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5 LEAD STRATEGIES FOR WINNING OVER

ASIAN CLIENTS

Hi I’m David Clive Price, Author of The Master

Key to Asia and The Master Key to China and

Founder of the International Business

Passport

As an individual gift to you here is the first in my series of

‘International Business Passport’ Reports, including a bonus

section on how to assimilate well in Asia. In this report I’ll be showing

you how understanding the cultures as well as the business life of

individual Asian countries is vital to starting and expanding your

business in the fastest and steadiest growing region in the world.

First, let me share a little of my story. I’ve always been interested in how

other people live in different cultures to my own, which is how I found

myself writing my first novel and travel book in Italy in the 1980s while

farming olives and wine. After a few wonderful years living my self-

sufficiency dream, I began to hanker for more exotic climes and moved

to Japan for a while, wrote a book about the country, and finally ended

up in the 1990s in Hong Kong where I worked as a journalist and as a

country report writer/editor for The Economist.

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That’s when things began to change. I had a family but a very modest

income as a writer, no apartment, no car, and not much financial

security. The choice was to use my knowledge of Asian business to take a

proper job, or to continue a precarious existence as a writer on Asian

culture. I chose both. After a brief stint in a well-known PR company, I

became Executive Speechwriter for Asia for the HSBC Group. It was

1995. Hong Kong was preparing to return to China.

I spent the next four years writing speeches for HSBC bosses to deliver

all over Asia and the world. With their permission, I also continued

writing about Asia’s rich tapestry of cultures and religions. By the time I

left to start up my own strategic communications company in Hong

Kong in 2000, I was becoming something of an expert on Asian business

and culture. But I still had to struggle to establish my company, first in

Hong Kong and then in other Asian markets.

As I discovered, it takes time to create business relationships and

credibility in more than one Asian country (success in one doesn’t

necessarily mean success in another) but at least I was free to run my

own business, to discover more about individual Asian countries as well

as to research my bestselling books:

• The Master Key to Asia: A 6-Step Guide to Unlocking New

Markets and

• The Master Key to China.

Hong Kong is famous for its ‘can-do’ attitude. As I helped more and

more companies in Hong Kong, China and other Asian markets develop

their growth strategies, I realised that the attitude had rubbed off on me.

And not only that, I could make it rub off on others.

Business is not only business. It is about knowing people. It is about

relationships. It is about how people behave within their cultures and

what, deep down, they really believe. Travelling around and working in

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China, Taiwan, Japan, Korea, Thailand, the Philippines, Malaysia and

Myanmar, it occurred to me that every country in Asia has its own rich

and unique culture. The inhabitants of each country had their own

respect systems and emotional intelligence.

Drawing on this experience, I developed a business model for

entrepreneurs wanting to gain a foothold for the first time in Asia, for

established companies developing operations in one of Asia’s high-

growth markets, for novices and ‘old hands’ alike to expand from one

Asian country to another.

So here is my special step-by-step business model, 5 Lead Strategies

for Winning Over Asian Clients.

Lead Strategy One: To succeed in international business, you must

understand why CULTURE is important

Lead Strategy Two: You need a firm grasp of the differences in

MINDSET

Lead Strategy Three: You need a firm grasp of the differences in

business ETIQUETTE

Lead Strategy Four: You must be able to COMMUNICATE yourself

and your company to Asian audiences through speeches and

presentations that make you stand out

Lead Strategy Five: You must GLOCALIZE yourself, your brand and

your company

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Lead Strategy One: To succeed in international

business, you must understand the CULTURE

I’m often asked, why do you need to worry about culture ⎯ after all we

live in a globalised world. Isn’t business the same everywhere? The

answer is pretty much NO. And the reason is more deep-rooted than you

might think. It is not simply about etiquette. The cultural subtleties that

influence international business reach far beyond the ability to greet

your Asian counterpart correctly or choose an appropriate gift for a

particular situation or present your business card in the right way.

On the surface these might appear to be minor concerns. But beneath the

surface they really matter. Knowledge of an individual culture’s attitude

to time and punctuality, whether the society is more collectivist in

behaviour than individualist, the nuances of respect and hierarchy, not

to mention body language and gestures and attitudes to ‘harmony’, is

central to doing business in Asia.

Why? Such knowledge can radically affect your understanding of the guy

waiting for you in the next office or the woman across the table at a

business lunch. Above all, it can affect your own chances of being

correctly understood. Yes, we live in a world of globalised business. But

the ubiquity of the internet and social media are no guarantee of

avoiding unnecessary blunders (even insults!) towards your Asian hosts.

