Zhou Xiaoguang is founder and chairperson of the costume jewelry manufacturer Neoglory China Holding Company. Here she discusses her role in China’s congress, the importance of executive education and opportunities for growth.

As a member of China’s legislative body, the National People’s Congress, you spoke of working for the well being of ordinary people and a few years ago paid for a television campaign to find out what problems they faced, a very successful move. In what ways could foreign firms help meet the needs of Chinese people and contribute to Chinese society?
In my ten years as a deputy in China’s National People’s Congress, I really feel that have learned a lot and I feel that I have gained so much more than I have given. I have a great responsibility to give as much as I can to help improve our country, our people and society. There are still huge opportunities for businesses aiming to invest in China. Chinese people are very open and they like to share their professional experiences. But foreign executives need to understand that the Chinese market has different needs and understand our culture. Frankly speaking, I find some foreign business people lack sincerity whey they interact with a Chinese person. If they are not sincere, they cannot expect a Chinese person to open up to them. They need to appreciate the deep differences in Chinese culture. I really want to be open with foreign business people. But they need to carefully consider the cultural aspects of our country. 

Do you see any particular areas in which foreign companies are failing to tap unmet demand and opportunities in China? And looking to the future, what do you expect to be its key areas of market growth?
The Chinese market is huge; western companies are very welcome to come to China, there is so much unmet demand so there is plenty of room. The Chinese consumer’s income is on the rise at the moment and everyone wants to enjoy life so they are beginning to seek out more lifestyle products. Now is the best time to launch high-quality products into the Chinese markets, but you must focus on quality. A European brand is in a good position to do this. There are many international brands that entered the market a few years ago and are now enjoying high growth; companies are astonished by the size of the market.

You invest in business education for your employees and went back to school yourself to learn more about financial management and human resources. How sophisticated is the Chinese corporate world these days in terms of business education?
We definitely have a lot to learn from management education and I learned a lot during my program at CEIBS. In my company, I also train my staff and I have recruited managers from Taiwan and South Korea to internationalize our staff. This way, we gain insights into other countries that are important as we are competing in a global market.

You started with nothing and are now one of China’s top business leaders. According to CEIBS, only one in five start-ups reaches its first birthday but China is nevertheless one of the worlds best entrepreneurial environments. What is your advice for those aspiring to match your success?
Initially, the post-Mao generation was just trying to survive, never mind create a business empire. But our business competence is increasing with the younger generation. They have more opportunities to get a good education and be successful. But they need to work hard, be diligent, keep at it and don’t be impatient. You need time to create a brand and secure capital.




Interview with Shi Xiaoyan, founder and president of the trend-setting furniture and interior design retailer Beijing Illinois
Shi Xiaoyan

Shi Xiaoyan, founder and president of the trend-setting furniture and interior design retailer Beijing Illinois, is lauded as one of "Beijing's Most Influential Figures”. Here she tells IESE Alumni Magazine about how she got started and the outlook for her company.

You are very successful but it hasn’t all been plain sailing. In your first deal in the domestic furniture industry you lost $3 million and faced various setbacks. Drawing on your experience, what are some dos and don’ts for foreign entrepreneurs, particularly females ones, now trying to capitalize on opportunities in China?
It is hard to launch a start-up in China, the system is not designed to support entrepreneurial initiatives and then things crop up that you just didn’t imagine or plan for. I think women have the advantage that men have more respect for women operating in the business world. And women are more caring, they have a tendency to take care of their customers like they care for their families. I think men are better on providing a strategic view so it is a good idea to hire a male general manager.

You don’t just sell to the local market; you also sell to overseas buyers. Have you looked into expanding further into the global market? Have you partnered with or do you see opportunities for partnership with non-Chinese investors or firms?

First of all, I should say that the Chinese market is big enough and in the next 10 years it will get even bigger. Even we cannot dominate this market so we have decided to remain primarily a domestic player and concentrate on growth in China. If we were to expand overseas, I think we would encounter cultural or staffing difficulties. So we prefer to cooperate with overseas players in China and we welcome the opportunity to work together. At the moment, our only competitor is the Swedish furniture chain IKEA.