Asia is very different from any other culture, and when doing business in Asian countries, it is important to research the customs and traditions of said country. In this short article, we offer a few general tips on doing business in Asia.
Etiquette & Culture
It is usual to build business relationships over social events such as dinner or drinks. Asians like to get to know a person a little before moving on to business, so be patient and smile, it is fun! This might involve 2 or 3 different interactions before business is even mentioned, and you should refrain from rushing things.
Understand Hierarchy
There is a strict hierarchy in Asian nations, so always pay respect to senior people. Business decisions are top-down in most cases, unless they are minor.
Communication
Avoid direct eye-to-eye contact, exchange business cards (using both hands) and be a little indirect. Do not point or touch your Asian colleague.
Be Patient
Some Asian businesspeople take a while to warm up, and small talk can drag on; in such a situation, it is best to let the Asian person take the lead.
Do Not Generalise
Every Asian nation has its own customs and values; whether you are booking a meeting room in Tokyo or dining with a Thai CEO, you should have a basic understanding of the culture.
Do Specific Research
Of course, this very much depends on the nature of the business; you might need to find out about IP laws in a specific country, or import duties, or the complex export rules and regulations. We are lucky today, as we have search engines and in seconds, you can have all the info you need on your screen.
Focus on Building Relationships
Doing business in Asian countries is all about developing relationships; important connections demand spending time getting to know key people on a personal level. In the West, personal things can easily be pushed to one side, and business can be done, whereas in Asia, personal relationships are part and parcel of a business relationship.
The Business Card Exchange
All Asian cultures adopt this practice, and it should be done at the very start of the meeting. A tip: when you are handed your guest’s card, don’t just put it in your pocket, rather take a look and make a positive comment or nod your head. Then you can put the card away. Many Asian businesspeople are incorporating QR codes into their cards, which allows you to go straight to their web page or social media account. Click here for a guide to South Asia.
The Handshake
Unlike in the West, the handshake should be a gentle affair, rather than having a strong grip, which is the preferred way in Europe and the West. You don’t want to come across as aggressive, so a limp handshake is the best solution.
Giving Small Gifts
The giving and receiving of gifts is a big part of Asian business etiquette; it builds respect, so make sure you take something along, you don’t want to be caught in a situation where your Asian colleague presents you with a gift, and you have nothing to give in return.
The Use of Messaging Apps
Asia uses many different apps for business; in China, the go-to app is WeChat, while Line is preferred in Thailand and Japan. The Koreans seem to use KakaoTalk, while WhatsApp is the one for India, Vietnam, Singapore and Indonesia. Ask your colleague which app they prefer and download it so you can keep in touch.
Punctuality
Regardless of the country, you should always be on time when meeting an Asian for a business chat. In Singapore, Japan and South Korea, being late can damage your credibility, while arriving late for a meeting in Bangkok is no big deal. Always remember to engage in some small talk before getting down to business.
Extending Social Engagement
It is often the case that an Asian host will invite you for lunch or dinner in order to continue to develop the relationship; you should not see this as a waste of time, but rather you should accept and follow your host’s lead.
Final Thoughts
We hope that this short article helps you gain a better understanding of doing business in China, Japan, Thailand, Malaysia, Singapore, Indonesia, South Korea or any other Asian nation. The most important thing to understand is that the pace of business is much slower with a strong emphasis on developing personal relationships at the outset. Allow your Asian colleague to take the lead, which is the safest way to approach doing business in Asia.
