The Taiwan market economy has blossomed, and as prosperous as this market is, it has founded and still stands on the root of truth, honor, and tradition. Most businesses are either small or large-scale businesses and a large percentage of these businesses are run by families. One quality that allows people to patronize businesses in Taiwan is personal relationships. This is why new companies need to first build a keen relationship with the customers and clients before proposing business deals. If you want to quickly build a relationship with Taiwanese, one easy way to go about it is by giving gifts. If you have started a business in Taiwan and you want to be successful in it, here are a few tips that will help you get by.
1. Face:
Face means several things. Many Asian and Arabic cultures put so much belief in the face and it represents reputation, honor, and dignity. You can either save face, give face, or lose face. To save face means to make an effort to avoid humiliation. Sometimes, business clients in Taiwan will avoid telling people about the mistakes in their business so that the business can save face. To give face means to show respect. It is customary among the Taiwanese to receive business cards with their hands open and take time to study the card as a show of respect to the business instead of keeping the card into a pocket like Westerners will do. To lose face, on the other hand, means to do something so shameful that it might be detrimental to your business. Knowing how to keep your face is the first path to business success in Taiwan.
2. Guanxi:
Guanxi is the Taiwan word for relationship. As mentioned earlier, it is the bedrock of every business dealing in Taiwan. You have to ensure that you are in a good relationship with both your clients and your customers. In the western world, Guanxi can be likened to networking though it transcends a deeper meaning. The difference between networking and Guanxi is that you do not only share similar interests with people, you also share a common bond. To get a client in the western world, you will likely invite the client to a golf game where you try to close the deal. However, if you do this in Taiwan, you will need to repeat the gesture over again because they hold relationships in high esteem.
3. Hierarchy:
Being a place with strong traditional beliefs, it comes as no surprise that the work hierarchy in Taiwan is informal. The hierarchy focuses on the seniority or rank of each person. If you want to begin a business in Taiwan, approach high ranking first; people who are old or have a high reputation in the society. This will get you the attention of the masses. Taiwanese employees will rarely confront their superiors and the superiors will rarely take a decision without getting approval from the majority. This is because their protocols are informal.
4. Etiquette:
If you want to save face for yourself and your business, you need to follow certain business etiquettes. If you are making a presentation, focus on senior members. Make sure that they are seated before you take your seat in a meeting. Avoid touching the head or shoulder of anyone, especially children, it is highly prohibited. Be calm when addressing Taiwanese. Make it a habit to give gifts and when you get gifts, accept them with both hands.
5. Import and Export Regulations:
If you want to import products to Taiwan, you pay a 20% VAT and duty charge. The duty charge can go from as low as 0% up to 17%. If you are exporting, all your exports must be cleared on a Single Administrative Document (SAD). PEO services like NHGlobal Partners can also be engaged to help you achieve success in Taiwan. They can help you reduce the amount you pay for the tax. Other services of PEOs include payroll outsourcing, employee recruitment, etc.
Conclusion
Getting along in a new place requires that you understand the structures that are in place. When you understand these structures, you can figure out a way to make sure that you get the attention of people. In this case, you have to build a relationship with senior officials to get the support of the masses. The stronger the bond that you build, the better it is for your business.