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CHINESE TAKE-OUT: Oriental Business Principles Demystified For

Article:

"The expectations of life depend upon diligence; the mechanic

that would perfect his work must first sharpen his tools." -

Confucius

Chinese people are well-renowned for their industriousness and

extraordinary minds for business. Cases of our Chinese brothers

failing in their ventures are very rare. They have effective

principles that have withstood history and tragedy. Chinese

traders thrive even in the harshest business climate. They have

survived wars, depressions, and competition from companies with

gigantic resources.

For sure, their success is more than just Feng Shui. And if ever

it was, it is highly doubtful that such geomancy is applicable

for online enterprises, the latter being our primary concern for

this discussion.

So what is their secret? Why are the Chinese so successful at

business at a consistent and remarkable level? How could we

apply their business principle to our online endeavors?

The Concept of "Guanxi"

Central in every Chinese business structure is the idea of

relationships, or "Guanxi." Chinese people value honor and

trust. They deal with persons who are trustworthy, and they

strive to be just as dependable to win the respect of others. If

you do a favor for a Chinese businessman, for example, he would

do his best to be ready at all times so that he may be able to

repay you when the need arises. If you're dealing with the

Chinese and you deliver what was agreed upon on or before the

time you have pegged, they will regard you as reliable and would

consider doing business with you again.

"Guanxi" is the heart of their organized business. They strive

to be good at what they do so that they could build

relationships that would aid them in the long run. A Chinese

business with well established "Guanxi" is susceptible to fewer

risks and could easily get the best deal at any given time.

Also, such Chinese enterprise is assured to have support if ever

it encounters some trying times.

With customers, "Guanxi" is more about finding quality ones

rather than settling for quantity. The Chinese rely in the

goodwill they generate with their clients, and they believe that

their reputation would eventually spread through word-of-mouth.

People tend to believe those they know, hence the Chinese would

rather pin their marketing strategies through their work rather

than spending for costly advertising campaigns.

Long Term Relationships are better than Short Term Profit

Chinese people are very good with math. They could calculate ROI

without using a calculator. They know their expenditures without

the need of accounting software. It is no surprise then that the

Chinese came up with an equation that is more profitable in the

long run.

Chinese businessmen are known for their generosity in giving

discounts. They make sure that their clients would feel that

they are being given the best deal. This may result in minimal

profit for their businesses, but the Chinese are looking at the

bigger picture. A satisfied customer will always come back, thus

assuring continuous income. In the long run, this would equate

to a higher profit margin than a one time deal involving a

larger markup price.

In doing online business, we could learn much from the Chinese's

patience to delay gratification. Remember that people would view

us based on how we conduct our trade. If they see that we offer

quality products delivered with efficacy and expediency, they

would most definitely consider us again. If we manage to reach

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out to them in a more personal level, the more that they will

never forget us. In so doing, we would have assured ourselves of

loyal patrons for our undertaking.

Frugality is a Virtue

Spend only what you could afford.

This is a doctrine prevalent in the Chinese culture, and is best

manifested in their business affairs. Borrowing money is

considered taboo in their society. They would rather start with

menial jobs that no one else would dare touch than asking a loan

from other parties. They will not consider expenses which they

cannot afford. Instead, they look for ways around the necessity.

In Closing

Online businesses have much to discover from their offline

Chinese counterparts. If the Chinese were able to successfully

establish their trade through the traditional methods we've

discussed in this article, there is no reason why we wouldn't be

able to duplicate their success on the web.

Additionally, Chinese businessmen would not be disheartened when

they do lose money, for as long as the experience have taught

them valuable lessons that they could utilize later on. Perhaps

it would be wise for us to take heed. Knowledge is power, and in

this competitive world of online marketing, we need all the

weapons we could get.

About the author:

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© 2005 Gunnar Berglund Gunnar Berglund has been a "internet-

hardworker" for the last five years He publishes The meonit

Gazette http://gazette.meonit.com and run http://www.meonit.com

/ http://www.grabinternetprofits.com/traffic

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