Getting Ac-custom-ed to Global Economy is the Goal of
Roppe Corp. Executives
March 14, 1999, article two

When in Rome, do as the Romans do.

That's a lesson marketing executives take to heart whether doing business in Rome, Germany, Japan or China.

It's also a lesson that Roppe Corp. Executives Ed Gregg, vice president of marketing, and John Clouse, marketing manager, took to the juniors and seniors of Jane Garling's unified arts class at Bettsville High School on Feb. 18.

Ed and John have done some serious globe-trotting on behalf of Roppe's efforts to sell its flooring products beyond the borders of the good old U.S.A. Along the way, they've had the opportunity to experience the customs of other peoples and cultures.

They imparted some of those experiences to the students.

Ed has been to England, Ireland, China, Mexico and Canada. John spent two and a half weeks in Japan this past summer.

One of the first difficulties American marketers encounter abroad is that of different currencies.

John explained when McDonald's sells a Big Mac, fries and large pop in Japan, they charge 850 yen. McDonald's needs to know that the exchange rate (as of July 1998) was 140 yen to the dollar. So the Meal (happily) costs the equivalent of $6.07 -- if you have a yen to know such things which a good marketer does.

Other factors influence the price of Roppe products in overseas markets.

"For example," Ed explained, "by the time our goods enter China, taxes and import duties mean we have to tack about another 25 percent on to the normal U.S. price."

Consequently, products sold overseas are often less profitable.

Other factors affecting a decision to export are the competition, the ability of companies and consumers to afford the product, whether there is sufficient need or demand, general economic condition, and the country's political situation.

But there are other, less tangible, considerations that are also important in successful sales abroad. Different nations have different cultures, different languages and different expectations.

Roppe has sold its products in England and Canada where cultural barriers are minimal, but is now trying to get in on the ground floor in the Far East.

"China," said Ed, "has been a real challenge for us if for no other reason than the language barrier. I sit in meetings that would take about an hour here in the U.S. Some of the meetings over there run three hours just because everything needs to be translated."

And even with accurate translation, "you lose something not speaking the same language."

To minimize that difficulty, Roppe has hired a woman from Shanghai who speaks fluent English to run their China office.

Attitudes about relations, business or otherwise, differ from ours.

"The Chinese believe the first time they meet you, you're a new friend," said Ed. "When you go back the second time, you're and old friend. They are very nice people. Everyone I've met, I've liked. The Chinese seem to like American products and seem to like American people."

Trading business cards is a common enough practice everywhere. But in China, the correct way to do it is to present the card with both hands and bow.

You never know what you might see walking down the street in a foreign country. In Japan, John Clouse passed a small hut outside a temple. Smoke was pouring from the doorway, but people were going in the hut just the same.

It turns out that fanning the smoke over oneself is a ritual designed to bring good luck and increase one's wisdom.

John also had a chance to ride the famed Japanese bullet train which reaches speeds of 300 mph.

"Their perception of distance is different," he said. "It's nothing for us to get in a car and drive two and a half hours to Cleveland to watch a ballgame. That's inconceivable there. Two and a half hours - that's forever - too far to drive."

John had other interesting experiences. He visited an elementary school.

One young Japanese boy, taking note of the fact that John is a tall, strapping fellow, asked quite seriously if he was Michael Jordan.

John also got a lot of practice ducking since the top of the doorframes in the house he stayed at came up to his chin. (This made a nice picture.)

Speaking of housing, the family John stayed with lived in a 1,300 square foot house that cost over $400,000.

While Japan is a technologically sophisticated industrial nation, some of their social practices might raise eyebrows here, particularly feminine eyebrows.

John was on a walk with some Japanese through a gorge in a nature area. He snapped apicture of a husband and wife walking ahead of him. Throughout the entire walk, he never turned to look at her and she stayed several feet behind, emblematic of the second class status of women.

Women are paid less for performing the same job. Women aren't permitted to work past 8 p.m. A woman's job can be changed without any notification.

Another starting difference was the Japanese food. John's first meal consisted of beans, seaweed and octopus. Another meal included a main course of sea urchin, raw tuna and more

octopus.

Being an island people, the Japanese could be expected to consume a lot of seafood and besides, meat is very expensive.

Then John explained "the grand finale of the meals I had, the one things I'll remember, probably forever. We were at a fancy resort. My host, the gentleman who ran the company I was visiting, sent a meal up to my room."

The final course included a fish head, which John bravely tried some of. When John's host returned he asked how John liked the meal and inquired specifically if John had eaten the eye from the fish head. John admitted that, no, he hadn't.

"You are supposed to," said his host. "That's a delicacy. It's the best part of the fish."

We're certain that's a mistake John won't make again.

Calvin Coolidge said that the business of America is business. But to export products abroad without knowing the culture could be a risky business.

But the folks at Roppe would never do that because, when it comes to flooring, they really mean business.