What business lessons can you pick up from this image?

To understand and do business with China it’s extremely important to understand the lessons learned from the World Expo in Shanghai.

Here’s a quick glance at some of the lessons you should try to lookout for when visiting the Expo:

1. From the architecture, one can get an understanding of Chinese mentality. The China Pavilion architecture, aptly placed in the key place of the park, shows the mentality of “Middle Kingdom” with it’s centrally pointing tops, as if it were a backwards pyramid which rested solely on the heart of China. The giant building is an homage to traditional Chinese architecture with a “modern” twist. Read about the architect’s vision here: http://www.expo2010.cn/expo/expo_english/documents/
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2. With torrents and torrents of people lining up outside each pavilion waiting to get in and get tickets it’s easy to recognize the differences between the way different countries operate their pavilion.  Obviously, the Chinese one is a major attraction to all Chinese and foreigners, so expect packed crowds. Notice the differences in service from each country.
3. With regards to the shows. It’s easy to see what Chinese people find interesting is definitely different from what the foreigners might find interesting. In fact, Chinese people are so used to seeing masterful performances by Chinese acrobats, or blazing speed demonstrations of Kung Fu by professionals raised to train to perfection from as young as 8 or 9, that certain kinds of demonstrations leave Chinese feeling quite unimpressed. Yet, ironically enough, the easiest steps in a Salsa dance show, or a Tango demonstration, will leave Chinese people breathless. Observe the differences and keep them in mind next time you want to impress your Chinese business partners.
4. Notice the positioning of the buildings. A lot of thought has gone into the exact locations of each of the pavilions. This can help understand the love of face and of giving face that Chinese people practice.

Anyways, there are countless more lessons to be learned. Which ones did you learn from the Expo?

Starting in the 1980s, China developed it’s 1-Child policy as a means of population control – meaning most families, especially in cities, could only have 1 child. This has had a deep effect on the psyche of the Chinese youth. Understanding this change in the mentality in China is crucial to understanding how to market to these youth, as well as how to lead them, work with them and interact with them.

From the 1980s on, this policy marked a new generation of Chinese who were often referred to as “Little Emperors.” Most youth tended to be the only child with several grandparents and parents often fighting for their attention. Thus many of these youth developed an attitude that they were the center of the world. There are several other problems this policy created, as well as some other solutions. However, one thing is certain, starting from the 80s generation (referred to in Chinese as the 80? ba – ling- ho) the youth in China have developed a completely new attitude towards life.

Some of the obvious attitudes are a need for self-expression, individuality, patriotism, as well as westernization – ie. love of basketball, soccer, F1, Tennis, etc etc. In Beijing and Shanghai this also means a higher English ability than even their Chinese teachers. (In 2nd tier cities, the English level is still fairly low, but with an influx of “foreign experts” give it time before the overall English level as a nation becomes highly proficient).

Some other attitudes and believes can be seen on this report: China Youth Trends and Business Implications, which separates major groups of Youth into categories. Some of the observations are obvious, and some speak of only a small minority of groups (Check them out since I will not re-state the opinions of their findings). Of particular interest to businesses are the following views which I disagree with or add comments to:

1. Social Participation:
   • Pertains to big events, such as the Sichuan Earthquake, or the Olympics. But it’s still rare to see much social involvement besides posting on blogs or forwarding “chain letters” amongst the majority of youth. Community service is all but non-existent in the way we know it in the west. Charity is still seen as “suspicious.” Probably due to the idea that “people who do favors for you, will surely want something in return.”
2. Searching for meaning:
   • Chinese youth, are often confused about the world and sometimes feel “lost.” Having grown up their whole life listening to their teachers and taught to memorize and not encouraged much to develop critical thinking skills (Seen not only in adults and mid-managers, but also in the youth) means that those businesses that can create a vision in the youth, and can appeal to their philosophical searches will attract more and more business.
3. Action:
   • Chinese youth are taking more and more action, that is true. If by action we mean posting on forums, and boards, and talking about things on QQ (chinese ICQ) or MSN, then yes, Chinese youth are more action than “talk.” However, those that take real “action” is still a small minority of the Chinese.
   • What this means to your business? You need to show the youth the action they talk about. Your companies actions should include those topics which the youth flock about on the blogs, forums, etc. So investing on a web 2.0 specialist is a good idea to work with your branding and PR team.
4. Identity:
   • Chinese youth are searching for their unique voices, talents, etc. The 90s generation is moving away from the “Brand names” shopping binge of the 80s generation towards a more “unique-centered” idea which showcases their individuality.
   • What this means for your business: Encourage individuality not in your products, but in the uniqueness it will create for them.
5. Pride in Chinese Identity:
   • While, the Chinese are very proud of their country, I would not go as far to say that young people have started to be more interested in traditional culture. In fact, more and more youth are becoming more and more westernized. It is a small minority of those who practice Chinese Martial arts, enjoy Chinese Opera, or enjoy any of the other cultural traditional aspects that China provides. What we’re seeing here in China is more and more youth-oriented westernization while resonating the words “we love china.”

One thing is certain:

1. Expression of one’s opinions and the use of the Internet is becoming more and more prevalent, which is a good thing for businesses, so long as they are willing to make the connections with them. Whenever a scandal props up, or a political view, Chinese youth are known to mobilize and post on forums, blogs, etc. Samples can be seen of the time a CNN spokesperson insulted government officials in China and it ignited an online war against CNN. More and more youth use blogs, Instant Messaging as daily communications, most are on MSN or QQ (Chinese ICQ) during work, or at their dorms. So viral campaigns with strong messages get across quite rapidly
2. What this means:
   1) Stay away from political arguments and disagreements.
   2) Feed into their “patriotism” much the way Adidas did during their promotional campaign for the Olympics, showing 1.3 billion people standing behind every athlete
   3) Encourage social media activities, such as blog postings, reward with incentives by creating a community.
   4) Communicate social action and the ways you are empowering Green Energy, Youth, etc
   5) Branding  and Marketing Campaigns should focus on the gains of the individual in terms of self-respect. Gaining admiration by fellow youths, creating a “unique” experience for each customer, customization of products to fit each customer’s needs, etc etc.

Below you may find slides from the presentation from China Youthology Consulting.

China Youth Trends And Biz Implications

View more Microsoft Word documents from chinayouthology.

Every entrepreneur contemplating entering the Chinese market should be well informed. After taking a few “Chinese Culture” classes, one may learn of such cultural intricacies as Not giving clocks/watches as gifts, or not giving pears as gifts, etc.

But besides these what does it take to be succesful at doing Business in China? Many people who have been doing business in China for a short-while might think it involves Heavy Drinking of White Spirit Wine (aka Bai Jiu, aka, white petrol), and spending countless nights at KTVs with new prospects.

While, it is true that is one of the most direct ways to build a “relationship” with new clients, westerners make the mistake of thinking “we’ll drink with them tonight, and tomorrow we’ll sign the deal.” I see this kind of mentality over and over, in every deal and every consultation I give.

In this website, I will try to illustrate to those interested in China the proper way of doing business. You will learn what works, what doesn’t, what has already been tried and why did it succeed/fail, and what hasn’t been tried yet.

My goal is that I will be able to help as many of you as possible, and hopefully, when you have taken my advice and gotten some level of success, but aren’t sure where to turn to next, you will come to me for further help.

So suscribe to the RSS, and keep up to date with all the latest findings.

Straight from Beijing, this is MarcP Goodman.