Crucial Tips for Doing Better Business in Asia

It may go without saying that first impressions are important in business, but they are particularly crucial when you’re doing business in Asia.

Your image matters. Looking polished and sharp in a business meeting not only reflects well on you and your business; it also indicates respect for your host.

Proper Attire
For example, wearing an open-neck shirt, and going without a tie, is usually appropriate when you’re visiting suppliers, particularly if you’re touring factories. However, for other business meetings the dress code is stricter. Men may need a suit and tie, and women should wear a skirt or dress that falls below their knees, along with a jacket or sweater that covers their arms. All dress should be weather appropriate; wearing a heavy suit in a humid city can be uncomfortable and can interfere with the impression you want to create. You also need to make sure your socks are in good condition as shoes are prohibited in certain places in Asia, including some restaurants.

Business Card Etiquette
Business cards are another crucial consideration. Make sure you have plenty, because you’ll be giving away a lot of them, especially when you meet potential clients for the first time.

Following these tips can help you avoid cultural business-card gaffes:

• Use both hands when presenting and receiving a card. Using one hand in Asia is considered casual to the point of rudeness.  Although it is common to slide you cards over a table like dealing at a casino in the West this is not done when making a good impression in Asia.
• Properly acknowledge your associate. You do this by accepting his or her card and examining it carefully.  If you are not sure how long this should take be guided by how long they look at your card.
• Ask, “how should I address you?” Asian businesspeople are keenly aware of position and hierarchy. Titles are important, so don’t guess; ask! Do not be afraid to write down their preferred title so you can refer to it during the meeting.  When you make the effort to be respectful it is noticed and the other “mistakes” you will make are excused.  Also, never use a client’s given name unless he or she invites you to do so.
• Keep the client’s business card on the table during your meeting. It is also acceptable to place it in a cardholder. Either way, leaving the business card in full view for the duration of your meeting will show appropriate respect.

Mawson Global can help you navigate the process of doing business in China and other Asian countries – and making a good impression while you’re there! In addition to arranging hotel and flight bookings, Mawson Global’s on-site staff can advise you on the proper way of dealing with Chinese businesspeople, along with briefing you on local businesses practices, business development, and the country’s customs, holidays, and practices.

A Relationship to Build On: The Benefits of Global Sourcing for Construction Companies

Issuing a tender can be a pretty tense process. Often, that’s stating it mildly...

You and your team sit down, painstakingly put together cost projections for materials, man-hours and the construction technicalities at hand. You arrive at the best price possible and you submit it to the client.

But, what happens meanwhile? Your competitors are doing the same. How much is their bid? Have they struck a great deal with a global supplier to source products significantly cheaper than you? Only time will tell. And usually a lot of nail biting, too.

In many ways, the construction industry is unique when it comes to budget considerations.

Sure, budget is paramount for any business. But, when you’re issuing a tender, getting your budget the right means the difference between having work to do and having nothing to work on at all.

Naturally then, the continuing trend in global sourcing is of particular interest to construction companies. Here’s how to get it right.

Stay on top of your schedule

When it comes to the different stages of a project, each can potentially be held up waiting for inexpensive and often very basic components that get stuck somewhere in the supply chain.

If you’re sourcing from somewhere in Asia, for example, it’s important to be especially diligent about the supply chain schedule. A 55% saving off the domestic price is an attractive reason to source any given widget globally.

But if they get held up and slow down the next stage of funding, your savings are nullified and major cash flow issues arise.

Seafreight is the most common form of shipping used in global sourcing and takes on average around 4 weeks. Airfreight can reduce that down to a few days, but is more expensive.

It’s worth making contact with an airfreight company to have a standby logistics account registered. Likewise, having backup component suppliers for emergencies is especially important when taking your supply chain global.

With these contingencies in place, you can reap the massive savings and ensure you’ve got your bases covered.

Quality assurance measures

Quality is a major concern for any business looking to outsource globally for the first time, and construction especially so. The idea of poor quality components jeopardising the safety of a project is beyond unacceptable.

Different regions and markets have different ideas of what constitutes “satisfactory quality” or “fit for purpose”. For that reason, paying a reasonable fee to an impartial third party inspector with a predetermined set of factors for what you consider acceptable quality is the ideal way to keep your project on track.

