The importance of relationships is addressed in this first chapter because I find it to be the single most significant factor for success in Asia. Relationships tie into many facets of Asian culture, including trust (or lack thereof), quality, and future potential. If you build a strong relationship, there is huge future potential for you to work together for many years to come. I have often seen failure when someone has gone in and tried to dictate terms and conditions to their Asian partner; even a superior product or service cannot save them with this approach.
1. Spend Time in Southeast Asia
There is no other way to grow your relationships in Southeast Asia than spending time there. Meet people while you are there, take time to build a relationship, and focus on the people. But, do not just âgo thereâ; go there and use your connections to help you schedule meetings, network your way through society with introductions.
The first time I went to China, I knew three people. Those three people helped me build a network that is active today, and every time I go there, my goal is to look for new connections. I started in China with two very simple questions: Who should I use as an accountant and who should I use as a lawyer? I worked with an amazing lawyer who made some introductions, but, ended up firing the accountant three months later. The accountant did not do anything wrong, per se, but he did not have the knowledge and experience necessary to operate on an international platform. I recommend finding lawyers and accountants that have clients who may be useful to you. After all, there is a mutual benefit. If your business grows, so does the business of your lawyer and accountant, as well as their other clientsâ businesses. I also recommend you push your lawyers and accountants to create introductions for you, whether it is to their clients or friends.
The other contact in the region that I have learned to use is the U.S. government. U.S. Commercial Services has on-the-ground operations in almost every country in the world, and in certain countries, like Japan, China, and India, they have operations in more than one city. For a small fee ($300â1,000), you will gain introductions, market research, and keen insights into the market that you might not otherwise have had, all of which is not only good not only for making new connections but also good for making sure your strategy and planning align. The other benefit is that in Asia, a government introduction elevates your perceived value in the country. While we in the United States may not place a high value on working with the government unless we are selling to them, that is not true in Asia, so maximizing this opportunity is very important.
Finally, use your other relationships, including friends and consultants. Most expatriates in Asia are extremely open to getting together and talking to someone from home. These people are great resources because they have spent years on the ground developing and building relationships. At FDI Strategies, we encourage our clients to push us, as consultants, for introductions. We regularly make introductions for our clients to potential suppliers, potential clients, and the media. It is a vital part of our business. Despite this, sometimes we overlook someone whom we should introduce a client to; for this reason, our clients are encouraged to continually ask and push us. Explaining why one individual is not a good fit for your client sometimes reminds you that you forgot someone who is a good fit. You never know until you ask; so I encourage you to ask and keep asking. Fortunately, there are many ways to keep up, either through applications like LinkedIn (becoming more and more popular in Asia), through your website, or even through generic requests, such as âWhom should we speak to in the media?â While we donât encourage our clients to make direct requests by going around us, an introduction via email through us can make a world of difference.
2. Do Not Waste Time
Most people in the United States or parts of Europe go to Southeast Asia and do not understand the power structureâ meaning, who can make decisions in an organization. In India, although officially illegal, caste, where people are born into their roles in life, is the determining factor. This is true in other parts of Asia as well, also in countries like Myanmar and Pakistan, although sometimes it is not seen as clearly as it is in India.
In one meeting, someone mentioned they had never seen an American (me!) do such a good job of not wasting time with people who had no say over anything. My only thought at the time was to get things done, and I knew that to do that, you had to start at the top. If you are just coming into the Southeast Asian market, you have to find a way to navigate and grow your relationships with decision makers and avoid spending time making meaningless connections with executives who cannot advance your cause. You do not always have to follow the traditional path of lower-level introductions. Whether in the United States, China, Japan, or any other country, it is best to take the approach of knowing the people first before trying to sell them something. They are not just potential clients or networking opportunities; they are people with whom you can build an ongoing relationship. In doing so, you will meet some amazing people, try amazing restaurants, and do some business as well. In most of Asia, this is the right way to go about building business. Personally, I do most of the âgetting to knowâ a person outside the office environmentâgo to lunch or dinner, get to know each other. Even if you are in the office, continue to focus on getting to know the person as a person.
My focus when visiting Asian countries is to work on building my network and relationships. With numerous trips to Asia over the past decade, I have not taken time to visit the many tourist attractions, such as the Great Wall of China. I have been to the Forbidden City, but only for a client meeting. Shanghai has been a frequent destination and I have seen a few more t...
