You might have been hearing for some time about the business opportunities in growing Asia-Pacific markets. And with the signing of the CPTPP, bringing together one of the largest trade blocs in the world and representing over 500 million people, lowered barriers to entry in these regions are certainly enticing to businesses looking for new global markets.

In fact, Asian regions (China, Japan and South Korea) already make up three out of the top six export destinations for Canadian goods. So how can you take advantage of these opportunities?

Here are five valuable tips from those who have been there, done that, and have found success entering Asian markets.

1. Invest in the best sales leadership and develop the rest

With more than two decades of experience in the ASEAN region, marketing and business development consultant Peter Gray urges businesses to consider investing in quality talent.

The Asia-Pacific region is intensely competitive. The market contains many multinationals as well as intra-regional rivals, all competing at varying levels of quality and price-points. Moreover, customer buying behaviors and value perceptions differ significantly throughout the region.

Sales is the front-line face of your company and vitally important to gaining distribution and customer trust and confidence.

In this context, an elite salesforce needs to become your competitive advantage. Developing one starts with investing in regionally experienced and commercially competent leadership capable of recruiting, coaching and developing the skills and effectiveness of your direct and distribution salespeople. Furthermore, to truly differentiate and rise above your competitors, you must establish a structured, effective, start-to-finish selling process based on set milestones with supporting CRM and sales enablement technology.

Whatever methodology, process and CRM platform you choose, developing your salespeople is essential. Companies selling in the ASEAN region should avoid a few common misconceptions of recruiting salespeople:

• Recruiting product experts as salespeople does not generate product enthusiasm or win customers. It’s better to hire, train, coach and develop talented salespeople.
• Poaching salespeople from competitors will not convert customers, as top customers are loyal to brands and local distributors. You may convert a few small scale customers but you need to focus on the biggest and best selling opportunities and these prospects need a compelling reason and material gain to change.
• Recruiting sales managers and designating them as sales directors does not give you access to more high-quality customers, or improve a manager’s selling skills. It’s better to train your salespeople and promote them once their skills meet the level required by the position.

2. Never be afraid to keep your options open in negotiations

Global business advisor and author Siddha Param has led clients to success in Asian regions. He uses the following case to illustrate the different factors a North American cereal company identified when negotiating with two Asian businesses in two different countries.

A prospective supermarket chain was willing to purchase cereal products from the cereal company at the agreed price. An issue arose, however, when the supermarket chain asked for credit terms of payment in 90 days instead of 60 days as stated in the cereal company’s “Standard Terms of Contract”.

The supermarket chain had a reputation of making prompt payment on terms it agrees to. Furthermore, they had the ability to purchase an estimated 65% of the cereal company’s production capacity for the Asian market, so they felt their position gave them the necessary leverage to make this request.

The cereal company then had to weigh its negotiating options. Even though the supermarket chain insisted on a 90 day credit period, the local political, economic and social conditions would enable the supermarket chain to get a bank guarantee for payments.

An option for the cereal company was to sell at a higher price to accommodate for the expected delay in payment or to bare the loss from delay in payment as a result of agreeing to extend the payment period to 90 days.

Their alternative was to sell to a distributor in a neighbouring country that agreed to the price and 60 days payment term. However, there were greater political, economic and social uncertainties in this neighbouring country, which resulted in market and currency fluctuations.

Additionally, the distributor was not able to provide a bank guarantee for payments, but the owner of the distributor had a reputation with other North American companies of being true to his word with payments made as agreed.

By simultaneously negotiating with the supermarket chain and the distributor, the cereal company was able to assess the walk-away position with both parties. Having an alternative enabled the negotiator to achieve the best terms possible in negotiations with both parties.

3. Analyzing, understanding and targeting addressable market segments and customer categories is crucial to product and price positioning

Peter Gray also stresses the importance of identifying and targeting the right consumers based on their buying habits and values.

Most ASEAN markets have three-tier customer categories:

• Premium buyers – Discerning buyers who accept only top-tier brands, offering the highest quality in products with the most features, along with priority services. They are willing to pay the highest level price premium, for example Emirates Airlines first class travel.
• Value-added buyers – Buyers who expect high quality products and services that meet specific needs. They normally accept products with less features and are willing to pay a price premium based on relevant perceived value, for example business class or economy-plus air travel.
• Price buyers – Buyers who seek products that are of adequate quality at the best possible price, and have less concern about quality, service levels and consistency, for example economy-class or budget airlines no frills trav

The best growth and profit opportunity may be to offer existing products or customize and differentiate products or services in the value-added buyer category. Customers in the price-buyer category are burrowing up because of globalization and better choices being made available. Conversely, customers in the premium-buyer category are beginning to seek alternatives that still meet overall needs but offer less features at a lower price-point.

Companies entering ASEAN markets must align features that matter with customers that matter.

With respect to price positioning, is it about profit percentage or contributing profit dollars? This is a subjective question and depends on the exporting company’s business culture, growth objectives and longer-term ambitions. As an example, is 50% profit on a $2M business more appealing than 41% profit on a $5M business?

It’s about immediately being competitive and quickly gaining market-share while maximizing profitability for both company and channel partners.

4. Research and prepare a tailored approach for each meeting

Sharon Schweitzer has 20+ years of experience training executives at fortune 50 companies to succeed in international markets through an understanding of culture and business practices. She stresses the necessity of customizing your approach not only to each region, but each individual situation to nail those meetings.

Custom-tailor your approach just like a Hong Kong tailor does for a silk suit or dress.

They understand how to fit their clothing for a particular person, and you need to do the same for each unique situation.

