Expanding into Europe's largest market, Germany

With a population of just over 80 million people, Germany is Europe’s most populous country and has the largest and most powerful national economy in the Eurozone and is poised to overtake the USA and become the world’s second largest exporter after China. This, combined with the fact that Germany is the UK's biggest European export market and second largest worldwide, makes it a particularly attractive market for UK companies looking to expand internationally.

Translating your website into German is often a good start if you are serious about expanding into this attractive yet demanding market. For this, it is best to engage in the services of a native speaker instead of relying on google translate and other translation automation tools which sometimes do more harm than good.

In tandem with this, check if your company’s domain is available with Germany’s .de TLD and if so, have someone already located in Germany acquire this for you, not least since .de domain registrants must be physically present in Germany itself.

A German SEO specialist can then help you increase the visibility of your website, so that it is more likely to be found by prospective German customers who are actively seeking out your particular goods or services. You can then link your new German site to and from your UK version.

You will then need to focus on creating the impression that you are already operating from inside Germany itself. This is now easier than ever before, with a range of ‘virtual’ office solutions that can provide you with an address, together with call centre staff that can then deal with inbound sales enquiries in German on your behalf, and then forward you any incoming enquiries translated into English. Prospective customers will then dial a local number as opposed to an international one, which still remains a psychological barrier for many consumers in both Germany and the UK alike.

If you need a ‘real’ office within Germany itself to meet prospective clients without the costs associated with renting or acquiring premises yourself, then work with a partner that can offer you representational offices that can be hired on an ad-hoc basis. Given its geographical proximity to the UK, such meetings can easily be conducted within a working day, and travelling to and from Germany will soon become even easier now that Deutsche Bahn has been given the go-ahead to use the Channel Tunnel, thus allowing Business travellers from the UK to travel from London’s St. Pancras to central Cologne in under 4 hours on their comfortable and work-friendly ICE high speed trains.

For larger companies seeking a permanent presence in Germany or more advanced services such as company formation, business, personnel and organisational planning together with the sourcing of possible strategic partners to help grow your business in Germany, then it is best to work with a partner that have the necessary resources and contacts without having to deal with several parties. Doing so will allow you to focus on developing your core business, without getting swamped with the administrative and legal complexities associated with overseas expansion.

The most common legal framework for new companies is to create a Limited Liability Company or ‘GmbH’ which is made available to conduct business by a small and relatively stable number of shareholders. However, there is neither limitation of the size of the company nor to the number of its shareholders. Consequently, a GmbH may also have only one shareholder. One or more founders who may be individuals, corporations or partnerships can set up GmbH. There is no need for the founder(s) to be resident in Germany or have German citizenship.

Although English is widely spoken in Germany, it cannot and should not automatically be assumed that this is the case, particularly in dealings with smaller companies or municipal and government authorities. Whenever important contractual matters are being discussed it is better to have an interpreter available. When sending information to potential contacts the introductory letter should preferably be in German and your company brochures should either be in German or contain an insert with a German translation. Good presentation is essential.

It is important to send the most senior manager in the first instance since whoever is present must be in a position to speak for the company in all matters and have the authority to take decisions on the spot.

The German market is extremely competitive. Companies need to be patient and persistent. Breaking into the market will not happen overnight. Some German companies and consumers have a “buy local” attitude and for this reason British companies must offer something special, a niche product, in order to get attention. But the rewards for persisting and cracking the German market can be enormous.

An additional beneficial side-effect of expanding to the German market will be that it will be far easier for you to reach out to the markets of Austria and Switzerland, instantly giving you access to some 16m additional potential customers who share the same language as their larger neighbour next door. Furthermore, having a German presence will help you when expanding eastwards into the growth markets of the former Soviet Bloc.

Finally, by aligning yourself with a company that can provide all the services previously mentioned, you will be in a position to capitalize on Germany’s economic strength relatively quickly, allowing you to start generating revenues that are ‘made in Germany’ both now and for years to come.

