Getting into Market

Key Events

Doing Business in Taiwan

Like Taiwanese society in general, the business culture is Confucian with strong hierarchical and family influences, especially in the important small and medium size business sector. Decision-making tends to be concentrated in the hands of company owners or the patriarch.

Taiwanese are proud of their history and achievements and continue to be energetic, high achieving and, in the main, frugal. They have a natural mercantile flair and are welcoming to foreigners.

Relationships are central to success in Taiwan. Take time to become well acquainted with your business partners. The best relationships usually encounter testing times before mutual confidence and trust develop.

Taiwanese business people enjoy negotiating and are generally tough negotiators. Except where distinctive selling features give a product clear benefits in the market, expect a strong emphasis on price in negotiations.

While Taiwanese are not as formal as Japanese, it is best to maintain formalities until invited to do otherwise. Address your contacts as Dr Chen, Chairman Chen or Mrs Chen etc.

Business cards are essential - if possible arrange to have your name in Chinese printed on the back. Business cards should be presented and received with both hands, starting with the most senior person present. Treat the card with respect at the meeting. Don’t just put it in your pocket.

Titles are also important. Taiwanese prefer to deal with managers and above.

In Chinese surnames or family names are always placed first, e.g. Chen Kuang-ling for Mr Chen. It is becoming common, especially amongst Taiwanese who have been educated abroad or who have dealings with foreigners, to adopt western first names and to put them first, eg Peter Chen or Peter K L Chen. If the surname is unclear in context it is best to ask.

Asian people and Chinese in particular have high regard for those older than themselves. An extra show of courtesy and visible acknowledgement of an older/senior person in the room will reflect well on you.

A thoughtful gift is an appropriate gesture for ice-breaking and an indication of your desire to explore and build a relationship. Gifts representative of New Zealand are particularly appropriate and should generally be in the NZ$25-$50 range. Do not give clocks, handkerchiefs, umbrellas or white flowers (especially chrysanthemums) as they traditionally signify tears or death. Do not give sharp objects such as a knife because it signifies cutting or breaking a relationship.

Try to learn a few words of Mandarin before or during your trip. The gesture is more important than the competence, and language can be a great conversation and learning point.

"Face" is important in business dealings. Expect to be praised, perhaps excessively. It is polite to speak of others in glowing terms and be modest and even deprecating about yourself. Never let others lose "face" even in a strained situation. Balance persistence with patience and tact and keep your cool no matter how upset you may be in any situation.

Eating is a serious business. Offers of hospitality should be accepted and, when appropriate, reciprocated. If invited to a banquet you should be ready to give a short and friendly speech in response to the host’s speech. If you invite Taiwanese to a function or meal be sure to provide a substantial meal - not just snacks and drinks. When dining out it is common for Taiwanese to rise from the dinner table promptly at the end of the meal, often around 8.30pm - 9.30pm. Visitors should not be offended - it is simply time to finish and leave.

Don’t be misled by the appearance of your host’s premises. Taiwan is a place of tremendous contrasts. Some people care greatly about appearances and some care little. This may not be indicative of their approach to business or product quality. Try to look beyond appearances.

"Time is money". Generally Taiwanese are accustomed to quicker response times than are common in New Zealand. They expect quick decision-making and action. Samples, glossy brochures and prices (preferably in US dollars) are expected for initial business meetings. In many cases receipt of hard copy material is considered more user friendly than reference to websites. Quotations and other follow up actions should be submitted in a few days if not a few hours.

There were 15.4 million internet users in Taiwan as at November 2007, 67 per cent of the population. (source: World Internet Stats).