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Visit with Design Powerhouse
Wimberly Allison Tong & Goo
Submitted by
Yen Chun
Manager, China Business Program
HONOLULU — On
July 16, China-focused MBA (CHEMBA) students visited Wimberly
Allison Tong & Goo (WATG), the world’s number one
design consultant for the hospitality, leisure, and entertainment
industries. Don Goo, senior vice president of WATG, and Zhao “Robert” Zheng,
director of business development, Greater China, hosted the
students in their conference room of the Honolulu office.
Goo
and Zheng indicated that China is currently a key player
in WATG’s business; 75% of the Honolulu office revenue
and one quarter of WATG’s worldwide revenue is generated
from China. They noted that from 2001 to 2003, revenue from
China doubled.
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Zhao “Robert” Zheng,
director of business development, Greater China, gives
CHEMBA students a tour of WATG's
designs.
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With China’s acceptance to WTO, China has started
to open service sectors to foreign providers. Under the WTO agreement,
China will have to let international design firms operate freely
in China.
China’s admission to WTO in general, will boost
foreign investment in the tourism and hotel industries, in particular.
WTO membership has also intensified competition not only between
Chinese and foreign firms, but also between Chinese firms. This
is one of the major reasons why foreign designers are retained
to work in projects in China on Western terms. Some residential
developers indicated that in order to sell their projects to
consumers,
they feel they have to hire U.S. architects because their competitors
have done so. In addition, they have to find better-qualified
foreign architects to beat the competition.
Goo and Zheng shared their valuable experiences
operating in China. Below are nine tips for doing business
with China:
- Be unique with the product or service you provide.
- Clear contracts should have all the terms to clearly indicate the scope
of service
and method of payment.
- Personal contact is important. Contracts alone do not to protect your
business
agreement
- Knowing your partner can be difficult, but it is necessary. Establish
two-way
communication with your customer and business partner.
- Know the culture, but not too much. As
Westerners, we are often told to learn
about China’s culture. However, knowing too much may result
in losing your Western identity. WATG’s advice: if knowing
Chinese culture makes you unsure how to conduct business there, forget
about knowing it. Be humble and listen.
Don’t rush. Be firm and stick to your business principles
and practice.
- Much has been said about building long-term
relationships in China. But you must
survive short-term, if you’re going to be in business long-term.
- Consider a “cash and carry” policy
for goods and services.
- Be realistic, the China market represents
huge potential and risks. Ask yourself how much risk you are
willing to take as
you enter
a new market. You don’t have to do it differently from other new markets.
You should also have an exit
strategy. If things turn sour, exit.
- If you decide to enter the China market, you
need to be willing to follow through,
since it requires constant attention.
After the briefing,
the CHEMBA students were treated to a tour of the design firm.
They were all impressed by the many famous
and significant designs done by WATG worldwide.
Since its founding in 1945, WATG has designed and
completed projects in over 150 countries on six continents. One
of the most successful firms in Hawaii
doing business in China, WATG’s offices are located in Honolulu, Newport Beach
and Los Angeles, Seattle, Orlando, London, and Singapore. |
