Sales and Marketing in Asia are not the same as in Europe or America.
Here are 6 common business mistakes Western companies make in Asia.
1) Appointing the wrong salesperson to negotiate.
In Asian cultures, hierarchy is key, sending a junior representative can be seen as disrespectful and can limit access to key decision makers. Additionally, in more traditional, masculine cultures, sending a woman to lead negotiations can cause discomfort, especially with older male colleagues.
2) Speaking too directly or bluntly.
Western directness can clash with Asian indirect communication, where maintaining harmony and “face” is key. Directness can be seen as rude, and public contradictions can damage relationships.
3) Not showing patience.
In Western cultures, time is equated with efficiency, which leads to expectations of quick deals. In contrast, Asian negotiations often prioritize trust-building, and rushing can be perceived as disrespectful. While Western negotiators favor rapid decision-making, Asian counterparts typically favor a deliberative, consensus-based approach, with many decisions made by senior members outside of meetings.
4) Failure to engage in relationship-building activities.
In Asian cultures, informal activities, such as dinners and karaoke, are essential to establishing trust. Asians view relationship building as essential to long-term success. Multiple meetings and extended decision-making periods are essential steps in the process.
5) Assuming verbal agreements are binding.
The Westerner may view initial verbal agreements as firm commitments, expecting the other party to be transparent and open. However, the Asian partner may see these initial discussions as part of a long negotiation process, not a firm commitment, which leads to confusion when changes occur later. Westerners may feel misled, thinking that the other party has not been sincere from the beginning.
6) Viewing Formal Contracts as Sufficient.
Western negotiators often prioritize formal contracts, while many Asians emphasize relationships and trust. Thinking that signed contracts are binding can be confusing. Asian partners may view these as formalities, with the real deal being based on good rapport.
To avoid these potential incidents, both parties should adapt their approaches to the local culture, creating a more collaborative and effective negotiating environment.
Post originally published on Linkedin 