Avoid imposing personal customs, habits, and business etiquette from your passport country into international business meetings and deals. By doing a little research and preparation, you’ll fit in more easily and find your business dealings go more smoothly.

Consider these 3 tips to prepare for business meetings abroad:

1. Rethink time

Plan to arrive early and stay late. Understand that ‘time-conscious’ Western economies think of time as a limited and cost-related commodity. Western businesses also tend to be more short-term focused than those in the East, for whom quarterly earnings are less a measure of success. Remember, these are cultures whose history is measured in millennia rather than centuries! Allow plenty of time for discussion, dinner and drinks.

2. Formality shows self-control and self-respect

Body language is as important as the words you speak in Asia – sometimes more so. Remain calm and formal to demonstrate self-control and that you’re worthy of their respect. It is considered improper etiquette to place hands or fingers on yours or anyone else’s head, face or mouth.

3. Have patience

Constant distractions in many Asian workplaces, including cell phones ringing frequently and animated conversations elsewhere in the building, may cause you to feel distracted. Remember that other cultures have different ways of working. In Asia, businesspeople are very comfortable with constant interruptions and dispensing with agendas in service of important relationships.

5. Build your presence in the market

Anna Biolik, a leading global business advisor and former ambassador, has over three decades of international trade policy, diplomacy and intercultural effectiveness. She stresses the importance in taking the time to build relationships and establish an on the ground presence in order to succeed in Asian markets.

To successfully capture the opportunities in Asia, Canadian SMEs need to create foundations for deeper and broader relationships with a given market.

Physical presence and personal contact are viewed as real assets in Asia. Setting up a local office in Asia is the most effective way to conduct business transactions, whether with customers, suppliers or partners. This is also the best way to deal with governmental authorities.

Establishing a long-term presence and making the necessary investments help SMEs prepare for tough times and avoid being left behind. This type of presence is a key factor in dealing with the market volatilities. It is a well-known fact that when China’s economy overheated in the mid-to late 1990s, some of the Western companies started to pull back and only a few anticipated the staying power that was needed to weather the market storms.

China and other Asian markets will no doubt witness new periods of turbulence in the future, as their economies continue to grow. A long-term presence is also a key factor in developing the necessary level of connectivity with Asian markets. There is presently a tendency to rely too much on technology to fulfill the need for communications. However, Asian cultures, diverse as they are, have a particular preference for personal contact to establish trust and good reputation.

Nautel, a Nova-Scotia-based manufacturer of radio broadcast transmitters, became international thanks to its innovative business model using an extensive network of sales partners around the globe. These sales agents, partners or independent contractors – according to Kevin Rodgers, the company’s President and CEO, “are the people on the ground who can interact directly with clients.”

Nautel has been relying on their sales partners’ knowledge of local language, customs and regulations, and proactively leveraging their strengths, connections and knowledge, in order to expand its business beyond Canada’s borders.

Entry into Asia’s national or regional markets requires adequate resources on-the-ground to facilitate the company’s transaction-based commerce and selling via multinational value chains. A lack of in-person presence, investment in local human capital, and long-term commitment to the market, may not be simply sustainable in the Asian context.

The post Top 5 Asia market entry tips straight from the experts appeared first on Trade Ready.

Knowledge of cultural orientations and societal systems helps in understanding cultural differences and provides a solid foundation for researching the culture of a new target market. Research is essential to avoid cultural faux pas.

For example, an organization sending representatives to Japan to meet with a potential trade partner would be wise to research where Japanese culture falls on the various orientation scales, as well as its most valued social and business practices.

The research would reveal that gifts are an important aspect of Japanese protocol. To the Japanese, gift giving shows respect, friendship and appreciation and is a centuries-old ritual with a host of associated protocol. This information will help an international trade practitioner make a good impression when meeting a potential Japanese partner.

When seeking knowledge about a target culture include the following recommended research questions:

• What are the social norms and business protocols?
• What are the definite dos and don’ts?
• What are the key differences between this culture and ours?
• What are the key similarities?
• What stereotypes does this culture have about our culture?
• What stereotypes do we have about their culture?
• What events and trends are currently impacting the target culture?
• What is our shared history?

Know the do’s and don’ts of social norms and business protocols

Social norms and business protocols reflect the way people expect others to behave in particular situations. They are largely based on values and are reflected in cultural orientations and societal systems. Before interacting with an unfamiliar target culture, international trade practitioners can benefit from learning the generally expected behaviours in social and business situations.

Social practices are crucial to know, as many business decisions are made outside of meeting rooms. In addition, cultural differences can be more pronounced in social settings. As an example, the best Indian meals take days to prepare. To decline to eat dishes prepared for guests in such situations would be viewed as disrespectful and could erode any chance of a business relationship.

Some of the norms and protocols listed below are very important to a culture and should be noted as definite dos and don’ts. International trade practitioners should seek information about which behaviours are considered offensive by the target culture and add these to their “don’t” list as behaviours to avoid. They should also seek information about what is considered highly desirable and add these to their “do” list if the expectation also applies to foreigners.

Even when they do not adapt the behaviours themselves, knowledge of important norms provides insight into the other culture’s values, perceptions and behaviours.

For example, if international trade practitioners are hosting business associates from a culture where greetings are formal, the visitors should not be expected to adapt a more informal and personal form of greeting, such as kissing one another on the cheek or hugging.

