How one Memphis architecture firm developed Chinese business (and you can, too)

Memphis architecture firm JMGR Inc. probably never expected to be doing so much business in China. As The Commercial Appeal describes, it all started when JMGR hired Kai Wang, a Chinese architect wanting to learn American hospital design methods. A positive relationship grew.  And so Wang, in turn, used his contacts to help JMGR break into the Chinese market.  He also proved to be invaluable when he arranged and served as an interpreter for lectures at a state-owned design firm. There were cultural differences and other challenges to doing business in China–all of which JMRG learned over time to handle with Wang’s assistance.

As this shows, professional service firms don’t have to be big players on the global scene–or be located in an international business hub–in order to develop business globally.

Just like JMGR, which now has designed hospitals in booming Chinese cities like Shanghai and Tianjin,  professional service firms can look for ways to take advantage of the increased growth in emerging markets. And cash-rich companies in emerging markets, like India and China, are also expanding abroad (creating even more opportunity for professionals). For instance, Indian corporation Tata upped its global prominence with the 2008 purchase of British-owned Land Rover and Jaguar–which is, according to Market Watch, part of an “aggressive expansion”.

In contrast, desperate Western companies are looking to move into emerging countries due to the slim prospects for growth at home.  For example, British insurance company Prudential has announced plans to purchase the Asian assets of American International Group for $35.5 billion;  Asian earnings would account for more than half of Prudential’s overall profits.  The Economic Times reports that American company Kraft purchased the British company Cadbury in part because of Cadbury’s Indian holdings.  After all, 38% of Cadbury’s recent growth came from emerging markets (as opposed to Kraft’s mere 20%).

Regardless of whether the expansion is into emerging or other foreign markets, the point is that companies are expanding globally.  And the globalization of companies creates more work for service providers such as accountants, engineers, lawyers, and architects.  So, how can you successfully capitalize on this international growth? Learning from JMGR, the answer may be simple.  As the story of Wang and the Memphis architects shows,  a simple business relationship  “can translate to a long-term, mutually beneficial business relationship”.