Cashing in on the Chinese Cash Cow and how Realtors can win Business ‘made in China’

Growing Chinese interest in investing overseas was a top global business trend in 2013. According to Jones Lang LaSalle, the U.S. real estate market attracted $3.1 billion of capital from Chinese investors last year – an increase of more than 900% from just $264 million invested the year before. 

The headline figure could exceed the $10 billion mark this year, although the reported numbers by themselves are a small fraction of the true number.

This phenomenal growth has been driven by two key drivers: First, the Chinese government is now actively encouraging outbound investment thanks to a new ‘go global’ policy introduced by them last year.  Second, diminishing yields on domestic real estate investments are making international ones seem more attractive.

Chinese investment hotspots at this time include New York, Philadelphia, Chicago, Houston, Las Vegas, Atlanta, Memphis, San Diego, and Detroit – where investors have been busy snapping up vast swathes of distressed industrial real estate. 

But it’s not just Chinese institutions that are investing: as all those cherished only children reach maturity, their parents want them to have the best education that money can buy.  Since the United States remains home to the best Universities in the world, so it therefore comes as no surprise that Chinese parents are looking to acquire property in which their offspring can live whilst studying.

So, the opportunities are clear.  But how can you start reaching out to this colossal growing market? Given the significant cultural and linguistically differences, this is no easy task. But, hey, we all now know that there’s no such thing as easy money anymore, right?

Well, due to the global architecture of the internet, creating a Chinese language section of your website is probably a good place to start.  For this, it is best to engage in the services of a native since automation tools like Google translate usually do more harm than good.

Next, you should ensure that any inbound inquiries are dealt with in the prospect’s native language.  Whilst hiring a Mandarin or Cantonese speaker ‘in house’ is an option, it also poses a risk: once trained, your intern might just one day decide to acquire their own realtor’s licence and compete against you.

To mitigate this risk, it can be more effective, as well as cost effective, to engage in the services of a ‘virtual assistant’ located in China itself.  He or she can then take inbound calls on your behalf, make outbound ones, receive and send emails, source data, and other administrative tasks. Two birds, one stone: Not only will your new assistant will act as your gateway to China, they can also help in a back-office capacity – leaving you free to get out there and grow your business.

Irrespective of whether you elect to go down the insourcing route or the outsourcing one, make sure that Chinese prospects and customers can reach you by calling a regular Chinese telephone number.  Making an international call still remains a psychological block for many people, not only in China, but also in the USA and elsewhere too.

Once you have your Chinese contact infrastructure in place, you can begin the herculean process of reaching out to this massive market.

One way to do this might be to task your Chinese assistant with reaching out to realtors in China who might have clients interested in overseas property.  Your listings could then appear on theirs.  As with anywhere, identifying the good ones will take time.

Another strategy might be to start reaching out to potential customers directly. Like us, the Chinese are voracious consumers of social media.  However, ramping-up your existing campaigns in an attempt to win more business from China is an exercise in futility since Facebook and Twitter have not gotten any traction there.

The good news is that agencies exist that will grab your existing social media content and check that it is compliant with Government guidelines, and then publish it across popular Chinese social media networks such as Sina Weibo, Tencent Weibo, RenRen and WeChat.  This is a neat way of hopping over the almost mythical great Chinese firewall and being on the inside.

Of these, WeChat, has become defacto a standard way of communicating in China.  An English version is available for free, and should be downloaded to your smartphone as part of your new armory of tools to help you win more business from China.

Whilst the Chinese might share our love affair with social media, a face-to-face meeting in Chinese culture holds perhaps even more significance than it does in ours.  Any hard selling will be counterproductive.  Whilst relationship building is important in any culture, it is of utmost importance in this one.

Bear in mind also that the Chinese are avid researchers and might end up knowing more about the property than you do.  Be patient, and treat them with respect.