Social norms: 

• Dress and appearance
• Greetings and goodbyes
• Gender roles
• Food and drink consumption habit
• Nonverbal communication e.g. gestures, personal space, facial expressions, touching
• Holidays
• Humour
• Acceptance of technology
• Freedom of speech and other liberties
• Religious practices

Business protocols

• Language used
• Exchange of business cards
• Greetings and goodbyes
• Introductions
• Appropriate time for and amount of socializing
• Dress and appearance
• Gender roles
• Gift giving
• Meeting protocols e.g. seating arrangements, turn-taking, presentation
• Ethical standards and degree of corruption

Stay on top of recent changes that impact cultures

Culture is changed by events and trends. The amount and speed of cultural change depends on how willing people are to accept it. Many people in the U.S. were motivated by fear to quickly accept an increased level of surveillance following 9/11. The types of events that can impact culture are numerous. Some examples include threats to public safety and property, changes in the type of government and environmental disasters.

There are also numerous trends that impact culture. Examples of these include societal changes in demographics, technology, dominant industries, standard of living, government policy, access to education, and the natural environment. As a result, international trade practitioners research the impact of events and trends in target markets.

For example, a distributor of communication products would investigate technology usage rates and the demographics of users. Such information helps determine if a potential market is viable and how to position marketing efforts. Once in a market, international trade practitioners monitor current events and trends to stay up to date on cultural changes.

Knowing the history can open doors as well

Before entering a new market, it is advisable to research its history, including history that the two countries have shared, particularly when that shared history has had a profound impact on one or both jurisdictions. The nature of the connections influences how a country’s image is perpetuated and how easily the doors of commerce will open for international trade practitioners.

As an example of how shared positive experiences can provide common ground for relationship building, consider the Netherlands and Canada. They share a military history, with Her Royal Highness Princess Juliana of the Netherlands and her family having lived in Ottawa during the occupation, and Canadian forces spearheading the liberation of the Netherlands at the end of the Second World War.

Canada and the Netherlands have also worked side by side in multilateral efforts around the world in support of peace and democracy. In addition, over a million Dutch people have immigrated to Canada, resulting in many business people with a relative in Canada—a great icebreaker for a first meeting. This shared history has contributed to positive trade relations between the Netherlands and Canada.

In 2011, Dutch Foreign Direct Investment (FDI) in Canada totalled CAD 56 billion, making the Netherlands Canada’s second largest source of FDI. The two-way merchandise trade was valued at CAD 8.1 billion in 2012.

The post Avoid awkward cultural faux pas by doing the proper research appeared first on Trade Ready.

• Customer
• Consistency
• Creativity
• Culture
• Communication
• Change
• Channel

1. Customer

A company’s marketing strategy must be focused on its customers. The marketer must understand the customer as a person, not just a target market.

Once companies understand the target customer, they can adapt their product or service and even their brand to appeal to the target customer. Adapting to suit the target customer must be a continuous process if companies hope to succeed.

2. Consistency

At one time or another we have all seen mixed advertising messages coming from the same company.

Mixed messages often result in confusion. A confused customer is not a confident customer. A customer who is not confident in a product or service will look elsewhere. Marketing communication messages must be consistent, so the target customer gets the value proposition that the company is offering.

3. Creativity

Advertising is everywhere. Marketers have to find creative ways to get their target customer’s attention. Marketers have to dream up new and innovative ways to inform, educate and persuade target customers.

Want to learn more about how to Increase your reach, decrease costs and enhance the customer experience by developing an easy-to-use e-commerce operation? Check out the FITTskills International Sales & Marketing online course.

4. Culture

In order to reach a global audience, marketing messages must have a broad cultural appeal. Alternatively, specific marketing messages can be delivered to specific cultures. Companies cannot assume that everyone behaves and responds as their culture does. Such an assumption can harm companies.

5. Communication

No one likes “in your face” marketing messages. Nor do people appreciate being “marketed to.” Most people prefer to be “communicated with.”

The right communication message informs, educates and persuades the target customer in a way that they understand—it gains the target customer’s trust.

6. Change

Marketers need to continually adjust their marketing strategy to accommodate the changing target customer, societal changes and especially technological changes. Trying something different is likely what it will take to get the attention of the target customers. Even the company itself may change. Marketing communication messages must reflect all of these potential areas of change if they are to be effective.

7. Channel

The transformational impact of the Internet on many modes of human interaction cannot be denied. The ability of companies to access global markets through a well-crafted online presence is particularly well recognized. Relatedly, the ability of competitors to target a company’s domestic market from remote corners of the globe presents a unique challenge for managers, including marketing specialists.

Web presence has evolved far beyond the option of maintaining a static website to engaging much more directly with customers, business partners, prospects and others via social media.

Facebook has taken on a decidedly more commercial flavour over the last few years, and Twitter has proven very effective as a mode of engagement as well.

The number, variety and positioning of various social networks is huge and increasing by the day so that a comprehensive listing of such platforms is difficult to gather and would be obsolete within very short order. International marketers must consider appropriate leverage of various social networks, and they must plan for the effective use of other new emerging mechanisms.

The post The seven C’s you need to organize your marketing strategy appeared first on Trade Ready.

As a coach, I work with clients across the globe daily. We mostly meet virtually, by videoconference, phone and email. Many of my corporate clients, lead virtual teams and communicate through teleconference and videoconference as well.

Gallup reported in 2015 that 37% of American workers had telecommuted, and the percentage was increasing. According to Globalworkplaceanalytics.com:

• Fifty percent of the American workforce holds a job that is compatible with working virtually at least part of the time, and approximately 20-25% of the workforce telecommutes at some frequency.

• Fortune 1000 companies around the globe are revamping their spaces around the fact that employees are already mobile. Studies repeatedly show they are not at their desk 50-60% of the time.

Different media require different styles of communication

The tools we use to communicate influence the way we interact. For example, we tend to use short and abbreviated statements in text messages, while emails are more likely to be written in complete sentences, depending on our personal, corporate and cultural preferences.

