The Wu Way » Consumer

China iPhone survey results are in…so is the mobile phone the new symbol of China?

Jocelyn — Mon, 05 May 2008 00:47:02 +0000

Last week, I received a fresh market report from China Polling about the growing popularity of the iPhone in China. Some of their results got me wondering.

First, the numbers:

Unsurprisingly, over 65% have heard of iPhone, and among this group, more than 85% are willing to actually buy an iPhone if itâ€™s available here in China.

While the iPhone is not yet *officially* available in China, the price sure won’t be a bargain once it hits the Apple store. This is, after all, Apple quality — you get what you pay for. A cursory search came up with one store in China selling an iPhone for 4,300 RMB (~$600 USD). Still, that price is still well above the average salary of a young person living in major cities such as Beijing or Shanghai (around 2,500 – 3,000 RMB).

There’s more:

Findings show that Battery Life, Memory Size, Style/Design are the top features when picking a phone for all consumers. The difference between iPhone lovers and the not yet converted is all about branding. The non iPhone lovers prefer Music and Camera features rather than being wooed and indoctrinated by the hip Apple brand equity.

I found it telling that the style/design was up in the top three, and also that branding plays a major role in wooing people over to the iPhone.

When I was in college and studying US culture (we read Neil Postman — classic!), our professor once asked us what the real symbol of US culture was. None of us even came close to his response: the car. It made sense because it is something so deeply a part of people’s lives, and, more importantly, it has become a way to express one’s values. Patriotic? Buy American (i.e. Ford/GM). Green? Get a Prius. Wealthy? Show it off with a luxury car (Mercedes, Porsche, etc.). The associations could go on and on, but I think you get the idea.

I have to wonder if the mobile phone is becoming the symbol of China, in the same way. While there are cars in China, not everyone can afford them. But everyone — yes, even those guys out in the fields in the countryside — has a mobile phone. And people are willing to spend thousands of RMB just have the “right phone”. Including getting the hot new iPhone in China (once it gets to China, that is).

I remember back in my office in Shanghai, when the girls in particular seemed obsessed with their phones. They hung all sorts of trinkets and pictures on them. One girl had no qualms about purchasing a mobile phone that had to be more than half of her monthly salary.

What do you think? Are mobile phones the new symbol of China? And how will the iPhone change the landscape?

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Face Shopping: the role that “mianzi consumption” plays in consumer choice in China

Jocelyn — Wed, 01 Aug 2007 00:32:43 +0000

When I walked into the wedding flower shop in Tonglu, China — my husband’s hometown — I knew exactly the kind of flowers I wanted: roses, just like the roses on my wedding dress. The shop owner, however, didn’t ask us what type of flowers we wanted. Instead, she asked us how much we were willing to spend: 380RMB, 580RMB or 800RMB.

The implication was this: money defines who you are. The more you spend, the better you are.

I came for roses, and I was holding my ground. Even if they were on the lowest (380RMB) tier of pricing.

But most Chinese consumers would probably be tempted to go for the 800RMB choice — whatever it was. Why? Because it makes them look good in the public eye…and just as the salesperson said, it’s the trendy choice.

Chinese culture has long valued face, or mianzi. And as a collective country, Chinese people tend to easily follow mainstream trends; they desire conformity. All this spills over into consumer behavior, creating what many refer to as “mianzi consumption.”

If you’ve spent any time in China, you’ve probably seen mianzi in action already. Think about gift-giving customs — the packaging is just as important, if not more so, than the actual product. (this has, not surprisingly, led to excessive packaging in China). You’ll find these elaborate, overwhelming packages, all in the name of giving the sender good face. Shanghai’s Maglev Train, supposedly one of the most hi-tech trains of its kind, was built in the name of giving the city some good mianzi. Doesn’t matter that the design (forcing riders to take the metro before switching over to it), hours (it only runs 8:30am to 5:30PM) and cost (40 RMB one way — a lot for a lot of inconvenience, considering direct buses only cost half of that) have rendered it utterly useless.

Mianzi consumption takes the concept of face into the world of shopping, allowing Chinese consumers to exchange their renminbi for services and products that will boost their face and reputation — sometimes at the risk of their own health and financial well-being.

For example, a Sohu article (Chinese) describes how college-age women will spend hundreds of RMB on name brand makeup and beauty treatments, even to the point where they haven’t enough money leftover to eat. But they’d rather “invest” the money on their face — literally — because, as far as they’re concerned, appearances count.

