Hosted by Jean-Jacques Hardy, Chia-Yi Tung will be one of three panellists at “Breakfast talk on economic trends – the keys to overseas success” organised by CCIRS on February 11. For more details and to register, please visit: http://www.ccirs.qc.ca/activitescalendrier/matin-tendances-economiques-11-fevrier-2010-10011.html

SCHEDULE (in French only)
7 H 15 ARRIVÉE DES PANÉLISTES
7 H 30 MOT DE BIENVENUE ET SERVICE DU DÉJEUNER
7 H 40 MOT DU PARTENAIRE PLATINE
7 H 45 CHIA-YI TUNG, Présidente, Orchimédia Inc.
8 H 15 JEAN-PIERRE FORTÉ, Président, Vision Sympalys
8 H 35 MARIE-FRANCE HOUDE, Directrice de comptes, EDC
8 H 55 FIN DU PANEL
8 H 55 PÉRIODE DE QUESTIONS
8 H 58 CONCLUSION
9 H 00 FIN

Chu and Chan (2008) have looked into the differences between Taiwanese, Cantonese and Chinese consumers. Among others, they have discovered that the Taiwanese respond much less to promotions that aren’t based on price, unlike the two other groups. They also noted that the factors that positively influence consumers when faced with the image of a company differed from one group to another. Brand names, product packaging, labelling and how easy the product is to purchase are the factors that the Taiwanese consider the most, while Cantonese put more attention on the availability of the goods and product presentation (display shelves, window displays, etc.).

In a world where few communication barriers remain, culture is more and more subject to various influences. What characterises a nation today may not be the case for future generations.

Sources : CHU, K-M et CHANG, H-C (2008). “Cross-cultural Consumer Behavior of General Merchandise for Taiwan, Hong Kong, and Shanghai, Taiwan”, The Business Review, Cambridge , Vol. 11 , No. 1
TAO, S-P (2003). “Life Style and Consumers in Taiwan and the United States; A cross cultural comparison of Activities, Interests and Opinions (AIOs)”, Thesis, University of Minnesota.

SMEs are the pillars of its economy as one in seven Taiwanese owns a company. Indeed, they represent 97.6% of all companies and generate 77.12% of all employment.

In the last 40 years, Taiwan’s economic growth has been largely driven by foreign trade. Its exports are mostly (98%) industrial products, while initially it was principally agricultural products. For that matter, this sector now only generates 1.7% of GDP, while service industries contribute more than 73%.

Taiwan is recognized as a world leader in the ICT sector: 99% of server motherboards, 93% of cable modems, 87% of notebooks, 77% of LCD monitors and 70% of personal digital assistants (PDA) are made there (New Zealand Trade and Enterprise). Although most companies work on behalf of big international banners, they are promoting their own brand names more and more. Acer, ASUS, BenQ, Mitac and HTC are some of the most internationally recognized brands.

Also, recent economic growth has contributed to the emergence of a bigger class of wealthy people. This wealth is concentrated in urban areas: the GDP there is six to eight times higher than in rural areas. More than a third of the urban population (Hanoi / Ho Chi Minh) are now a part of the upper-middle class.

Furthermore, it is necessary to geographically divide the market into parts according to the product or service that is to be offered. It is in Ho Chi Minh that consumers are most fond of foreign brands. In fact, more than half of foreign consumer goods are bought there. On the other hand, foreign companies specialized in infrastructure development (energy, environment, aviation, telecoms, etc.) should be looking more towards Hanoi, as it is where the majority of state company’s headquarters are located, which are responsible for a significant proportion of total imports.

Attitudes towards brands differ from man to woman. Women shall choose products based on efficiency (perceived), whereas men choose certain brands in order to project an image of success and social achievement.

In all cases, it is important to remember that although brands influence the decision-making process of the Vietnamese consumer, he remains very sensitive to the price. It is still the number one criteria when it comes to making a purchase decision.

Source:U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2008.

