Understand the Demands of Customers in Global Markets

Building strong emotional bonds between consumers and Chinese brands remains a work in progress.  Take Haier (Haier America), for example, which ramped up efforts to go global in 1999.

It sold niche products such as small refrigerators to college students and wine cellars, and opened manufacturing plants in the U.S. and elsewhere to bring production centers closer to priority consumer markets.  Haier has distinguished itself among Chinese companies in efforts to build a global brand.

Understanding the demands of customers in global markets is just one of the many challenges Chinese companies face in light of increased global competition and operating in a fast, interconnected world.

Learn what other challenges lie ahead for Chinese companies here.

Related post:  Why China Has So Few Good Brands

Be Ready If Your Product Hits It Big Globally

The article below is confusing but touches on a few key points when it comes to expanding your business internationally.

For example:

Companies should develop what moderator and paid Content Executive Editor Ernie Sander called “the inverse of a disaster plan:"  Track the numbers and be ready if your product hits it big globally. “A lot of companies aren’t ready and when it happens they can’t take advantage of that momentum. They collapse,” said Jones—that hasn’t happened at Zynga  (pictured above) because they tracked usage data closely and had plans in place.

As I said, a bit confusing but there are a couple of insights that are worth searching for.

Best Global Strategy Means Local Partners and Low Prices

Posted by:  The Global Small Business Blog

A Profit Lesson for Global Small Businesses

Wal-Mart (locations noted above) appears to be experiencing international growing pains.  Their strategy for driving global growth is working from a sales stand point but not necessarily from a profit or ease of doing business aspect.

... there’s a big problem with that growth strategy: operating margins are significantly worse internationally then they are in the U.S. In this quarter, U.S. operating margins came in at 7.42%, versus 3.93% for international operating margins. And after taking out currency effects, international operating income fell 3.3% year over year.

The lesson for global small businesses:  Monitor your operating margins country to country.   You may not be the size of Wal-Mart yet this is a common problem for any sized business operating internationally.  Keep your profits strong and healthy worldwide.
 
Read more here.   

Illustration credit:  Wal-Mart stores internationally

Entering New Foreign Markets Can be Hopefully Bureaucratic

Agree or disagree?  That is the question.  And Michigan businesses in U.S.A. address the answer.

The article highlights six common myths (misperceptions) about what it takes to pick up overseas business, and advice on addressing the underlying issues.

Border crossing:  Michigan companies going global find benefits can top barriers

Illustration credit here.

Inaugurating New Mayor of Global City Chicago

Before Rahm Emanuel (pictured above) officially becomes Mayor of global city Chicago -- any minute now -- ... a picture taken of him October 23, 2010 at the Apple store opening Lincoln Park, Chicago.

Photo credits:  ©Laurel Delaney.  All rights reserved.

The Global Aspect of Business

The Pennsylvania School for Global Entrepreneurship (PSGE) at Lehigh University (Bethlehem, Pennsylvania) brings American high school students (ages 15-18) together with International high school students from all regions of the world for a five-week residential global learning experience.

The purpose of the PSGE program is to expose students to the topics of entrepreneurship, globalization, team building, project management, leadership and working within a culturally diverse environment and to ignite the students’ spirit of creativity, innovation and learning.  

This makes me so happy to see!  The notion of getting people interested in entrepreneurship and globalization at a young age is fantastic.

How to qualify?

The program is open to all current high school sophomores and juniors (ages 15-18).  Application to PSGE is a competitive process. The selection committee evaluates each application individually, and looks for evidence of academic ability, leadership, entrepreneurship, and community service.  Students of any nationality are welcome to apply.  To date, the program has had participation from international students representing Afghanistan, Antigua Barbuda, Argentina, Australia, Belarus, Brazil, Bulgaria, Canada, China, Columbia, Czech Republic, Denmark, England, Germany, Ghana, Greece, Guatemala, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Jordan, Kazakhstan, Korea, Kuwait, Malaysia, Mexico, Moldova, Netherlands, Palestine, Panama, Peru, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Switzerland, Turkey, Ukraine, Vietnam, and Zimbabwe.