Ignorance of whom you are really dealing with – the way they actually

live and think – may actively destroy your chances of building personal

knowledge. Without personal knowledge, you cannot create the kind of

credibility and trust that engenders long-term relationships and

business success. And Asia business is about long-term relationships.

Even the way you frame your e-mails can jeopardise relationships across

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cultures. English may be a lingua franca, but in many countries of Asia

this lingua franca conceals a strong attachment to local languages,

customs, dialects and deep-rooted beliefs. Ignore them at your peril!

I have spent more than half my life working as a consultant and

strategist for multinationals and government institutions in the East,

and the other half in the West. The knowledge I have gained has left me

in no doubt that Asian cultures – the way people behave and think and

what they believe in – can be influenced by economic activity. Anyone

who has witnessed the rapid modernisation or South Korea or the

impact of the markets on China will know that economics can make a

significant difference to cultural behaviour.

However, this ‘Westernizing’ effect should not be exaggerated. Despite

the intrusion of market forces into much of the Chinese economy, the

emphasis on relationships (guanxi) remains a core element of Chinese

business culture. In fact, connections are still paramount in Asia,

taking precedence over money and markets even in cosmopolitan

economies like Hong Kong and Singapore.

What other cultural attitudes influence business in

Asia?

The emphasis on family networks is reflected in the family-based,

filial loyalty structure and ownership of many Asian corporations.

Western standards of corporate governance do not fit very well with this

strong cultural trait. Even in Hong Kong, conglomerates still make

decisions with an octogenarian family patriarch as Chairman and a

freshly installed forty-something MBA as CEO.

Not all Asian companies view maximizing shareholder value as the

core reason for their existence. Not all Asian financial models are based

on economics alone. Islamic finance derives its business model from

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religious principles: the Koran’s prohibition of earning interest from

loans. Asians identify more with the group and the family than with

the more individualistic behaviour we expect and cultivate in the West.

What other differences are there?

Confucianism is still deeply rooted in China, Hong Kong, Singapore,

Taiwan and South Korea. Confucianism teaches that respect for one’s

elders, the educated and those in authority forms the basis of society –

hence a tendency towards authoritarianism.

Buddhism, which had its roots in India, is based on a belief in

reincarnation that is the result of karma in a previous life and on the

accumulation of good deeds in order to achieve a better next life. Taoism

(and its variants throughout Asia) focuses on achieving a life of purity

and simplicity, providing a comfort for ordinary people in turbulent

times.

Finally, feudalism has long dominated Asian culture. For many centuries

rich and privileged tyrants, warlords and government officers spread a

culture of fear among ordinary people throughout Asia. Even now,

exaggerated respect and deference towards figures of authority and

a reluctance to speak out are hallmarks of many Asian companies.

To sum up, more emphasis is placed on the importance of family and

relationships in Asia, on collective ‘harmony’ and authoritarian decision-

making, rather than on individualism and the more frank and open

discussion that marks Western decision-making.

If you want to know more about the Business Culture and Business

Environment of your target Asia market in China or Japan and Korea or

any of the 10 member countries of ASEAN, I have a limited number of

slots available each month for a Free 30-minute ‘How to Win Over

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Asia Clients’ Consultation via Skype or phone.

Simply apply here and fill in a few simple

questions: http://www.davidcliveprice.com/

strategy.

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Lead Strategy Two: You must get a firm grasp of

the differences in MINDSET

First of all let’s look at WHY it’s so important to get a handle on Asia

business etiquette. For some of you it may seem obvious, but here are the

main benefits of doing so:

Almost all Western businessmen that are successful in Asia have learned

to see the culture of the country in which they operate from another

viewpoint to their own culture. Through willingness, education and

lateral thinking, they are able to STAND OUT in their industry and reap

GREATER REWARDS.

Countless surveys have concluded that the way you present yourself

accounts for almost 80 per cent of business success. Business is often

based on first and on-going impressions, body language, common

courtesies and attention to small details. How much truer is this in an

Asian context, where fitting in and collective ‘harmony’ are at a

premium, as well as building long-lasting relationships and saving face

(avoiding embarrassment) at all costs.

Asian countries are considered to be ‘high context’ cultures. In a high

context culture many things are left unsaid, letting the culture do the

explaining.

So let me help you with a few basic guidelines to what is being

left unsaid and what you ought to know to interpret and

respond to this ‘silent language’.

Asians believe they must know and trust someone before they are willing

to enter into a business agreement or make a business decision.