He who wants to win, wants the ball…

Who could have believed that McDonald’s, whose main product is a hamburger, would succeed in a market where the vast majority of people don’t eat beef and a quarter of the population eat no meat at all? Yet, there are currently 160 branches across the country! This is because McDonald’s adapted its products to match local taste in a distinct menu, with no beef or pork but lots of vegetarian options. In fact, more than 70% of the menu is indianized (compared to a general average of 33% in Asia). Besides, they were able to keep their branding and link it to an image of quality, impeccable services, cleanliness and world-wide values.

Sources: http://www.businessweek.com/innovate/content/may2006/id20060508_952455.htm
http://www.slideshare.net/rangnekar/mcdonalds-india-launch-presentation

China and Canada share many common interests such as the enforcement of intellectual property rights (subsequently written as “IPR”). The best method to protect IPR is by registering commercial patents and/or brands, in spite of the required procedures and deadlines. In order to avoid litigious and complicated proceedings in cases of copying, we advise you to:

• Register all IPRs in your country of origin before entering China. This way, you can benefit from a priority over other applicants for the same or similar IPRs during a predetermined period under the Paris Convention. Only registered IPRs are protected.
• Apply to register your IPRs on arrival in China or even before your products penetrate the Chinese market by way of sub-contracting or sale.
• Make your application to competent authorities in order to accredit your trademark as a famous brand and benefit from the best protection possible.
• When a conflict arises, swiftly take legal action because the process is long and complicated. Mainly, two courses of action can be taken:

1. File a complaint with the administrative authorities if someone else registers IPRs that are similar or identical to yours.
2. Initiate court proceedings if the advantages linked to your IPR are violated.

The Chinese government has set very clear laws and regulations concerning trademarks, patents and copyrights and puts a lot of emphasis on ensuring that Chinese companies and individuals respect them. There has been a large rise in the number of cases where a Chinese company in China has abandoned an application for a trademark that is similar to that of our clients, or has paid damages for the illegal use of our client’s technology, following negotiations with and under the pressure that local government and Beijing authorities apply on Chinese companies in cases of IPR violation.

It is important not to neglect the registration of your internet domain (.cn, .com.cn, etc.). There has been an influx of Chinese companies informing our clients that a false and unfounded registration application has been attempted by a company or individual on their domain name. Keep your guard up, and make sure you register all domains that are similar to yours.

We know Japan as being THE country at the cutting edge of technology, but the reality does not seem to be so eloquent to me. In fact, America, Europe and the rest of Asia all have technology that is comparable to what can be found in Japan. Japan is without contest a great creator of technology, but above all it is, according to me, the great master integrator of technology. Take the case of televisions. The concept is evidently Japanese, but the more complicated and crucial pieces are of American or European design and made in China before being assembled in Japan or in a Japanese factory in China. Now that China, India and even Turkey are capable of designing appliances that are just as sophisticated as Japan’s, with access to the same technology, what is left for Japan? I think it is the Japanese consumer market that is the distinguishing factor. The Japanese are very fond of products that typify novelties, fashion, quality, harmony and effectiveness. Image being crucial, a Japanese person would not get his cell phone out to read or write emails in the metro unless it were the most up-to-date model, which explains the infatuation with brand names. Thanks to this market that is not too big or too small but so demanding, Japanese companies are capable of manufacturing products that can meet very high expectations. This market also offers good opportunities for Quebec products and technology, assuming that they will be marketed by competent local partners.

• The value of the gift shouldn’t be too high as the recipient would feel obliged to give a gift of similar value, or would feel embarrassed for giving you a gift of lower value. If you receive a gift, don’t forget to reciprocate with a gift of similar value.
• Pay particular attention to the packaging, which is just as important as the gift itself and thus must be impeccable. In general, avoid black and white which are colours that signify bereavement. Remember that red packaging, which is highly thought of in China, should not be used in Korea.
• The number “4” has a similar significance to the number “13” in the West. It is thus essential to avoid packets of four.
• Certain objects should definitely be excluded. This is the case for all pointy items (knives, letter-openers). Also, one should abstain from offering gifts that tell the time such as clocks or calendars.
• If the person to whom you are giving the gift refuses to accept, you must insist. It is common practice and is a sign of politeness. In addition, don’t be surprised if the recipient doesn’t open it immediately in front of you.