When it comes to setting pricing, bear in mind that the Chinese are a superstitious people.  Try and avoid the number 4 if possible.  Instead, be liberal with the number 8.

Prior to viewings, you should consider engaging in the services of a Feng Shui consultant who can advise of the best way to present property using the Chinese philosophical system of harmonizing human existence with the environment. 

This will be a slow burn.  Do not expect results overnight.  It’s all about relationship building.  It will take time. China’s a tough nut to crack.  But if you do crack it, he rewards can be truly enormous both financially and, given the esoteric propensity of the Chinese mind-set, possibly spiritually too.

The Chinese New Year of the Horse signifies health and prosperity.  It would seem that now is indeed the perfect time to start looking eastwards and reaching out to this enormous market.

How the UK Tourism Industry can cash in on the Chinese Cash Cow

Given that China is now the world’s most valuable tourist market, last year’s announcement by Chancellor George Osborne that Great Britain is to streamline the process of visa applications for Chinese tourists was perhaps not surprisingly broadly welcomed by all those involved in the UK tourism industry.

The benefits of this long overdue announcement work both ways: the Chinese love all things British - so much so that they even took the trouble to build ‘Thames Town’, about 20 miles from central Shanghai.  And thanks to Mr.Osborne’s announcement, they can now experience the real thing!

But how can those involved in the tourism sector attract more visitors from this colossal market?  Well, having a Chinese language section on your website is a good start, not least because practically all Chinese cannot read or understand English.

 

Next, make it easy for prospective customers to contact you by telephone, by means of a local telephone number.  All calls must be answered in Mandarin, and possibly Cantonese – depending on where in China the caller is located. 

Whilst the Chinese do not share our love affair with email, it is important that you can be reached by other means, such as instant messaging and contact forms.  Agents that are deployed to answer inbound calls can also be tasked with making outbound ones on your behalf.

The Chinese do, however, share our love affair with social media – albeit with altogether different platforms.  A Facebook or Twitter campaign aimed at winning more business from China is therefore an exercise in futility.  The good news is that specialist agencies exist who will take your existing social media channels, then screen and translate all material into Chinese, and then help spread the word about your offering to Chinese social networks such as Sina Weibo, Tencent QQ Weibo and RenRen.

As for search, Baidu is their Google – but all listings need to be vetted beforehand.

When deciding on your pricing, avoid the number 4 if possible.  The Chinese are a superstitious people, and this number is associated with bad luck.  The number 8, on the other hand, is associated with good luck, so bear this in mind when setting your pricing.

When it comes to receiving payments, don’t be surprised if your new customers want to pay you in cash.  For online and telephone bookings, it is important that they can pay you using UnionPay, the only domestic bank card organization in the People's Republic of China.

When your Chinese visitors arrive it is important to treat them with courtesy and respect.  For them, travelling is an honour and they expect to be treated with respect when they get here.

Whilst their fondness of all things luxury is well known, those in the lower to middle end of the market need not worry.  Some stay at budget hotels, only to end up spending thousands of pounds shopping for branded consumer goods which are cheaper for them than in mainland China.

If your offering is a quintessentially British one, then milk it for all its worth – Brand Britain sells well to this vast receptive audience.

If you operate tours, try and include Bicester Village in Oxfordshire on your itinerary if possible.  Their ‘Chic Outlet Shopping’ centre is proving to be a hit with Chinese tourists with Yuan to burn.

Given the expected number of tourists from China, those that spend a little time, money, and effort to increase their visibility to Chinese visitors today can expect dividends both immediately and in the years to come.

How to find Chinese Investors for your real estate projects?

For many decades, Chinese investors have been dominating the property investment markets – in the early 1980s and 1990s, there were led by Taiwanese and Hong Kong investors, in the 1990s, this was led by Singaporean and Malaysia Investors, and over the past 10 years, this was mainly led by mainland Chinese Investors and Property Buyers.

