China is a huge and expanding market - UK exports to the country reached almost £4bn between January and May 2012, up by 21 per cent on the same period in 2011. That’s why it’s one of the emerging economies which have been targeted during UKTI’s recent Export Week - High Growth Markets this month.
To win business in this market a successful strategy involving detailed knowledge of the rules of engagement is vital. Our firm, CWA, has worked on branding with firms for the Chinese market for five years - let me share with you some of the things I’ve learnt.
In the early stages of a business relationship, the atmosphere may appear to be excessively formal and decisions can be deferred to senior management and be slow to take effect. Often words are not binding in these early stages and you should not rely on spoken agreements to be an assurance of future progress .But these formalities will decrease as the relationship develops.
Related to formality is the concept of ‘face’ which is an important aspect of Chinese culture and relates to the standing of an individual in Chinese society. A Chinese person will try to bargain with you in order to preserve their face. A willingness to come down on your price may go a long way to develop a new relationship.
Another important point to remember is China is a huge country and different regions have different cultures. Some areas of China are more receptive to Western business culture than others. So in Eastern China in cities such as Beijing, Shanghai and Hong Kong, Western ideas and products are more familiar and readily accepted. However, further inland and towards the West, an educational process may need to take place so that both sets of cultures understand each other.
When selling a product or service to China, another key consideration in China is branding - it’s important to get it right if you want to succeed.
Firms our company has worked with on branding include Leicester-based Sea Band a manufacturer of knitted elasticised wrist bands that alleviates nausea.
Instead of a complete rebrand of their products for the Chinese market they identified an opportunity to harness the "Made in Britain" association to make their products more desirable to Chinese customers. Sea Band tasked our agency, CWA, to redesign their packaging to appeal to Chinese customers.
Chinese customers see the UK as a mark of quality and so with that knowledge we created several different designs that incorporate the Union Jack, to represent all things British.
Here are some more key lessons around branding for the Chinese market:
• Harmony is an important concept in China. Your brand, design and copy should be in harmony with each other - but should not necessarily appear to be Chinese.
• Be accurate. Literal translations may lose their meaning in Chinese and at worse may cause offence. You should be careful to translate your brand accurately.
• Finally, be bold, confident and direct with your branding. It’s not about being brash, but being clear with your message. This may mean there is no place for subtlety in your packaging or advertising.
China has a growing population and offers huge potential for UK firms but you need to understand the rules, then the opportunities to success are limitless. I hope the above advice will help.
China is just about the largest slice of pie out there at the moment. Get out there and try to cut yourself a piece.