Selling in Asia ? Ten key things to remember.

Asia is complex. Selling in Asia can be even more complex. Most western organizations struggle with Asia because they slot Asia as just another region, like the Americas, or Europe or the Middle East. The fact is, Asia’s diversity makes it a cluster of distinct regions within it, each strikingly different from the other. Then, even within each of these regions, each country has its own heterogeneity. So China is actually several sub-Chinas within it, and India is 29 sub-Indias inside. Then of course you have Japan. And Australia. Or the countries in Southeast Asia. So when an organization deploys a uniform ‘Asia strategy’, it invariably sets itself for failure in many of the mini-Asias inside Asia.

As someone who has, over the past two decades, successfully sold?welding machines, light bulbs, luminaires, switchgear, electronic products, life insurance, unit linked investments, heavy duty gas turbines, super and sub critical steam turbines, industrial products like AQCS and WTE boilers, power system automation, electrical balance of plant & substation products, geothermal projects, services for diesel locomotives and services for onshore wind turbines, among other things, in almost every corner of Asia, and despite having collected my share of trophies for my mantelpiece, I sheepishly admit that I am far from certifying myself as an expert on Asia yet. Each new deal brings in new lessons. Every customer enriches me in some way. And every sale I lose, leaves me a little wiser.

Having said that, I have, over the years, developed my personal toolkit for Asian markets – some mandatory common denominators while selling in Asia . Turning a blind eye to any of these can prove disastrous. Of course this is not an exhaustive list. But it is a good place to start if you do not understand Asia and would like to enter & win here. Let’s get into it.

