Conquering the world, one culture at a time.

I recall standing in the crowded convention center in Cannes, wondering if I had made a mistake by coming to the annual property show in this lovely seaside town.

My intent was to meet European retailers interested in coming to the US. Everybody was speaking French; I doubted my ability to carry on a conversation.

Several years later, my persistence has paid off. Today, my partner Paulette Powell and I are members of an international network of retail and investment specialists, working on many projects around the globe.

People often ask us what the keys to success in the international arena of retail real estate leasing and development are.

Success, for the expanding retailer, is becoming less difficult as our industry is becoming more universal.

Globalization, a natural consequence of the immediate dissemination of information, has allowed good ideas to spread around the world virtually instantaneously. This transparency has created global appetite--a phenomena increasingly recognized in the industry.

Global appetite is "the same response to a product by people from different backgrounds", so retailers with strong brand identities, the right products, and good locations, can prosper almost anywhere. Global appetite also applies to developers of shopping centers, lifestyle centers and other retail developments.

But even though the industry is becoming more universal, and the products as well as the developments appeal to the global appetite, their execution still requires tremendous cultural alertness.

Some businessmen delude themselves into thinking that, to execute cross-border transactions, all it takes is being able to convert dollars to the local currency, and square feet to square meters.

It's crucial, however, to be sensitive to the culture codes that so many of us overlook. According to Clotaire Rapaille, a French sociologist and behaviorist, culture codes are unconscious, unspoken and intrinsic meanings that we apply to any given thing, product, design or an experience viewed through the culture in which we were raised. They are filters through which people experience similar things in different ways. Rapaille's book "The Culture Code: An ingenious way to understanding why people around the world buy and live as they do" is a must-have book for anybody trying to operate in the international marketplace. We can't afford to ignore the cultural nuances when a simple mistake can cost a fortune.

I recall the story of an enormous deal that failed because of just such a cultural mistake. A delegation of Chinese developers arrived in the US to discuss a new project. Someone from the US team complimented the Chinese team's leader, who was 78, as looking very young. The Chinese delegation abruptly left the next day. Eventually, they learned that, in Chinese culture, telling an elder that he looks younger is a terrible insult--akin to calling him a fool.

It seems absurd that such a little faux pas would spoil such an important deal, yet it proves how critical it is to know, read and pay attention to culture codes.

The difficulty is that people are rarely aware of their own culture codes; as these codes are unconscious.

While a French businessman isn't necessarily aware of his "formality", which is natural to him, it's contrary to the informal manner in which Americans tend to conduct business. A Korean businessman isn't aware that he has a problem saying 'no'; however, studies have shown that, in some Asian cultures, people can't refuse to fulfill a request, even if they know that they cannot possibly do so. Of course, people are not aware of acting out on these unconscious cultural codes. So it takes a lot of study and careful observation to learn these codes.

Social science research also shows us that a key component of any successful business or development is the participation or "buying-in" of the project by the people who it is designed to serve. Knowing the culture codes is the first step in understanding how to build relationships with the people who can make the project a Success.

Clearly then, cultural and social consciousness is one of the hardest, yet most important keys to success in the international arena. Developers, architects, retailers, and everyone working in me international business community, must always keep this in mind.

BY RICHARD K. KAVE, DIRECTOR, INTERNATIONAL RETAIL, WINICK REALTY GROUP