Doing successful business in Guangzhou can be a challenging and audacious move as it requires not only a huge arsenal of Chinese knowledge but also meticulous attention to detail, professional organizational skills, marketing techniques, etc. A primary concern is that one should be acquainted with the rules of thumb of doing business in Guangzhou.
1. Carry out a thorough market research into the local market before fixing a formal business plan. Discuss and seek advices from local representative who understands the economic conditions of the local market.
2. Think about the unique selling points of your product or service and whether there is a niche market for it.
3. Register with the local government according to the Chinese low if you want to invest inGuangzhouand be acquainted with Chinese tax, accountancy and employment low as well as China’s infrastructure system.
4. Understand what rights you can get and how flexible is your industry or investment according to Chinese regulations.
5. Build a website to display your product or service with detailed product description, FOB price as well as unique selling points.
Market Entry Strategy:
1. Take into consideration of the most up-to-date market trends and think about your short term and long term requirements, labour as well as customer base.
2. Finding an agent or distributor with proficient marketing skills and a good knowledge of local markets is highly recommended. A good agent can greatly help eliminate the hassles of preparing government documents, reduce costs and time to enter the market.
3. Having your own interpreter to help with negotiations, meetings and presentations could help accelerate the business progress if you can not understand the Chinese language.
1. Find a reliable legal firm to double check all the contracts, credit and professional background of any potential partner so as to avoid any problem.
2. Seek legal advice on how to best protect your intellectual property in case your product is being copied as plagiarism is to some extent popular in China.
3. Be prepared for tough negotiations and double your time as negotiation can take a long time here.
1. Guanxi is very important for doing business in Guangzhou, thus, expect to spend sometime at meetings or banquets to build up your business network.
2. Be punctual for business meetings, and take seat according to the seniority as it is usually arranged.
3. Give out your business cards using both hands with a slight bow is essential for doing business in Guangzhou.
4. Know some basic Chinese daily phrases such as “Ni hao”(Hello), “Zao Shang hao” (Good morning).
5. Do not take initiative to eat or drink before your host does.
6. Drink or toast with the Chinese as dinner speeches and toasts are very common for formal Dinners:
7. Bring small and inexpensive gifts and wrap them in red or gold colors as these are considered lucky in China. Do not feel surprised if the recipients do not open the gifts in front of you as it is usually the practice to open it later.