Our cultural context also defines our communication style. Some people prefer to be more direct with their message, providing less context within a more informal writing style. Others prefer the opposite. They tend to be more indirect, with a desire for a lot of background information and a formal writing style.

Communication styles are also influenced by the organizational context. I recall my first few weeks as a junior staff member at the United Nations many years ago. I felt like an elephant in a glass house, as I was navigating and learning the diplomatic, formal and indirect communication style of my team.

Our emails were formal, starting with “Dear so and so,” followed by a long explanation and then a diplomatically worded proposal or request. Our team meetings were equally formal, as we all took turns speaking and no one interrupted the other. This was very different from the informal, almost chatty emails at my previous job.

Eventually, I did adjust and modified my communication style. Today, as I work globally and often virtually, I find I need to switch back and forth between different styles of communication several times a day.

Build better virtual connections with these useful tips

1. There’s more than one way to build trust

Successful client and colleague relationships are built upon trust. Cultures develop trust differently though, so you’ll need to adjust your strategies from one situation to another.

For example, some cultures focus more on what someone can accomplish within their area of expertise, while others prioritize the human relationship and who you are. It is therefore important to allow time and room for both perspectives as you interact virtually. You need to be aware of what your preference is and that of your client or team member.

If your client is from a culture that leans more towards the human relationship, e.g. Columbia, you’ll need to spend some time to get to know them. You could perhaps schedule a videoconference first, to create a closer connection. Talk about other matters than just the task at hand. A videoconference also allows for higher context communication, such as facial expressions and body language, which allows for a more intimate conversation even while working virtually.

If your team members are from low context and direct cultures with a task-based sense of trust, e.g. Germany, the Netherlands and Northern Europe, you can likely shorten the getting-to know-you stage and move to the task at hand sooner.

When you have a culturally diverse team to manage, you will need to use a blended approach of task and relationship-centered communication styles.

2. Proper speed and formality are key to productive emails and texting

Written communication can be quite the minefield as you work across cultures, as my own experience at the UN illustrates.

The North American style is generally informal; you address each other by first name, often with a hello, and go straight to the point rather quickly without much context.

Many Northern Europeans and the Dutch prefer to send rather formal emails, but without much “small talk” or personal information, and get to the point quickly.

Some more traditional and hierarchical cultures will prefer communication that is more formal, and places an importance on titles. For example, if you are communicating by email with a Japanese client, you need to pay attention to titles, such as san. You might also need to include a lot of detail in your message.

Make sure you research in advance how names are written and how you greet and address people. For example, in China you mention the family name first followed by the given name.

What should you do if you’re unsure? My advice is to start your interaction with a more formal communication style, like Dear…, followed by some introductory small talk before your get to the point. End with a formal sincerely or best regards, followed by your complete name. Pay attention to how your client of team member communicates with you and mirror their style.

Many millennials are used to brief text messaging in lieu of more formal emails. As they’ve entered the workforce, texting has become more common in the world of business as an easy and instant medium of communication.

Because of its brief and instant character, text messaging can easily cause cultural misunderstanding or confusion, especially if you are interacting or working virtually with someone more senior or from a more traditional culture. So use caution here, and again lean towards a more formal, explanatory style when in doubt.

Finally, how quickly you reply to a text or email message varies across cultures.

Americans tend to send brief and quick messages and expect an answer soon, within a few minutes or an hour. This is not the norm everywhere, so do not become impatient or read too much into a slower response time. One way to set expectations is to add a note to your email signature that informs the recipient of how soon you normally provide an answer.

Do you have any other tips, suggestions or stories? Let me know in the comments!

The post How should you adjust your international communication strategy when working virtually? appeared first on Trade Ready.

The way that newer generations are communicating, however, is changing worldwide. We now live in a world where the current generation’s attention span has dropped to 8 seconds and people increasingly communicate with emojis and 140-character tweets.

Within the next four years, almost 3 billion people worldwide will be on social media, simultaneously multi-tasking on up to 5 different devices. Many of them no longer have the time (or inclination) to stop and look up at the person they are interacting with.

Given these circumstances, how will these future executives interact in foreign markets, where meaningful exchanges with other cultures are still based on careful development of face-to-face personal relationships?

Technology can’t replace the “live” experience

Many will argue that seeing someone on a screen is just as effective as face-to-face interaction. They would argue that foreign executives have their own electronic identities and websites with the ability to communicate virtually around the world.  But it is also a fact that anyone who wants to succeed internationally cannot simply refer their new contacts to a Facebook or LinkedIn profile.

Any seasoned international executive knows that meaningful exchanges with other cultures will always be based on the careful development of a personal relationship.

In many international cultures, the decision to trust another person can only be done “live”, meaning developed in-person. Communicating via blogs, forums, business networks, photo-sharing platforms, chat apps, “selfies”, Twitter Feeds, etc, can be useful, but is not enough to build a trusting business relationship.

While videoconferencing, webinars and Skype are excellent methods of communication, nothing replaces a warm handshake, a respectful bow, the verbal exchange of personal confidences, or a spontaneous hug.

Cultures around the world are comparably proficient at communicating electronically, but in order to succeed in foreign markets, North American executives will have to remember the way of doing business on a one-on-one basis. To do that, they’re going to have to dig deep into their subconscious memory-banks and once again add this forgotten skill to their business quiver.

Remembering the basics of international business relationships

1. It takes two to tango.

It is not enough to hope that someone will read and reply to a text or email, or even react positively to viewing a website. To obtain (and evaluate) an answer, nothing replaces face-to-face communication composed of verbal and nonverbal messages.

Millenials and Generation Zers will have to re-learn this ability by joining and participating in networking groups such as BNI (Business Network International) –or even practicing one-on-one communication skills by talking to strangers.

