# Presentation: 721535

## Your B2B Market in China

**Identify, Contact, Sell **
**James W. Mayfield**
**Commercial Officer**
**May 23, 2006**
**Cleveland, Ohio**

## Today’s Discussion

**Finding Customers**
**Qualifying Them**
**Commercial Service**

**Today’s Discussion**

## Introduction

** ****Shanghai 2000 – 2004**
** ****Beijing 1996 – 2000**
** ****Hong Kong starting July 2006**

**Introduction**

## Slide 4

## Define Your Market

**Government **
**Private vs. State-owned **
**Joint Ventures**
**Foreign WOFE **
**your approach, their motivation to purchase & ability to pay all differ**

## Think Regional

**Language / Culture**
**Shanghai sales rep may have trouble in Guangzhou**
**Industry Clusters**
**Logistical issues**

**Think Regional**

## Data Resources

**How do you find them?  **
**U.S. sources / online**
**Commercial Service Programs**
***Market Research Firms ***
**Industry Associations & Events**

## Don’t forget existing customers....who may have operations in China
Working with agents

http://www.kompass.com/
http://www.alibaba.com/
http://www.tradenet.com/

**Working with agents**
- _http://www.kompass.com/_
- _http://www.alibaba.com/_
- ht_tp://www.tradenet.com/_

**Data Resources**

## Due Diligence

**How do you qualify customers?**
**Reputation**
**Track record / references **
**Can they pay?**
**USD or RMB?   **

## Pre-screening due diligence
Internet search (free)
Business License confirmation (free or low fee)
Credit Report (fee)

In-depth due diligence (fee)
Examination of public records
Reference check 
Site visit

Heavy duty Due Diligence (fee)
Legal
Financial

- Internet search (free)
- Business License confirmation (free or low fee)
- Credit Report (fee)
- In-depth due diligence (fee)
- Examination of public records
- Reference check
- Site visit
- Heavy duty Due Diligence (fee)
- Legal
- Financial

**Due Diligence**

## Unsolicited contacts through Web

Want to purchase a very large volume of goods

Insist your senior executives travel to China immediately to sign the contract with them in person

Request money prior to the trip...

In business less than one year

Provide no verifiable references

- Want to purchase a very large volume of goods
- Insist your senior executives travel to China immediately to sign the contract with them in person
- Request money prior to the trip...
- In business less than one year
- Provide no verifiable references

**Red Flags**

## Marketing Materials

**Don’t just translate your brochure...**
**- Are your customers web savvy?**
**- Translation is an art**
**- Modify materials for the audience**
**- Catalogs in China are more about “you” and less about product**

**Marketing Materials**

## The Approach

**References and personal introductions key**
**Focus on trust first, then product**
**Be prepared to get technical**

**The Approach**

## How do You Close the Sale?

**Follow up, Follow up, Follow up**
**Relationship building**
**Plan for getting paid**
**Can’t do it by remote control**
**Need someone on the ground**

## The Commercial Service 

**Our Mission: **
**help U.S. Companies export products and services**
**Find partners/ customers**
**Information and market research**
**Strategic advice**

## 125 Staff on the GroundYou’ll find us in:

**Beijing**
**Shanghai**
**Guangzhou**
**Shenyang**
**Chengdu**
**Hong Kong**

**125 Staff on the Ground****You’ll find us in:**

## www.export.gov/china

## Thank you!

**James W. Mayfield**
**U.S. Commercial Service**
**James.Mayfield@mail.doc.gov**
**Tel:  415-705-2282**
**Fax: 415-705-2299**

- www.export.gov/china

- www.buyusa.gov