As a foreign trade clerk, it is extremely important to understand the characteristics of customers’ purchasing habits in various countries, and it has a multiplier effect on the work.
South America
South America includes 13 countries (Colombia, Venezuela, Guyana, Suriname, Ecuador, Peru, Brazil, Bolivia, Chile, Paraguay, Uruguay, Argentina) and regions (French Guiana). Venezuela, Colombia, Chile and Peru also have relatively developed economies.
Large quantity, low price, cheap is good, no quality is required
There is no quota requirement, but there are high tariffs; generally go to the United States first (equivalent to smuggling, tax avoidance) and then transfer back to the country
Requirements for manufacturers are similar to those of the United States
Note: There are only two banks in Mexico that can open L/C, others cannot; all suggest that customers require buyers to pay in cash (TT)
Buyer Features:
Stubborn, personal first, idle pleasure and heavy feelings, low credibility and sense of responsibility. The level of industry in Latin America is very low, the entrepreneurial awareness of entrepreneurs is also low, and the working hours are generally short and slack. In commercial activities, non-compliance with payment dates is a frequent occurrence, and there is also a lack of sensitivity to the time value of finance. Latin America also has a lot of vacations. During the negotiation, it is often encountered that the person participating in the negotiation suddenly asks for a leave, and the negotiation must be suspended until he returns from the vacation before it can continue. Due to the local situation, there is a strong emotional component in the negotiation. After reaching a “confidant” with each other, they will give priority to handling, and will also take care of the customer’s requirements, so that the negotiation can proceed smoothly.
Therefore, in Latin America, the attitude of negotiation is to be empathetic, and ruthlessness will not suit the local negotiation atmosphere. But in recent years, the number of people educated in business in the United States has increased rapidly, so this business environment is gradually changing.
Lack of international trade knowledge. Among the businessmen engaged in international trade, there are also those who have a very weak concept of payment by letter of credit, and some businessmen even wish to pay by check just like domestic transactions, and some people do not understand the practice of formal transactions in international trade at all. In Latin American countries, except for Brazil, Argentina, Colombia, etc., the import license is strictly reviewed, so if you have not confirmed in advance whether the license has been obtained, do not start to arrange production, so as not to be caught in a dilemma. In Latin American trade, the U.S. dollar is the main currency.
Political instability and volatile domestic financial policies. In Latin America, coups are a common occurrence. Coups have little impact on general business, and only have an impact on transactions involving the government. Therefore, when using L/C for business with South American businessmen, you should be very cautious, and you should check the creditworthiness of their local banks in advance. At the same time, pay attention to the “localization” strategy, and pay attention to the role of chambers of commerce and business promotion offices.
North America (United States)
Americans have strong modern ideas. Therefore, Americans are rarely dominated by authority and traditional ideas, and have a strong sense of innovation and competition. By and large, Americans are extroverted and casual.
North America (United States) is mainly based on wholesale volume. Generally, the purchase volume is relatively large. The price required is very competitive, but the profit will be higher than that of customers in the Middle East.
Most of them are department stores (Walmart, JC, etc.)
Generally, there are purchasing offices in Hong Kong, Guangdong, Qingdao, etc.
have quota requirements
Pay attention to factory inspection and human rights (whether the factory uses child labor, etc.);
By letter of credit (L/C), 60 days payment; or T/T (wire transfer)
US buyer features:
Pay attention to efficiency, keep time, and have strong legal awareness.
The negotiating style is extroverted, confident and even a little arrogant.
Contract details, specific business prudent, pay attention to publicity and appearance image.
On a whole-to-whole basis, we provide a complete set of solutions for quotation, and consider the whole. U.S. negotiators like to set the general trading conditions first, then discuss the specific conditions, and consider all aspects. Therefore, our suppliers need to pay attention to providing a complete set of plans to quote when quoting. The price should be taken into consideration. Factors such as the appreciation of the RMB, the rise in raw materials, and the decline in tax rebates must be taken into consideration. The issues considered in the delivery process can be said, so that Americans will also think that you are thoughtful and thoughtful, which can effectively promote the completion of the order.
