BIZCHINA / Biz Life
Executive education makes mark
By Erin Zureick
Updated: 2007-07-13 08:44
Guanxi is about networking and reciprocity, Sopranzetti said. "It's not
about shallow things," he said, explaining that guanxi is based more on
deep trust and understanding.
"That [guanxi] doesn't translate very well."
Sopranzetti added some firms also fail to take cultural differences into
account and don't do adequate market research. He pointed to an example
of two beer companies �� Budweiser and Miller Brewing Co.
From its consumer research, Budweiser learned that most Chinese drink
premium beer when they eat out. They further learned that because of
cultural norms, Chinese are accustomed to drink from larger bottles and
share beer during meals. As a result, Budweiser began to ship larger
bottles to China.
"Miller's bottles were too small," Sopranzetti said, explaining why
Miller failed to do as well in the market.
"Firms really need to understand the consumer environment. They need to
do their research."
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