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Dec 06

Fortnum & Mason is Headed to China – The Risks and Benefits of Doing Business in China

According to the London Evening Standard, the renowned British grocer Fortnum & Mason, often branded as the “Grocer of the Royal Family”, is currently looking at opportunities to do business in China, India and the Middle East. This international development has come to light after Fortnum & Mason posted their first profits since 2005. According to Beverly Aspinall, Managing Director of Fortnum & Mason, doing business in China is part of a long term strategy to promote and sell the company’s luxury products on new markets.

Chinese tea CtPaul i Fortnum & Mason is Headed to China – The Risks and Benefits of Doing Business in China

China is probably one the most attractive destinations for Fortnum & Mason, mainly because of the country’s tea-drinking culture and the interest in their luxury products. Fortnum & Mason is already selling its famous tea, jams and other delicacies in Japan and in the US, and it sells its products to the countless tourists visiting London from around the globe.

This move to China will be an important event as it will be the first time Fortnum & Mason tries to settle outside the UK since the short lived attempt to open a store in New York City in the early part of the 20th century. Some may wonder how this archetypal British institution will overcome the huge differences that exist between the two countries and adapt to the Chinese cultural and business environment.

Doing business in China can be challenging for unprepared organisations. The presence of really strong Chinese cultural values like the importance of relationships, the constant search for harmony, the obsession of keeping “face” and the predominance of the group over individuals can create cultural pitfalls and challenges for a western company doing business in China. Organisations like Fortnum & Mason doing business in China must understand and respect the unique cultural preferences and expectations of Chinese customers to avoid costly faux pas, poor customer service or cultural misunderstandings that would potentially harm the company’s brand image.

Despite the potentially challenging cultural differences a western company like Fortnum & Mason may face, China remains an attractive market with lots of potential. Cross cultural awareness training courses like Doing Business in China can help Fortnum & Mason harness the true potential of the Chinese market by giving them the knowledge and skills they need to adapt their products and customer service to the expectations of their Chinese customers.

Cross cultural awareness courses can help Fortnum & Mason take the right first step and make the best impression when doing business in China. With the right cross cultural training and support, Fortnum & Mason should find success in the Chinese market and the Chinese will be able to enjoy the authentic and fine taste of British culture through Fortnum & Mason luxury tea and products.

© Communicaid Group Ltd. 2010

Tagged with: chinese cultural core values • Chinese customers • Doing Business in China • Fortnum & Mason • Selling across Cultures • working with the Chinese

Aug 16

Selling across Cultures – Increase Profit and Customer Loyalty

Cross Cultural Training, Culture, Culture training for Business & Management No Comments »

Many people believe that intercultural training courses are only relevant for international assignees, high level global executives or members of multicultural teams wanting to work more effectively with foreign counterparts. Intercultural training courses are indeed relevant for these populations but they can also have real impact for people in other roles such as customer service or client relations.

Business is becoming increasingly global as organisations expand into other countries and employ individuals from multicultural backgrounds. Employees who support customers in or from other cultures need a high level of cultural awareness, understanding and adaptability skills to be effective, whether over the phone or face-to-face.

This is especially true in the luxury industry where customers from newly developed and fast growing countries like China or India are becoming more and more present. The increasing population of customers from other countries is leading to an increased need and demand for intercultural training. Luxury brands such as Chanel, Harrods and Burberry who want to take advantage of this new customer market must understand the different cultural expectations, needs and shopping habits of their international customers.

Being prepared to deal with international customers can greatly increase the ability of sales personnel to provide a superior service and meet their sales targets. Intercultural training will enhance their performance by giving them the cultural knowledge they need to decipher customers’ behaviour and answer their unique needs. This in turn will increase the customers’ loyalty to the brand bringing the company profit for longer.

For example, an intercultural training course about Chinese culture will help customer facing employees develop strategies for welcoming and serving large groups of Chinese customers. In addition to helping them find ways to manage groups of Chinese customers, intercultural training also gives them an understanding of why many Chinese customers come as a group as opposed to individually. Intercultural training would also give them information about Chinese culture that they could use to build relationships with their Chinese customers which can only help the sale.

Understanding cross-cultural communication styles, either verbal or non-verbal is also crucial when selling across cultures. Using the right tone, adapting to the customer’s level of English or answering complaints in an appropriate way is as important as interpreting the meaning of a silence or a smile which can have completely different meanings from one culture to another.

Customer facing employees must have a high level of intercultural awareness as well as the ability to adapt to their international customers’ needs and expectations in order to be successful. Tailored intercultural training programmes provide a comprehensive overview of the intercultural practices and strategies they need to ensure they provide the best customer service to customers of any nationality. Communicaid’s intercultural training programme Selling across Cultures will give your sales team the competitive edge they need to take advantage of this interested and ever increasing international customer base.