East is East
A simple 10-slide template for a startup pitch that explains what the startup does, how it works, who is behind it, and other basic elements.
MORE DECKS TO EXPLORE
PRESENTATION OUTLINE
EAST IS EAST
Identifying the key challenges and possible solutions of selling high end Western equipment in Asia.
Photo by Nina Matthews Photography
43% of worldwide tech growth
The expansion of China's tech market by 2020 will account for 43% of worldwide tech sector growth.
techradar.com
techradar.com
Photo by kjetikor
KEY CHALLENGES
Photo by List [trade break - catching up]
CULTURE
- Understand the market, the culture and internet culture.
- Relationships (Guanxi) - understand their role in Asian business. Understand that the sales process may take a long time.
- Research local customs and values.
- Buying decisions and influences vary from country to country. Understand key motivators.
Cultures and business cultures vary by country. Be flexible, humble and learn.
Relationships play a huge role in Asian business and formal / personal settings may vary. Office/ dinner etc
Build relationships with other businesses, trade orgs, govt connections etc
Know the decision making process and the timing of this, including how may people you need to "sell" to to make a sale.
Buying experiences vary from country to county - personal/ social / for others / to save face.
Understand how people and businesses think/rank in chosen country.
China vs Japan - Shareholder return vs employee well being.
Know rude or offensive indicators, incl superstitions.
EXAMPLE: - Ebay vs Taobao. Asian expansion failed due to competitor having chat feature to speak to selling and build relationship. Ebay only had feedback feature. Fail.
Relationships play a huge role in Asian business and formal / personal settings may vary. Office/ dinner etc
Build relationships with other businesses, trade orgs, govt connections etc
Know the decision making process and the timing of this, including how may people you need to "sell" to to make a sale.
Buying experiences vary from country to county - personal/ social / for others / to save face.
Understand how people and businesses think/rank in chosen country.
China vs Japan - Shareholder return vs employee well being.
Know rude or offensive indicators, incl superstitions.
EXAMPLE: - Ebay vs Taobao. Asian expansion failed due to competitor having chat feature to speak to selling and build relationship. Ebay only had feedback feature. Fail.
LANGUAGE & COMMUNICATION
- If you cant speak the language use a translator or local business partner
- Don't misunderstand company business practices
- Understand what the consumer wants.
Local language and currency is important.
Know the best communication channel for your audience. eg - F2F, exhibition, SoMe - WeChat QQ LinkedIn, email following personal introduction, use correct search engines for market.
Learn key phrases for face-to-face meetings.
Familiarize yourself with local colloquialisms - e.g. "yes" means "I understand", not "I agree".
Comms required before, during and after a sale. Hand holding. Drip feeding. Constant and consistent.
Make clear who the product is aimed at. Is it for a particular geographic audience, or a particular demographic group?
Or maybe it's for people who have a particular problem or a certain need. Make clear who you are building this product is for so that it's clear who will benefit from it.
EXAMPLE:
picking the right local partner
Groupon vs TenCent
local partner was their competitor, they didn't use their resources, the brought in western management instead of milking Asian resources. Fail.
Microsoft vs Sony - they use the same local partner. How does agent chose which to promote. Didn't listen to market needs re platform and gaming genre so neither are doing well. Fail.
Know the best communication channel for your audience. eg - F2F, exhibition, SoMe - WeChat QQ LinkedIn, email following personal introduction, use correct search engines for market.
Learn key phrases for face-to-face meetings.
Familiarize yourself with local colloquialisms - e.g. "yes" means "I understand", not "I agree".
Comms required before, during and after a sale. Hand holding. Drip feeding. Constant and consistent.
Make clear who the product is aimed at. Is it for a particular geographic audience, or a particular demographic group?
Or maybe it's for people who have a particular problem or a certain need. Make clear who you are building this product is for so that it's clear who will benefit from it.
EXAMPLE:
picking the right local partner
Groupon vs TenCent
local partner was their competitor, they didn't use their resources, the brought in western management instead of milking Asian resources. Fail.
