[quote=“Jive Turkey”] I’ll describe a product my company (HK owned) makes: multimedia speakers. Let’s just consider the plastic casing, not the circuit boards or the speaker driver (those are slightly higher value-added things that might be exported on there own, but probably just to another developing country for further processing). Suppose my company is Taiwan or HK owned and managed. A company like this would probably have an office in Hong Kong or Taiwan, but most of its workforce will be over the border. The company would sell its speakers to companies like Sony, Philips, Panasonic-National, Altec Lansing, Logitech, etc. Those companies’ staffs in Hong Kong/China are ALL Chinese. If there are any gweilos, they are high up enough that they aren’t going to be dealing directly with suppliers.
So my HK/Taiwan company might assemble the speakers. To get the plastic casing, we might do the tooling and injection ourselves if we are one of the bigger companies in the business. More often than not, though, a company like ours would outsource that plastic casing to a plastic injection factory. Such a plastic injection factory would rarely have the opportunity to sell directly to a foreigner–foreigners would rarely have the need to just purchase plastic parts to take back to their country for further processing. If that plastic injection factory is bigger, it will make its own injection molds or tooling. If the plastic injection factory is smaller, it will outsource the tooling to an independent tooling shop. The plastic injection factory will also need to buy raw plastic from a plastics supplier. All of these stages are in China. Why would a tooling shop or plastics supplier need to advertise in English if the supply chain is: plastics supplier>tooling shop/injection factory>speaker assembly factory>HK/Taiwan parent company>HK/Taiwan/Chinese managed subsidiary of an MNC (Altec Lansing, Logitech)>retailer such as Walmart, Carefour, etc? Why should a company market itself to the wrong audience?
The only time when a plastic or tooling company is going to deal with a foreigner is when a.) a Chinese company one, two or three steps down the supply chain brings its foreign buyer by for a quick visit/inspection; or b.) a HK/Taiwan trading company doing sourcing for foreigners brings a client by for a short inspection. I meet lots of foreingers this way, and I can assure you that they don’t give a sh!t if the tooling factory’s brochure has readable Engish. They want to see the details on the factory floor. They don’t expect slick advertising from a tooler or a supplier of big bags of plastic beeds. They expect decent advertising and communication from the HK/Taiwan parent comany or trading company, not from the steps above them in the supply chain. For most mainland companies, the reason they can’t sell directly to foreign buyers isn’t because their advertising is poor; it’s because they don’t have anything to sell to them. Once they actually have a product that a foreign company needs to directly source from them, then they will need better advertising. At the present stage of economic development in China, Taiwan and HK, the people who need to concentrate on how to improve their marketing or how to build a brand are the HK/Taiwan run companies that deal directly with foreigners or foreign owned companies.[/quote]
I agree, and I am not talking about the vendor out in Jung He or Panchio who is doing a plastic top cover or casing. I am talking about other companies that sell or try to sell finsihed goods or a brand to the international market, be it through channel sales etc.
Ok maybe my point here is more localised to Taiwan than China
I have a friend who works in a company who does image and branding (through advertising and marketing material) for these local taiwanese companies who are trying to get into the intnernational market. It is a hard sell to try and convince them of the benefits of branding and image and splashing out the investment in this. Their mindset ( from years of Taiwan being a cheap place to manufacture) is just to try and make it cheaper than the guy down the road