Get involved!  Learn more here. 

Download applications:

•  International

•  United States

Spring Has Sprung: Free Screensaver For Everyone on the Planet!

"Every spring is the only spring - a perpetual astonishment." ~ Ellis Peters

Photo (click on to enlarge) credit:  Laurel Delaney ... right near the Old Water Tower, downtown Chicago ... and feel free to use as a screen saver!  

Posted by:  The Global Small Business Blog

Transitioning Your Illinois Business From Local to Global

If you operate an Illinois-based company, the link below is right up your alley!  It covers where to turn for help in taking your business from local to global.

Read:

Starter Kit for Illinois Businesses Looking to Export
by Laurel Delaney, for Crain's Chicago Business

Photo credit:  Laurel Delaney, John Hancock Building, Chicago

Posted by:  The Global Small Business Blog

Note:  We are experiencing some technical problems with our blog platform.  If you encounter a delay in posts, that's the reason.

How to Attract International Visitors to Your Local Business

Once upon a time there was a woman business owner who claimed her little cupcake shop in Chicago was drying up.

She bakes cupcakes from scratch in every imaginable flavor and size from her small bakery ...

Find out how she can increase sales and profitability so her business doesn’t shrivel up and even take her business to a whole new level (global).

Read my latest contribution:  From Cupcakes to Moneycakes:  3 Ways To Increase Sales and Profitability published at the American Express OPEN Forum via Small Business Trends

Photo credit:  Laurel Delaney

Posted by:  The Global Small Business Blog

Tariff on Pistachios in India

How to reduce the tariff on pistachios in India?

High tariffs can stagnate an otherwise ripe market. There is no better example than the tariff on pistachios in India, which, until this year, carried one of the highest pistachio tariffs in the world at just over 30 percent.

What happened?

Ultimately the combination of commercial and governmental advocacy, diplomatic efforts, and an India-focused approach paid off, and nearly two months ago Indian leadership reduced the tariff on pistachios from 30 percent to 10 percent. This news resulted in tremendous excitement ...

Read more here.

Posted by:  The Global Small Business Blog

How to Take Your Business to the Next Level By Going Global

Global Entrepreneurship: Born Out of Necessity?

What really drives economic growth?  Many think its entrepreneurship and that entrepreneurship the world over is oftentimes driven by necessity.

But according to the Global Entrepreneurship Monitor:

... economic growth is not driven by these “necessity” entrepreneurs, who decrease in number as the economy develops. The key to fostering growth is to support “opportunity” entrepreneurs, who choose to start new enterprises in response to market needs.

Read this intriguing article, "Does Entrepreneurship Drive Economic Growth? - Megacities - Opportunities at Urban Edges" published by Forbes.

Related piece:  "Do Entrepreneurs in the Developing World Fuel Economic Growth?"

How to Inject Fresh Energy Into the Royal Family: Practice Entrepreneurship

Enlightening commentary by John Berlau for The Wall Street Journal titled, "The Entrepreneurs' Princess."  The reason I find it enlightening is that speaks about how Kate Middleton's family embody a noble tradition of their own:

... a tradition of bettering oneself and one's family while improving the lot of society.

In other words, entrepreneurship.

Learn more about the story of the Middletons rise to wealth and its implications for British culture, public policy and the world at large.  It's a wonderful read.

And while you are at it, visit Carole Middleton's family business:  PartyPieces.co.uk
 

Meet Zaha Hadid Architects

Built globally and built to work.  From the UK to Austria to Japan -- these folks get around and produce magnificent structures the world over.

Zaha Hadid Architects

Photography credit (Japan):  Paul Warchol

Global Presence: 2013 Chevrolet Malibu Launch from South Korea

Designed with global sales in mind, the 2013 Chevrolet Malibu will make South Korea one of it's assembly homes and distribution points, further increasing the brand's global presence.

