Comments on: Visiting a Trade Show in China

By: Omar Pradhan

Omar Pradhan — Fri, 18 Mar 2011 21:02:40 +0000

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.

By: J Vail

J Vail — Mon, 14 Mar 2011 20:51:56 +0000

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.

By: JP Salazar

JP Salazar — Sun, 13 Mar 2011 00:48:21 +0000

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.

By: Chris Fung

Chris Fung — Wed, 09 Mar 2011 06:01:49 +0000

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.

By: Amanda Podesta

Amanda Podesta — Tue, 08 Mar 2011 20:07:54 +0000

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.

By: j hurley

j hurley — Sat, 05 Mar 2011 21:05:29 +0000

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.

By: Matt Streiter

Matt Streiter — Fri, 04 Mar 2011 19:53:11 +0000

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.

By: Ben Raymond

Ben Raymond — Fri, 04 Mar 2011 05:37:04 +0000

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.

By: Kyle R.

Kyle R. — Sun, 20 Feb 2011 04:35:21 +0000

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.

By: Chris Bruns

Chris Bruns — Sun, 20 Feb 2011 04:19:16 +0000

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.