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By Paul Miller
One of the largest performing arts facilities
in China is under construction in the provincial capital of Suzhou, a major
industrial area near Shanghai. When it opens in 2008, the Suzhou Science and
Cultural Art Center will feature an acoustical shell that has traveled
halfway around the world from our headquarters in Owatonna, Minn. Across
Asia we’re seeing continued sales growth into theatres and related
facilities, with activity particularly strong in China.
Examining four key factors behind this growth — renaissance, reputation,
relationships and resilience — provides insight for other companies looking
to expand into the world’s most populous country.
Renaissance: Growing Opportunities
China has a rich and proud heritage of culture and art, but recent history
has focused instead on industrialization and developing basic civic
infrastructure. However, as economic conditions have improved, citizens have
more interest in the arts. That’s because they have more time and resources
available to enjoy them.
New cultural centers like the one at Suzhou are springing up across the
country, where expenditures in culture, recreation and services grew by 13.6
percent in 2006. China currently has 1,900 opera houses/theatres, 2,900 art
centers and concert halls and 400 community cultural centers. In 2004 the
Ministry of Culture announced plans for 75 to 100 new facilities or
renovations annually for the next 10 years. Preparations for the 2008
Olympics in Beijing are also accelerating developments, as China seeks to
showcase its sophistication on the world stage.
When I talk with my U.S. colleagues, only a minority is aware of this
thriving cultural activity in China, and many seem intimidated by the
challenges of entering this market. Because the unfamiliar can be daunting,
I recommend focusing first on the familiar — your company’s reputation.
Reputation: Brand Matters
From clothing to soft drinks, from pianos to architects, China is
fixated on brand names. For high-profile facilities like Suzhou,
internationally known consultants are hired, in part, because their fame
gives the project instant credibility. However, these “name” consultants are
primarily involved in the initial design concepts. Local Chinese consultants
follow their recommendations, managing the details and controlling the final
design.
In making their purchase decisions, facility owners seek out information and
recommendations about suppliers. Prospective Chinese customers also want to
see the products with their own eyes. Many customers choose to visit our
headquarters and factory in Minnesota, along with making other site visits.
Such hands-on investigations and supplier audits make sense — products that
appear “equivalent” on paper may not really offer comparable long-term
quality, durability and value.
Chinese customers also have high expectations of their brand-name
equipment’s superior performance. Specific after-sales service requirements
are often written into contracts. We’ve found that establishing a leading
brand in a notable area like acoustical shells can open up package
opportunities to supply other performance equipment, such as music stands,
chairs and staging. Customers prefer to negotiate, process and coordinate a
package order.
It’s vital to remember that your company’s brand is also a package — one
that’s built on the combined strength of your products, service and
personnel. The importance of the human element cannot be overstated.
Relationships: People First
Once your reputation opens opportunities in China, long-term success will
depend on nurturing personal relationships.
Although Wenger sells direct in the United States, we’ve found it more
effective to work through resellers and sales agents in many international
markets, including China. Our local representatives have a better
understanding of needs and key decision-makers.
To support our efforts in China, we opened a Beijing representative office
in 2004 with one employee. She helps us navigate bureaucratic channels, and
her presence is a tangible sign of our commitment to this market. Because
pre- and post-sales support are such important elements to success, last
year we added a technician in Beijing.
Through our membership in organizations like IAAM and the Acoustical Society
of America (ASA), along with our involvement in notable projects around the
world, we’ve earned a reputation with many international consultants now
working in China.
For the Suzhou project, the European acoustical consultant had first met
Wenger representatives in the U.S. at an ASA meeting. Later he attended a
seminar on acoustical shells that we sponsored in Germany. He reinforced for
the Chinese owner that Wenger was the best choice. But even a strong brand
and excellent relationships cannot prevent the inevitable hiccups that come
along. When they do, how will you react? Resilience: Weathering Challenges
Serving the Chinese market will stretch your own comfort zone in many ways,
and adapting to these challenges is essential. Each culture has its own
expectations.
Standard practices customary in the United States, such as building the
acoustical shell based on field measurements, aren’t acceptable in China.
Their tight schedules require the shell to be built to match the rigging
plan, ready to be installed immediately after the rigging. Other differences
between a “typical” project in the United States and China include the
construction process, required documentation and expected response time. On
average, Chinese performing arts facilities being built today are larger
than in the United States and Europe. Some have two balconies, necessitating
a larger proscenium for adequate sightlines, with the acoustical shell
commensurably sized.
Even on such unique shell projects, there are local Chinese companies that
claim they can supply an equivalent product for a fraction of the cost.
Their quality, however, is often dubious. Acoustical towers require careful
design and construction to ensure their efficient, safe operation, even by a
staff with limited experience and training. Instead of feeling threatened,
we believe the presence of some inferior copycat products in China may
actually help us in the long run because customers will be able to see the
differences for themselves.
For non-Chinese companies, understanding these four factors — renaissance,
reputation, relationships and resilience — can help transform the
intimidating and foreign “great wall” of China into a great door of
opportunity.
Paul Miller
has managed international sales for the Wenger Corp. for 15 years, the last
four years focused on Asia. Wenger supplies facilities worldwide with
innovative music and performance equipment, including full-stage acoustical
shells, staging, portable audience seating, orchestra pit fillers, mobile
performance centers, folding choral risers, music posture chairs, music
stands and other performance-related specialty equipment. |
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