China and Russia happen to be amongst the largest economies in the world. Russia has the 6th largest economy worth over $3.938 trillion with a per capita income of $27,466. China ranks no. 1 with a $23.2 trillion-dollar economy and per capita income of $16,676 making it one off the most lucrative markets for entrepreneurs and businesses looking to expand their operations.
Overcoming the culture and language barrier in China
One of the biggest obstacles for Western businesses in China is the language. Also, China’s business culture has been derived from centuries-old traditional business practices where most businesses were family owned. People in China don’t necessarily trust big name brands and many favor local brands to their international counterparts. It is for this reason that Western businesses need to have a locally focused business strategy.
Keys to developing a business in China:
- Make sure that your business website and any other associated websites are in Mandarin or simple Chinese.
- Hire local Chinese for on the ground operations like sales, customer service, and marketing. Having local Chinese nationals working for the business who have experience and that have relationships ensures success.
- Make sure that your marketing and advertising collateral has been translated by a native Chinese speaker who understands the culture. That way your message may not be misunderstood by the target audience.
- Take particular note of your logo and slogan. Symbols like dragons, the color red, etc. hold lots of significance in Chinese culture and so they shouldn’t be used
The Business Culture in Russia
Russia, unlike China, has a much more westernized business environment. Doing business in the country, however, does come undergoing a great deal of bureaucratic red tape and paperwork all of which is in Russian. The vast majority of Russians speak little English which poses a challenge to western businesses catering to the population. Also, Russians are wary of outsiders in general, and so they don’t readily accept western franchises which require some time and effort to build a credible image.
Keys to developing a business in Russia:
- Hire business managers, customer service people and marketing teams that understand both Russian and English. These people should have a good understanding of what your product is and how to introduce it to the market keeping cultural norms and traditions in mind.
- The corporate website should be in both English and Russian. Hire Russians translators who are native speakers, understand the culture of the region and have spent time in the UK and America. That way they won’t just be translating words but also ensuring that it’s culturally adequate.
- While in most cases a business may not have to change their logo, the tagline or slogan will need to be adapted for Russia. Just translating the slogan or tagline may not suffice. It may have to be an entirely new one.
- Make sure that all your corporate communications setup within the country are in Russian. Russian is widely spoken so your target audience, and other people your business work with in the region will expect you to communicate in this language.