Fact: Asia accounts for 39% of the world’s GDP and is the largest continental economy by both GDP Nominal and PPP.
Only a foolish business(wo)man would not want to tap the market. But whilst many try to win business with Asians, only a handful are successful.
The main culprit?
Whilst there are many reasons, the most prominent is how Old Hollywood portrayed Asians far from what’s real, focusing on exoticism and otherness. Either the characters don’t speak English well, or they do so with a thick accent — classic stereotyping!
Remember Sixteen Candles in 1984? The film had a character named Long Duk Dong (Gedde Watanabe), and despite the actor being born and raised in Utah, he was required to put on a heavy accent.
No wonder several entrepreneurs find it challenging to win business with Asians. They simply don’t understand their market.
As a first-generation Australian immigrant raised by traditional Chinese, I understand Asian culture down to its core. In fact, my parents forbid us from speaking English at home with the belief that doing otherwise puts us at risk of losing our heritage forever. Needless to say, I’m an Asian so let me break these misconceptions down for you. You can thank me later. 🙂
1. Asians Are Well-Educated
They are so educated and probably more Australian than you are. 🙂
Asians comprise 30% of the elite universities’ population, and most of us view education as the primary means to succeed, therefore exerting twice, even thrice the efforts when studying. We are hard-working and we aim for nothing less than perfection, a core value that can also be seen in our work ethic.
So when an Asian tells you they can’t speak English, chances are, they are lying. They are not the immigrants who just got off their boat for the first time!
Asians are so good at looking timid, but beware because they are smarter than you think. Behind that mild look is a cunning player who’s already observing all the cards on the table. It’s one of the games we’re good at!
2. Asians Are Value-Conscious
Most people think that Asians are stingy. We are NOT!
We simply put a premium on value and quality.
If they see that your products and services are of value, Asians wouldn’t mind paying you right away.
In fact, the Chinese market is expected to become the largest luxury consumer by 2025. Last year, the luxury sales in China reached $73 billion, an increase of 36% from 2020, and there’s no slowing down.
It’s true that we ask for discounts, but not for the reason you think of. We haggle, we barter and we negotiate simply because we enjoy it. It’s a part of the business stance and culture we grew in. Truth be told, it’s like playing another game 🙂
But when it comes to luxury brands, I don’t think you’d see Asians haggling. They will pay their Guccis and Louis Vuittons in cash, almost 100% of the time, allowing you to get an ROI fast!
With this in mind, don’t offer them weekly and monthly payment schemes whilst highlighting that they only need to pay an extra $10 per week — that’s a lowkey insult. As I always say, don’t embrace their wallet, learn to genuinely embrace their culture.
Read More: Lessons We Can Learn from Ultra-Luxury Brands.
3. Asians Are Open-Minded
Asians are open to doing business with non-Asians. Specifically for the Chinese, they see Australia as a foreign direct investment destination. In fact, in 2018, The University of Sydney reported that Chinese investments reached a staggering $5.5 billion with 16 completed deals in the healthcare sector. Just imagine if we account for all industries.
Pro Tip: If the business is primarily owned by an elderly Asian, build strong relationships with their sons and daughters as they are likely to be the decision-makers.
Bonus Pro Tip: Know when to preserve the dignity of your Asian clients. I’ve seen western colleagues openly and even proudly trying to tell their Asian clients they are wrong. Sure, you can be right, but that won’t get you rich. You choose.
4. Asians Trust Their Inner Circle
Asians value genuine relationships, so much so that when someone offers them products and services, they try to get insights from their inner circle first.
If you are selling homes, getting recommendations from your other Asian clients can have a positive impact on your business. According to our internal research, 92% of consumers trust referrals from people they actually know.
Read: How to sell property to the Chinese.
Final Words
Asians will only do business with individuals they trust and believe. By understanding and most of all, respecting their culture and mindset, you already have the leverage.