Europe
The price and profit are very considerable – but the purchase volume is generally considered to be a variety of styles and a small amount; (small quantity and high price)
It does not pay attention to the weight of the product, but pays great attention to the style, style, design, quality and material of the product, focusing on environmental protection.
More scattered, mostly personal brands
Pay great attention to the research and development capabilities of the factory, and have high requirements for styles, and generally have their own designers;
Brand experience required;
high loyalty
Commonly used payment method – L/C 30 days or TT cash
have quota
Not focusing on factory inspection, focusing on certification (environmental protection certification, quality and technical certification, etc.); focusing on factory design, research and development, production capacity, etc.; most of them are OEM/ODM.
Most European customers prefer to choose medium-sized factories for cooperation, and the European market has higher requirements. They hope to find some factories that will help them create the version and cooperate with their remodeling.
Eastern Europe (Ukraine, Poland, etc.)
The requirements for the factory are not high, and the purchase volume is not large
Western European countries mainly include Belgium, France, Ireland, Luxembourg, Monaco, the Netherlands, the United Kingdom, Austria, Germany, the Principality of Liechtenstein and Switzerland. The Western European economy is relatively more developed in Europe, and the living standards are very high. The world’s major countries such as the United Kingdom, France and Germany are concentrated here. Western European countries are also one of the regions that have more business contacts with Chinese businessmen.
Germany
When it comes to the Germans, the first thing that comes to mind is their meticulous handicrafts, exquisite car manufacturing, meticulous thinking ability, and meticulous attitude. From the perspective of national characteristics, Germans have personalities such as self-confidence, prudence, conservativeness, rigidity, and rigor. They are well-planned, pay attention to work efficiency, and pursue perfection. In short, it is to do things resolutely and have a military style, so watching the Germans play football feels like a high-precision chariot in motion.
Characteristics of German buyers
Rigorous, conservative and thoughtful. When doing business with a German, be sure to prepare well before negotiating in order to answer detailed questions about your company and products. At the same time, the quality of the product should be guaranteed.
Pursue quality and try out ghost ideas, pay attention to efficiency and pay attention to details. Germans have very high requirements for products, so our suppliers must pay attention to providing high-quality products. At the same time, at the negotiating table, pay attention to be decisive, do not be sloppy, pay attention to details in the entire delivery process, track the situation of the goods at any time and give feedback to buyers in a timely manner.
Keeping the contract and advocating the contract. Once the contract is signed, it will be strictly followed, and the contract will be executed meticulously. No matter what problems occur, the contract will not be easily broken. Therefore, when doing business with Germans, you must also learn to abide by the contract.
U.K.
The British pay special attention to formal interests and step by step, and are arrogant and reserved, especially men who give people the feeling of a gentleman.
Buyer’s characteristics
Calm and steady, self-confidence and restrained, pay attention to etiquette, advocating gentleman’s demeanor. If you can show good upbringing and demeanor in a negotiation, you will quickly earn their respect and lay a good foundation for a successful negotiation. In this regard, if we put pressure on the negotiation with solid arguments and rational and powerful arguments, it will prompt the British negotiators to give up their unreasonable positions for fear of losing face, thus achieving good negotiation results.
Likes to work step by step, with a special emphasis on order and order. Therefore, when Chinese suppliers do business with British people, they should pay special attention to the quality of trial orders or sample orders, because this is a prerequisite for British people to inspect suppliers.
Be aware of the nature of UK buyers. Their subject is generally such as “Chersfield”, “Sheffield” and so on with “field” as the suffix. So this needs to be extra careful, and the British people living in the country estates are likely to be big buyers.
France
French people have grown up in the atmosphere and influence of art from childhood, and it is not surprising that they are born with a romantic nature.
Characteristics of French buyers
French buyers generally pay more attention to their own national culture and national language. To do business with French people for a long time, it is best to learn some French, or choose an excellent French translator when negotiating. French businessmen are mostly cheerful and talkative, and they like to talk about some interesting news during the negotiation process to create a relaxed atmosphere. Knowing more about French culture, film literature, and artistic photography lights is very helpful for mutual communication and exchange.