This article in the Youth Daily makes a link between the “Housing Slave” (people whose mortgages take up 50% of their monthly income) phenomenon in China and mianzi consumption. They suggest that people get into such a precarious situation — having an unmanagable mortgage — simply because they choose to buy homes they can’t afford, all to live a lifestyle they believe is theirs.

Mianzi isn’t going away anytime soon — and neither will mianzi consumption. Especially when it comes to high-end, often foreign, products, such as BMWs, Louis Vuitton Bags, and top-shelf liquors. But there is a certain manipulation involved at times, one that perhaps nudges Chinese consumers into purchases that they would rather not make. Just as Chinese consumers have a responsibility to make smart shopping decisions, companies have a responsibility to sell their products without preying on a consumer’s emotional or cultural vulnerabilities (remember the sleazy car dealers?).

Come on…give roses a chance.

The latest sign of Chinese pride? Tang-style clothing for the “average Wang” in China

Jocelyn — Sun, 15 Jul 2007 08:59:26 +0000

Just yesterday, while doing a little post-nuptial shopping (in China, new couples also need new clothes), my husband and I came upon a typical store with the usual suspects for clothing. He and I were about to write the place off our list until I spied this red thing of beauty on the shelves, nestled in between a bunch of gaudy polyester numbers that bosses in China have worn for years.

What was this thing of beauty? Why, a Tang-dynasty-style polo shirt, graced with a pattern that was proud of everything Chinese: calligraphy, old style drawings and a traditional Chinese collar with a hook.

This wasn’t our first encounter with this new species. About a half an hour later, at yet another seemingly run of the mill store, sure enough there was a half a rack devoted to shirts with a Chinese sense of style. Black, white and red, with hooks instead of buttons and exuberant Chinese calligraphy, these shirts weren’t afraid to go back to the country’s roots.

Why the surprise? For anyone who has followed China’s development, including clothing, the trend has always been to look overseas for inspiration. Popular chain stores such as Metersbonwe, Jeans West and Giordano strive to give Chinese shoppers a sense of being part of the global village as they sell the same fashions we’ve come to know and love in the Western world.

Now it seems China is starting to point the mirror at itself. And the results are truly a thing of beauty.

While on the road, I’ve seen more than a few folks sporting these beautiful shirts, including a rather masculine mid-forties Chinese fellow who, only a few years ago, would have surely worn nothing but those polyester polo shirts.

So, if you’re making a move into China, keep this in mind: Chinese pride is making a comeback in China. And why not? When you consider the history, the arts and culture here, there still is a lot to be proud of.

Chinese weddings: the market for saying “I do” in the Middle Kingdom

Jocelyn — Tue, 29 May 2007 01:41:53 +0000

When I say Chinese weddings are a topic dear to my heart, I write these words with a certain authority. As you read this, I will be putting the final touches on a ceremony to be held in Zhejiang Province early July.

All the romance aside, let’s face it — weddings are big business. According to Rebecca Mead, it’s a $161 billion industry in the US. I don’t have the numbers on China. But if the wedding photography stands near the Metro stops in Shanghai are any indicator, there’s big bucks behind those white veils and banquets in the Middle Kingdom. People in China really do pay top dollar for their ceremonies.
That means potential for enterprising foreign companies who can fill a need.

So let’s talk weddings — the business side and the opportunities.

How much do people in China spend on weddings? This article (Chinese) claims about 10,000 RMB or about $1,200. Another article puts the tab at 100,000 RMB or $12,000. Whatever end of the spectrum you’re at, it’s still an imposing chunk of cash. Remember that average Chinese earn anywhere from 1,500 to 3,500 RMB (~$200 – $450) a month — some more, some less. Anything beyond that range is already within the realm of “upper class”.

What about the timing? We’re busy tieing the knot in the summer, while our Chinese counterparts just can’t take the heat (except in the far Northeast and cooler areas). The big wedding rush seasons are the New Year (both Western and Chinese), the Labor Day Holiday in May, and the National Day Holiday in October. If you want to book your facilities or services during either of these times, take a number and line up.
Let’s talk services…some warrant more attention than others. Perhaps the most lucrative of all is the wedding photography.

Ah, wedding photography. Chinese routinely spend upwards of 5,000 RMB (~$600), sometimes even more, for a Hollywood rendering of the happy couple. That’s right — this is all studio work, not a shred of it goes on during the actual wedding ceremony. Think GlamorShots for weddings. And many couples choose not to have professional photographers at their weddings, instead taking the studio photography work as a monument to their big day. Currently most of the companies doing this work are based in Mainland China, Taiwan or Hong Kong — but there is a growing demand for high-end ultra artistic work. The phrase “picture perfect” comes to mind because people are willing to pay top dollar. Even those couples who eschew having the whole formal wedding party still get the wedding photography done to show they’re official.

