Professional Documents
Culture Documents
Jeff Blais
Director Experience Design, SapientNitro Singapore Jeff is a thought leader for emerging experiences and markets such as connected retail, interactive environments, and next generation connected ecosystems.
Christian Oversohl
Senior Vice President, Managing Director Asia Pacific Christian is a thought leader who helps clients navigate their brands through the opportunities and challenges caused by the digital disruption of their market environment.
Historically, Asia Pacific has been viewed by outsiders as a single region, much as North America or Europe.
However, the reality is that APAC is a fusion of culturally dynamic countries composed of strongly embraced religions, personalities, different market maturities and countless languages and dialects all with deep-rooted ways of conducting business. Australia is as different from China as Japan is from India. In addition, micro-market complexities in Indonesia, Malaysia, Thailand, and Vietnam, among other countries, further challenge any overbroad generalizations. That being said, were often asked about the overarching lessons weve learned too often the hard way during our time operating in the region. Knowing these might be the start, but definitely not the end, of wisdom.
The Extreme Importance of Relationships Immerse yourself in each market (e.g. country or micromarket) in which you plan to operate, and gain a local point of view. Cultural differences in communication and leadership between Asians and their Western peers are significant. For example, to generalize, Asian culture stresses respect toward elders, age-based hierarchy and the importance of consensus, traits rarely seen in Western management styles. Establishing deep personal relationships with your clients is paramount to be successful in Asia -- much more than is typical for Western companies. For instance, Chinese business people prefer to conduct business in informal settings like over dinners or lounges -- so you should have a good liver and a concrete stomach. Australian and New Zealanders prefer the negotiation table similar to how business is conducted in North America. In Japan, the most important concept to grasp is that of the overwhelming importance of personal relationships within the business cycle. Of all the business cultures of the world, Japan is one of those most strongly rooted in the concept that relationships should come before business, rather than business being more important than personal considerations. Trustbuilding is key to being successful in APAC business is built on trust and not legal contracts as is typical in the West. It takes time to build relationships, build trust and gain honor; however only days to lose it.
It takes time to Build relationships, Build trust and gain honor; howeVer, only days to lose it.
Expect to Negotiate Negotiating contracts and terms in Asia is usually a very different experience than in the West with the exception of Australia (whose business culture, unsurprisingly, most closely resembles the United Kingdom). In general, the concept of saving face is important in all Asian markets and determines the way you communicate less direct and outspoken than you are probably used to. China (including Hong Kong) and Japan are probably the toughest markets in which to negotiate. Although culturally different, they share many similar negotiation techniques. Business partners often push for further concessions after agreements are made. Also, China and Japan are relationshiporiented rather than contract-oriented meaning that you have to live up to the relationship and high expectations of quality and service level regardless of what the contract says. While this characteristic can have adverse effects on your margins initially, it also allows for compromises that serve both parties without sticking to the contract details and getting the lawyers involved. Negotiating teams in Asia are often bigger than in the West, and you will have to figure out quickly who plays what role and who the decision makers really are. In China in particular, products are valued above services, and it is often hard to negotiate a good price for nontangible assets you offer (e.g., consulting, innovation) as the market is not used to paying for that (yet). It helps to package your offer to look and feel like a product with clear costs and a measurable value proposition.
The Solution
Based on the research findings, an interactive salesassisted tablet was created to help a salesperson tell a consistent brand story and capture user interests and lifestyle type. The tool helped customers and salespeople understand how FIAT fit within their lifestyle. Fighting on the empathy of the brand foreign cars are very hard to sell in APAC markets, especially Italian ones where German cars are known for quality and unfortunately not Italian. We needed support tools to help with brand awareness, quality, design, and the lifestyle that FIAT embraces.
Plan to Adopt before You Adapt As large companies continue to invest in digital marketing platforms (DMPs) to scale brands, the reliance on them for growth into APAC and specifically China is growing exponentially. What marketers need to remember is that technology isnt the only adjustment needed to expand into the region. A combination of providing an education on what technology can offer -- for both the brand and consumer -- and discussing what it takes to implement, as well as building relationships and face-toface time are all critical criteria to the successful adaptation of your DMP. There are major differences in user behaviors, code base, governmental policies and regulations compared to North America, and in most cases European Union. The differences amount to much more than the translation of content and assets. Working with established partners with customer platforms that locally integrate with social, commerce, payment gateways and analytics is a much more efficient way to leverage efficiency, especially in China. In China, all social platforms are under constant development; working with local partners who have relationships, established development processes, and at times proprietary access to information is a must. Given how important time-to-market is in Asia, working with local social players accustomed to the small differences in each market, as well as being able to scale to support user adoption, is a much quicker approach than building from scratch. Plan for the Long Term It is easy to set expectations too high when entering a new, large market like China. Companies which have operated in the region for years are still relatively new arrivals by Asian standards. Business in Asia Pacific is a marathon, not a sprint. You need to commit to the long term, make mistakes and learn from them, be prepared for surprises and unexpected turns of events every step of the way and stick it out otherwise you had better stay home and invest elsewhere. While it will probably take longer for your company to grow a sustainable and profitable business in APAC than in North America or Europe, it is worth the time. Recognize that there is an obligation to see things through and be committed for the long haul. This includes senior management who should be committed for at least three to five years on the ground to have an impact. Asian business partners are turned off quickly if their counterpart is on a one-year expat contract to learn about Asia. Consequently, Asian business partners will not be motivated to invest into building a relationship.
In Closing
Companies expanding in the APAC region need to focus on addressing the complexities and differences within APAC supported by immersion, appreciation, acceptance and respect of each culture. One last point: Find a local partner within each market who understands how to navigate and articulate the cultural nuances. APAC is a lovely place to expand, and its ready with open arms for expansion. However, you need to work with the markets as partners and work within their ways with your guidance and experience and, most importantly, with respect to their cultures.
IF Im conVersing with you, Ill speak your language. IF Im Buying From you, you speak my language.
Carolyn Sostrom2
Carolyn Sostrom, First Impressions Speak Volumes. Japan Inc. 2001. Photo credit: PKOM / Shutterstock.com