Right attitude key to succeeding in China
By Ruth Le Pla
The key factors behind Gallagher Security’s success in China are applicable to any other business looking to enter that market.
This was the message from Curtis Edgecombe, the company’s general manager – security, who outlined his company’s approach to doing business in China at a recent New Zealand China Trade Association (NZCTA) meeting in Auckland.
The Gallagher Group Security Division recently won the supreme prize at the Cathay Pacific NZCTA China Trade Awards. It was praised for being able to secure a large number of installations in the Chinese security sector over a relatively short period.
NZCTA chairman Stuart Ferguson said, “A good number of their contracts are government-related, so that makes their success even stronger in the knowledge of the competition they have warded off to secure their contracts.”
Gallagher Security designs, develops and exports electronic access control and intruder alarm systems, as well as perimeter security systems. Its products are exported to more than 45 countries.
The company inherited a small amount of China business when it acquired the New Zealand firm PEC Fuel Pumps in 1999. But it has only been proactive in the market since late 2007, when it decided to commit more executive time and resources to better
Since then it has focused on the airports and energy infrastructure markets. Its access control systems are now installed at more than 100 sites in China, including top-tier airports such as Guangzhou Baiyun Airport and Beijing International Airport.
Mr Edgecombe shared the key factors that led to Gallagher Security's success, which would also be relevant to other business trying to enter the Chinese market.
- Focus on a few very specific sectors or niche markets. “China is just too big and complex to focus on everything. So be very specific about what you do.”
- Research and understand the sectors you target.
- Know the buying drivers of your customers.
- Understand the regulatory environment and product requirements.
- Adapt products to meet the requirements of the sectors you are targeting.
- Understand the best route to market for your products.
Spend time on the ground. “This requires a lot of commitment from all levels of the organisation – from the CEO down to the technical, sales, training and business development people. Both sides of the partnership need to commit to spending time visiting each other.”
Mr Edgecombe concluded the most important factor is attitude.
“Attempting to do business in China with the wrong attitude won’t get you anywhere. A degree of open-mindedness, a willingness to learn, and the patience to develop properly informed opinions and relationships before making decisions are vital.”
He advised other companies to start small, make sure strategies were working, then apply more resources as business grows.
“Be flexible and willing to modify your approach as circumstances change.
“And understand that often there’s a unique Chinese way of looking at and doing things. This doesn’t necessarily mean you have to completely change your business practices. It just means you have to understand there are differences.”
Image: Gallagher Security general manager Curtis Edgecombe and senior associate Paul Davies