Business with the East built on long-term relationships

As trade with China and the Far East continues to grow at an unprecedented rate it is becoming increasingly important for South African companies to make sure they understand this business environment. And it’s not always easy since much of the success in dealing with the Chinese is built on trust and knowing your business partners well. Margrit Wolff, managing director of Mercury Freight, has worked for years to build up an extensive network of partners in the Far East. “China is built upon relationships,” she says. “Getting to know you is a key part of their business culture and it does not happen overnight. They will only begin to explore a business relationship once they have got to know you and are able to vouch for the person that you are.” Making it in the Far East market therefore requires a strong network with partners that are supportive, based on strong relationships that started with personal introductions and developed from there, says Wolff. “I have worked very hard at building those very relationship over the past 12 years. The Chinese are very loyal to friendship and respect it,” says Wolff. For the Chinese, honour and good reputation are key for successful relationships. Says Wolff: “The Chinese are very different from us and one must understand those differences to be able to operate in that market. It takes time to truly understand business in the Far East and one must be willing to put in the effort in coming to terms with the culture difference. One must also realise that they have gone from being a totally communist society to a consumer society with only a communist central government.” According to Wolff, it is however integral that South African companies realise the importance of this particular market. “If one looks at the scale of the investment China is making in Africa, then one understands the importance of doing business with them or losing out. Just as important is the way they are investing,” she says. “Infrastructure projects are high on the agenda and the way they are doing it is by putting up the money up front and then taking a percentage of the profits as payback. That means they are here for the long haul by entrenching themselves in our market.” She says for this reason companies such as Mercury Freight have to continue to build relationships in the Far East, making sure they are growing their existing partnerships. “South African companies need the alliances and partnerships, but more importantly we need to make them work. China is a dynamic country and while its growth may be slowing down slightly, it remains a powerhouse of utmost importance to us in Africa.” Wolff says that Mercury Freight is focused on offering clients a total onestop solution when it comes to the Far East. “We can ensure domestic distribution into retail stores, if necessary becoming another department within the company to ensure a fluent supply chain.” CAPTION Margrit Wolff ... fluent supply chain.