Depending on the particular economy and how deeply Western models

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influence it, communication is largely indirect and reliant on tone of

voice, gestures, behaviour at formal occasions and respect systems. A

straightforward ‘yes’ or ‘no’ is not usually offered to a direct question,

especially in a country like Japan. On the other hand, Asians are often

persistent, if passive negotiators.

By contrast, Westerners largely come from ‘low context’ cultures. They

communicate directly, get to the point and move on quickly in business

so as not to ‘waste time’, even if they don’t know someone well. Action

and getting down to business are viewed as priorities, which often means

that ‘high context’ Asians view their Western counterparts as impatient,

insincere or casual. Or all three together!

Of course there is nothing wrong with getting to the point in business

negotiations. However, in Asia it is generally considered more

appropriate to take these negotiations step-by-step, drawing in and

referring to each person or department responsible for each aspect of the

deal. When all parties are fully convinced that their concerns are

covered, the trust is built that ensures a long-term relationship. The

long-term relationship is what counts to Asians.

For those who are unwilling or unable to spend sufficient time in Asia to

achieve this, a parachute in-and-out visit will not be of much assistance.

Your company’s local representative must maintain ongoing contact with

your proposed partner. Trust must be developed to the extent that your

Asian partner or client is assured of the TOTAL VALUE of the deal in the

LONG TERM.

For Asian businessmen, this is far preferable to short-term business

deals that always have to begin again from scratch when the next step is

negotiated.

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Lead Strategy 3: You must understand the

differences in ETIQUETTE

You might think that etiquette is quite a boring subject, but in fact it’s

closely related to mindset in Asia and it’s essential to learn the basic

rules that apply to your market.

In order to avoid the Western ‘economics-trumps-relationships’

approach and some very costly blunders, here are some of the more

obvious business etiquette tips that are generally applicable to all

countries across Asia.

Business attire: Play safe and be conservative with suits, ties and tie-

up shoes for men, and unrevealing semi-formal suits and dresses for

women. Business meetings, lunches or dinners tend to be rather formal,

at least at the outset, with handshakes, exchange of business cards,

discreet inspections and elaborate courtesies about who is paying

(usually the host).

In very warm climates, a smart shirt and tie and slacks or even an open-

necked shirt may be permissible, but check what business people are

wearing before you make your choice. A suit may be still be preferred in

tropical, heavily air-conditioned Hong Kong or during summer in Japan

and Korea, depending on the industry and sector. The most relaxed garb

is found in Vietnam, Malaysia and the Philippines, but even in these

countries avoid anything flashy or ultra-fashionable.

Punctuality: It is a sign of respect all over Asia to be on time for

appointments. This is particularly true in Japan, but even in less

clockwork societies like China and Hong Kong, being late is considered

rude. If the traffic is bad, as it is bound to be in countries like Thailand,

the Philippines and even South Korea, don’t over-schedule and always

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call ahead if late. This saves your face (it is your hosts’ country and their

traffic problems) and also that of your local partner.

Correct manner of address: When addressing someone, always err

on the conservative side. Don’t assume that you can use the informal

first name as Westerners often do. Go with the more formal title of Mr.

or Mrs. or even Dr. if appropriate (Asians tend to be very respectful

about education and qualifications). Also, remember that married

women always retain their maiden name. The overall rule is simple:

don’t shorten anyone’s name or create a nickname for them.

Handshake or bow? At initial meetings with your Asian counterparts,

don’t be put off by formal bows, or clasping of the hands to the forehead,

or other gestures of respect.

Both the Japanese and the Koreans have been called ‘the great

ceremonious people of the East’, and bowing between business

colleagues (and almost anyone of equal or higher standing) is an

accepted custom. But unless you have been coached, or have been living

in Asia a long while, it is better to go for the handshake. If you feel

confident, a slight bow of the head can accompany the handshake.

Presenting your business card: This is a subject that creates a

minefield of misunderstandings, although there is no reason why this

should be so. Presenting your credentials is an obvious way of initiating

business contact in both East and West. Business people all over the

world use a variety of printed, online and social media to initiate contact.

The only major difference is that Westerners tend to be more relaxed

about introducing themselves, or at least less formal, and do not use

business cards much. Even when they do, the cards are often handed out

in a cocktail party way with one hand on a glass of something and the

other flicking the card into a convenient side pocket.

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Asia is very different in this regard. It is generally considered that a

business card represents a person’s identity. The card is literally the face

of you and your business: who you are and what position you hold. Just

as we wouldn't mistreat a face by scribbling on it, or by offering it with a

flick of the hand, the Asian business card demands respect.

