Relationship First. Business Later.

Lin Luo | August 1, 2018

One of the biggest challenges in conducting/starting a business in China is establishing solid relationships as an “outsider”. As a young woman I remember sitting at a desk doing my homework in my father’s office at a large Chinese business. Clients would often tell his colleagues “we will only proceed with further discussion if you send Mr. Luo over”. In different stages of business negotiation, closing deals and solving conflict, he was often the one customers requested. It was clear to me that he had a way of managing interpersonal relationships that led to his overall success. Whether you are a native Chinese business person or a new foreign expat, understanding and developing relationships is paramount to success in China. Here are some tips to breaking through and getting your foot in the door of Chinese businesses.

1. Find someone you know first. If you know anyone working in the company, (anyone… even someone in an unrelated role) contact them first. You are much more likely to get a meeting if you are introduced by an employee or friend of an employee in the company.
2. Reach out to industry relationships. If you do not know anyone at the company, try to contact the people you know in the industry who would offer an introduction or reference.
3. Hire an Intermediary. Chances are you already have relationships in China if you are expanding your business there. However, if you do not have a contact at a prospective client’s company, I would recommend hiring an intermediary to introduce your company for you. Tactics like cold-calling or email marketing from an unknown sender is rarely read, much less responded to.

Once you establish contact, it is paramount that you understand what is most important to your Chinese client. The relationship. While this may seem like a basic sales understanding,  you should understand that in Eastern culture the relationship is not just important, it is the focus.  The goal is not the contract or the deal. The relationship is the goal. Deals will only be awarded to those who have a relationship. Even a subpar proposal may win a deal if it was proposed by someone with whom a trusted relationship is developed.

The goal is not the contract or the deal. The relationship is the goal.

 

 

Maintaining your  relationship is also important. Care, follow-up and maintenance is required. My father did not only manage his own contacts and network well, but he also created many opportunities for his acquaintances, who eventually succeeded in their own business. Part of maintaining relationships is to help clients, friends and your network. The Chinese look out for their friends and for the greater good. It’s always on their mind. And they prefer relationships with people who understand and live by these same values.

To learn more tactics on how to gain and maintain Chinese business relationships, or advice on hiring a trusted intermediary, contact us for a free consultation.