Your B2B Market in China

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Your B2B Market in China Identify, Contact, Sell
James W. Mayfield Commercial Officer May 23,
2006 Cleveland, Ohio
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Todays Discussion

• Introduction
• Finding Customers
• Qualifying Them
• Commercial Service

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Introduction

• Based in San Francisco
• Shanghai 2000 2004
• Beijing 1996 2000
• Hong Kong starting July 2006

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Define Your Market

• Government
• Private vs. State-owned
• Joint Ventures
• Foreign WOFE
• your approach, their motivation to purchase
  ability to pay all differ

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Think Regional

• Regionalization in China
• Language / Culture
• Shanghai sales rep may have trouble in Guangzhou
• Industry Clusters
• Logistical issues

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Data Resources

• How do you find them?
• U.S. sources / online
• Commercial Service Programs
• Market Research Firms
• Industry Associations Events

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Data Resources

• Dont forget existing customers.who may have
  operations in China
• Working with agents
• http//www.kompass.com/
• http//www.alibaba.com/
• http//www.tradenet.com/

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Due Diligence

• How do you qualify customers?
• Reputation
• Track record / references
• Can they pay?
• USD or RMB?

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Due Diligence

• Pre-screening due diligence
• Internet search (free)
• Business License confirmation (free or low fee)
• Credit Report (fee)
• In-depth due diligence (fee)
• Examination of public records
• Reference check
• Site visit
• Heavy duty Due Diligence (fee)
• Legal
• Financial

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Red Flags

• Unsolicited contacts through Web
• Want to purchase a very large volume of goods
• Insist your senior executives travel to China
  immediately to sign the contract with them in
  person
• Request money prior to the trip
• In business less than one year
• Provide no verifiable references

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Marketing Materials

• Dont just translate your brochure
• - Are your customers web savvy?
• - Translation is an art
• - Modify materials for the audience
• - Catalogs in China are more about you and less
  about product

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The Approach

• Cold calls less effective
• References and personal introductions key
• Focus on trust first, then product
• Be prepared to get technical

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How do You Close the Sale?

• Follow up, Follow up, Follow up
• Relationship building
• Plan for getting paid
• Cant do it by remote control
• Need someone on the ground

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The Commercial Service

• Our Mission
• help U.S. Companies export products and services
• Find partners/ customers
• Information and market research
• Strategic advice

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125 Staff on the GroundYoull find us in

• Beijing
• Shanghai
• Guangzhou
• Shenyang
• Chengdu
• Hong Kong

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www.export.gov/china
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Thank you! James W. Mayfield U.S. Commercial
Service James.Mayfield_at_mail.doc.gov Tel
415-705-2282 Fax [phone]
www.export.gov/china
www.buyusa.gov