Question:
Many U.S. companies such as Home Depot, Intel, Kodak, Nike, and Whirlpool have set up sales offices in China. One thing sales managers must be aware of is that the differences in sales styles between the United States and China are vast. For example, relationship building is very important in sales and in hiring sales people in China. Further, more companies need to figure out what part of the country and what market segments they are to enter. Generally speaking, Chinese consumers are more price-conscious than Japanese and Korean consumers. However, Chinese youth are less likely to follow the traditional values of collectivism, restraint, and harmony, but exhibit strong tendencies of individualism and self-reliance. They worship more western brands in comparison to domestic brands. If U.S.-based companies were to set up sales office in China, what would be their challenges and opportunities? Given the differences in sales styles between the United States and China, what should the company do to enhance its sales management?