An executive I know likes to strike up conversations in office tower elevators, asking people what they do and exchanging business cards (the 30 second elevator pitch). He even goes so far as complimenting someone for their choice of tie in order to find common ground.

Fifty percent of the time he succeeds, and an interesting conversation ensues, while at other times he is simply ignored. Imagine if you did this just twice a day – that’s one new business contact every day.

2. Learning about other cultures.

It is natural that those interested in other cultures will go online to learn the basics of interacting abroad and follow social media related to one’s country of interest.

However, all this secondary data is never as valuable as one’s own primary research, resulting from personally interacting with individuals from that culture. Chambers of Commerce and business clubs representing foreign countries exist in most major cities and their websites publish cultural and business events open to the public.

A businesswoman I know was planning a trip to Japan. As part of her research she visited the Japanese Consulate and chatted with the Trade Commissioner, attended a function at a local Japanese Cultural Center, and met with visiting Japanese executives who were part of an incoming delegation.

By interacting with and watching the visitors’ body language, she was able to round out the dry statistics she had read about during her research.

Naturally, these steps take time and effort. But in order to be successful in establishing international relationships, it will always be important to be able to look at foreign clients in the eye and create a personal bond.

It takes more than a well-written social media profile, offering a fist-bump or leaping to an exuberant high-five to succeed internationally.

The post High fives aren’t enough to build meaningful international business relationships appeared first on Trade Ready.

Custom-tailor your approach just like a Hong Kong tailor does for a silk suit or dress. They understand how to fit their clothing for a particular person, and you need to do the same for each unique situation.

Avoid imposing personal customs, habits, and business etiquette from your passport country into international business meetings and deals. By doing a little research and preparation, you’ll fit in more easily and find your business dealings go more smoothly.

Consider these 12 tips to prepare for business meetings abroad:

1. Time

Plan to arrive early and stay late. Understand that ‘time-conscious’ Western economies think of time as a limited and cost-related commodity. Western businesses also tend to be more short-term focused than those in the East, for whom quarterly earnings are less a measure of success.

Remember, these are cultures whose history is measured in millennia rather than centuries! Allow plenty of time for discussion, dinner and drinks.

2. Plan a power conversation

Include the higher purpose in the early discussions. Discuss the 30,000 foot view, like the industry’s current and future developments, not just the business at hand.

3. Small talk starts the meeting

Be prepared to begin with small talk about your business counterpart’s country, as well as their customs, history and current popular sports figures. Consider incorporating activities that will be popular and positive experiences for everyone, such as visits to their world heritage sites.

4. Formality shows self-control and self-respect

Body language is as important as the words you speak in Asia – sometimes more so. Remain calm and formal to demonstrate self-control and that you’re worthy of their respect. It is considered improper etiquette to place hands or fingers on yours or anyone else’s head, face or mouth.

5. Prepare a Memorandum of Understanding

Have an MOU prepared in advance so that when both parties agree to move forward, you are ready to start the process. More detailed agreements, including licensing, can be drafted later.

6. The importance of saving face

Saving face, the notion of ensuring behavior does not provoke strong negative emotions in another person or yourself, is critically important and deeply valued in society and business. Ideas should be discussed gently to avoid “throwing anyone under the bus” or anyone losing face, you included.

7. Gift exchange

Coordinate the gift exchange before departure, confirming details with your inside contact.

Small, locally made artisan crafts and gifts from your home region are typically well received. Inexpensive, pre-packaged, non-perishable food-items such as local sweets, regional peppers, maple syrup, and chocolates are also good ideas.

Consider books, bookmarks, golf balls and scarves that may not be available in the destination country. Avoid red ink in books and papers. Be sure to bring extra gifts in case you are introduced to someone you weren’t expecting to meet.

8. Time for silence

Brief your team beforehand about having specific time set aside after the meeting for silence and questions. In Asia, it is impolite to ask questions during a presentation. This is viewed as ‘interrupting’ the speaker. The same dynamic occurs during meetings.

9. Avoid product promotions

Before describing your services or products, be prepared to discuss other, general topics. Wait to be asked for your materials, rather than hand them out.

10. Patience

Constant distractions in many Asian workplaces, including cell phones ringing frequently and animated conversations elsewhere in the building, may cause you to feel distracted.

Remember that other cultures have different ways of working. In Asia, businesspeople are very comfortable with constant interruptions and dispensing with agendas in service of important relationships.

11. Humor caveat

Humor is culture-specific, so something that is funny for someone in one culture may draw blank stares or serious looks from those in another culture. Subtle meaning from North American or European humor can get lost in translation in many Asian cultures, and vice-versa.

If you do tell a joke, know that the interpreter may simply tell those present to laugh because the visitor just told a joke that they can’t understand. Which, in itself is kind of funny, right?

12. Gestures

Avoid expansive, sweeping hand movements. Research offensive country-specific gestures to make sure you don’t unintentionally insult anyone. Most Asian cultures don’t gesture with their hands or point with their index finger. Use an open palm facing upward to indicate direction.

Knowing proper international business meeting etiquette goes a long way in opening up new ventures in Asia and beyond. Creating a welcoming atmosphere that is respectful of different cultures and business practices, rather than trying to force Western ideas on others, will go a long way to inspire trust, establish rapport and build long-term relationships.

The post 12 tips for Asian business meetings from an international protocol expert appeared first on Trade Ready.

Canadian-American trade is the largest bilateral trade relationship in the world. I’ve written these tips with Canadian businesses in mind. In working with Americans, here are a few cultural tips I can give to make your interactions more effective:

Americans have a special relationship to time

In American business, there is a profound focus on completing tasks as quickly as possible. We have an expression: “Time is Money”. It’s the idea that if we save time, there is automatically a value associated with that time savings. Oftentimes that is true.