There’s another must-have in China — wedding candy. I remember finding the little twin boxes on my desk on a Monday morning, a sweet reminder that some unknown individual in the workplace tied the knot just that weekend. Wrapped in packaging evocative of traditional China, often with red and gold, wedding candy is distributed during the wedding and, as I mentioned above, afterwards to work colleagues. A number of foreign companies are already on board in this industry, including Dove.

Western bridal gowns are very de rigeur in China. Most brides, on average, wear three gowns and one most certainly is the traditional white we’ve come to know and love.

And then there are countless other products and services in demand for weddings in China, including:

Chauffeurs/rented luxury cars
Catering/banquet facilities (including lavish multiple-course dinners)
Emcees for the wedding
Videorecording of the wedding
Makeup and hairstyling on the wedding premises (since brides change their dresses)
Hotel rooms reserved for guests and the couple
Wedding rings

The popularity of Western bridal gowns may suggest room for more Western traditions in the whole ceremony. Things such as having DJs or doing the whole church ceremony (there are more Christians in China than communist party members).

On the other hand, if your product/service could fill a distinctly Chinese need (such as the overembellished wedding photography), your mission is to stand out from the crowd. Take a look at the Shanghai wedding photography market, for example. Two leading photography providers have alluring foreign cities in their names: Paris Bride and Milan Wedding, suggesting that the experience of Western-style romance is attractive. What’s your twist?

Five ways to tarnish your company’s image in China

Jocelyn — Sat, 12 May 2007 19:20:02 +0000

1. Open a store at the Great Wall.

We could learn a lot from Starbucks on this front. Their store in the Forbidden City has generated enough negative PR to warrant high-level government discussions on closing it for good. Why? Because the move was perceived as an imperialistic invasion into one of China’s most sacred and beloved cultural icons. With China’s recent history of foreign marauders coming in and setting up shop there — without the blessing of average Chinese — the reaction is not surprising.

So if a Chinese official gives you the green light to open up at the Great Wall — or any other iconic cultural location in China — think twice.

2. Fudge your Chinese translations.

Chinese translation is sadly undervalued in the business world. Companies pay hundreds of thousands of dollars for branding, marketing, design and PR — but some expect to get their marketing materials and corporate identity translated on the cheap by a Chinese student. What’s the harm? A lot. Let’s say you do get a Chinese student to do your translations. If that person has little experience in the business world of your country, they may end up using the wrong terminology. Jean Jameson, a professional translator in the UK, underlines the potential risk in her article “Prevention is cheaper than cure“. Here’s an example:

A textile design company went to Shanghai for a major exhibition several months ago, and engaged a Chinese student to translate its marketing brochure. At the exhibition confused visitors pointed out that the brochure did not make sense – the Chinese student had translated ‘rug’ for ‘cushion’!

It could get even more embarrassing if it’s your tagline, company name or your actual name — these are the core of your company’s image.

Remember, your marketing materials and corporate identity are communicating for you when you’re not around, like a Chinese sales rep in print. Will yours be wearing sleek Armani or plaid polyester? The choice is yours.

3. Confuse Japan and China.

China has a love-hate relationship with Japan. They love the economic benefit of Japan’s investments and export purchases from the Mainland. But most average Chinese still hate the island nation. Some of the sweetest, most gentle Chinese people have surprised me with their poisonous diatribes on Japan. It’s not shocking when you consider that the Japanese occupation from the late 1920s to the 1940s was akin to the Holocaust for Chinese.

Yet Westerners continue to conveniently lump together all East Asian cultures. As far as some are concerned, if they look the same, the culture is the same.

This is complicated by popular culture, where Asians even take on roles outside of their respective cultures — sometimes, with volatile results. For example, the recent movie version of Memoirs of a Geisha intermingled Chinese and Japanese screen stars, and had cast mainly Chinese actresses as the leading geisha in the film. Anyone following the news also knows the film was banned in China. The primary backlash stemmed from — what else? — its portrayal of Chinese women as high-class prostitutes, a bitter reminder of the Chinese “comfort women” enslaved during the Japanese occupation.
So, take note: samurai, geisha, teppanyaki, sake, kimonos, manga. None of these are Chinese. And they may be to your conversation what the A-bomb was to Hiroshima.
4. All work and no play.

Remember the Shining and what happened to Jack? All work and no play also makes you a very dull, very undesirable partner to the Chinese.

Here in the US, we’re used to separating business from pleasure. We like to “get down to business,” so to speak. And when the meeting’s done, we shake hands and leave the office.