There are several ways to reach potential investors and buyers, here is a list of some strategies to reach them:

1. It is useful to have someone who can speak Chinese, but not essential – majority of the Chinese investors understand about the properties – at the end of the day, the property will speak for itself, and not the sales.

2. Chinese property investors do not show their “true wealth” – it is quite common that once a Chinese investor decides to buy the property, he or she will buy in several lots. In Chinese culture, they do not want to show their wealth until the very last minute, so you maybe surprised to see that you may end up selling many more units than just one property.

3. Chinese website – definitely something you should consider as a marketing tool, it is not expensive, and what it can do is casting out your opportunities to the Chinese communities.

4. Register your website with Chinese language search engines – Google is just one of the many websites used in China and vast majority of Chinese Internet users do not use Google – they use their own search engines such as Baidu and Sina.

5. If you do not have a Chinese language website, you should at least create a few pages and this can be created as a stand-alone website or uploaded on other Chinese websites

6. You should consider create a Chinese language brochure for your residential project, again this is very useful to provide information.

7. Have a web marketing program in Asia – promoting opportunities in China, Taiwan and Hong Kong

8. Contact property agents in China, many of them are very interested in selling international projects to their clients – as there is only limited property opportunities in Asia at moment.
9. Pay attention to the currency situation – falling USD means it is now much cheaper for foreign investors to invest in US properties, but many investors still do not recognize the significant savings they can achieve just through currency fluctuations

10. Post your opportunities in migration websites – these are usually the “First Source For Information” for migrants

As China is now the world’s largest Internet market with 200 million plus Internet users and growing rapidly every year – if you are serious about reaching out to Chinese Investors, you must adopt a Chinese Web Marketing Program for your property projects.

And the benefits are enormous, with web marketing, you can market single project or multiple opportunities through your website. You can do regular e-mail campaigns and set up newsletters inviting Asian investors to sign up and receive latest offerings.

If you are interested to know more about how to reach Chinese Property Investors and how I can help, please contact me for more details.

Chinese overseas property investment ‘to double’

Outbound investment across Asia in 2014 will focus on gateway cities, especially in the United States and Europe, says Colliers International, and India’s market will revive

Chinese investment in overseas property is set to double in 2014, a leading agent predicts.

Asian investment in general in foreign real estate will major on major gateway cities, according to the Asia Forecast 2014, published by Colliers International.

“There is always a two-way traffic for real estate capital flows in Asia, but the trend in 2014 will be that outbound investment capital will predominate,” says the report.

“Given that Asia is currently in a very different property cycle than the US and Europe, its investors will become more active in outbound investment, focusing on key gateway cities, such as London, New York and Chicago.

“Chinese investors, in particular, are expected to look for overseas real estate opportunities with better yields and the strategic benefits of portfolio diversification.

“Colliers predicts that the total volume of Chinese outbound real estate investment will at least double in 2014.”

Terence Tang, Managing Director of Capital Markets and Investment Services for Colliers International, in Asia, says, “Investors are seeing value in the western markets given the recovery of the economy of the States and Europe and, of course, they are seeing growth potential in these economies, finding value there. And this is also a way of diversification.”

*India’s property market is also set for a revival, following the forthcoming general election, says Colliers.

The election must take place by May 2014 and is likely to actually be held a few months earlier, say commentators.

“What we are predicting is the potential market turnaround after the government election. This is partly attributed to the recent positive policy amendments in providing much-needed market transparency and the plan of setting up a REIT market in the country.

“On the optimistic front, real estate investors will be back again if there are signs showing further stabilisation of the rupee in the next couple of quarters.”

Published February 7, 2014  on www.opp-connect.com

Year of Horse boosts Chinese property searches

Chinese New Year sees Asian buyers stepping up their searches for overseas property, say agents

With the advent of the Chinese New Year tomorrow (31 January) more Asian buyers are searching for overseas property.

The Lunar New Year celebration, which lasts for 15 days, is a popular time for Asians to make investments in property, say market experts.

