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WHAT HAVE I LEARNED?<br />
Lessons learned in China<br />
TEXT Kirsi Riipinen<br />
Cargotec’s Pekka Vauramo, Chief Operating Officer and Deputy to the CEO,<br />
moved from his native Finland to Hong Kong at the beginning this year to help<br />
drive the <strong>com</strong>pany’s development initiatives in the Asia-Pacific region. <strong>Hiab</strong><br />
<strong>Method</strong> recently caught up with him to see how it’s going so far.<br />
ASIA’S – ESPECIALLY CHINA’S – RAPID GROWTH HAS<br />
AMAZED PEOPLE ALL OVER THE WORLD. WHAT HAVE<br />
YOU LEARNED ABOUT BUSINESS IN ASIA SO FAR?<br />
Asia’s rapid growth rate has certainly surprised us. Growth rates remain mere figures<br />
until you visit the region and <strong>com</strong>pare the present situation with that of 10<br />
or 15 years ago. The pace of change has been incredible, especially in China.<br />
If we seek growth in Asia, we have to act in time. We have to use proactive<br />
recruiting methods. I would like to say to those <strong>com</strong>ing here that China is no<br />
longer a low-cost country. You have to pay the going rate for top talent, regardless<br />
of the nationality indicated on their passport.<br />
HOW WOULD YOU DESCRIBE THE BUSINESS OPPORTUNITIES<br />
AND CHALLENGES THAT CHINA OFFERS CARGOTEC?<br />
China offers ample business opportunities, but <strong>com</strong>petition is tough. There are<br />
also local <strong>com</strong>petitors, and all those <strong>com</strong>ing from outside China <strong>com</strong>pete with<br />
them as well. It is not easy for anyone to do business here – China has really been<br />
discovered.<br />
WHERE IS CARGOTEC HEADING TO WHEN<br />
IT COMES TO ASIAN MARKETS?<br />
Companies <strong>com</strong>ing from outside China often pay attention to the area along the<br />
coast with the most vigorous growth. The average annual growth of the economy<br />
is 8–10 percent, but in some parts of the country the figure can be considerably<br />
higher – or lower.<br />
It is easy to forget that inland areas also experience growth, and that the<br />
growth rate can be very high there, too. It is important for us to familiarise ourselves<br />
with the local business life and get access to the riversides and the railway<br />
network.<br />
We are examining these areas more closely. We have employed more than a<br />
thousand people in China. In addition, we have reliable partners.<br />
Delivery chains are be<strong>com</strong>ing increasingly important in China. They are<br />
currently being built as part of business and logistic solutions. We want to be<br />
involved in this, and we will have to keep our own sales and service network up to<br />
the challenge.<br />
WHY IS UNDERSTANDING LOCAL CONDITIONS AND<br />
CHALLENGES SO IMPORTANT IN CHINA?<br />
It is absolutely necessary to respect and follow local customs. For example, we<br />
use no language other than Chinese in China when we agree on important matters.<br />
I think that, as Europeans, we should encourage our local personnel here<br />
to make decisions. At the same time, we must ensure that they have the support<br />
of the headquarters. In this way, we can also show our partners that although we<br />
<strong>com</strong>e from a different country and culture, we are doing business in earnest.<br />
HIAB METHOD 7
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