What do Fairfax, Kansas and Hamtramck, Michigan, and Jingjao, China have in common with Bupyeong, South Korea? All four sites will be responsible for building the 2013 Chevrolet Malibu, although the Korean facility will be the first to assemble the all-new sedan.

Read all about it here.

Photo credit here.

Note:  Bupyeong-gu is one of the ten administrative divisions (eight wards and two counties) that comprise Incheon, South Korea.  Bupyeong-gu comprises an area of 12.35 square miles (31.98 square km), and has a population of 553,961

Women's Hands Perform 66% of the World's Work

Canadian SMEs Say: "Do Away With Trade Barriers to Ensure Global Competitiveness"

Looks like we have our work cut out for us here.  Based on a survey by Angus Reid for UPS Canada:

While the quarterly survey, conducted by Angus Reid for UPS Canada, shows "high level of optimism" about Canada's international competitiveness, 27 per cent of respondents have never considered exporting, believing that there's no market outside the country for their products, while 20 per cent don't believe they can compete with countries such as China, India and Brazil.

Learn more here.  Press release here.

The New Economic Era: China's Entrepreneurs

Find out how the Chinese are making entrepreneurship a way of life.

According to China Macro Finance, a research firm in New York, the number of registered private businesses grew by more than 30% a year between 2000 and 2009 (see chart above). The gross figure (ie, before netting off firms that closed) was at least seven percentage points higher, estimates Ronald Schramm, China Macro Finance’s managing director.

 Read the entire article here.

Chart credit here.

Quote of the Week

"Introducing billions of people into the trading economy is one of the biggest things that ever happened in the history of the world." ~ FedEx Chairman and Chief Executive Frederick W. Smith

Global Microcredit Has Great Potential

David Leonhardt (congrats David!) from the NYTimes.com has a conversation with Dean Karlan and Jacob Appel, co-authors of a new book, "More Than Good Intentions."

First question:

You write that microcredit — small loans to poor people — “has generated more enthusiasm and support than perhaps any other development tool in history.” You agree that microcredit has great potential, but you also suggest that it’s been oversold. What’s known at this point about how it does, and does not, improve people’s lives?

Read more here.

The Export-Import Bank of the United States Continues to Offer Export Financing

Are you new to Ex-Im Bank?  If so, go here.  New to exporting?  Explore here.

Ready to take the plunge and find out everything there is to know about all the offerings from the Export-Import Bank of the United States?  Click here.

Now, don't say we didn't tell you about this little "financing exports" goldmine. 

Illustration:  Exim United States (How Export-Import Bank Supports Jobs)

World Dining: Find Your City Plates

not Neutral offers a line of "City Plates" which illustrate streets, highways and parks, for example, that make a city unique.  Thus far, they offer 20 different cities:

Collection 1: Berlin, Shanghai, Los Angeles and Cairo.
Collection 2: New Orleans, Washington DC., Las Vegas and Dubai
Collection 3: New York, St. Petersburg, Brasilia, Melbourne
Collection 4: London, Rome, Mexico City and Tokyo.
Collection 5: Chicago, Montreal, Paris and Mumbai.

The 12" diameter porcelain plates -- priced U.S. $50/plate -- are individually boxed with a key.  Purchase the full collection of 20 cities here.

Posted by:  The Global Small Business Blog

Chart Your Export Strategy: Global Strategic Alliance Is a Choice

If you've gotten about as far as you can on your own in charting your export strategy, it's a good time to consider joining forces with another company of similar size and market presence that is located in a foreign country where you are already doing business, or would like to.  That's called forming a global strategic alliance.

Here's how it works and what it can and cannot do for you.

Posted by:  Laurel Delaney, The Global Small Business Blog

An Oldie But Goodie Article: Grow As You Go Global

A going global article titled, "Expanding Internationally:  Grow as You Go," published by Inc. May 1, 1998, makes a good and still relevant case about financing global expansion as global revenue comes in -- not before.