If everything’s checked by a reputable auditor, you get the peace of mind you need to focus on the project.

Be aware of cultural barriers

Finally, comes the inevitable cultural barriers.

It’s often quite incredible how different perspectives can be overseas. For that reason, being crystal clear and unambiguous in the language you use with your orders is tantamount for a successful project.

Classic examples which anyone who has travelled internationally will appreciate include:

• “Neutral” colour schemes are not the same in all countries
• "Normal" toilets and bathroom fittings are very different
• “Environmentally aware” buildings and building materials mean very different things in different countries

In addition to committing to a policy of crystal clear communications, it’s worth doing a little research, too. Head to Google and search for info dealing with different cultures in a business context such as this article on the Chinese holidays.

If you’d rather speak to someone in person, call one of our specialist outsourcers with a strong track record of saving money, and even stronger relationships built while sourcing globally for construction companies.

Mawson Global FAQ: How Will Global Sourcing Affect Your Business?

The idea of having your equipment purchased and shipped from the other side of the planet raises a lot of questions for a business owner.

There are concerns over quality control, cash flow, supply chain complications and international legislation. Naturally, we’re asked these questions a lot here at Mawson Global.

Here’s a quick overview of the most commonly asked questions about global sourcing and what it means for your business.

1.   Is it worth me investing in global sourcing?

Naturally, the size of your company and your level of turnover are key considerations when determining whether or not it’s worth you investing in global sourcing in the first place.

As a general rule of thumb, the savings on offer by dealing globally and direct with suppliers is between 40% and 70%. Provided the savings available to your particular orders outweigh the one-off fee paid to Mawson Global to source the products, it’s worth coming on board.

This is why we have our QuickLook Analysis. So we can uncover the potential savings, determine if it’s worthwhile for you, and without obligation to sign up for the long term. The process is typically completed inside 10 days.

2.   How will it affect my cash flow?

Typical purchases made when sourcing hardware globally involve a deposit down when you place your order, with the remaining balance to be covered upon shipping. Most banks offer trade finance products so you can facilitate the process without it impeding your business’ cash flow.

The benefits on offer considerably outweigh temporary inconveniences for cash flow and the fees associated with these bank services are typically very affordable.

3.   How can I guarantee satisfactory quality control?

When sourcing your equipment globally, it’s possible to predetermine a series of tests to be conducted by a third party inspector to ensure the equipment you’re purchasing is up to whatever standards you deem necessary or appropriate for your business.  Failing to use a trusted third party quality auditor is the most fundamental mistake most importers make.

That said, because you’re purchasing equipment directly from the factory, it comes off the production lines and goes immediately into quality control. Should problems arise, it’s much quicker to deal directly with the factory rather than a third party supplier or wholesaler.

Without this middleman, there are less stages where mishandling can happen and communication to fix problems is more streamlined.

4.   What about tariffs and timeframes?

If you’re in the West, sourcing equipment from countries such as China, Southeast Asia and India naturally takes a little longer than if you were sourcing from home. As a rule of thumb, and in addition to the production time for the equipment, you should allow four weeks for the delivery of globally sourced equipment to arrive via sea freight.

Air freight is an option and, although more expensive than sea freight, can shave the shipping time down to just a few days.

Mawson Global advises of any licences or permits necessary to ship your purchases. We also consult with registered and qualified customs brokers to ensure you know the importation tax tariffs upfront to avoid nasty surprises later down the line.

Have any other questions?

Do you have questions left unanswered? Contact one of our knowledgeable staff today to get a comprehensive answer to any other global sourcing question.

Can Your Business Benefit from Global Sourcing?

Are you considering global sourcing for your business or your clients? Curious as to what the initial steps may be?

At Mawson Global, our mission is to make international growth and scaling simple and accessible for all companies, regardless of their size or budget. How do we do this? Simple. We introduce you to suppliers and partners across the globe in order to help you increase profits, improve efficiency, and strengthen your entire organization. Regardless of your market or the products you need, we aim to find a reliable, affordable overseas supplier and partner for you.

