Business Culture in China: facing with new business model to approach opportunities with concrete tools

During last training that I managed for companies and managers I put on focus this fundamental: talking about China needs to consider this country as well framed system and well built structure that really can be introduced  as new business model for economic operators.

Recently I got opportunity to introduce macro economic elements, marketing strategy’s fundamentals, and geo-political issues about China during course issued in behalf of “Quadrifor” (special fund centered on didactic programs for managers)  to 11 italian managers involved into diversified business missions on chinese markets; the first consideration that came to light is about the perception which most of companies (not only SME but multinationals as well) are used to have for internationalization of their businesses: re-locating on new market is almost considered doing export. Obviously on this way it’s really difficult to understand why it’s important to recognize into “Chinese System” elements that need holistic vision and deep awareness of its features to get approached correctly.

First of all, also on doing export, we need to consider that nowadays as chinese market we’re talking about several different “chinas”: some areas are getting more familiar with financial sector’s liberalization (Shanghai and Beijing for ex) and others are receiving benefits from “go west” policy facing with sustainment for development of infrastructures and key – sectors (Chongqing). We well know that we cannot also introduce national logistic net of services for our business in China and entry strategy must be fixed with local analysis, social involvement on expenditures that is different according with contingent local situations and sub cultures.

The new middle class as representation of urban revolution just now is going to express specific identity through expenditures and consumptions and some disastrous operations got in the past well clarified how we cannot consider easily urban population like mature middle class about way of approaching towards consumptions and goods.

The VAT pilot reform is direct expression of system that wants to be balanced and boosted by market and dynamics about development of political reforms could be understood more with vision of market’s socialism than communist rhetoric. Also the last third session of plenum of communist party specified how the next step for glorious health of chinese nation will be represented by circular movement towards urban revolution: where Mao started with countryside’s revolution, Xi Jinping will end it  closing the circle with revolution that will involve countryside with urban development. Same class, same perspective, same salary, same conditions of being free with access to expenditures and consumptions. Giving back the land to the party the farmers will receive  reimbursement to allow them to start new life in urban societies (the plenum recognized how it’ll be crucial point to reassure farmers with high amount for the land they will give back to the system) and soon the abrogation of “one child only law” will represent a new beginning with stimulus towards high population’s society with more needs but also with more power and efforts on building up strong system and consumptions.

The education of new generation on respect for tradition, common values, national stability and central power will confirm the prosecution of glorious chinese nation on boosting features that will characterize chinese model as major power nation on international economic scenario.

So, after 16 hours of intensive training about such perspective that is involving quickly chinese system, when I asked to some professionals joined my course, what do they recognize as new perception about China, some of them replied as follows

Marco Migliorini , Marketing Manager: as half italian – swedish I’m really sensitive to cross cultural elements and pretty curious about their influence on business dynamics and negotiation’s steps; that’s why I found this training very useful ‘cause it introduced technical matters and contents using cultural lens to explain features and tricky point of system that beyond business fundamentals consist of people

Marina Masci,  Advisor: I confirmed my attendance to this program ‘cause it’s really important today focusing on concrete tools to understand better one of most important markets for contemporary economy; usually the common opinion look at China with “fear and suspect”, I think that’s usually it’ is cause we don’t have concrete vision to approach their culture and market. I found this opportunity of study and confrontation as useful and well structured and I’m sure now I’ll be able to face with China with better awareness.

Davide V., Export Manager: I’m thinking about professional relocation in China cause my company is dealing with this market and they needs my presence there. I think this course represented a concrete opportunity to understand more about chinese culture and society; in particular I think that we need to consider cross cultural and social aspects as fundamental key factors to approach chinese system on conscious way.

For me it was hard 2 days no stop teaching experience which I knew a lot about professionals who, even if with different projects and in different steps of their internationalization’s perspective, are getting involved with passion, respect and patience into chinese system. i’m pretty sure for them it’s gonna start a very crucial and important step in their professional life.. I wish to everybody all the best and good business in China! see you there!

managers verona

 

Shanghai nomination approved: soon new free trade zone – building up new china

I think that is part of modern chinese DNA  to get everyday more addicted to new 改革 (gaige means reform). That’s because is important to show to chinese population and to investors from all the world that China can always go ahead into something of new without changing that we could define as social harmony (one of most important fundamentals of confucianism as for communism party and keeping business environment as one of most interesting to develop new ventures.

And in particular each gaige could be more interesting if driven with the same perspective that was used by Deng Xiao Ping in ’78 when he started the glorious 改革开放 – So the news about Shanghai City’s will to introduce Free Trade Zone in  municipal area completely match with chinese ambition to drive new area where chinese system can realize his awarness of being real business model and place of opportunities for trading and investments  of the same importance like New York or Hong Kong –

Yes, because HK even if is part of Chinese Nation still today represents concretely the perspective of “1 country 2 systems” that has been considered as fundamental to manage the re-entry of HK under chinese political asset and it still maintains one of most profitable condition of Free Trade Environment for goods and direct investments.