There’s even a movement which originated in Silicon Valley called “growth hacking,” or trying to speed up the process of finding new qualified sales leads. While there are sometimes time-saving shortcuts, most of us understand that success comes down to hard work and consistency.

But for other cultures, Americans can seem rushed.

This can lead to the misinterpretation that Americans often don’t understand the trust-building process that genuinely requires time to establish. It can also create an air of suspicion about why the deal needs to be signed so quickly.

My advice to Canadians and others feeling rushed is to confront their American counterpart with the value of what is being overlooked – quality, trust, risk management, etc. Discuss the costs of the relationship failing or needing to replace an implemented system. Faster is not always better.

Silence is the enemy during international negotiations

Americans in business are very uncomfortable with silence. If you stop talking mid-conversation, your American counterpart will be at a compete loss for what to do next.

In Asia, this is often used as a negotiation tactic against Americans. They know that because Americans are desperate to get conversation flowing again, they will start giving away concessions in the negotiated deal. When there’s an extended silence the American normally assumes that they have said something that has not been well received and are trying to return to a state of acceptance.

By the way, silence is a tactic that I have seen work similarly on Israelis too.

Prepare yourself for friendliness on steroids

Canadians only need to visit an American department store to see friendliness used as a business tool. A store sales clerk will likely follow you around asking if you need help. In fact, it is often asked several times in the same store. This overt “friendliness” can be unnerving to international guests to the U.S., but it is a great example of friendliness in business.

Americans are taught from a young age that confidence and friendliness are traits they should cultivate.

This American openness is often appreciated in business settings, at least initially. But it can run the risk of being seen as insincere, especially when Americans talk about “getting together” and then don’t follow through on the expectation they set.

In working with Americans, it is important to set an appointment to follow through on action discussed. And if you trying to sell to American companies, be prepared to follow up with the company’s staff several times to move a step of your selling process forward.

I hope these insights help you to effectively engage and build strong relationships with American business people. If you have a particular situation related to cross-cultural communications and need advice, please feel free to contact me at: info@The-International-Entrepreneur.com.

Best wishes in all of your international business dealings!

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Cross-cultural communication presents challenges that are not always faced in home markets. This is because of cultural filters—perceptions formed over long periods of time—that affect how the world and our environment are understood.

Particular cultural filters have been influenced by past experiences and societal influences, as well as by ethics and morals instilled by family, religion and peer groups.

These filters determine what is viewed as appropriate or inappropriate, but are not necessarily transferable across cultures because formative influences differ from culture to culture.

To be effective internationally, it’s important to be aware that one’s cultural filters might not be relevant or acceptable in a particular foreign market.

• Attempt to enhance communication by avoiding stereotypical presumptions
• Check to ensure that foreign counterparts have understood key communication aspects
• Try to learn the foreign language over time so as to reduce reliance on interpreters
• Experiment with, but do not necessarily adopt, local mannerisms and means of communication

There’s more to communicating than speaking or writing

By definition, communication is the exchange of ideas and information between people. A large part of this process involves non-verbal communication that consists of body movements, gestures, facial expressions, touching, eye contact, tone of voice and others.

Every culture receives and interprets non-verbal communication in a different manner. To avoid unintentionally insulting someone, it is important to understand the cultural aspects of non-verbal communication in foreign environments.

1. Gestures

The improper use of gestures has caused businesspeople considerable embarrassment in various cultures around the world. For example, if the host of a business luncheon asks how the meal is, and he receives the “OK” or “thumbs up” sign, there is a risk of insulting a great many people!

2. Touching

Touching is a primary form of non-verbal communication. In most cultures, a handshake between two people is a common welcoming gesture and, if not accepted, a possible insult. However, if two men or two women were to walk down the street in public holding hands, the meaning would be perceived as entirely different.

Across different cultures, humans have appropriate touching customs ingrained at an early age. In some Asian cultures, it is quite common for men who are close friends to hold hands. This may be uncomfortable to some, even if they are fully aware of the Asian culture.

Dancing is another aspect where touching differs greatly among cultures. In North America, close dancing and the resulting contact between two people is considered normal and non-sexual. However, other cultures would be horrified by this public display of touching. The reverse is true in parts of Latin America, where couples openly display their affection in ways that would not be acceptable in other parts of the world.

3. Facial expressions

One common expression in Canada is the term “face-to-face communication.” It implies that we will be communicating with others in person rather than by phone, e-mail, fax and so on. It could also serve as an explanation for how much communication is expressed through facial movements.

Watching children interact with each other brings this aspect to light. Children are well versed in the meaning of facial communication from a very young age. They growl, smile, frown, stick out their tongue, squint and pout all the time, understanding each other without any formal education in this area.

Within cultures, facial expressions may be interpreted in a similar manner—but across cultures, misunderstandings can easily occur.

4. Space

The space we maintain around ourselves reflects a desire to control who gets close to us and under what circumstances. Ideas about appropriate distance vary from culture to culture and are symbolic of the society’s style and tone.

For example, people from some African cultures stand quite far apart, while people from the Middle East who are of the same gender are likely to stand close to each other, yet frown on public displays of affection between men and women.

On the other hand, Americans with European backgrounds are somewhere in between. The exact distance depends on the type of relationship they have with the other person—the more personal the association, the closer they stand to each other.

This is more than just an interesting sociological observation.

Body language has practical business ramifications. Proper distance should be maintained in circumstances where workers, colleagues or clients are in danger of feeling emotionally or physically threatened by the invasion of their personal space.

