Perceptions research overview
China and Japan, 2007

“High in human values, low in business acumen”

• The cultural differences between China and Japan means they have different business values
  
  
  • In China, new consumerism is growing rapidly; but relationships are still essential to business success
  • In Japan, values of specialisation and craftsmanship, and a quest for perfection underlie their sophisticated consumerism
  
  
• When deciding to work with a particular country, there are three broad stages in the decision making process

1. Awareness – New Zealand must be on the radar here to be able to progress to the next stage
2. Consideration – country is only important at this stage is it offers a competitive advantage. Decision makers look for strong brand stories and ‘ownership’ of a product or service (eg. Italy ‘owns’ parmesan cheese)
3. Final Decision – based on robustness of the business case and the relationships that support it. Both are necessary at this stage

• There is relatively low awareness of New Zealand as a business partner. The New Zealand story is not as obvious as the European or American stories, which have a strong romantic hold in Asia. However, there is an underlying affection (Japan) and respect (China) for New Zealand and New Zealanders.
  
• The people are viewed positively but are not seen as strong business partners and are felt to lack business basics and a proactive attitude. This is attributed to New Zealand’s ‘island attitude’ ie. a parochial outlook, businesses are conservative and risk averse, and the focus is lifestyle, not international business.  The perception is that New Zealand businesses can’t be bothered making the effort to do business in Asia or learning to play by the ‘global rules’.
  
• Human values are high and the country is viewed positively because of their strength. These values (which include openness, honesty, directness) make it pleasant to do business with New Zealand, but aren’t necessarily conducive to the harsh realities of global business.
  
• On the surface, New Zealand appears an ideal partner but their businesses don’t seem to come up to the mark. Chinese and Japanese businesses are frustrated by New Zealand’s relaxed attitude which seems half hearted and simplistic in the ‘survive or die’ business world of Asia.
  
• There are plenty of opportunities in China and Japan, however New Zealand businesses must rethink their approach to these countries if they are to be successful there:
  
  
  • spend time and effort learning about the Chinese and Japanese markets and their cultures in general. Show they understand the specific culture and markets
  • improve their business basics and become more commercially minded
  • be willing to make the commitment to a long term relationship.
  
  
• Green technologies are perceived to fit with New Zealand as the country is seen as developed and environmentally conscious. Coupled with human values, this is a credible fit with Asian perceptions of New Zealand.
  
• New Zealand businesses need to recognise it is possible to improve business acumen without compromising human values.

Research conducted in Shanghai and Tokyo, June 2007 by the Nielsen Company.  20 business people interviewed per country. For more details please contact Jennifer.andrewes@nzte.govt.nz

Commentary and Case Studies

China

• NZTE's regional director China Andrew White on the time it takes to establish quality business relationships in China.
• Read what the newly appointed Chair of NZTE’s China Beachheads Advisory Board has to say about market challenges and opportunities
• Case Study - Aucom
• Case Study - Intuto

Japan

• Shaun Conroy NZTE’s director of North East Asia says that there are no short cuts when it comes to entering the Japanese market.
• Case Study - NZ Berryfruit Group
• Case Study - Maximum Availability