Rhys Davies, Chief Operating Officer of the Propertini website, says that approaching the Year of the Horse, the length of searches from Asia for UK property has doubled over the previous month.

“The average time they are spending to view properties is just over 14 minutes per session which is over twice as long as in December.

“I suspect this shows a high level of intent and purpose to buy a property in the UK. I think UK real estate agents, especially in London and prime university towns, should pay attention to this trend,”

Mr Davies says the interest is boosted by those preparing for the Chinese New Year, when Chinese families traditionally get together and parents making arrangements for their children’s education.

During a visit to China in October 2013, UK Chancellor George Osborne invited more Chinese nationals to study overseas, saying, “let me make this clear to you and to the whole of China, there is no limit to the number of Chinese who can study in Britain.”

Joshua Miller, Chief Executive Officer, of leading Hong Kong real estate agency OKAY.com, says, “In Hong Kong, we typically see an uptick in the property sales activity around Chinese New Year and indeed we have seen this in January. Annual bonuses are often paid just after Chinese New Year, so these bonuses may go towards mortgage down-payments.”

Paul Eden, Chief Executive Officer, of UK-based Regal Homes, which has a strong presence in Asia, says, “We sell a large number of properties off-plan to Chinese investors and have seen a growing number of them looking to expand their property portfolio beyond their local markets.”

Despite the imposition from 2015 of Capital Gains Tax on UK property owned by non-residents, Mr Eden believes foreign investment will continue to be strong.

“The political stability in the UK is a continual attraction to overseas investors, while other eurozone countries are still recovering from the on-going financial crisis, the UK property market is strongly considered to be a wise investment.”

The first event of Chinese New Year is the reunion dinner which occurs today (Thursday 30 January).

Elfed Roberts, from the School of Business at The University of Hong Kong, says, “It is traditionally a time when families make plans for the future. Planning for their children’s education is such an important part of this – especially in modern China.”

Propertini.com is a global real estate search engine operated by United States-based Propertini, Inc.

Published January 30, 2014 on www.opp-connect.com

China language skills ‘vital for overseas property sales’

Those interested in reaching out to Chinese prospects should do so in a language they understand - theirs!

Offshore contact center company Callnovo says its 3,000 agents in China can boost foreign real estate sales by communicating with clients in their native language

An offshore contact center company says it is vital for those selling overseas property to Chinese investors to communicate in their native language.

Callnovo, a Canadian-managed call centre provider with more than 3,000 agents in China, says agents and developers will lose sales if they don’t communicate properly with investors.

Business Development Manager, Marc Jarrett, says, “It is common knowledge that Chinese institutional investors and high net worth individuals are actively seeking out property investments overseas.   Realtors and developers who do not communicate with prospects in Cantonese or Mandarin are therefore depriving themselves of potential sales opportunities with Chinese investors.”

Callnovo, which has just opened a European office at Horsham, Sussex, in the UK, has been established for more than 10 years and works with a wide range of clients from small businesses to large multi-nationals.

Published February 6, 2014 http://www.opp-connect.com/china-language-skills-vital-for-overseas-property-sales/

Goodbye India, Hello Romania - Europe's new IT Development HotSpot...

A recent documentary on BBC TV helped clear some of the misconceptions that exist about that country..

Amongst other things, it highlighted the fact that thanks to the outstanding performance of its IT industry, Romania has consolidated its position as an outsourcing hub in Central Eastern Europe, a region that has become the new competitor of India.

Romania is home to an abundance of professionally very well prepared and highly skilled labor pool that has a better understanding of Western European culture than their Asian counterparts.

In case you missed the documentary, you can watch it here: 

A Chinese Virtual Office: The Quick and Easy way to Start Expanding Into China

As anyone who has ever tried expanding into China can testify, the process of so doing can be fraught with difficulties: over and above the cultural and linguistical challenges, there are a raft of potential obstacles which include compliance with Government policies and labor laws, as well the obligations associated with insurance, leasing of offices and hiring of staff.

