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Local architectural firm Akda Architects create success through substance with help from the 'Little Red Dot' brand

Oct 25, 2009

AKDA Architects director Xu Chengchun gets business opportunities in China with the help of Singapore's 'little red dot' brand appeal. With no in-depth knowledge of the Chinese language and culture, he was able to establish his presence in the Chinese market within a period of six years.

'WHEN in Rome, do as the Romans do!'

If investing in the Chinese market depends on one's in-depth knowledge of the Chinese language and culture, then Xu Chengchun, 44, director of local architectural design firm AKDA Architects, would not stand a chance. However, there are no absolutes in life. This architect, who hails from Penang, has never studied Mandarin in school before, but has apparently found another secret formula that helps to ensure that his business succeeds in China.

Mr Xu used the above English adage to explain how he was able to gain a foothold in the Chinese market without deep knowledge of the Chinese language and culture in an interview at AKDA's office located at a shophouse in the Newton area.

He believes that the inability to speak good Mandarin does not necessarily have to be a critical weakness and the key to success is to understand and follow the local business culture.

He gave an example that in China, contracts often mean very little as one would need to go through a long process of seeking accountability when one party breaches the contract. It may even lead nowhere in the end, wasting a lot of time and energy. Therefore, instead of pursuing, he would sometimes choose to let them off the hook if the situation is beyond their control.

Therefore, when one of his projects was aborted, he decided against seeking compensation from the business partner concerned. The partner became so grateful that he put him in charge of an even bigger project a few months later and insisted that he not lower his design fees too much.

Compensate language weakness with architectural skills

Mr Xu said that his limited grasp of Mandarin may have also turned into an advantage for him in the Chinese market. 'If you are too skilful in speaking Mandarin, they (the Chinese people) might regard you as one of them. However, if your Mandarin is relatively weak, this might in turn help you be perceived as different.'

Mr Xu said despite the fact that his Mandarin has improved significantly and he is now able to use fluent Mandarin to introduce his designs in internal presentations, the developers would still request that he use English in presenting his design concepts to other customers while hiring interpreters to translate what he said to create the impression of high-quality and professionalism.

The reason Mr Xu was able to become widely recognised among developers across many parts of China is because he succeeds in using his architectural skills to compensate for his language weakness.

Mr Xu's wife, 45, the company's director, who also participated in the interview, described her husband as a person who is full of enthusiasm for work and who would never give up his principles in search of a compromise just because he gets a 'no' from the authorities.

'If he (Xu Chengchun) believes this design concept can benefit the public, he would do all he can to stand by it and this may in turn help win him respect from the developers.'

The 'little red dot' brand appeal has also helped Mr Xu win many business opportunities in China.

He said that he decided to set up his own architectural design firm after falling in love with China following a business trip to the country in the 1980s.

He said: 'As an overseas Chinese, I have never had the chance to go to China for the first few decades of my life. When I first stepped out of the plane upon arriving in Beijing on my business trip, tears started welling up in my eyes and I suddenly felt that this is where my roots are.'

China at that time was still a relatively underdeveloped nation and Mr Xu said to himself that he would do his best if given the chance to introduce his design concepts to the country.

In addition, he also believes that local architects would have a bigger stage to showcase their talents in China. He, for one, enjoys the challenges and difficulties that come with planning residential zones.

Mr Xu said that Singapore's architectural firms are more likely to see eye to eye with Chinese consumers in terms of taste when it comes to designing private apartments. Some Chinese developers had previously forked out huge amount of money to hire European architects to design Gothic-style apartments with concepts, such as open kitchens, just to discover that these designs were unacceptable to local consumers.

In comparison, as Singapore has limited land resources, its apartments were normally designed using concepts that encapsulate pragmatism and aestheticism while taking in some elements of the East and West without being nondescript.

This, combined with the good impression of which Chinese consumers have of Singapore and its reputation for uncompromising quality, make it easier for developers to find buyers. Mr Xu encourages more local architecture firms to head to China to discover more business opportunities.

When asked if he would be worried that this might lead to greater competition, Mr Xu said generously: 'China is a huge market that is full of opportunities. Instead of worrying about losing out to peers, I think it would be wiser for us all to work together to bring more architectural concepts to China from Singapore to allow more Chinese people to become familiar with Singapore's designing styles. This would also benefit the industry as a whole in the long-term.'

'Architects are creators and their mission is to care for the whole society. A good design would not just help the developer to build trust or earn money, it is also a form of responsibility to the residents of the building to a greater degree.'

Even though both China and Singapore were hit by the global financial tsunami, Mr Xu's AKDA Architects still recorded a twofold increase in revenue last year compared to 2007. He is now focusing his attention on another Asian giant - India.

Optimistic about Indian market

Mr Xu said during the interview that he has gradually obtained various development projects involving luxury condominiums, hotels, malls and residential district plannings in Zhuhai, Zhongshan, Shanghai and Xi'an over the past six years. These are huge projects and each of them will be able to match his company's projects in Singapore for the whole year.

He has obtained more than 10 projects to design apartments in Singapore apart from those in China since the onslaught of the global financial crisis last year. This has also contributed to the stable revenue growth for his company.

He is optimistic about the outlook of the Indian market and believes that the country will be able to offer an attractive business environment. He hopes that he will be able to see his designs in India within the next two years.

'In the long-term, I am even keen to do business in the Middle East and Russia because architecture has no national boundaries.'