China MarketsFrom 2008 when Beijing has been protagonist of Olimpic Games, Shanghai has been indicated as new center of the world for economic attraction in particular when SH was choosen as host – city for one of most important EXPO’s editions in the history in 2010. I well remember the perception about being the top of the world when i was working in SH in 2006 – 2007 and then in 2009 – It was like the beginning of new era. But at the same time i remember that even if companies were investing in SH registering their representative office first (then officially with new wofes in particular from 2010 when regulamentation changed in behalf of wofes) HK represented always the best place to invest capital gains and where drive good IDEs and high profit’s financial ventures. Why? Chinese money are chinese.. investors said.. money in HK are our money. They probably were refering about easy access to investiments using fully convertible RMB…

Well according with recent news Shanghai’s request about start of procedure to become FTZ for investments and goods has been approved by State of Council (in particular the issue has been boosted after visit of premier Li Keqiang in the previous days at Pudong district) and it’ll represent an hypothetic step of testing how other municipal zones could in the future get the same condition boosting their operative assets of investment also in behalf. of businesses built in other regions in mainland. SH will start to compete with HK on this issue and the big internal market and the well framed facilities system already improved for Expo will make for sure the difference and it’ll be really important comparing with HK. We should also to remind that SH got more productive and industrial zones (Ningbo area and others) comparing with Hong Kong but for sure the general tax conditions in HK still represent a very good appeal for investors.

I’m sure that this condition will start new era for chinese investments environment and again it’ll show to the “old continent” how we have to work hard on promote good network and common system also for attraction of IDE in particular towards that fields that we would be proud of holding primacy.

Marketing Strategy on east Asia – contents of marketing course for Master in Internationalization of SME – NIBI new institute for international business Milano

It started as professional collaboration 3 years ago and now it’s becoming an interesting opportunity for me to introduce specific contents about doing business in China and Japan, in particular focusing on marketing strategy’s tips for companies according with personal professional experience as advisor for such commercial dynamics.

For the next session that will start soon, I’m going to teach in Milan on 5 of October 2013 and I’ll provide to my students concrete tools to approach chinese market considering elements as follows

– now china represents a real business model that consist of specific and distinctive features (about target, IDE, regulamentations for specific fields, VAT , company lawa etc)  that must be considered on planning strategy (as model it means that way of doing business and promotion need particular attention on specific steps and as part of internationalization’s process)

– target’s control: we’re really sure to know well chinese market? we should remember that when we talk about china we’re approaching an highly framed market and also when we refear to “rich chinese as potential customers” we have to take care about several levels of richness (middle class, upper middle class, rich people etc)

– regional marketing in China needs probably the most demanding attention than any other market, that’s  first of all beacause it’s a very big country, then cause we’re approaching a multi ethnic – country and doing business locally needs local connections and specific awarness about elements that marks operators (suppliers) but also trading companies or final customers.

– during this lesson I’ll also specify some new elements that represent big change for China about e-commerce policies and doing business on the web

– then we’ll focus our attention on some cases and we’ll introduce some basic info about negotiation’s steps.

‘cause I’ve expertise about chinese language I’m used to introduce the above contents using some key-words in chinese and I’ll try to channel attention of students about specific Hanzi that will express the meanings i’m going to focus on –

If you wanna know more about NIBI’s faculty and didactic programmes check the link as follows. I’m proud to remind you that Asian Studies Group, the studies centre which I’ve founded is official partner of the Institute as Consulate of Republic of Korea in Milan and Confucius Institute.

 

 

http://www.nibi-milano.it/Corsi_internazionalizzazione_impresa/Corsi_impresa/Far_East.kl

You have smart ideas for business? Make them reality! The opportunity comes from Hong Kong

I’m not a dreamer you know. As business developer the first thing I’m used to take care is the feasibility of our entrepreneurship.  Sometimes I have to face with great concepts that cannot reach expected results as fixed on business plan, cause they’re lacking of co-investiments or connections to improve business appeal of the project.

It’s not just a problem with marketing strategy or general management (of course they must run well from the beginning of the venture), sometimes it’s because it’s not easy to approach the right network of experts, of operators and right developers that could play the difference for us.

For young people one of most difficult step is represented by introduction of own business – idea among personalities  who count for the field we’re going to invest.

Institutions seem also pretty far away than being present on supporting step by step our investiment (little or big whatever it’s gonna be) and usually we’ll finish to consider our “smart idea” like an illusion, and at the same time “doing business” will appear  really inconsistent or unreachable by common people.

So, that’s why i consider the project called “Start Me Up” introduced recently by Invest in Hong Kong as real opportunity for whom want to present smart projects still never actualized and get them on good selection (sometimes professional suggestions can help us on understanding the right way to direct our energies before being mistaken)

The proposal promoted by specialized office for foreign investments of Hong Kong Special Administrative Region consist of selection of 12 projects concerning innovative business solutions applied in HK or in other countries as introductory step of business (so they will also accept candidates with some ventures already ongoing but it’s important being at initial steps and not into high profits already).

