For many, China appears to be enormously far away. With a totally different culture and many practical problems and unknown, sometimes impossible, regulations. Not for Marco de Bruin though. Long before any other molding producer even considered it, his company was using the opportunities China is offering. Today, while the competition is experiencing a difficult time, Quodo Mould Systems is trying to control its remarkable growth.

The company first set foot in China in 2002. “Enthusiastic by what we saw, we immediately ordered the first moulds. That turned out not to be so simple. To have an assignment executed correctly, it is essential to communicate extensively. Not by means of a laptop, conveniently operated from another country, but directly on the work-floor.”

Bureaucracy
To place an order in China is one thing, to start up a factory is another story. “It takes a lot of time and effort to work with governmental institutions. Bureaucracy is much worse than in Europe. But if you deal with regulations by interpreting rules rather than taking them literally, you’ll manage just fine. Also, depending on the attending officer, in practice, there are a lot more possibilities. And yes, a business gift ever now and then is part of the business. It can be a way to get in contact with a higher ranked officer, with more discretionary powers.”

Chinese employees
“Once the factory has been set up, workers need to be found. It tends to be useful to hire English-speaking Chinese, for it is no option to hire an interpreter twenty-four hours a day. Therefore as we were hiring people, we often chose locals who were able to talk English at a reasonable level. Twenty-five percent of our employees speak English, that is to say… they understand. When you look at all the Chinese Quodo has hired, three-quarter literally has to be told what to do. Unfortunately most of them are strangers to initiative. As far as I can tell that’s a consequence of their past. They have always been told what to do, top down. To change that is very hard, it requires a lot of deliberation, many meetings as well as intensive coaching.”

Double standards
Leveled participation, in order to encourage initiative, is that still desirable when your IP is at stake? “Problems with copyright in China are exaggerated. We once made molds for a certain product and consequently the samples appeared at a trade show. Also they were given away as a present. Four months later we found that another company was marketing the same product. It had been reproduced in China, but through an American initiative. The Chinese only did what was asked. So the European and the American companies initiate to copy something and afterwards they blame the Chinese.”

One country, various cultures
China is gigantic, in dimension as well as population. This is why there isn’t such a thing as the ‘stereotype’ Chinese. Quodo Mould Systems, with two bases in the country, experienced this themselves. “The Chinese in South China have different traits than the people in North China. The working attitude for instance, is more reliable in the North. They are less undertaking, but work hard. In South China on the other hand, personnel changes jobs more easily. They aren’t easily satisfied, do not follow up orders very well and they need more social attention than the Northerners. So if you value loyal employees, go to the North.”

Golden combination
Quodo discovered that there were more differences between Chinese and European ethics. “In the West organizations appreciate presentation. Chinese predominantly consider functional aspects. China in that sense is excellent. Employees work hard, do not complain and listen in general. These characteristics, linked to the European product standards, make for a golden combination.”

Get help
“The bottom line is that there are opportunities for almost any company in China. But to conquer the market, takes time and patience. Quodo was disappointed in the enormous amount of energy it costs to achieve the goals that had been set. Physical attendance proved to be a necessity. But do not let that discourage you. By now there is enough help, information and knowledge to more easily shift between regulations and obstacles. On top of that we are willing to share our experiences. And, judging by the many trade missions, seminars, and web sites like this one, we are not the only ones. So go ahead; mould your business model according to our learning experiences anytime, I’m sure it will fit you like a glove.”

Printer friendly version of the interview “Molding your business for China.”

Dutch English Chinese