Day Thirty

This morning, we had lesson with our Chinese lecturer. He taught us about the influences on purchase decision in China. There are some factors like price, brand, previous experience, recommendation, package, promotion, and etc. In these factors, price and brands is the most important one across the tiers.

In the Chinese cultural, they are more willingly to spend more on their child. It is shown that Chinese spent more than forty per cent of their income on their child, making sure that their child gets the best education and feel comfortable with life.

Network is a very important factor in China. For the western, relationship grows out of deal. However, in China, deals grow out of relationship. It is part of business strategy. It may be an asset if it is well managed. On the other hand, it may be a liability if it is not managed well. Good understanding of relationship in China is crucial, especially for foreign investor who planning to invest in China. To handle relationship, people must have strategic design, building of networks, maintaining relationship, and managing relationship. In the Chinese companies, it is common to employ people who are good in human resources.

China economy has improved very fast. The population in poverty reduced from 250m to 23m. Disposable income in cities and towns increased 30 times to 13785RMB. Net income in rural areas rises by 23 times to 4140 RMB.

By 2007, China achieved 210m internet users, 547m cell phone subscribers, 8.79m car sales, 34.92 tourists. It shows that the Chinese has a stronger buying power nowadays, and has knowledge on the world market.

Today, I learnt something interesting. One of my favourite countries, Taiwan, is actually a province under China. However, China does not have any power in making decision in Taiwan. Taiwan has been fighting for independence for many years. However, they did not succeed. The one country two system policies were actually invented for Taiwan. However, it is first implement to Hong Kong and Macau when China took over. The result was a success.
Today, it’s our last lesson with our Chinese lecturers. Mr.wee prepared some gifts for them. I learnt that the Chinese open the presents the moment they receive. In Singapore, this may be rude. However, it is their culture in China. This is what it suppose to be.