selling a product. I did find it very interesting, however, that despite the way marketing is viewed, there is still a push for branding at these trade shows. Things like giving out tote bags with company logos can have dual benefits. First, the company gets its name out with walking billboards of people carrying their logo. They also get the benefit of being seen as concerned with the public by providing a way to carry all of the information they receive at the show.
  The root cause of this view of marketing might be the emphasis on business relationships rather than one time dealings in Asian culture. I can see how the popularity of trade shows in China ties into this. Trade shows provide face to face interaction between the buyer and seller. There is real time access to suppliers that we are not really exposed to here in the US. In a culture where interpersonal relationships are held in high regard, trade shows seem like the perfect forum to sell goods. Customers can be exposed to a huge variety of goods while still having the one on one contact with their supplier. I also found it very interesting that all of the trade shows happen at the same time of year. This is an important way to pander to the customer by allowing them to visit multiple trade shows in one trip.
  Here in the US, trade shows are not as common. I have been to a few, one for electronics (E3), technology (CES), and winter sports (Winter REC) but they pale in comparison to the size and variety found in the Chinese trade shows. The only one that I would consider as being on the same level as the ones shown in China would be CES. While I do not understand how specialized the Chinese trade shows are, I can say that despite the size of CES, it is a very specialized show, and there is not much available to the consumer besides electronics and technology. Are Chinese trade shows set up in the same way? From the videos, it looked to me like there was a huge amount of variety in the types of products offered. Is this common for most trade shows in China?
  The last thing I would like to comment on is the idea of sourcing. While I understand the concept, I had never heard the term before this blog. It is an interesting way of looking at supply chains, and one that I think really ties into the Chinese emphasis on relationship building.

• 27. J Vail  |  March 14th, 2011 at 12:51 pm

  The article from Global Sources by David Dayton was my personal favorite of the bunch, because it is a good mix of jokes, quick anecdotes, and actual information. A quote from that article caught my eye; “One note on being “foreign” in China. You stand out. Not only do you look different, you are expected to be different — for example, you are expected to have more money than time”. I thought that took the described difference in stride, as opposed to how some sources emphasize this difference in a fear-provoking matter. With the importance of trade shows in China in making that ‘first contact’, it is importantly to know how to act and take these events seriously to have any hope of conducting a business.

  Harrison’s article also had a lot of solid information, albeit in a drier context. One of my marketing professors for my undergrad was Chinese, and from her experience she explained why the 4 P’s are important for marketing programs in America, but little more than an afterthought in other countries. From what I took away from the articles, it would seem like the selling process here would be 50 / 50 sales to marketing, but over in china is more like 85 / 15 if not higher. I hope that I can find out more information along this topic if I move into the marketing field.

• 28. Omar Pradhan  |  March 18th, 2011 at 1:02 pm

  At first glance, trade shows are quite a spectacle. However, if you have a serious interest in doing business in China, trade shows seem to offer tremendous value as compared to alibaba.com or wandering China (with various leads) in search of business arrangements. Alibaba and other online venues are limited because you cannot as easily evaluate the quality of the products currently offered. An while traveling gives the most complete picture into the true capacity of a potential business arrangement, it has high transaction costs (renting a driver, hotels, airfare, etc.). Trade shows on the other hand, as demonstrated by the links and videos, offer a way to quickly sample from a wide variety of vendors. From there, a company can select from a few “top” candidates and arrange more narrowly tailored factory visits. It would be great to see one of these when we are in China.

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The posts, comments and/or views expressed on this trip blog, whether by a Cal Poly student or faculty or an outside guest to the blog, do not necessarily reflect the policies or views of Cal Poly, the Orfalea College of Business (OCOB), any of the OCOB's graduate programs and/or other students who participate in the trip.