Read it here.

Posted by:  The Global Small Business Blog

Girls: Rule the World

"I have the same goal I've had ever since I was a girl.  I want to rule the world." -- Madonna

Photo credit:  ©Laurel Delaney 2011.  All rights reserved.

Successful Growth Strategies for Global Entrepreneurs

According to a report titled Global Entrepreneurship and Successful Growth Strategies of Early-Stage Companies and released by the World Economic Forum in collaboration with Stanford University, SPRIE and STVP:

The top 1% of companies from among 380,000 companies reviewed across 10 countries contribute 44% of total revenue and 40% of total jobs while the top 5% contribute 72% of total revenue and 67% of total jobs.

Download PDF (380-page report) here.

Posted by:  The Global Small Business Blog

Import and Export: Join the Discussion

These things take time and dedication (I've got both) -- join in on the discussion over at the About.com Import and Export site:

Welcome to the Import and Export Forum! 

Connect with you there.

Got a Customer Overseas Who Wants 25,000 Widgets?

The perfect scenario for how to source, produce and finance an overseas export. My latest contribution for American Express OPEN Forum through Small Business Trends.

Got a customer overseas who has asked you to export 25,000 umbrellas?  Fantastic—here's how.

Questions? Email me.

Chinese Companies Going Global More Than Ever

According to Scott Kronick, President of Ogilvy PR in North Asia, Chinese companies are going global.

However, one of the issues that Chinese companies have to contend with when going abroad is how to compete in the global market, and at times, under different business rules then they may be used to here in China.

Listen in ... here.

Photo credit here.

Uncertainty Is The Norm When Studying Abroad

Doesn't that hold true for just about everything these days:  uncertainty is the norm?

Take a look at what's happening with study abroad programs.  To experience life, you have to put yourself out there, take chances, minimize serious risks (hazards) and still move forward on great ideas.  Resiliency and adaptability helps here too.

Read the entire article:
Study Abroad in Hot Spots (NYTimes.com)

Illustration credit: Northeastern University, a leader in global experiential learning in Boston, MA

Expanding Internationally Is Loaded With Potential

In 2009, Varna Products, a division of Transportation Research Corp., apparently had zero international sales.  Now, sixty (60) percent of the company's business is generated overseas.

Here's how it happened (requires registration to read entire article):

Small businesses go global to bolster sales.

Posted by:  The Global Small Business Blog

Photo credit here.

Stuck on Where to Offshore? Get Unstuck.

Take a look at the top ten countries for offshoring -- according to Forbes.com.

Posted by:  The Global Small Business Blog

Is Going Global a Choice?

Can Globalization Deliver On The Vision of Common Good?

Carolyn Woo takes a stab at answering the question.  But an even bigger question is this:  How can globalization, through business, serve society?  Ms. Woo covers that too.

Read:  The Global Good
Notre Dame Magazine

Posted by:  The Global Small Business Blog

E-Exporting Tools For Small Businesses

The new "A Basic Guide to Exporting,” the official government resource for small and medium-sized businesses, is offering the following for FREE:

Chapter 11, “Going Online: E-Exporting Tools for Small Business."  This entirely new chapter provides a primer on how the Internet has extended the reach of business.   Read now (download a PDF file).

And if that's not enough, there's always:  Start and Run a Profitable Exporting Business -- where the entire book is free for reading.

Posted by: The Global Small Business Blog

World: It's Not Personal, It's Business

President Barack Obama has been criticized as being a bit chilly -- need I say more impersonal -- in his dealings with other world leaders.

"My own sense is that he doesn't really have good buds" among world leaders, said Peter Hakim, president emeritus of the Inter-American Dialogue, a think tank. "He can pick up the phone and talk to any leader and get a good response, but it's business."

How could it be any other way?