There is a rite that follows on a first meeting, just after the handshake

and initial exchange of names. That is the exchange of business cards.

And just as in any rite, there are simple but deeply ingrained

rules to observe.

First, make sure that the business card has all your details and is printed

in English on one side and the local language on the other. Business

cards have much greater cultural significance in Asia than in Western

culture.

They provide information about the group to which you belong, where

you stand in the respect hierarchy rather and how much respect should

be shown to you. Not presenting card at a business meeting is

tantamount to not shaking hands a Western business meeting. It causes

irreparable damage.

Second, always stand up to exchange cards. The cards themselves should

be meticulously clean and if possible produced from a presentable

cardholder. Bent or smudged or worn-out cards will not do. Present

your card with both thumbs holding the card in front of you, NOT in one

hand as if your are about to play poker. The local language should be on

the upper side of the card.

Many Asian clients hand out their business cards as if there were no

tomorrow. Take an ample supply of cards with you to every meeting. You

will use many more of them than in your home country.

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How to be wined and dined: The Asian approach to hospitality is not

necessarily direct and ‘let’s get down to business’, especially when

meeting socially – for example, for dinner. Most Asians expect

socializing to be indirect and based on getting to know the Western

counterpart in order to build a RELATIONSHIP of trust, credibility and

sympathy.

Asian cultures are very family-oriented. Discussion about family and

social background, home and hobbies, initially take precedence over

direct business negotiations. Even at a formal lunch or dinner (a banquet

of at least eight courses in Hong Kong and China), business is not usually

expected to be the primary topic. Asia business partners want to

get to know you, not your bottom line.

They want to know if there is likely to be longevity in the relationship, if

they can get on with you, if you have the ability to work in harmony with

their culture.

In China and Hong Kong, entertaining usually takes place at well-known

bar or restaurant. Similarly, in Japan your host will take you out to wine

and dine for a whole evening (sometimes with karaoke, be prepared!).

Koreans like to entertain both in restaurants and at home (again, there

may be a karaoke element).

If you’re going to a private home, arrive on time and bring a small but

delicate gift. The suitability of these gifts varies with the country and

local beliefs and traditions. Get yourself informed by a local person about

the kind of gifts that are suitable. Many of them are listed in my book

The Master Key to Asia, which has separate chapters on the business

cultures of individual Asian countries.

If you want to know more about Business Etiquette and the Business

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Environment of your target Asia market in China or Japan and Korea or

any of the 10 member countries of ASEAN, I have a limited number of

slots available each month for a Free 30-minute ‘How to Win over

Asia Clients’ Consultation. But act quickly because they are very

popular.

Simply apply here and fill in a few simple

questions: http://www.davidcliveprice.com/

strategy.

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Lead Strategy Four: You must be able to

COMMUNICATE your business in ways that make

you stand out from the crowd.

This fourth strategy is about creating communications and tailoring

them for Asian audiences in ways that make you stand out from the

competition.

Imagine how good it feels to know that your message is hitting home at

the front and the back of the room, with the media and with potential

investors because you have taken the trouble to research your audience,

know the business CULTURE and ETIQUETTE, and can speak their

LANGUAGE.

I don’t mean Chinese or Thai or Korean. I don't even mean English. I

mean the language of shared assumptions, local references and

beliefs that constitute the culture of the Asian country where you want

to make an impact.

I can tell you it’s an amazing feeling when it works. The problem is to

know when it’s working, because it’s not always obvious. Audiences in

general are polite. Asian audiences are even more polite. But there are

certain rules you can apply. They won’t ensure that you get on the same

wavelength as your audience. But they will get you to the first base of

building empathy, of getting the audience on your side, which is the

essential element of GETTING YOUR MESSAGE ACROSS in Asia.

This report is not about crafting the message itself. I handle the creation

of speeches and presentations in more detail in my book The Master

Key to Asia. It is about understanding the cultural context.

One of the leadership skills that is most difficult for Western business

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people to master in Asia is the art of intercultural communication (click

on the link for my Video!). You have to try everything in Asian cultures to

understand the markets, build long-term relationships, target your

brands and gain competitive intelligence. It's a bit like going to the

Chinese opera for the first time, or trying Snake Soup (See Video). You

need the courage to say yes to new experiences and ways of thinking.

These skills might not be familiar to Western business people. They are

used to selling products and services through tightly focused

presentations or in direct negotiations that have clear goals and

outcomes.