Saving at least $100,000 on a project is common for Mawson Global clients. In fact, most of our clients see that type of savings on their first project. Moreover, their savings typically range between 40 and 70% of domestic prices. At last count, Mawson Global clients have saved in excess of $20 million utilizing our global sourcing services.

While our clients come from myriad industries and companies, all with varying sizes and revenues, they share some core common characteristics:

• They are purchasing products not made in the domestic market.
• They spend more than $50,000 with any one supplier.
• They have plans to buy plant and equipment worth more than $50,000.
• They are a company’s owner, CEO, COO, or CFO.

Here at Mawson Global, we are confident that we can assess your potential cost savings while keeping your supply chain intact. We are not broker-agents. We do not take commission. Rather, our services are fee-based so you can rest assured that we’ll be working with your business and client interests in mind. Our research and advice is also completely independent and unbiased.

With professional teams based in several strategic countries, Mawson Global help businesses worldwide safely minimise any risks inherent in global purchasing.

Want to know if Mawson Global sourcing is a good fit for your company? Take our 10-product challenge. All you need to do is tell us five to 10 products that you’re currently purchasing from an importer. From there, we’ll work to find those items from a less expensive international supplier.

Now is the time to find out if global sourcing can help you grow your business. Contact Mawson Global today!

The Chinese Economy and the Effect on Australian Trade

As the first two months of the new year wrap up, there is some sobering data and speculation about the current state of the Chinese economy in the news.

2016 started with a bang (or bust, really) with trading in Chinese stocks being halted twice within the first week by Chinese regulators after the Shanghai 300 Index dropped more than 7%. This volatility quickly rippled across international markets from the US to Germany to Australia. While this erratic behaviour could spell trouble for the Chinese economy, American economist Paul Krugman believes that if the Chinese market were to crash, it wouldn’t resonate nearly as strongly as a US crash would. This assertion is based on the relative insularity of the Chinese market, though a crash would no doubt strike the Australian economy more than most, given the strong ties to Chinese industry.

That sentiment, though, may not be as reassuring to Australian businesses, especially those who rely on trade and manufacturing from China. China reported overall GDP growth of 6.9% for the 2015 year. While this is down significantly from a peak of nearly 15% in 2007, it has remained relatively steady since the end of the 2013 year.

The constancy of this GDP growth, however, has some economists outside of China wondering if those numbers are rooted in reality. In fact, according to Business Insider Australia, many market watchers “suggest that the figures are merely a by-product of the government starting with the headline figure first and then working backwards, rather than the other way around.” Were such an assertion to prove true, the impacts on manufacturing and future growth would be staggering, depending how drastically those GDP figures were off.

While it still may be too early to make any assumptions for the remainder of the 2016 year, this year will certainly prove to be one of hand-wringing for market analysts at home and abroad. No matter what happens with the Chinese economy, the world will be watching and responding accordingly.

During this time, our team at Mawson Global will be working closely with our team in Asia to ensure our clients’ needs continue to be met without any delay in service. If you would like to learn more about how Mawson Global can help your business save money, please contact us or take the Savings Challenge today!

2016 Forecast for Global Sourcing

Although the economy has seen steadying growth over the past few years the current uncertainty is causing companies across the world to analyse budgets and create forecasts for the future growth of their organizations. For companies dealing in manufacturing and other industries that rely on intelligent global sourcing, these projections invariably include goals of more efficient and visible global sourcing options.

While global trade growth rested around 2.8% in 2015, global trade growth projections for 2016 are on the rise, with overall estimates putting it around 3.9% for the calendar year. This is good news for firms looking to break into global sourcing and for companies already sourcing, but looking to save money and expand their networks.

Outstanding Future Outlook: While 2016 represents a nice increase in global trade volume, analysts at PricewaterhouseCoopers expect huge growth over the next 15 years, estimating “that the value of global goods trade is expected to grow in real terms from around $10 trillion in 2013 to around $18 trillion in 2030. This implied real trade growth of 3.3% per annum will be an important driver of global growth over this period.”

As such, firmly establishing supply chain roots and relationships in 2016 is essential to any firm hoping to capitalize on this growth trend for the foreseeable future.