Read:  "For Obama, It's Business Before Friendship With World Leaders," The Republic

Photo credit here (President Obama and United Kingdom Secretary of State for Foreign and Commonwealth Affairs David Miliband)

One of the Sweetest Places On Earth: Hershey's Chicago Retail Store

"All you need is love. But a little chocolate now and then doesn't hurt." ~ Charles M. Schulz

Have a fabulous weekend!

Photo Credit:  Copyright Laurel Delaney, Hershey's Chicago retail store

In Our Brave New World, America Will Lead Innovation

Adam Segal (pictured), the Ira A. Lipman Senior Fellow for Counterterrorism and National Security Studies at the Council on Foreign Relations and a longtime observer of technology development in Asia, argues that the threat of America losing its innovation edge has been overblown.

Snippet:

The U.S., with a culture and institutions that encourage individual initiative, risk taking, and collaboration, is uniquely positioned to lead in innovation.

Read the entire article, "The Innovation Advantage" at Strategy and Business

Catch Adam's book here.

Photo credit here.

Small Businesses Lead the Way On Illinois Exports

A recent blog post I wrote for Crain's Chicago Business:

Small Firms Can No Longer Ignore Globalization

Find out how the little shakers and movers -- entrepreneurs and small businesses -- lead the way on Illinois exports.

Snippet:

A total of 16,902 companies exported goods from Illinois locations in 2008. Of those, 15,170 (90%) were small and medium-sized enterprises, with fewer than 500 employees.

Small and medium-sized firms generated over one-fifth (22%) of Illinois' total exports of merchandise in 2008.

Read the entire post here.

Photo credit: ©Laurel Delaney, John Hancock Building and the Old Chicago Water Tower, Chicago, Illinois (4/2/11).

Posted by:  The Global Small Business Blog

America's Favorite Pies: Are They Exportable?

I visited a couple of these places online (refer below) to see whether they ship anywhere in the world.  Many ship within the United States.

Think there's an export opportunity here?

If the companies can freeze product and ship safely locally, which many are, there's a good chance they can take their product across borders (a little more expensive on the shipping but to customer overseas, I suspect they'd be willing to pay to try an unforgettable American pie).

Visit:
America's Most Unforgettable Pies

Photo:  Levee High Caramel Apple Pecan Pie from The Blue Owl Restaurant and Bakery in Kimmswick, Missouri

Is Manufacturing the Primary Driver of Innovation?

Is it too late for the United States to regain its competitive footing regarding innovation and creating high-tech products?

Professors Gary Pisano and Willy Shih have something to say about this hot topic.

Read: "Why Manufacturing Matters," HBS Working Knowledge

One of the key concepts in their Q&A is:

Exporting manufacturing has a negative impact on the country's industrial commons, which represents the collective capability to sustain innovation.

Be sure to read the reader's comments -- very thought-provoking.

Posted by:  The Global Small Business Blog

Dolce & Gabbana Sees New Era of Glamour For Youth in China

With your business, how will you capitalize on it?

Like other designers, such as American Diane Von Furstenberg and Italian Miuccia Prada, Messrs. Dolce and Gabbana have made multiple expeditions to China to understand what is driving China's shoppers. What they've found in their tours across Beijing, Shanghai, and Hong Kong, is that Chinese consumers are far flashier than their American counterparts, said Mr. Dolce.

"Chinese are eccentric, and they will wear the flowers and the lace," said Mr. Dolce, explaining that the industry as a whole has largely catered to consumers who wanted plain and frill-less fashion. "Chinese aren't afraid to be more," he said.

Read the entire article published in The Wall Street Journal:
Dolce and Gabbana to Expand in China
by Laurie Burkitt

Photo credit here (both dresses are Dolce and Gabbana design)

World: Be Happy in the Moment

"Be happy in the moment - that's enough.  Each moment is all we need - not more." ~ Mother Teresa

Photo credit:  Laurel Delaney, Pratt and the lake, Rogers Park, Illinois, U.S.A.

