Business expected to grow with Chinese

WEST LAFAYETTE, Ind. (WLFI) - Business trips to the far east are becoming more common for Indiana business leaders and government officials.

It's a relationship businesses could continue to benefit from, if long-term personal relationships are maintained, according to Purdue Professor of Consumer Sciences and Retailing Sugato Chakravarty said American

"Relationships trump efficiency, pricing, all of those things that we in America and developed parts of the worlds take for granted," said Chakravarty.

In February, Purdue Graduate Lijun Du announced with Governor Mitch Daniels that the Nanshan company is coming to Lafayette and creating 150 community jobs. Chakravarty said Du's personal relationship with Governor Daniels and other Hoosiers is an important reason jobs are coming to the community.

"In Asia you can have a great relationship with your customer. You may not have the best price, you may not have the best product, but you still end up getting the contract because of that personal connection," said Chakravarty. 

Chakravarty said patience is the other key factor when gaining the trust of the Chinese. He said many first time trips to China involve what is referred to as a "Dog and Pony" show. Chakravarty said many times the initial photo opportunity meeting does not have a huge benefit.

"You have to stay with it. You may not hit pay dirt the first time you go, but the second time, the third time you go, if you stay on, maintain relationships, build on those eventually the business starts to come," said Chakravarty.

Chakravarty suggests that the Chinese crave a deeper level of personal interaction. He said the Chinese want to be seen as equals.

"You exchange pictures of your family, they show you their daughters and sons. You show them what your pets or your kids, what they're doing, you talk about those details. That's how you build those connections, one person at a time," said Chakravarty. 

Chakravarty said like Nanshan's President Lijun Du, many of the Chinese's first interactions with Americans is at the collegiate level.

"If we can build those relationships and connections and trust while they are here as students, then they will remember that later on in life when they are successful and come back and help us," said Chakravarty. 

Chakravarty said the Chinese are interested in long-term relations with Americans, not just in the near term or fiscal year.