It should be noted that the sense of security or threat associated with personal space can be at the subconscious level, and may be difficult to assess or gauge effectively.

What should be done when people meet who have different interpretations of body language? Should an effort be made to “speak the same language”—that is, match their movements and ideas about space, touching, eye contact and gestures, or should one simply try to avoid doing anything that might offend? The answer depends on the relationship between the parties and how their body language differs.

For example, if one is speaking with someone who stands close and touches their arm during conversation, it would be unwise to try to match this behaviour. Instead, one should observe the behaviour, but not back away or rebuff the touch—unless, of course, it is inappropriate—and be reassured that this closeness most likely shows this person’s desire to communicate.

Conversely, when the other person stands at a distance, one should honour this difference by modifying one’s behaviour accordingly.

The reason for this distinction is that erring in the direction of too much intimacy can be far more damaging than appearing a bit reserved.

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My takeaway from this discussion was the need for Canadian importers to focus on maintaining profit margins, as opposed to maintaining market share at the expense of profit margins.

The lower value for the Canadian dollar, in relation to the U.S. dollar, should therefore act as motivation for Canadian businesses to engage and work with consultants to help improve their own productivity.

Working with a consultant or consulting group to improve your company’s communications and increase efficiencies within the business and across the supply chain can reduce operating costs. This is a critical ingredient for sustained business growth.

Investing in knowledge to improve decision-making, for example, can result in greater competitiveness.

This requires a productivity mindset that accepts that currency and commodities price fluctuations are beyond the control of individual businesses.

Another crucial way to increase revenue is to learn how to improve your communication with business partners, both to build successful new agreements and work out any issues, maintaining strong relationships with existing partners.

When negotiating import-export agreements in particular, it’s vital to establish transparent communication channels to convey expectations and resolve disputes.

This will enable the business to remain focused on productivity and competitiveness.

Sharpen and clarify communication channels

Too often, businesses negotiate import-export agreements with other parties without first identifying each other’s business culture and expectations.

The business needs to identify both the formal and informal “human communication channels” that will operate along the supply chain.

To establish a sustainable working business relationship, make sure the agreement establishes clear communication channels that are supported by organizational structure at the operational level of the business.

Without the proper communication channels and understanding of each other’s expectations, misunderstandings can ensue during negotiations, which may delay or ultimately break down talks between companies before an agreement can be reached.

When disputes and inefficiencies happen, in hindsight, business leaders often find that, “if only they knew then what they know now, they could have been more productive”.

The degree of alignment of communication activity across the supply chain with the expectations of the business can impact both qualitative and quantitative outcomes.

For example, a multinational corporation that manufactures worldwide with exports globally ensures that communication documents, from brochures to contracts, purchase order forms, invoices, letters of communication with customers and sales presentations, are all vetted for consistency by a team that has input from the corporate, operations, finance, and marketing departments.

This is done to ensure that at each stage, from initial contact with a prospect to placing of an order, delivery and request for payment, there is minimal possibility for dispute arising due to a miscommunication.

The result is a smooth flow of delivery from factory to the ultimate consumer.

An efficient supply chain delivers to the satisfaction of consumers thereby encouraging more business and prompt payment.

You will need to identify:

1. The degree of alignment of process implementation with the agreed terms of the import-export agreement

2. The steps that need to be taken to encourage alignment of collaborative processes with the agreed terms of the import-export agreement.

To improve productivity and prevent disputes arising the business should:

1. Assess the patterns of formal and informal communication channels among individuals, teams, and functions; internally within the business, and across the supply chain with partners, customers and competitors.

2. Take targeted steps to align communications and business processes with the aims and objectives of the import-export agreement.

3. Reduce inefficiencies by eliminating communication channels that do not produce significant value.

Negotiating international business agreements require an understanding by both parties of what it will take to implement the agreement in order to achieve desired business outcomes.

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Some are quick to state that by their very nature, SMEs are too small to penetrate Asia’s diverse and complex markets.

Others would argue that the current governmental policy framework is not offering the right settings to enable SMEs to take full advantage of these lucrative market opportunities in Asia.

And finally, the SMEs themselves, highly intimidated by the scope of business activities in Asia, simply do not know where to start.

In the recently released Building Blocks for a Canada-Asia Strategy, Stewart Beck, the CEO of the Asia Pacific Foundation of Canada, said:

The rise of Asia marks one of the defining shifts of the 21st century. Within five years, Asia will represent 44 percent of the world’s gross domestic product, 54 percent of the global middle class, and will consume $4.8-trillion (U.S.) annually – 42 percent of the world’s total consumption.

The launch of this document on January 28th at the Ottawa Forum is a timely and welcome initiative which, along with British Columbia’s new Raising our Game in Asia trade strategy, will help to increase Canada’s focus on Asia.

It delivers a clear signal to the private sector to take initiative and turn opportunities into successes in this dynamic and diverse region.

The importance of Asia to the future of our economy is unquestionable, especially in the context of Asia’s current shift from an investment-led economy to a consumption and service-driven economy.

Large-scale urbanization, the expansion of the middle-class and sustained economic growth are among the key drivers of future development and wealth in Asia.

This will translate into increasing demand across various industry sectors, such as: power supply and distribution, food production and logistics, and electronics.

But the biggest demand will be in service sectors, including: computer and IT, financial and insurance, engineering, architectural and science, resource and agriculture-related services, health and education services.

These trends should be seen as the ones providing solid opportunities for Canadian businesses.

However, Asian markets are becoming increasingly complicated to access, as governments and businesses all around the world focus on the opportunities in the region.

In order to be successful in Asia, Canadian SMEs will need to find ways to operate in a more competitive environment.

