Language, Culture and Customs
One of the most important things to remember is that really understanding your market takes time and some markets considerably longer than others. The time spent trying to understand the country in which you are doing business will, however, always be a worthwhile investment.
You should avoid being complacent about a new market. While a country may appear to be accessible and familiar, there may be nuances that you are not aware of that may influence how you and your product or services are received.
In any country you must always remember that you are a guest and expected to abide by the cultural and legal obligations of that country. While you may not like certain elements you should not expect to change them. You should not be expected to compromise your own values, however, you may need to find a middle ground. At the end of the day, if you are not comfortable operating in a particular market, it may be worth exploring other options.
A language barrier is often one of the most obvious examples of cultural difference. While in many countries, English is widely spoken, trying to learn some of the local language will always be appreciated. When undertaking any form of business negotiations, however, it is crucial to ensure that all communication is clear and you are aware in advance what language the negotiations will take place in. If necessary, you should consult with your contacts in the market, such as the local Austrade office and seek their assistance arranging translators and or interpreters. You should also seek advice as to whether your information relating to your product or service, including packaging, brochures, promotional material or manuals, should be translated. If your product or service is going to be distributed widely you should also check whether local dialects need to be taken into account.
Not being aware of less obvious cultural traits can also impact on the success of your business venture. For example, you should be aware of the role of colour in the market. In many countries, colours other than black are associated with death and funerals. Conversely specific colours are associated with wealth and fortune. While a particular packaging may be extremely successful in Australia, it could be a costly exercise to discover that your product never moves off the shelves simply because of the colour of the box. Numbers and seasonal timing may also be relevant. Particular symbols may have religious connotations or may be related to royalty.
The formality of business relations in your target market will have a considerable impact on your business negotiations and ongoing relations with your business contacts. You should seek advice on the dynamics of hierarchical structures to ensure that you are dealing with the right people for the stage of your negotiations. You should also be aware of the emphasis that is placed on different elements of the negotiation. Is a handshake taken as a legally binding contract? Alternately, does the piece of paper you have just signed actually carry any long-term legal obligations? You should also be aware of the tools of business dealings. Business cards will always be important, but how do your cards need to be tailored to the market? Should they be translated? Do they need to be exchanged in a specific way? Is there specific information that should be included? Also be aware if and when gifts are appropriate and/or expected.
The interpretation of time can vary greatly from country to country. In some instances punctuality may be crucial and to run five minutes late for an appointment may cost you your contract. In other circumstances, waiting outside an office for several hours for your appointment may be the norm. In some countries all businesses close for an extended period over lunch. Similarly a number of countries do not operate on the working week as we know it and businesses may be closed on the day you intended to do business. Understanding these cultural traits as well as other key factors such as traffic conditions will be crucial in determining how you operate in the environment and how you structure your time to be most effective. Not only is this important when operating in the market but also when you return home to ensure that you respond appropriately to queries and that in turn your own needs are met.
It is important that you understand the role of religion in your market. While in some countries religion may not intrude directly into the business environment it may still shape cultural attitudes and is worth researching. In other cultures religion may play a significant role and you should be well informed so as to avoid behaviour which may cause offence and jeopardise your business relationship. Be sure to investigate the timing of religious holidays and determine how they will impact on your business dealings.
An understanding of all public holidays is crucial for planning your visit(s). However, you should not automatically avoid all public holidays. Seek advice from your contacts as there may be value in timing a visit to coincide with a particular event if this will allow you informal access to potential business partners.
While in Australia, women constitute an increasing percentage of the business and export community, in some countries this is not as common. Before travelling seek advice on the way professional women will be received. In some instances doing business as a woman may be next to impossible. In these circumstances, if you are committed to that market, you may wish to appoint an agent or male colleague to act on your behalf. In other situations, while local women may not be active in the workforce, it may be acceptable for foreign women to do business. Importantly, investigate thoroughly whether there are expectations as to how women should dress. Understanding any sensitivities associated with how you do business with women in the market is also important. For example, while one of your key potential business partners may be a woman, it may be socially unacceptable for her to meet male business contacts without a chaperone.
You will all too quickly discover the local bureaucratic culture. This may be an overwhelming experience, or a smooth simple process. Take the time to determine your best approach. Understand the procedures – triplicate? duplicate? – and make sure that you comply. Having to go away and come back is a frustrating process. Is there a good time of the day to lodge documents? More importantly, when are the bad times? Do your homework and don¡t forget to take patience and a sense of humour as these will be crucial!
