Going confidently into the world

Businesspeople from China have many advantages over their Western counterparts, says a British brands expert and author

Chinese entrepreneurs are better educated about the Western world than the Western world is about China, which can greatly help the Chinese build brands in overseas markets, according to a British brand expert.

The number of Chinese entrepreneurs who are internationally savvy is growing, as more and more travel and obtain an overseas education. Many entrepreneurs also read a lot about Chinese management and also about the Western world, says Jonathan Geldart, executive director of markets at Grant Thornton International Ltd (China) and the author of two books on China.

Grant Thornton International, incorporated in the United Kingdom, is a global professional services network of accounting and consulting firms.

"Chinese entrepreneurs read more and are better educated about the Western world than the Western world reads about and knows about China. Chinese entrepreneurs are diligently looking at the international market, thinking very carefully about it and then deciding whether or not to enter the market, and then strategically entering the market."

Geldart says in some ways, entrepreneurs are the same anywhere in the world, as they are driven, enthusiastic and focused on what they want to do. But Chinese businesspeople are very modest, and thoughtful about things, and they will spend time to build relationships before they start to talk about businesses. One thing that is special about the Chinese is that when a Chinese businessperson looks at business opportunities, they are more likely to see the whole picture, he says.

"They will see all the opportunities, all the connections, and all the relationships between all the people, whereas (other) businesspeople may just see this deal right now. Western businesspeople tend to have a narrower perspective on the deal in front of them. Chinese businesspeople will have a broad view about what is happening around the deal, around people involved in the deal."

He says that because of these entrepreneurs' awareness, Chinese brands should have confidence in being successful in the Western world, and that some have already started to have a big presence in the West.

Geldart has more than 17 years of experience helping Chinese companies and Western companies find opportunities in each other's markets. He says there is growing awareness in the West of Chinese brands that are buying Western brands. This will benefit them by creating awareness of own brands, he says. Meanwhile, some other brands have grown sufficiently to become well-known in the West, including Huawei, Xiaomi, Alibaba and Lenovo.

Geldart says Chinese brands have two obstacles to overcome. One is brand China, that is, the perception China has been historically a country where low quality and low cost prevail. Second is to make sure they find the right partners and work to sell the right brands to the West.

"It is a bit like Britain or the US or Germany. We have stereotypes and perceptions of these countries. British partners do well in China because of their well-known quality of design. The American companies are known for their quality and innovation. Meticulous engineering and technology are the known advantages of German companies. Different countries and regions come with different stereotypes. Local companies from any part of the world entering the global marketplace should use market perceptions to their advantage. I think there are rich opportunities for Chinese brands to succeed in the rest of the world," he says.

Some Chinese companies come up with a Western-sounding name to appear more international, which Geldart believes is unnecessary. He says Chinese brands don't need to be afraid of having a Chinese name.

"Be proud of being Chinese, be proud of your name and use the brand that you have built up and made famous in China and introduce it to the world. Don't alter your name, which hides your real brand and undermines your existing brand tradition. Be proud of being Chinese, be proud of your name and use good marketing and good brand strategy to enter Western markets."

Apart from buying a brand or developing a good brand gradually, he says there also are techniques to help make a brand famous, such as sponsorship of sports and events.

"Sports is a very effective way for building brands - sponsoring a marathon, football. We could go down to the provincial level or even the city level in the UK, Germany, France," he says. "The point is, whichever market you are interested in, whatever the proposition you have, use good advice to find the right magnetism. And I would also suggest choosing your market and then building one market next to the other."

He says now that the world is a global village, China is part of the world and the world is part of China. For Western business, there are huge opportunities to come to China, and Chinese businesses with a specific market focus should not be afraid of going into the Western world.

While some Westerners hold a negative view about China's economic slowdown, Geldart says they are wrong in looking only at China's GDP.

"People should look at the true dollar strength and renminbi strength of the economy. If you look at the dollar-value of GDP, it is much greater now than it was before the last global financial crisis in 2009," he says.

Geldart says many companies that he has spoken with don't understand what is happening with the economy in China, or the direction of support provided by its government, particularly initiatives where there are a lot of opportunities for cooperation, such as the Belt and Road Initiative and Made in China 2025. China and the UK also have many opportunities in technology, healthcare, education and travel.

He says there have been some bumpy moments in China's economic development, and some multinational companies are shrinking their businesses in China, but the main companies that are moving out are doing so due to the higher cost of wages.

"Production and labor-intensive jobs in China are gradually moving to Vietnam, Myanmar, Laos, Cambodia and even Indonesia, where the wage cost is lower. But if your look carefully across the industries in China, at finance, technology and the aerospace industry, jobs in those industries are the mainstay of the Chinese economy."

Many Westerners treat China as one homogenous entity, Geldart says, but he questions that.

"We spend a lot of time talking to our clients to understand the differences across China; how each province has its own local culture, has its own unique geography, demographic and GDP growth, and each province has its own approach to growing its local economy.

"I often recommend Western businesspeople travel outside of Beijing and Shanghai, to experience another part of China and to see another aspect of the opportunities in China."

After working and living in China for more than seven years, he says he is surprised that some people still treat China as if it were back in the 1970s.

"This generation of businesspeople has a very short memory, so they only have their own experience of maybe about 20 years. So in those 20 years, they have had a mixed view of China," he says.

"I try to be balanced. There are, of course, some things in China that I won't recommend businesses do, but there are certain parts of China that are at the right time for Western businesses to enter. There are hundreds of opportunities remaining for businesses to benefit from parts of the growth in China."

chenyingqun@chinadaily.com.cn

(China Daily European Weekly 06/03/2016 page32)