The programme will check the details of each project considering the concept, the prototype (if necessary), then the early revenue and the breakeven and profit phases. It’s interesting cause the commission will not judge following common business criteria according with usual well detailed business plan, but they will also consider other important elements as basic fundamentals of planning a good venture as follows

Immagine

Finalists that are not based in Hong Kong will be provided with economy class travel (direct return flights to Hong Kong) and five nights’ accommodation. The also will pitch to potential business partners and investors in Hong Kong at the StartmeupHK Venture Forum on 5 December and a series of partnership matching sessions.

The Hong Kong Trade Development Council will provide a business matching service to Finalists who are looking for business partners e.g. product/service suppliers, manufacturers, agents/distributors, buyers, licensees/franchisees. For finalists in the ICT sector, Cyberport will provide a one-year basic service subscription to the Cyberport Collaboration Centre, which provides business support and facilitates partnerships and technology and talent transfer. The Hong Kong Productivity Council will offer technical consultancy advice.

Our Chamber of Commerce in Italy, following dispositions issude by regional institutions, often provide some funds or opportunity to oin some development’s programmes (even if usually we face only with vouchers for reimbursement for international exhibition), but as I’ve already said lot of times, i think that Ideas and Energies need specific knowledges to grow up on the right way and these contents and concrete orientation must be offered into projects that can place side by side experts and supporting staff with entrepreneurs and investors.

Start Me Up HK well represents congruent exemple of professional support for doing business and it reminds perfectly that who invest (time, money, dreams and energies) is precious resource for community…

So let’s stop thinking that being internationals means only to join to international exhibitions… such mentality will not guide into concrete environment that will be useful to make our ideas real business (really connected with professional network that counts)

For details please check the official link as follows

http://www.startmeup.hk/

Shanghai Jiaotong University was looking for new partners… Found good one in Australia! Milan Expo 2015 needs to boost relations on global frameworks

Jiaotong Daxue is pretty famous in China among professionals working on education fields as for those are into business community in China.  A lot of white collars working for big companies in Shanghai got bachelor or master degree at Jiaotong Univ (university for technologies and communication studies)

I’ve been pretty sure that SJTU was looking for high level’s partners ‘cause universities in China (and also in most of eastern asia countries) are always really interested to strengthen own notoriety with agreements signed with foreign universities; the best for chinese university is represented by offering to their students opportuities of international exchanges, internship programmes and research activity boosted into specific twinning sessions with other centres or  countries.

The recent news talk about important agreement between Shanghai & Sydney for the joint programme that introduce technical partnership of SJTU and University of New South Wales. According with speakers in representation of the two universities, this partnership represents a real connection for the realization of that we could consider as Asian Century!

16_UNSW SJTU_Dinner

That’s how Australia seems feeling like more asian country recently… in occasion of development of that they have definied “Asian Century”.  (sure the history of immigration in Australia well identify the presence of chinese in the history of population boom of the country)

The partnership will include research and development’s activities for the implementation of adoption  of Easy Access IP,   that represents an innovative alternative adopted by UNSW comparing with usual US-centric model of patenting and research commercialisation. The twinning programme represented also the righ oportunity to create common fund to invest mutually in  materials engineering, computer science and biotechnology.

Now, I think that our academies in Italy have already a lot to share concerning technology transfers, researches and IT tools and in the last decades we reached lot of improvement on this field (in particular biotechnology also and material egineering), but as we ‘re getting great results, at the same time we’re keeping high skepticism about chinese conduct on respecting our “discoveries”.

I think that everybody is working with chinese well knows that if you leave your counterpart free to get preminence ‘cause you don’t show any interest on cultivating the relation (in particular taking on it with formal and institutional approach) probably you’ll lose not only your face and credibility but also you’ll allow them to manage situations and contents on autocratic way.

Now, Milan Expo 2015 represents the prosecution of Shanghai Expo 2010..  so I don’t feel really comfortable with reading several news about joint – programmes (not only about academies but also for that concerns industries, funds, banking etc) signed between Shanghai and some new entries in the “chinese network” when we can assume something like a reasonable priority to show our potentiality and appeal in such issues.  Sure it’s not a problem of City of Milan, but political systems and whole institutions should consider that their presence in direct confrontation with chinese partners is fundamental to get accepted according with well known rules of doing business in China…

Please I don’t want to introduce “guanxi” ‘s meanings anymore… right? I think that business relations between China and Italy are well structured and chinese community in our country is investing a lot also attending to our universities before going back to motherland and introduce such expertins on chinese market as well.. We should follow the australian way probably, where China is the biggest two-way trading partner due to its proximity as migrants from China jumped a fifth to nearly 30,000 out of Australia’s total annual intake of 168,685. They are skilled immigrants whom can deliver significant benefits as the Chinese immigrants contribute to economic growth and their relative youth offsets some of the impacts of an ageing labour force in Australia

Well done Sydney! We should imitate your vigorous approach on taking care such dynamics.

So.. Let’s start thinking widely and globally… or EXPO probably will lose the real function to aggregate skills and opportunities on making these skills concrete start for international relations