I've done a presentation twice on the top ten pitfalls companies make when trying to outsource to China. I'll post this list over the next ten posts.
#10 - Not Understanding Cultural Differences
There are three key phrases to keep in mind when outsourcing to China. They are:
Sure, sure... - This is taken to mean by the US visitors as agreement or commitment that a product or process is available at the factory. In reality it means "I understand", as does a head nod.
No News is Good News... - This is relevant when your order will not ship until a few weeks later than planned and the factory does not let you know. It also is relevant when changes to raw materials are made but not communicated to the buyer.
Good enough... - Chinese companies have a reputation for shipping products that are "good enough" in their opinion, but not at all acceptable when they are received by their US buyers.
In all three cases, good relationships and clear specifications and requirements are key to avoiding this pitfall.
Also keep in mind that "face" is a huge issue in China. Losing and gaining "face" are a big deal. Essentially "face" is your standing in the eyes of others. Embarrassing situations result in loss of face.
Decisions are also made less by individuals and more by groups in China. This often results in slower decision making.
Finally, when negotiating, keep in mind these key phrases from The Art of War by Sun Tzu from 400 B.C.
"All warfare is based on deception.“
"Pretend inferiority and encourage his arrogance.“
"Draw them in with prospect of gain, take them by confusion"
The best advice to avoid this pitfall is to educate yourself by reading as much as possible about Chinese culture and being sensitive to the differences. Also, be friendly, open, and cautious as you learn for yourself how to successfully work with the Chinese. The learning process is a great, fun adventure.
Sure, sure... - This is taken to mean by the US visitors as agreement or commitment that a product or process is available at the factory. In reality it means "I understand", as does a head nod.
No News is Good News... - This is relevant when your order will not ship until a few weeks later than planned and the factory does not let you know. It also is relevant when changes to raw materials are made but not communicated to the buyer.
Good enough... - Chinese companies have a reputation for shipping products that are "good enough" in their opinion, but not at all acceptable when they are received by their US buyers.
In all three cases, good relationships and clear specifications and requirements are key to avoiding this pitfall.
Also keep in mind that "face" is a huge issue in China. Losing and gaining "face" are a big deal. Essentially "face" is your standing in the eyes of others. Embarrassing situations result in loss of face.
Decisions are also made less by individuals and more by groups in China. This often results in slower decision making.
Finally, when negotiating, keep in mind these key phrases from The Art of War by Sun Tzu from 400 B.C.
"All warfare is based on deception.“
"Pretend inferiority and encourage his arrogance.“
"Draw them in with prospect of gain, take them by confusion"
The best advice to avoid this pitfall is to educate yourself by reading as much as possible about Chinese culture and being sensitive to the differences. Also, be friendly, open, and cautious as you learn for yourself how to successfully work with the Chinese. The learning process is a great, fun adventure.
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