Smarter Sourcing, Larger Market: As more and more firms look abroad for their sourcing needs, the sheer volume of manufacturing requests allows for more competitive pricing greater access to reliable logistics solutions. Moreover, as Asian countries continue to be the hub for supply chain manufacturing, many of its citizens are increasing their own buying power. As such, more and more companies are finding new markets and eager consumers in nearby Asian countries, thereby increasing revenue and decreasing shipping costs.

To learn more about this, and how your firm can benefit from this trend, check out our Are You Asia Ready? Audit.

Poised to Move: With all of the promising data coming out of China and associated manufacturing markets, understanding where your company fits into the overall picture is of vital importance. Understanding and staying on top of ever-evolving trade and tariff regulations can seem daunting, especially to those new to global sourcing. At Mawson Global, we track changes in international and local legislation which may affect your bottom line. By entrusting us to work on the details, we free you to focus on building your business through intelligent global sourcing.

If you’re ready to leverage global markets to grow your business in 2016, contact Mawson Global today for assistance with your global sourcing, marketing and commerce solutions.

Mawson Global is excited to release their newest service for Australian businesses – the “Are you Asia Ready?” audit kit.

The “Are you Asia Ready?” audit helps business owners understand how Asia can impact their business and better educates them on which of their products could be sourced globally and which products or services could be sold internationally. The audit provides real numbers so businesses do not miss or overestimate the impact of importing and exporting.

Part One – Can I buy better?

By directly sourcing products from Asia, an organization could easily see hundreds of thousands in annual savings. To minimize the risk of direct sourcing, the business will need to establish procedures and dedicate resources to professional procurement.  This part of the audit provides real numbers to make sure the financial benefits of direct import outweigh the increased resources you need to deploy. 

Part Two – Can I sell more?

The second piece of the audit examines the pros and cons of exporting to Asia. Through this audit, businesses better understand competition, market size, and distribution channels so they can create a successful market entry strategy.

Typically introduced to Mawson Global through partners around the country, clients are able to work with their trusted business advisers to determine the course of action which will likely lead to the most impactful affect to their business.

If you are interested in learning more about the “Are you Asia Ready?” audit program, please contact a representative at Mawson Global today!

Business Goals in 2016

Another year has come and gone and here at Mawson Global, and we’re eager to jump full-force into 2016.

As a new year approaches, now is the time to outline your ambitions and goals for 2016.

Setting attainable goals can seem incredibly daunting at times. However, our goals also serve as “navigational beacons” that keep us on a successful path, even when things get tough. By knowing what our goals are, we can more easily ensure we don’t veer off course.

Whatever your goals for the year may be, make sure they’re S.M.A.R.T; that is Specific, Measurable, Actionable, Relevant, and Timely. Utilizing this methodology drives you to sit and think about the substance of your goals. Why is this goal more relevant or pertinent than that goal now? Thinking of your goals in these terms reinforces the whys and hows.

Once you’ve set your goals, share them with people you trust. These people will serve as your support and accountability partners. When you outline your goals clearly, you and your support team have baselines and benchmarks you can reflect on to measure success and realign moving ahead.

Do your 2016 goals include ambitions of working with overseas suppliers? If so, 2016 is gearing up to be another banner year for Chinese manufacturing and trade. Researching and analyzing whether or not global sourcing is the right fit for you and your organization can be intimidating. Sourcing, though, can provide significant cost and time saving benefits, while increasing profits and strengthening the overall business.

At Mawson Global, we understand your concerns and needs, which is why we have developed the “Are you ready for Asia?” audit. Ask yourself, “How do you think Asia is impacting your business?” You may be able to come up with a number of responses to that. We believe that, largely, it boils down to two points: reducing costs by importing and increasing sales by exporting. If you fall into either of these camps, click here to learn more about the “Are you ready for Asia?” audit. 

Business in Asia The Social Aspect of Doing Business

Just imagine it.

You’re in the meeting. The one you’ve been anxious about for over two months. As much with the anticipation of visiting Asia for the first time as the amount of money it could make for your business.

If it’s successful… If you don’t do anything embarrassing that breaks local etiquette and wipes your credibility off the face of the earth in a single, fleeting moment.