This having been said, the potential of this vast and fast growing market are simply too big to ignore: China is the world's fastest-growing major economy, with growth rates averaging 9.8% over the past 30 years and it could become the world's largest economy sometime as early as 2020.

If your Business transcends the national boundaries of your domestic market, China should therefore be at the top of your list of countries to target as part of your globalization efforts. Understandably though, the difficulties associated with entering China often act as a barrier for taking the first tentative steps into this enormous market.

However, there is a way to circumvent these obstacles - instead of committing yourself to the costs and headaches associated with opening an office in China, you can easily create the impression to potential Chinese customers or partners that you are already operational there by creating a virtual one instead.

Reading an English language only website and calling an overseas number remains a practical and psychological barrier for people in most countries, including China. It is therefore important that prospects can contact you in Chinese and by means of a domestic telephone number, as opposed to an international one.

Inbound calls to your Chinese number must be answered in Mandarin or Cantonese, depending on which region of China the caller is located. Call center agents that answer such calls must be trained so that they have at least a basic understanding of your particular product or service. They should then make available to you such leads in English. Any follow-up activity should of course be conducted in the caller's native language.

Your new Chinese number can then easily be added to the 'contact us' section of your website which thanks to the global architecture of the World Wide Web all potential customers located in China will be able to see. Even better, you can create a Chinese section of your website and there are a wide range of translation companies who will only be too happy to help you in this process.

If you elect to have a Chinese standalone version of your website, then work with a company that can help you get listed on Baidu, China's answer to Google. Doing so will greatly improve the chances of being found by potential Chinese customers who are actively seeking out your particular goods or services.

By establishing a virtual Chinese office, you will be able to capitalize on the opportunities on the afforded by this colossal market at a fraction of the costs and risks associated with setting up a real one.

How Companies Throughout the World Can Expand Into Europe's Largest Market, Germany

With a population of over just over 80 million people, Germany is Europe's most populous country and has the largest and most powerful national economy in the Eurozone.

This, combined with the fact that Germany is the world's third largest market for imported goods, makes it a particularly attractive market for companies with global aspirations.

But where to begin? Well, if your company has a website, then translating it into German is a good start. For this, it is best to engage in the services of a native speaker instead of relying on google translate and other automation tools which sometimes do more harm than good.

Next, check if your company's domain is available with Germany's ".de" TLD, and if so, buy it. A German SEO specialist can then help you increase the visibility of your website, so that it is more likely to be found by prospective German customers who are actively seeking out your particular goods or services. You can then link your new German site to and from your existing site.

You will then need to focus on creating the impression that you are already operating from inside Germany itself. This is now easier than ever before, with a range of 'virtual' office solutions that can provide you with an address, together with call center staff who can then deal with inbound sales inquiries in German on your behalf. Prospective customers will then dial a local number as opposed to an international one, which still remains a psychological barrier for many consumers in both Germany and elsewhere.

If you need a 'real' office within Germany itself to meet prospective clients, then work with a company that can offer you representational offices that can be hired on an ad-hoc basis.

For large companies seeking a permanent presence in Germany or more advanced services such as company formation, business, personnel and organizational planning together with the sourcing of possible strategic partners to help grow your business in Germany, then it is best to work with a company that have the necessary resources and contacts without you having to deal with several parties. Doing so will allow you to focus on developing your core business, without getting swamped with the administrative and legal complexities associated with overseas expansion.

An additional beneficial side-effect of expanding to the German market will be that it will be far easier for you reach out to the markets of Austria and Switzerland, instantly giving you access to some 16m additional potential customers who share the same language as their larger neighbor next door.

Finally, by aligning yourself with a company that can provide all the services previously mentioned, you will be in a position to capitalize on Germany's economic strength relatively quickly, allowing you to start generating revenues that are 'made in Germany' both now and for years to come.

The brand new shiny Going Global blog is born, aimed at anyone who is interested in expanding their Business internationally...