Hospitality
It is during this period of small talk that you should offer visitors some refreshment. Offer the most senior person a beverage first. If a guest, you may automatically be presented with a beverage. If this happens, you are not obliged to drink it.
Gift Giving
Gift giving is common in Asian business. However, it is not necessary to present a gift at the initial meeting unless it has been preceded by considerable correspondence. Gifts should be presented at all subsequent meetings.
Hosts may present gifts at the conclusion of the first meeting; small, promotional items are sufficient.
The visiting party should not present a gift at this early stage as it could cause the host to 'lose face' if he/she is not ready to reciprocate immediately.
Using Interpreters
Interpreters are useful in maintaining the flow of conversation if you do not speak the language. However, be aware that it is difficult to find a truly neutral interpreter, particularly if he/she is organised by the other party. Treat all information given to an interpreter cautiously.
Always look at your Asian contacts - not at the interpreter - during discussions. The interpreter is considered to be a tool of the discussion, not a part of it.
Follow-Up
It is important to follow up on the relationship established during the first meeting. If language is not a problem, telephone to thank your contacts before leaving their country. Follow that up with a formal but friendly letter to the senior contact about a week later. This letter should outline your discussions and express hopes for an ongoing business relationship. Further correspondence should continue in a positive but undemanding manner.
Decision-Making
The people you meet may not be the decision-makers, particularly in large companies. Therefore, it is useful to understand the decision-making process of the company you are dealing with. This will give you a better understanding of the timeframe decisions will take and the likelihood of success.
Entertaining
Entertaining is a very important part of Asian business and is often used to establish and maintain relationships. When overseas, hosting dinner and/or drinks are ways to build business contacts. Golf and sightseeing are also effective.
Gifts should be presented at these occasions, with the senior member of the Asian delegation receiving the best gift.
While these occasions are important, do not expect to discuss much business. Social activities 'lubricate' relationships and help Asian contacts know you better so they are more comfortable doing business with you.
If personal favours are asked, e.g., to assist an Asian student to study in your country, consider helping if you can (unless the favour is illegal or immoral), especially if the person seeking the favour ranks highly in the decision-making process.
When entertaining Asians in your country it is customary to insist on paying. It is also wise to pay if you have sought a lunch or dinner with a contact overseas. Entertaining overseas can be very expensive, especially in clubs, so select venues carefully.
Asians usually like to eat out but the Japanese sometimes entertain at home. If you are invited to a Japanese home, it is a great honour and you should give your hosts an appropriate gift. Remember to remove your shoes before entering a Japanese home.
Age
Age is often linked to status in hierarchical cultures. The older you are the higher rank you should have achieved (or wisdom acquired) and thus the greater status and respect you should be shown.
We at Specto can assist your Sales Executives / Personnel travelling into Asia, by one-to-one mentoring on basic business ethics, including does & don’ts. |