Until you’ve spent time in Asia, it’s easy to underestimate just how different these cultures are and how easy it is to create an awkward situation with a seemingly innocuous action or comment.

Not only that, but following proper local etiquette truly lights up the faces of those you’re with, building serious rapport in the process.

That’s why we’ve put together this list of social faux pas for you. There are over 40 countries in Asia, so a list of every potential etiquette beach for each country would take a medium-sized paperback book.

That said, here are the main ones to highlight just how different or unusual some of them can seem to us. We’ll have plenty of examples from China as it’s such a massive global business hub.

Eating at restaurants

There are a few things to bear in mind when eating out in Asia.

The first is to ensure you get your chopsticks skills honed if you’re going somewhere that uses them as the primary table utensil. Impress your dinner guests and save yourself the embarrassment of asking the waiting staff for fork. If you don’t find that idea cringeworthy, you should.

In some parts of Asia, it’s considered the height of rudeness to finish all the food on your plate, so check for the specific country you’re visiting. You may need to leave a small portion to one side to signify that you’re satisfied rather than suggesting that they’ve not provided enough food.

Some Asian countries consider it good manners to burp at the end of a meal, too.

As a final note, if you’re in China, placing your chopsticks in your rice neatly upright (a 90° angle to the table) is considered to signify death. Awkward silences may ensue!

Going for drinks

Certain etiquette must be observed when out for drinks in Asian countries and China is another good example here.

First is toasting. The host will typically make the first toast, so don’t jump the gun if you’re the one who’s been invited out. Instead of “cheers”, you’ll hear either "gan bei" (bottoms up) or "kai pay" (drain your glass) but whatever Asian country you’re visiting, look up this word before you go. Don’t be left looking around wondering what’s going on.

Also, in China, the level of your glass must be below the person you’re “cheersing” if you wish to signify respect. Otherwise, you’re stating that you consider yourself somehow “above” them.

Similarly, you’ll typically want to finish the whole glass. Don’t worry, the glasses over there aren’t as big as the pints you may be used from some countries, so you’ll still be able to hold together a conversation after sinking two or three.

If you’re unable to drink alcohol and need to decline, be aware that this could be seen as rude and make sure do so very respectfully. Explain that you’re very honoured by the generosity but are unable to drink and ask them to suggest a substitute drink so you can be part of their hospitality.

Taboo conversations

It’s good to remember that different political events are illustrated differently in different countries. That means, the narrative of global politics that your Asian counterparts know will be very different to yours.

Typically, it’s best to avoid these conversations. Whatever you’ve heard on the news, don’t insult the monarch, governments or establishment of an Asian country. Leave your political views in the hotel room. And make sure they know your government’s views don’t necessarily represent your views as an individual.

Contraband

What constitutes as contraband varies around Asia. A good example here is that drugs legislation particularly strict in countries such as Thailand or the Philippines. Some products that may even be available over-the-counter in the West could carry very serious penalties.

If you must carry pharmaceuticals around with you, check the specific legislation for that item in the country you’re visiting before you go.

Another good example is chewing gum in Singapore. It’s illegal to chew or be in possession of chewing gum in Singapore, even if you brought it there by accident.

Body language and physical contact

Realistically, the number of times you would touch somebody on the head in a business social outing are relatively slim. However, after a few drinks and a lot of rapport built, it might be feasible.

In much of Asia, touching someone on the head is considered incredibly rude and/or condescending. Similarly, pointing at someone with your feet or hands is best left avoided.

Putting feet on a table is rude (like much of the West) but unlike much of the West, showing the soles of your feet is considered very rude. Examples include Thailand and some other Southeast Asian countries, so be careful of resting an ankle on a knee to show the soles of your feet.

Declining invitations

As a final point, if you’re not big on socialising in general, you may want to revise that policy while in Asia. It can be taken as a serious insult, especially if it’s a senior member of another business who invites you out.

And when you do go out, well, it’s a lot to remember. If you’re worried about slipping up and ruining that business trip, or if you want to know more about sourcing globally from Asia, it’s worth getting in touch with an expert.

Our staff are happy to take your call and offer you a QuickLook Analysis to see how much money we can save your business.