Microsoft vs Sony - they use the same local partner. How does agent chose which to promote. Didn't listen to market needs re platform and gaming genre so neither are doing well. Fail.
Photo by Jeremy Brooks
COSTS AND LOGISTICS
- Fending off local competition
- Increased costs from postage, packing and taxes.
Asia based tech companies are not just providing knock off goods. They differentiate from Western products by innovating and by really focusing on the region's consumer base. Think about this.
e.g. multi SIM phones are common in Asia, but they are a start-up in UK market. Can you compete?
Costs of Western product likely to be higher than local competitor. But, is the quality on par...?
Customer may experience increased costs and timescales due to delivery. Communicate the added value in your product.
e.g. multi SIM phones are common in Asia, but they are a start-up in UK market. Can you compete?
Costs of Western product likely to be higher than local competitor. But, is the quality on par...?
Customer may experience increased costs and timescales due to delivery. Communicate the added value in your product.
Photo by Lightmash
GOVERNMENT & RED TAPE
- Follow the rules
- Corruption
Don't be arrogant when it comes to Govt rules.
Be aware of rules that may affect you- e.g.
Tech with software sold into Asian banking industry - Govt requires source code and backdoor
Red tape for Western suppliers of hard/software to ensure local providers have a higher market share.
example - Netflix Govt approvals and editing.
Be aware of corruption and local policy. Decide in advance how you should handle this.
Don't get caught out.
Be aware of rules that may affect you- e.g.
Tech with software sold into Asian banking industry - Govt requires source code and backdoor
Red tape for Western suppliers of hard/software to ensure local providers have a higher market share.
example - Netflix Govt approvals and editing.
Be aware of corruption and local policy. Decide in advance how you should handle this.
Don't get caught out.
Photo by Worlds In Focus
QUALITY & RELIABILITY
UK standards and quality control is premium. It may be preferred or required.
Photo by freestock.ca ♡ dare to share beauty
UNIQUE DESIGN
Applies to speciality products.
Replicating this in Asian markets by competitors may be too expensive, as well as time and labour intensive.
Replicating this in Asian markets by competitors may be too expensive, as well as time and labour intensive.
Photo by tanakawho
COST SAVINGS
Long term costs savings due to product durability - willing to pay more upfront for better quality, and have the piece of mind that the product will last and may save them in expensive downtime.
No one gets fired for buying IBM. Blame shifting.
No one gets fired for buying IBM. Blame shifting.
Photo by Ian Aberle
STATUS
Gain face and show they have gained material success.
to seek "Guan-xi" and gain favours from potential customers / colleagues etc
to gain / develop relationships and friendships.
Heard mentality - keeping up with the Joneses. Need an established and well respected brand for this.
to seek "Guan-xi" and gain favours from potential customers / colleagues etc
to gain / develop relationships and friendships.
Heard mentality - keeping up with the Joneses. Need an established and well respected brand for this.
Photo by MohammadHasan
CULTURE SHOCK
- Research the market
- Know the culture(s)
- Understand what NOT to do
EXAMPLE- hoist promotional advert campaign that contained 4s in price and phone number resulted in little sales. Unlucky!
Photo by smbuckley23
MAKE YOURSELF HEARD
- Communication!!
- Make sure you understand each other, incl language
- Relevant comms channels incl F2F
- Communicate at all stages of the process
- Listen
Photo by Wiertz Sébastien
MAKE YOURSELF SEEN
- Brand marketing
- Reinforce high quality standards and long term cost savings
- Feed their ego
Become established as quality brand in the marketplace
Be the "smart choice". They will be praised by superiors for buying your product. Success by association.
Be the "smart choice". They will be praised by superiors for buying your product. Success by association.
Photo by Joaquin Villaverde Photography
Develop Asian market strategies that engage the internal business with local values, and find fresh ways to implement them.
Test and learn.
Speak to other depts incl local resources for insights and experience.
Make a plan in line with business goals.
Speak to other depts incl local resources for insights and experience.
Make a plan in line with business goals.
Photo by Poe Tatum
Questions?
Photo by www.ruffrootcreative.com
