Negotiating with your customers or suppliers in Asia can quickly become a complex task and could jeopardize your success in this marketplace if not managed properly.
In fact, we have come across several entrepreneurs who weren’t prepared to face: the different cultures, the new way of doing business and most importantly who didn’t know how to develop a “trustful relationship” that maximizes the value of a deal “on both sides”.

Your negotiations are most often related to “credit terms, terms of sale, payment terms, stock & inventories, marketing investments, exclusivity, etc…” factors that have a direct impact on your company’s working capital and thus - making the outcome of any negotiation critical.

Going into such negotiations involves lots of preparation. You must put yourself in the “other person’s shoes” (which can be really challenging if you don’t speak the same language…) to understand their way of thinking and objectives in the whole process. Finding out as much as you can about the company and people you are dealing with will give you an edge in the process. Be proactive and transparent (but not too much) in the way you get along with each other; offering options is often the best way to maximize a positive outcome that will “add value” to the deal.

More specifically in Asia, you will need to weight your words and be very careful at what you say. You have to make sure that you won’t make your business partner(s) lose face and that implies to “listen” first and stop talking when it is necessary; a task which sounds easy but which is for many (sales people) awfully challenging.

Finally, make sure you protect yourself legally. Frequently, people consider a purchase invoice as a “contract”; in reality, it is not enough to protect you legally. Depending on which country you do business with you will have to write down and sign specific terms and conditions as well as a clear clause for “liability for breach of contract” to protect your company.