Asia is not all one market and Canadian businesses must not consider it as homogenous. Each country has different cultural traditions, languages, economies and governments.

One approach or market entry strategy is not going to work across each country, or even across different regions within the same country.

Understanding the parameters of various Asian markets from a political, social, economic and technological point of view is key for Canadian SMEs to succeed in this part of the world.

3 ways to help Canadian SMEs tap into Asia

When talking to SME managers, I often hear comments pointing out three key challenges they face when trying to do business beyond our borders, and more specifically in Asia:

• low confidence and lack of international experience
• lack of knowledge and poor analysis of the Asian markets
• lack of long-term commitment

1. Think bigger

The small and medium-sized businesses in Canada at all levels of development have a confidence dilemma. Why?

Because it takes a certain skill set to go from domestic to international operations, and to shift business-changing decisions like expanding internationally from the back of business minds to front and centre.

According to the 2015 report by HSBC and the Conference Board of Canada, Selling to the World: The Keys to International Business Success, the four factors allowing us to determine the company’s readiness to go global – and what HSBC calls “a global competitive advantage”—are:

1. Skilled executives
2. Market knowledge
3. The ability to innovate
4. International networks

Canadian SMEs who master these keys will be the ones capable of creating successful operations in the Asian markets.

While every part of the “global competitive advantage” framework is important, the most crucial component to boost the confidence of a small business is the company’s managers.

Talented executives can understand the challenges of expanding internationally, play an influential role in identifying international opportunities, and boost the company’s international competencies by recruiting experienced international business employees and consultants.

That type of “out of the box” and entrepreneurial vision is a big reason why, for instance, AMP Solar Group, an experienced rooftop solar project developer from Port Credit, Ontario, has done so well.

A couple of years after its incorporation in 2009, the company started a careful process of foreign market selection and has established quality business connections in the United States, the U.K., and expanded its operations to the Asian markets of India, Japan and Thailand.

Expanding to unfamiliar Asian markets was somewhat risky and uncertain for AMP –as noted in the December Business Report of the Globe and Mail by Dave Rogers, AMP’s President and CEO.

However, the company’s managers’ strong belief that the market for renewable energy was about to take off, coupled with their solid partnerships in the U.S. and the U.K., allowed them to make confident inroads in Asia.

2. Create your own global knowledge network

Market analysis is far from easy. This is even truer when the company is facing the challenge of targeting a completely unknown market with a high level of cultural and economic differences.

Unfortunately, too many companies are making business decisions based on just a “snapshot” view of the market, which is often inaccurate.

The pace of change is so rapid in Asia that the company’s plans become obsolete before they are even fully implemented.

A lot of market analysis could be biased and poorly made, which results in failure or misalignment of the company’s international strategy.

The managers of Canadian SMEs who aspire to be successful in Asian markets need to find a way to surround themselves with people who have been already exposed to Asia and its various geographic areas.

It is essential to identify who will be your sources of market information and intelligence. This could include taking full advantage of trade promotion agencies and their various market studies and innovative tools.

It may also mean an expanded network of Canadian and Asian consultants and experts. Having a globally oriented business spirit also includes being willing to get on a plane and be physically present in your new target market in Asia.

Prospective CEOs developing the necessary level of commitment for a given market in Asia should attend international conferences and trade shows and develop local contacts which could include new local hires.

According to Ken Shields, CEO of Conifex Timber, a Vancouver-based forestry products company, travel seems to be a must.

For companies that want to expand to China, he is advising to use trade missions which are an efficient way to make connections and to stay apprised of the country’s economic and financial plans and priorities.

3. Build your presence in the market

To successfully capture the opportunities in Asia, Canadian SMEs need to create foundations for deeper and broader relationships with a given market.

Physical presence and personal contact are viewed as real assets in Asia. Setting up a local office in Asia is the most effective way to conduct business transactions, whether with customers, suppliers or partners. This is also the best way to deal with governmental authorities.

Establishing a long-term presence and making the necessary investments help SMEs prepare for tough times and avoid being left behind. This type of presence is a key factor in dealing with the market volatilities.

It is a well-known fact that when China’s economy overheated in the mid-to late 1990s, some of the Western companies started to pull back and only a few anticipated the staying power that was needed to weather the market storms.

China and other Asian markets will no doubt witness new periods of turbulence in the future, as their economies continue to grow.

A long-term presence is also a key factor in developing the necessary level of connectivity with Asian markets. There is presently a tendency to rely too much on technology to fulfill the need for communications.

However, Asian cultures, diverse as they are, have a particular preference for personal contact to establish trust and good reputation.

Nautel, a Nova-Scotia-based manufacturer of radio broadcast transmitters, became international thanks to its innovative business model using an extensive network of sales partners around the globe.

These sales agents, partners or independent contractors – according to Kevin Rodgers, the company’s President and CEO, “are the people on the ground who can interact directly with clients.”

Nautel has been relying on their sales partners’ knowledge of local language, customs and regulations, and proactively leveraging their strengths, connections and knowledge, in order to expand its business beyond Canada’s borders.

Today, Nautel operates in 177 countries, including many in Asia. The company is still on an expansion path, this time to China, one of the few countries Nautel is not yet in, says Rodgers. Nautel has recently entered into an agreement with a sales partner there.

Entry into Asia’s national or regional markets requires adequate resources on-the-ground to facilitate the company’s transaction-based commerce and selling via multinational value chains.

A lack of in-person presence, investment in local human capital, and long-term commitment to the market, may not be simply sustainable in the Asian context.

Therefore, it is understandable why so many foreign companies, which are our competitors in this part of the world, are busy growing their presence in Asia and planning to position their businesses for success in the Asian business ecosystem.

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