The French are romantic in nature, attach importance to leisure, and have a weak sense of time. They are often late or unilaterally change the time in business or social interactions, and always find a lot of high-sounding reasons. There is also an informal custom in France that on formal occasions, the higher the host and the guest status, the later. So, to do business with them, you must learn to be patient. But the French often do not forgive others for being late, and they will be very cold reception for those who are late. So if you ask them, don’t be late.
In the negotiation, the contract terms are emphasized, the thinking is flexible and efficient, and the transaction is concluded by relying on personal strength. French businessmen have flexible ideas and diverse methods when negotiating. In order to facilitate transactions, they often use administrative and diplomatic means to intervene in the negotiations. At the same time, they like to have greater authority to handle affairs. When conducting business negotiations, more than one person is responsible for making decisions. Negotiations are more efficient in situations where there are few organic decisions.
French merchants have very strict requirements on the quality of goods, and the conditions are relatively harsh. At the same time, they also attach great importance to the beauty of goods and require exquisite packaging. Therefore, when negotiating, a prudent and elegant dress will bring good results.
Belgium, Netherlands, Luxembourg and other countries
Buyers are usually prudent, well-planned, pay attention to appearance, status, understanding, routine, credibility, and high business ethics. Buyers in Luxembourg are mainly small and medium-sized enterprises, which generally have a high response rate, but are unwilling to take any responsibility for logistics, and usually do more business with Hong Kong suppliers. How to deal with it: Chinese suppliers should pay attention to strike while the iron is hot when negotiating, and do not reject the other party because of payment methods or transportation issues.
Middle East (India)
severe polarization
High prices – best products, small purchases
Low prices – junk (even cheap 
It is generally recommended that buyers pay cash;
(with African buyers)
Buyer Features
Have family values, attach great importance to faith and friendship, stubborn and conservative, and slow-paced.
In the eyes of Arabs, credibility is the most important thing. People who talk about business must first win their favor and trust, and the premise of winning their trust is that you must respect their religious beliefs and “Allah”. Arabs have a belief in “prayer”, so every now and then, they suddenly kneel down and pray to the sky, chanting words in their mouths. Don’t be too surprised or incomprehensible about this.
There is a lot of body language in negotiation and likes to bargain.
Arabs are very fond of bargaining. Bargain is available regardless of store size. The list price is just the seller’s “offer”. What’s more, a person who buys something without bargaining is better respected by a seller than someone who bargains and buys nothing. The logic of the Arabs is: the former looks down on him, the latter respects him. Therefore, when we make the first quotation, we may wish to quote the price appropriately and leave some room for the other party to bargain, otherwise there will be no room for price reduction if the quotation is low.
Pay attention to the negotiating habits and religious beliefs of the Arabs. In business dealings, they are accustomed to using “IBM”. The “IBM” here does not refer to IBM, but to three words in Arabic that start with I, B, and M, respectively. I means “Inchari”, that is, “God’s Will”; B means “Bokura”, that is, “Let’s talk tomorrow”; M means “Malesius”, that is, “don’t mind”. For example, the two parties have made a contract, and then the situation changes. If an Arab businessman wants to cancel the contract, he will justifiably say: “God’s will”. Therefore, when doing business with Arabs, it is necessary to remember their “IBM” approach, cooperate with the other party’s leisurely pace, and move slowly is the best policy.
Australia:
The price in Australia is higher and the profit is considerable. The requirements are not as high as those of buyers in Europe, America and Japan. Generally, after placing an order several times, payment will be made by T/T.
In addition to European and American customers, we usually introduce some Australian customers to our factory. Because they just complement the off-season time of European and American customers.
Asia (Japan, Korea)
The price is high and the quantity is medium;
Total quality requirements (high quality, highest detail requirements)
The requirements are extremely high, and the inspection standards are very strict, but the loyalty is very high. Generally, after cooperation, it is usually rare to change factories.
