With the globalization and information technology, it has become easier for multinational companies to strengthen their customer relations via the email system and web. They are trying to find some innovative ways to increase customer loyalty and satisfaction. However, it shouldn’t be ignored that there is a behavioral shift among Chinese customers from collectivist way of thinking and shopping to the individual way of thinking. In order to adapt to this shift, multinational corporations should hire local managers who will understand the tradition, culture, language, and also the changing preferences of Chinese customers. In addition, the MNCs need to emphasize the individualistic values in their promotion and marketing strategies.
Furthermore, the wealthy class in China is growing; therefore, the multinational corporations should design more creative ways to attract this growing population. It is also shown in the studies that customers in the emerging market are not properly served unlike in the Western world where there is a commonly accepted principle that the customer is always right irrespective of the circumstances. So the customer service model should be brought to the Chinese market to make the customers happy and loyal. It is often declared that suppliers in China are suffering from meeting the quickly expanding needs and demands of companies who are trying to satisfy their customers with new products and designs. In this way, having a close and strong customer relations would be a competitive advantage for multinational corporations
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who are and will be dealing with end customers so as to overwhelm their domestic and global competitors in this huge market.
Sunday, November 29, 2009
customer behavior in china
Since China is a collectivist society where groups and family values are preserved, this ideology is closely linked to the buying behaviors of Chinese consumer. When they buy products in the market, they are more likely to buy some for their close friends and relatives. However, this trend is changing and is going towards individualism which may cause the emergence of “me” generation.
For the past decade, Chinese consumers were not fully aware of the foreign products other than “made in China” products. They are becoming more sophisticated and increasingly caring more about quality instead of price. Their preference for domestic goods has dropped from 78% to 67% in the last five years and been declining faster among young, the affluent and the urban. Moreover, preference for foreign goods, especially European brands has rise from 19% to 22%. Even, the suppliers have problems in meeting the growing needs of quickly expanding companies.
For the past decade, Chinese consumers were not fully aware of the foreign products other than “made in China” products. They are becoming more sophisticated and increasingly caring more about quality instead of price. Their preference for domestic goods has dropped from 78% to 67% in the last five years and been declining faster among young, the affluent and the urban. Moreover, preference for foreign goods, especially European brands has rise from 19% to 22%. Even, the suppliers have problems in meeting the growing needs of quickly expanding companies.
business in china service market
China’s service industry accounts for over 40 percent of its gross domestic product. In some large and medium-sized cities, the proportion has even risen to 60 or 70 percent. With the release of 2005-2008 Development Planning of National Standards for the Service Industry there are currently 2,550 service industry standards. By 2013, China will have formulated and revised 1,100 additional service industry standards.
Software is one of China’s fast growing service industry. The majority of Chinese software services are provided by domestic companies for domestic clients. Since software development creates more efficient manufacturing processes, this industry is in high demand.
Telecommunications industry in China is dominated by three state-run companies: China Telecom, China Unicom and China Mobile. After the accession to WTO, the Chinese government has opened this market to foreign investors. New technologies are being brought to provide differential services.
Software is one of China’s fast growing service industry. The majority of Chinese software services are provided by domestic companies for domestic clients. Since software development creates more efficient manufacturing processes, this industry is in high demand.
Telecommunications industry in China is dominated by three state-run companies: China Telecom, China Unicom and China Mobile. After the accession to WTO, the Chinese government has opened this market to foreign investors. New technologies are being brought to provide differential services.
business relationship in korea
Business meeting
In the business meeting punctuality is very essential for Koreans. Korean thinks it very respectful to arrive on time.
Korean top level business executive can arrive a few mints later to the appointment because they are extremely busy persons
In Korea contracts are the starting point rather than the final stage of the business and some Korean has legal implications regarding the signing of contracts
The exchange of business card is very important in Korea. It is prefer to have your title , rank and authority clearly on the cards and also like Chinese you should present card with both hands
Organizational hierarchy and authority
Korean are known for their vertical structure base on the age and rank and social status. In any meeting arrangement of Korean companies are high centralized with authority and social level
High ranks has more power over subordinate, decision making, and approvals than the west
Gift giving in Korea
Gift giving in Korea is a common practice . it is generally given in first business meetings to built relationship and gift should be present and accept with both hands.
Business lunch with Korean
In Korea lunch is eaten during the business hour because Korean are group oriented culture that’s why they eat lunch together either in a restaurant or deliver to work place. Eating together some time built group spirit .the Company or senior managers in a group often pay the bill of lunch
In the business meeting punctuality is very essential for Koreans. Korean thinks it very respectful to arrive on time.
Korean top level business executive can arrive a few mints later to the appointment because they are extremely busy persons
In Korea contracts are the starting point rather than the final stage of the business and some Korean has legal implications regarding the signing of contracts
The exchange of business card is very important in Korea. It is prefer to have your title , rank and authority clearly on the cards and also like Chinese you should present card with both hands
Organizational hierarchy and authority
Korean are known for their vertical structure base on the age and rank and social status. In any meeting arrangement of Korean companies are high centralized with authority and social level
High ranks has more power over subordinate, decision making, and approvals than the west
Gift giving in Korea
Gift giving in Korea is a common practice . it is generally given in first business meetings to built relationship and gift should be present and accept with both hands.