In China, the meeting is just the beginning. Chinese business partners invite you to elaborate teas, banquets, karaoke parties and even weekend trips to Hong Kong. You get chauffered around in the utmost luxury. All on your Chinese partners’ tabs.

After a few rounds of this, you’re just about ready to put on the breaks the next time you hear an invitation to chifan (eat dinner).

I’ve got news for you. When it comes to doing business in China, all of the above is just par for the course. Some of the most important headway between you and your prospective partner will probably happen while you’re crooning “Edelweiss” (a perennial favorite) together in a karaoke bar.

There’s another reason you shouldn’t miss the socializing. It just might suggest you’re not interested.
In China, people put a premium on the relationship. They want to know you and build trust. That kind of connection only happens beyond the office. I’ve heard from many execs that, by spending more leisure time with their Chinese partners, they experienced major breakthroughs in their business relationships.

5. Ignore superstition.

Superstition in China runs stronger than the Yangzi River. Even Chairman Mao’s Cultural Revolution, his almost deranged assault on traditional Chinese culture and history, couldn’t stamp out superstition…though it tried.

Examples of it abound in modern Chinese culture.

Consider the upcoming Beijing Olympics in 2008. Now, the number eight is one of the most treasured numbers in China because it sounds similar to the character for making money. China already got lucky hosting the event in ’08. So guess when the Olympics will begin? August — the eighth month of the year — on the eighth day of the month at exactly 8pm.

After the seven-day Labor Day and National Day holidays, work always resumes on the eighth of the month.

The Chinese national flag is in red and gold, the two most traditionally auspicious colors in Chinese culture.

But the question remains — how could superstition derail your business?
Picture this: your prospective Chinese partner invites you to his daughter’s wedding. It’s a great opportunity to get to know him better through social interaction following the advice above. You’ve heard that giving money is pretty standard, so you take out the nicest white envelope from your suitcase and put in the equivalent of $50 — 400 RMB.

Congratulations, you’ve just communicated your death wish for the new couple. White envelopes are only reserved for funerals, and the number four sounds a lot like the character for “death”.

Of course, this is an extreme example. Not all superstition snafus will hurt your reputation. For example, it’s unlikely that Chinese will turn the other way just because you didn’t use auspicious colors or characters in your corporate identity. But just imagine if you did. Chances are your counterparts in China will be impressed that you knew enough to go the extra mile.

Why fight superstition? Go with the flow — and watch your business reap the benefits.

The Wu Way

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When red is green: the outlook for the environmentally friendly market in China

Jocelyn — Mon, 30 Apr 2007 13:43:38 +0000

Can red be green too — if it’s red China we’re talking about? Headlines such as “With the Olympics Looming, China Goes Green”, “China urges end to polluters’ tax breaks”, and “Greenpeace rates Apple least green, China’s Lenovo scores high” suggest a new momentum to remake China as environmentally friendly.

Let’s be clear here — green in China isn’t just some passing fad. And in some ways, being green is a lot more popular than you might think.

Case in point? Solar-powered water heaters. I remember seeing these handy green appliances at numbers of stores back in 2001, and I wouldn’t be surprised if they were available even earlier than that. Today more than 30 million Chinese households own one, accounting for 80 percent of the entire world market!

The seventh-richest man in China today — Shi Zhengrong — built his wealth on none other than photovoltaic solar cells. His company, Suntech Power Holdings, is even trading on the New York Stock Exchange. While most of his sales are overseas, it’s only a matter of time before innovation will bring the price down to something more affordable to the Chinese public.

Meanwhile, environmental groups are making headways across the country. According to this article in the China Daily, over 4,000 environmental groups have sprung up around China since 1994.

The article also goes on to highlight one of the most important constituents for a greener China — students:

In Beijing, 1,600 students attend the Number Two Middle School, an institution widely regarded as one of the best secondary schools in China.

The school is revered for producing some of the country’s best and brightest, yielding students who receive top scores on China’s annual college entrance exams.

The students at Number Two stand out, however, not only because of their academic achievement, but because of their enlightened attitude toward the environment.

Over the last few years, especially since Beijing was awarded the 2008 Olympic Games, environmental awareness has gotten a new emphasis among those who will be the next generation of China’s educated leaders.

Manufacturers in China are thinking green too. I referred to Lenovo above. Add to them a number of smart and savvy green Chinese automakers, who understand that being green means profitability for the future:

One experimental clean-energy car runs on natural gas. Another uses ethanol distilled from corn. A third has a zero-emissions electric motor powered by a hydrogen fuel cell.