Buyers generally entrust Japanese business companies or Hong Kong institutions to contact manufacturers;
Mexico
Trading habits: generally do not accept LC sight payment terms, but LC forward payment terms can be accepted.
Order Quantity: The order quantity is small, and it is generally required to see the sample order.
Note: The delivery time is as short as possible. Purchasing from the country needs to meet the conditions and relevant regulations as much as possible, and secondly, it is necessary to improve the quality and grade of products to make them meet international standards. The Mexican government stipulates that the import of all electronic products must first apply to the Mexican Ministry of Industry and Commerce for a quality standard certificate (NOM), that is, in line with the US UL standard, before it is allowed to import.
Algeria
Payment method: T/T cannot be remitted, the government requires only L/C, preferably cash (payment first).
South Africa
Transaction habits: generally use credit cards and checks, and are used to spending first and then paying.
Matters needing attention: Due to limited funds and high bank interest rates (about 22%), people are still accustomed to payment on sight or installments, and generally do not open L/C at sight.
Africa
Trading habits: buy by sight, pay first, deliver first hand, or sell on credit.
Order quantity: small quantity, many varieties, urgent goods.
Matters needing attention: The pre-shipment inspection of import and export commodities implemented by African countries increases our costs in actual operations, delays our delivery time, and hinders the normal development of international trade.
Denmark
Trading habits: Danish importers are generally willing to accept a letter of credit as a payment method when they do their first business with a foreign exporter. Thereafter, cash against vouchers and 30-90 days post payment D/A or D/A are usually used. Initially for small orders (sample consignment or test order).
Tariffs: Denmark grants most-favored-nation treatment or a more favorable GSP to goods imported from some developing countries, Eastern European countries and Mediterranean countries. In the steel and textile systems, there are few tariff preferences, and countries with larger textile exporters tend to adopt their own quota policies.
Matters needing attention: The samples are required to be the same, and the delivery date is very important. When a new contract is performed, the foreign exporter should specify the specific delivery date and complete the delivery obligation in time. Any violation of the delivery date, resulting in delayed delivery, may be cancelled by the Danish importer.
Spain
Transaction method: Payment is made by letter of credit, the credit period is generally 90 days, and about 120 to 150 days for large chain stores.
Order Quantity: 200 to 1000 pieces per appointment.
Note: Spain does not charge customs duties on its imported products. Suppliers should shorten production time and focus on quality and goodwill.
Eastern Europe
The Eastern European market has its own characteristics. The grade required for the product is not high, but in order to seek long-term development, the goods of poor quality have no potential.
middle East
Trading habits: indirect trading through foreign trade agents, direct trading performance is lukewarm. Compared with Japan, Europe, the United States and other places, the product requirements are not very high. Pays more attention to color and prefers dark objects. The profit is small, the volume is not large, but the order is fixed.
Matters needing attention: Pay special attention to foreign trade agents to avoid price reduction by the other party in various forms. More attention should be paid to following the principle of one promise. As soon as a contract or agreement is signed, one should perform the contract and do their best, even if it is a verbal promise. At the same time, we should pay attention to the inquiry of foreign customers. Keep a good attitude and don’t presume a few samples or sample postage.
Morocco
Trading habits: adopt low quoted value and pay the difference in cash.
Matters needing attention: Morocco’s import tariff level is generally high, and foreign exchange management is stricter. The DP method has a greater risk of foreign exchange collection in the export business to the country. In international trade, there have been cases where Moroccan foreign customers colluded with banks to take delivery of goods first, delayed payment, and paid after repeated urgings from domestic banks or export companies.
Russia
Pursue cost performance, pay attention to product quality
Focus on fieldwork
Large quantity and low price
T/T wire transfer is more common, L/C is rarely used
The local language of Russians is mainly Russian, and there is very little communication in English, which is difficult to communicate. Generally, they will find translation assistance. Responding quickly to customers’ inquiries, quotations, and any questions about customers, and responding in a timely manner” is the secret of success.
Newcomers to foreign trade, as much as possible to understand the purchasing habits and characteristics of buyers from various countries, has a very important guiding significance for successfully winning customers.
Post time: Aug-21-2022