The China Factor

Chapter 10China: Place => Partnerships

Those skilled at making the enemy move do so by creating a situation to which he must conform; they entice him with something he is certain to take, and with lures of ostensible profit they await him in strength.

—Sun Tzu, The Art of War

Questions Answered in This Chapter

• The Chinese seem to have a hands-on approach to most accounts. They appear to be more entrenched. How do they do it?
• Why do Chinese vendors seem to establish many partnerships, which appear to dissolve soon after they're established?
• Is it true that some Chinese vendors take a partnership approach with their customers?

Chapter Outline

How They Sell: Selling Direct versus via Partners

1. Selling Direct
2. Selling with Partners

Partnerships and Alliances: Coopetition

1. Partnerships
2. Alliances
3. Challenges

As we have discussed, when a company has an undistinguished product, it might target the secondary markets in order to practice on lower-tier customers and to gain some level of presence in the industry. This is why emerging countries are a good target for Chinese companies and other emerging entrants. Generally speaking, emerging-market nations have financial challenges (low ability to pay), socioeconomic growth goals, and more room for product development and evolution than developed-market countries.

How They Sell: Selling Direct versus via Partners

We will now explore how the Chinese apply the two selling categories of selling direct and selling through partners. ...