CHINESE TAKE-OUT: Oriental Business Principles Demystified For Online Enterprises
"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 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.
-------------------------------------------
© 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
-------------------------------------------
Latest News
Could auto industry layoffs spur more entrepreneurialism in Mich.? MLive.com, MI - So in the wake of all this economic destruction, will entrepreneurialism and creativity flourish? Some business leaders think so. ... 'There's no such thing as job security' |
Risky Decision-making Essential To Entrepreneurialism Science Daily (press release) - ScienceDaily (Nov. 12, 2008) — Whether someone will become the next Richard Branson, Steve Jobs or Henry Ford may be down to whether they make risky ... |
Norfolk entrepreneur wins top award Norfolk Eastern Daily Press, UK - ... and at LEAD East - a new initiative which promotes entrepreneurialism in order to help ensure continued growth in the East of England. ... |
Two Degrees, LLC Appoints Mike Heffernan as Chief Financial Officer MarketWatch - Now is the time to bring on a financial expert that we know and trust, and who shares our spirit of entrepreneurialism, to ensure our continued success. ... |
Bank of America and PRIME - Working Together to Support the Over ... ITNews, Italy - It aims to unlock entrepreneurialism in the over 50s in the UK by helping this group get back into employment through setting up their own businesses. ... |
Economic downturns can spur mergers, innovation Seattle Post Intelligencer - We've seen consolidation inspire entrepreneurialism most clearly in Washington's banking industry. Every time a bank is bought, that frees up capital and ... |
Max Levchin, Jawed Karim, Tom Siebel, Scott Banister, Reid Hoffman ... SYS-CON Media, NJ - ... co-founder of Zivity, Reid Hoffman , founder, President and Chairman of LinkedIn and others to Discuss Cross-Country Entrepreneurialism in Two Panels. ... |
Chamber joins Go Texan Jack County Herald, TX - Retirees are increasingly drawn to smaller rural communities with access to urban services, and rural entrepreneurialism is a growing trend. ... Chamber provides info on how to donate |
Range of Bay area firms take note of Entrepreneurship Week Bizjournals.com, NC - Entrepreneurialism, invention and innovation are important to advancing living standards, said Ken Evans, regional director for Entrepreneur Week in his ... |
Portland trying new solar-powered public toilet Northwest Cable News, OR - Entrepreneurialism aside, the city says it's recognizing a humanitarian need for public rest rooms. To reduce opportunities for vandalism and crime, ... |
Resources
-
Sorry there are no resources available at this time