Communication is based largely on the lingua franca of English. The

message in English is usually expressed in bullet points, Powerpoint

slides, videos and factual material provided by sales and marketing,

finance or other relevant departments.

In larger companies, a Western CEO or Chairman may give the

occasional speech in English at prestigious local seminars, openings and

launches, as well as at international conferences in order to maintain and

develop the company’s reputation and brand. The language will be the

‘international language’ of business.

However, in Asia the cultural context of the speech or presentation is as

important as the language of business. An awareness of cultural

background contributes significantly to successful communications.

Even though the business lingua franca of Asia is English, even though

much of the internet and cross-cultural e-mail communication is based

on English, a one-size-fits-all English presentation for Asia is unlikely to

succeed.

Every presentation must be coloured by local references, by

knowledge of national or religious customs, and by sensitivity.

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Lead Strategy Five: You must GLOCALIZE

yourself, your brand and your company

In many ways it doesn't matter so much what Westerners know about

local culture. It is important that they show they know something. For

that something will give them an entrée to the business circles they are

attempting to penetrate.

In an era of 24/7 global communications, of texting and social media, it

would be easy to assume that the English language united the people of

the world and that is all that a Western business executive needs. After

all, we are living in a globalized world.

However, in almost every Asian country outside Australia and New

Zealand, the opposite is true: English is the second language, a language

used in business only when interfacing with foreigners. The national

language and a host of accompanying dialects are the predominant

means of communication. This means that you have to make every effort

to assimilate, and to tailor your profile, operations, products and your

brand to local Asia markets.

Don’t’ forget that your competitors in Asia are no longer global

multinationals. They are local and regional Asian players that have

strong local knowledge and competitive intelligence on each and every

Asian market in which they have possibly operated for years.

I’ve found it remarkable when travelling in Asian countries how readily

smiles appear and doors open when a Westerner speaks a phrase in Thai

or Korean, Chinese or Japanese. Often it is enough to know the words for

‘good morning’ and ‘good evening’ or ‘how are you/fine thank you’ in the

local language for an extra level of respect and warmth to be added to the

relationship.

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If this is true while travelling, imagine how much more valuable those

few words are in the context of a business dinner, a home invitation or

when added to speeches, presentations and internal communications.

Unless you are a polymath, it is not necessary to learn Thai or Japanese

or Chinese in any depth. I’m not suggesting you pepper your

conversation or communications with lots of difficult-to-pronounce

phrases in an attempt to seem local.

Many Asian languages are a minefield of tones and cadences that can

come across as funny or even insulting if pronounced wrongly. Your

representative or members of your team can communicate for you when

fluency is required. But an occasional phrase (perhaps just two words) or

knowledge of a local expression dropped into a text can generate that

essential rapport between audience and speaker that make a sales

presentation or a keynote speech equally memorable.

I hope you’ve gained inspiration and valuable knowledge from the ideas

and strategies I’ve shared with you in this International Business

Passport Report and that you’re beginning to feel ready to handle the

challenges of culture, etiquette and communication that doing business

in Asia uniquely presents.

With China poised to become the world’s leading economy in

the coming years, and the rest of Asia generating consistent

and dynamic growth, now is the time to enter these markets or

to develop your presence with confidence based on a firm

grasp of the context in which business takes place.

If you’ve found this report valuable you’ll find much more information in

my bestselling books The Master Key to Asia and The Master Key

to China, where I provide details on exactly how to use cultural

intelligence for competitive advantage in INDIVIDUAL Asian countries

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so that you can become a confident and successful player with rapidly

growing sales and profits.

If you want to know more about Business Etiquette and the Business

Environment of your target Asia market in China or Japan and Korea or

any of the 10 member countries of ASEAN, I have a limited number of

slots available each month for a Free 30-minute ‘How to Win Over

Asian Clients’ Consultation. But act quickly because they are very

popular.

Simply apply here and fill in a few simple

questions: http://www.davidcliveprice.com/

strategy.

In these no-strings-attached sessions I’ll help you create a business plan

to:

• Get to know what works for you and what potential you have

• Make your brand & product a success in Asia

• Gain confidence, respect and avoid blunders

• Build a firm reputation and support network

• Achieve leadership and company transformation

• Expand into other Asian markets

******

Thanks for following me this far and don’t’ hesitate to contact me if you

have questions about your Asian business at

info@davidcliveprice.com.

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David Clive Price, Author of The Master Key Series to

Asia and Founder of the International Business

Passport Coaching Programmes