“Is your business ready?” – asks the Chinese market expert André Perry from UHNW Management London.
China’s ultra-rich continue to lead the rise in global wealth in 2018 through their robust portfolios, despite a sluggish economy and monetary restrictions.
A growing number of affluent Chinese are expected to send their assets overseas for better investment returns, which poses the question, are you ready, does your business strategy align with this influx of UHNWI’s? To answer this interesting topic we asked Chinese market expert and Director of UHNW Management London – a company that focuses on educating and facilitating the relocation for the Chinese Market on the Cote d’Azur and Monaco – to share his expert opinion with us.
Many Europeans and individuals based outside of Asia struggle to comprehend the culture and diversity of the way the Chinese conduct business relations. Many pursue the blanket approach hoping to maximise their target market and attract multiple clients, however they rarely succeed.
Why is that?
“…The Asian culture is first and foremost built upon relationships and trust, most often formed over time and through already trusted contacts.” – explains André Perry from UHNW Management London.
By simply hoping to attend company-sponsored events and hosting lavish parties to cultivate relationships, we are falling short of understanding and adapting to their business culture, and success will be short lived.
Within the western world, people are accustomed to accelerating business opportunities when working in the same or equivalent profession. A mutual understanding and comfort is apparent in business negotiations where trust is simultaneously formed, however this is an irregular occurrence in China. Today’s society could be considered to have an individualistic culture, whereby networks are built and cultivated to advance an individuals strategy to thrive in a modern world.
“To succeed you must understand of the fundamentals underlining the Chinese culture such as Guanxi.” – reminds us André Perry from UHNW Management London.
So, what is Guanxi?
Guanxi, translated to relationships in English refers to Chinese networking circles, in which each party invests equal value and trust into the relationship. This is the social form of a reciprocal agreement, nurtured over time through positive transactions and proven investment into the relationship. In Chinese culture to break the bond of Guanxi is to intentionally break your word or promise bringing undue embarrassment upon your closest allies.
This principal illustrates the core of conducting successful business transactions and solidifying future partnerships with your Chinese associates.
Therefore, how do we ensure we set off on the right track, and approach building trust in this complex environment?
“Take the time to build and develop the relationship in a transparent manner. Most Chinese will enjoy getting to know you and enjoy your company and world view, all the while they will be ensuring you are of good character.” – explains André Perry from UHNW Management London.
It can seem very unsatisfying that these things take time; however, once you are accepted into this circle of trust, progression can be very swift.
Retaining the trust and building your position within the circle is a progressive learning curve for all parties involved. You should continue building on your foundation and remember that building trust is an ongoing and highly intense activity.
Is the effort worth it?
“Absolutely. Be mindful this is a long-term relationship for the future and beyond. China’s UHNW population, for example, is nearly a decade younger than the global average. Asia is driving global growth and by 2026, China will have the highest number of UHNWI’s in the world. Is your business positioned to cater for this growth? If so, you are well positioned for future Chinese prosperity. – explains André Perry from UHNW Management London.
How can this growth benefit Monaco?
“In Monaco, from an economic perspective, consider the Super Yacht and Real Estate Markets. Did you know that only an estimated 5% of Super Yacht owners globally are Chinese?” – explains André Perry from UHNW Management London.
In real estate China already has a large non-resident population, the precedent of moving abroad has already been made. As China’s UHNW population continues to expand we expect to see an influx into countries with improved living conditions and investment opportunities.
Europe, second to the United States, remains a hotspot for the UHNWI and their families, as privacy, peace, health and wellbeing are a greater necessity, Monaco becomes increasingly attractive as a residential location.
“As the new generation of Chinese UHNWI’s continue to shift the face of luxury, we can be certain they and we should be excited about the future and the experiences they can have using their wealth along the Cote d’Azur and within Monaco.” – André Perry from UHNW Management London highlight his views.
And when you are successful in building your guanxi, remember, it’s up to both individuals to continue to invest equally in the relationship for the future.
UHNW Management London
André Perry is the Managing Director of UHNW Management London, a company focused on educating and facilitating the relocation of the Chinese Market on the Cote d’Azur and Monaco.
Discover more: https://www.uhnw.eu
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Living in Monaco
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The author Zsolt Szemerszky intended to hunt down the myth around Monaco and to go beyond gossips. Zsolt is also know by releasing Monaco’s first gourmand book. The Signature Dishes of the Principality of Monaco was launch last December 2016 as the number one release in wine pairing at Amazon.com allows gastronomy lovers to discover the excellence of the Principality of Monaco thanks to recipes and interviews with Executive Chefs who hold together over 50 Michelin stars.
However Living in Monaco is significantly different from his other books. It is not a travel book, it is an ultimate guideline to those who are aiming to get a glimpse about the real Monaco and who have the desire to relocate their personal or business life to the Principality.
The book explains the benefits of the relocation (both for private and business reasons), the life quality in the Principality, and reveals how can one capitalise the unseen treasures and business potentials of Monaco. The “Relocation and what it takes” chapter also explains all the tiny details, traps, tips and best practices while it offers a detailed overview of the administrative mechanism of the Principality.
One of the interesting part of the book is the second part which focuses on the people, the opportunities, and the traps in Monaco. It offers a first hand guidance to avoid to fell for the catchy workings and the illusions of luxury. Understanding the real-life examples one can truly enjoy the Principality with all its safety and protective legal systems for families and businesses.
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