The World in 2050

The World Entrepreneurship Forum has published a 'White Paper' focusing on “The World in 2050” which was the theme of the 2010 edition of the Forum.

Identifying four major challenges our world will face, the White Paper focuses on key recommendations, using case studies to illustrate its proposals, and featuring its commitments for a deep, broad and quick change.

Click here to download the White Paper.

Full disclosure:  I am a member of the World Entrepreneurship Forum and serve on their Advisory Board.

How to Cut Costs on Export Sales

My recent contribution for the American Express OPEN Forum through my relationship with Small Business Trends:

8 Ways to Cut Costs on Export Sales
by Laurel Delaney

Snippet:

1. Shift your production to a nation with lower labor costs. For example, if you currently manufacture in North America, try outsourcing to Vietnam, Indonesia or Malaysia, where the labor cost is cheaper and the quality acceptable. At the same time, examine potential transportation costs (refer to No. 7) to ensure you maintain, or even lower, that part of your overseas expenses.

What are some other ways in which you have tightened your belt -- reduced expenses -- on export sales to ensure you maintain decent profits?

Export-Import Bank Awards Small-Business Exporter of the Year 2011

According to Export-Import Bank of the United States, the small-business Exporter of the Year 2011 award winner is: Wayne, Pennsylvania-based Wallquest Inc.

Wallquest Inc., a family-owned firm based in Wayne, Pa., sells wallpaper in more than 50 foreign markets, including China, Saudi Arabia, Turkey, Brazil, Russia and the United Arab Emirates. Last year, the company’s exports rose 76% to over $17 million. The company’s growth since 2008 has been driven by the export market, according to Wallquest Vice President Jack Collins.

Learn more here.  Press release here.

Congratulations to Wallquest.  May their exports keep growing!

Photo credit:  Wallquest Inc. homepage

How to Establish Healthy Global Business Relationships On LinkedIn

Proceed with caution and use a critical eye when evaluating posts and search results on LinkedIn or any other social networking platform.

With this article for About.com's Import and Export site (full disclosure:  I serve as their guide), I provide examples of what to avoid and what to look for when identifying potential import/export opportunities.

Read:

LinkedIn:  How to Pre-Qualify Import and Export Opportunities on LinkedIn

Let's connect:  Laurel Delaney, LinkedIn

Illustration:  LinkedIn logo

News From Around the World

As reported from the Arizona Daily Star:

A 49-foot-tall head is fixed on a torso with cranes and integrated into a floating stage on Lake Constance near Bregenz, Austria. The stage is being prepared for the opera "Andre Chenier," which will premiere July 20 at the Bregenz Opera festival.

Photo credit:  AP/dapd/Felix Kaestle

More impressive photograph (same one -- larger) at the bottom here.

The World In Words

How to stay on top of the word:  Typomaps.net.  Combines the elements of geography with typography.  Created by German designer Dirk Schaechter.  Cool.

Posted by:  Laurel Delaney, The Global Small Business Blog

Competitive Import/Export Intelligence

In case you missed this, there are three online resources (that I am aware of) that offer import/export trade data, competitive intelligence and more.

Learn all about them here.  Sign up for the newsletter while you're there.

Arema Showed Maturity In Loss to Cerezo

Cerezo Osaka supporters who expected their side to trounce Arema Indonesia in the first round of the 2011 Asian Champions League were in for a big surprise.

In front of a crowd of over 10,000 at a cold and wet Nagai Stadium, the Indonesian side put up a good fight, finishing with a respectable defeat — and a few regrets — given how the game unfolded.

From the game’s opening, Arema players were organized and impressive for their tactical discipline.

Arema’s strong start derailed in the 14th minute, however, as a ball lost by Uruguayan midfielder Esteban Guillen unleashed a quick Cerezo counterattack, finished off by a header from Brazilian Rodrigo Pimpao to give the home side the lead.

Arema, however, did not lose composure and continued to control the midfield through possession, frustrating Cerezo and creating a good chance for an equalizer. Yet after 45 minutes the score was still locked at 1-0 to the Japanese team.