1. Step back on the prejudice – Most western organizations try to do too much homework & have a theoretical view on Asia . Their lawyers ( who might not have ever set foot on Asia) keep pushing the panic button. Here’s the thing – Step in and form your own opinions. Most Asian customers are conservative & honest by default, contrary to what you might have possibly heard. Also, unlike western organizations, Asian clients try & steer clear of legal tangles. So hold back the red lining of contract drafts. Too much of red-lining is considered disrespectful in Asia. Come in with an open mind. It gets better as it goes.
2. Have perspective – Each Asian customer of yours has a different way of dealing with their customers. So while an Indian customer might be defensive on payment terms ( because in a fast growing economy like India, most projects are aggressively paced and could run into cash deficits) , the Chinese or Korean customers might have clauses in their contracts which are passed forward from their own sales contracts. Chinese or Korean customers generally agree to a lot of terms in their sales contracts as a token of respect they show to their clients. Sometimes they might have to also compensate for bad clauses their own sales guys have brought in. So don’t cry wolf on Day 1 when you see something unreasonable. Stay calm and find a middle ground. Politely. You will mostly get your way.
3. Set appropriate levels of hierarchy – Asians love hierarchy. Don’t over-step or try to bulldoze when you see an unassuming leader from the customer team. Most Asian leaders are seasoned professionals who rise by putting in the years & without fast tracking through ranks. They know their stuff. Just because?he smiles at your boisterous behavior, it doesn’t mean he approves of it. A Players’ Map is essential when you deal with a large Asian client. You need to align your team with theirs, in appropriate levels of seniority – whether in the negotiation room, or at the dinner table. I have seen entire deals blow up because an organization sent a junior team ( although a very competent one ) to close an important contract.
4. Punctuality & courtesies – For any customer meeting, arrive before time if you can. The ‘traffic’ excuse doesn’t fly. Even a 5 minute delay can wreck your equation with a client on Day 1. Also, the meetings with Asian clients normally run late ( language barriers, 2-way translations & so on). Never exhibit impatience or ask to call it a day till the client says so. On courtesies, I cannot say enough. Right from when you pick your coffee during the meeting ( after the client) to how you clink your wine glass with her ( your rim should be below hers), to a number of nuances that you need to know from your local team in advance. And yes, please do not assume that since you don’t need to do that in Spain, you do not need to do that in Seoul. Seoul is Seoul, not Madrid. Importantly , do not show up in a pair or jeans and a T-shirt. Your formal way of dressing communicates your respect for your client and your seriousness towards the relationship. Lastly, even during downtime, stay away from light banter, especially around race or religion or politics.
5. Tone – Since most communication will be in English language in which you might be more fluent than your client?( unless you are in Australia or in India), you need to be very sensitive about your tone. Speak slow and keep your tone low & respectful. Allow the client to catch up with the conversation ( she might need to do two rounds of translation in her head). Even when you disagree, do not raise your voice. Most importantly, Asian clients often nod politely during conversations, even when they might not have agreed ( or understood). Not getting on the same page can prove disastrous later. The best strategy is to summarize the day’s discussion on an email & sending it across, allowing the thrashing out of contradictions, if any.
6. Negotiation nuances – Chances are, when negotiating,?you might have a number of objectives from the meeting. Start narrowing your list as you go along. Eliminate the small stuff early on & compress your list to the key 3-4 points at the soonest. Also define your ‘I-walk’ criteria early on. Asian clients are sensitive about time, their own & yours. You will always create a good impression if you get down to business once your ice-breaking is done. Yes, never talk price till you iron out other considerations. Most Asian clients would expect a small token discount ( monetary or otherwise)?at the end. That’s a sign of respect. If you give away your final price early on, you might bleed later.
7. Camaraderie – Once your relationship pyramid is established, work constantly on the relationship with your equivalent. Use smoke breaks ( many of your Asian clients would be smokers) or coffee break time as an opportunity to know him beyond the business card. Constantly build & improve the rapport. Flatter him ( without making it too obvious ) in front of his juniors. Ask polite questions about his family ( yes, it’s okay to talk family with Asian clients). Very importantly, break patterns periodically. Offer your insights and market intelligence to him beyond the immediate transaction. The aim is to have him perceive you as a consultant he likes, not a salesman who is pushing him. More he likes you, less pain he will give you as you go along. Lastly, drink less at the dinner. It is easy to go overboard with the Baijo or Soju or Sake or the Black Label, and lose your focus. Dinner time is precious time to gather insights about your client. Don’t waste it getting drunk.
8. Walk away, but only once – Asian transactions can sometimes get very tough as most clients are hard nuts. When it comes to your own non-negotiable points, you are allowed to walk away once. But mind it, it can be only once. And only after you have exhausted all you could offer. If timed well, most Asian clients will understand your stance, respect it & call you back to sign the order. Oh yes, after you sign an order, SHUT UP ! Most Asian clients suffer from varying degrees of buyers’ remorse after signing a deal, thinking they could have got something better . If you fall prey to twaddle tendency out of joy, you will make them suspicious. So stay put. Shake hands. Get your copy of the contract. And leave.
9. Don’t disappear – First, send a thank you note. And after handing the order over to your execution team, don’t wash your hands off. An Asian client only remembers the person who signed the contract . For her, the rest of your organization is just irrelevant background. Any gaps in execution will mean a negative mark for you. And it is very tough, virtually impossible, to get rid of a negative mark in Asian markets. Word spreads. Even within clients who might be competitors of each other. Once you earn a bad name, you are history.
10. ?Stay in touch – Asians are relationship driven people. They always think beyond the immediate transaction. Like you, your clients too will grow in their careers and in life. Like you, they too will change organizations and move on. So while your individual business cards might be fluid, your relationship needs to sustain & strengthen over time. Many of your clients will go forward and become your best friends later who can be invaluable advisors and references for you. Keep nurturing the relationships. Like an ex-boss of mine had once told me – “AB, the day your clients trust you enough so as to discuss a family wedding budget with you, you know that you have cracked Asia”.

Happy selling. Asia is incredible.

======================================

(My Sunday post, 03/05/20)

If you liked this article & would like to read more articles like this, you may check out my books, 'As You Life It' & 'Life-ing it', available on Amazon in your country.