Is It What Chinese Consumers Want?
What are the differences between the Italian approach of shop-customer relationship and Chinese business guan? As stated In the case study, “Alfonse decided to take an opposite approach compared to that which large multinational companies would take In entering a new market, such as formal market planning and research. Alfonse believed that action Is far more Important than planning.
Even though Alfonse did not undertake any formal market research, he felt he knew what would work and what would not work in China. ” (Gao, G, & Ghana, 2011, p. 306) Alfonse did not take formal marketing research and failed to appreciate cultural differences between the Italian and Chinese market.
According to the case study, in Italy consumers traditionally have very close relationships with shop owners and have a lot of trust in shopkeepers (Gao, G, & Ghana, 2011). “Close relationships between buyers and sellers are they key to cuisines success” (Gao, G, & Ghana, 2011, p. 05). In China, personal relationships are important as well, but Guiana “is particularly difficult to handle for for foreigners in China due to their newness to the market and lack of Guiana knowledge and skills” (Gao, G, & Ghana, 2011, p. 307).
What meant close relationship in Italy meant something different in China. “In the West, relationships grow out of deals… In China, deals grow out of relationships” (Smith, 2012).
Also, Guiana most be cultivated over time, in many cases without an specific need or use of the relationship.