Most expected Cerezo to come out aggressively in the second half, especially after its crosstown rivals Gamba Osaka annihilated Melbourne Victory 5-1 in their opener the day before.

But after a chance wasted by Arema’s Slovakian midfielder Roman Chmelo, Iranian referee Mohsen Torki granted the Indonesians a penalty kick for what he saw as a handball by defender Taikai Uemoto.

Singaporean Noh Alam Shah kept his cool, perfectly placing his penalty kick to give Arema a deserved equalizer and sending the few Indonesian supporters present crazy.

Perhaps recalling Arema’s domination of the first half, Japanese players and fans became visibly nervous, but Cerezo was not able to find the goal.

The key-moment of the game came around the 30th minute of the second half, when Ahmad Bustomi made a dangerous slide tackle on Yusuke Maruhashi that earned the Arema player a yellow card and the Osaka side a free kick. Pimpao was quick to act on the ball sent in by Masaki Chugo, and his flick found the net, giving the Japanese side a crucial goal.

While the game finished up 2-1 to the hosts, Arema left a good impression on the Japanese crowd. Physically, Arema kept pace with Cerezo, and not once did its players appear overwhelmed.

Tactically too, the Indonesians showed an unexpected maturity. They moved the ball around masterly, frustrating the home side for long parts of the game.

It will be interesting to see how Arema progresses, now that it has been exposed to a wider continental audience. Sure enough, Cerezo players know their trip to East Java’s Kanjuruhan Stadium in April will be no holiday.

Arema Showed Maturity In Loss to Cerezo

Cerezo Osaka supporters who expected their side to trounce Arema Indonesia in the first round of the 2011 Asian Champions League were in for a big surprise.

In front of a crowd of over 10,000 at a cold and wet Nagai Stadium, the Indonesian side put up a good fight, finishing with a respectable defeat — and a few regrets — given how the game unfolded.

From the game’s opening, Arema players were organized and impressive for their tactical discipline.

Arema’s strong start derailed in the 14th minute, however, as a ball lost by Uruguayan midfielder Esteban Guillen unleashed a quick Cerezo counterattack, finished off by a header from Brazilian Rodrigo Pimpao to give the home side the lead.

Arema, however, did not lose composure and continued to control the midfield through possession, frustrating Cerezo and creating a good chance for an equalizer. Yet after 45 minutes the score was still locked at 1-0 to the Japanese team.

Most expected Cerezo to come out aggressively in the second half, especially after its crosstown rivals Gamba Osaka annihilated Melbourne Victory 5-1 in their opener the day before.

But after a chance wasted by Arema’s Slovakian midfielder Roman Chmelo, Iranian referee Mohsen Torki granted the Indonesians a penalty kick for what he saw as a handball by defender Taikai Uemoto.

Singaporean Noh Alam Shah kept his cool, perfectly placing his penalty kick to give Arema a deserved equalizer and sending the few Indonesian supporters present crazy.

Perhaps recalling Arema’s domination of the first half, Japanese players and fans became visibly nervous, but Cerezo was not able to find the goal.

The key-moment of the game came around the 30th minute of the second half, when Ahmad Bustomi made a dangerous slide tackle on Yusuke Maruhashi that earned the Arema player a yellow card and the Osaka side a free kick. Pimpao was quick to act on the ball sent in by Masaki Chugo, and his flick found the net, giving the Japanese side a crucial goal.

While the game finished up 2-1 to the hosts, Arema left a good impression on the Japanese crowd. Physically, Arema kept pace with Cerezo, and not once did its players appear overwhelmed.

Tactically too, the Indonesians showed an unexpected maturity. They moved the ball around masterly, frustrating the home side for long parts of the game.

It will be interesting to see how Arema progresses, now that it has been exposed to a wider continental audience. Sure enough, Cerezo players know their trip to East Java’s Kanjuruhan Stadium in April will be no holiday.