Business lunch with Korean
In Korea lunch is eaten during the business hour because Korean are group oriented culture that’s why they eat lunch together either in a restaurant or deliver to work place. Eating together some time built group spirit .the Company or senior managers in a group often pay the bill of lunch
business culture in korea
Greetings
In Korea it is very common to hand shake first with foreign colleges after a bow to encompassing both cultural styles to show the respect. It is prefer to have a third party introduction.
In Korea they follow strict rules of protocol. The person of low status bows to the person of high status.
Business relation ship in Korea
Korean established a good personal relationship with each others which are based on the trust and mutual benefits. Korean culture is based upon respect.
Like Chinese Korean spend a lots of time developing and fostering personal contacts.
In Korea it is very common to hand shake first with foreign colleges after a bow to encompassing both cultural styles to show the respect. It is prefer to have a third party introduction.
In Korea they follow strict rules of protocol. The person of low status bows to the person of high status.
Business relation ship in Korea
Korean established a good personal relationship with each others which are based on the trust and mutual benefits. Korean culture is based upon respect.
Like Chinese Korean spend a lots of time developing and fostering personal contacts.
business relationship in china
Business Relationship in China
Chinese business relation becomes more social relationship in few week rather than western who are more professional. Chinese share personal life including family, hobbies, political views as well. During business discussion they can spend a lots of time discussing business out of business
Seniority is important in China
Seniority is think to be very important in china especially when you are dealing with state own enterprises or governing body. It is prefer to call a person on the basis of his seniority. You must give respect according to rank and seniority
Similarly sitting positions are also arranged according to rank and importance and seniority
Business Lunch/Dinner in China
There is no concept of business deal in china without at least one trip to a restaurant and there is fix places according to the seniority and rank. In a formal dinner its very important to follow the rules. But southern Chinese has loosen the formalities somewhat
Drinking with the Chinese
Chinese are the big drinkers of wine it does not matter its dinner or lunch as long as meal is going on there will be alcohol.
Chinese likes red wine and bear. The local wine is like fuel than liquid they can drink alcohol as high as 60%. If you are in a Chinese party than you have to drink with them and don’t challenge any Chinese into a drink contest.
Chinese business relation becomes more social relationship in few week rather than western who are more professional. Chinese share personal life including family, hobbies, political views as well. During business discussion they can spend a lots of time discussing business out of business
Seniority is important in China
Seniority is think to be very important in china especially when you are dealing with state own enterprises or governing body. It is prefer to call a person on the basis of his seniority. You must give respect according to rank and seniority
Similarly sitting positions are also arranged according to rank and importance and seniority
Business Lunch/Dinner in China
There is no concept of business deal in china without at least one trip to a restaurant and there is fix places according to the seniority and rank. In a formal dinner its very important to follow the rules. But southern Chinese has loosen the formalities somewhat
Drinking with the Chinese
Chinese are the big drinkers of wine it does not matter its dinner or lunch as long as meal is going on there will be alcohol.
Chinese likes red wine and bear. The local wine is like fuel than liquid they can drink alcohol as high as 60%. If you are in a Chinese party than you have to drink with them and don’t challenge any Chinese into a drink contest.
business culture in china
In business its good in korea to call person with his Mr. & Mrs. and family and position title name.
In china people usually call each by their family names like Mr. Chen because family name is the first name in china.
In business its good in china to call person with his family and position title name for example "Director Wang” and formality is the sign of respects and Chinese did not make friends in first meeting The Chinese way of greeting is a nod or slight bow often when they meet with western they shake hands.
Business meeting
In china it is assumed that first person that enter the room is the boss of the company. In large room guest sits with directly opposite the principal host
Chinese are very punctual of time. So you have to be in time if you have business meeting
When Chinese gives the business card to others they hold it with the both hands. And Chinese starts small talk y about the agenda first but after some time they picks the tempo .
Social Events
Chinese like to deliver a short speech after the guest speech. Chinese like to leave some meal in the plate so that guest does not feel that you are hungry
Gift giving
Chinese likes gifts they think that gifts are the sign of building relationship. Chinese likes to present gifts with both hands because it is the sign of courtesy and they thinks it is type of appreciation
Chinese does not like clocks, umbrella, handkerchief as they think it is the sign of tears and sorrows
In china people usually call each by their family names like Mr. Chen because family name is the first name in china.
In business its good in china to call person with his family and position title name for example "Director Wang” and formality is the sign of respects and Chinese did not make friends in first meeting The Chinese way of greeting is a nod or slight bow often when they meet with western they shake hands.
Business meeting
In china it is assumed that first person that enter the room is the boss of the company. In large room guest sits with directly opposite the principal host
Chinese are very punctual of time. So you have to be in time if you have business meeting
When Chinese gives the business card to others they hold it with the both hands. And Chinese starts small talk y about the agenda first but after some time they picks the tempo .
Social Events
Chinese like to deliver a short speech after the guest speech. Chinese like to leave some meal in the plate so that guest does not feel that you are hungry
Gift giving
Chinese likes gifts they think that gifts are the sign of building relationship. Chinese likes to present gifts with both hands because it is the sign of courtesy and they thinks it is type of appreciation
Chinese does not like clocks, umbrella, handkerchief as they think it is the sign of tears and sorrows
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