These alternative vehicles were created not by a global automaker but by China’s small-but-ambitious car companies, which displayed them Sunday alongside gasoline-powered sedans and sport utility vehicles at the start of the Shanghai Auto Show.

At a time when they are still trying to establish themselves in international markets, Chinese automakers are already investing in such avant-garde research in a bid to win a foothold in the next generation of technology.

“This is the tide of the industry. If you don’t go with the tide, the industry will pass you by,” said Qin Lihong, a vice president of China’s biggest domestic automaker, Chery Auto Co., in an interview ahead of the show’s opening.

It’s not just “the tide of the industry” — it’s the tide of China. A green tide. The market is there and growing…so don’t let it pass you by either.

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Interview with Gary Wells of Dix & Eaton about international communications

Jocelyn — Thu, 22 Mar 2007 02:16:15 +0000

Jocelyn: Good morning, this is Jocelyn, weâ€™re at the Wu Way, this is January 29, and Iâ€™m here at the BP Building and I have the pleasure of meeting with Gary Wells, who is the Senior Managing Director for Media Relations and Global Communications for Dix & Eaton. I might add that Gary is a very well-traveled man. He continues to help broaden Dix and Eatonâ€™s capabilities and has helped establish media affiliations in 65 markets, right?

Wells: A little more than 65, around 75.

Jocelyn: Okay. And including in the China market, such as Beijing and Shanghai. Iâ€™d like to talk to him today about international communications. Gary and I were just discussing Starbucks and an interesting point aboutâ€¦that you have to be careful about the kind of message to a country when youâ€™re trying to move your brand into that market. Right?

Wells: Good morning, Jocelyn. I think itâ€™s critical for any company moving into a global market, an emerging market, is to keep in mind cultural sensitivities. Okay? Of all US companies, Starbucks is generally the most alert and sensitive to such cultural issuesâ€¦but lost sight of that with their decision to accept an opportunity to put the franchise inside of the Forbidden City. Itâ€™s one thing to install a Starbucks or any other American fast food restaurant in a shopping plaza, in a business center where thereâ€™s high traffic. Itâ€™s another to install what could be considered a foreign invasion in one of the most hallowed sites in all of China, the Forbidden City.

Jocelyn: Right.

Wells: The larger point here is for the global company building into an emerging market. Itâ€™s not enough to have a proprietary service that is in demand, you have to understand the cultural sensitivities. For China, for India, for other countries as well, these are countries that have for decades, for centuries were ruled and subjugated by foreign powers. They have long institutional memories. While they may not go looking for slights, perceived or real, they are very aware of slights as they see them. So the decision to install a Starbucks inside of Forbidden City couldnâ€™t be taken any other way than something as an insult and somewhat as a slap in the face. I think Starbucks has handled the situation quite well, to their business savvy, some companies perhaps would not. I doubt they would make that mistake again either in China or in someplace else.

Jocelyn: Yeah, itâ€™s interesting. I think itâ€™s a great example of what can go wrong when you donâ€™t think about how the media or how the public can perceive the message, maybe covert or overt, that your move in an international market may imply. And maybe, I was wondering if you could tell me some other examples of the challenges that a company might face when theyâ€™re trying to establish themselves in another country, some examples that youâ€™ve seen from your own work.

Wells: I think if youâ€™re a global company and youâ€™re looking to establish operations, if you see a market for your product or service in central market countries Brazil, Russia, India, Chinaâ€¦you have to understand the market forces, but also the culture sensitivities. Also political issues as well. Most companies will look at China and India as probably the two most important markets or two of the most important markets. Very different, very differently organized in terms of their politics. One of course is the Peopleâ€™s Republic of China is a Communist government. More of a market economy than ever beforeâ€¦but still run by the Communist party.

Jocelyn: Right. They call it â€“ what is it — Capitalism withâ€¦no itâ€™sâ€¦Socialism with Chinese characteristics, I believe.

Wells: And I think that China, to its credit, learned a lot by watching the mistakes that Russia made. Look at India, India is normally the worldâ€™s largest democracy. Itâ€™s a very messy democracy. Even though thatâ€™s a dichotomy when you talk about democracy as messy, it shouldnâ€™t be. However, in India, there was such difficulty pulling the country together some sixty years ago when the British left, that I think a lot of the princedoms, fiefdoms, empires if you will throughout India were given considerable autonomy but the states inside India have considerable autonomy instilled. If youâ€™re Microsoft, and this is a real example, if youâ€™re Microsoft and you look to expand operations throughout India, at the same time you do understand the importance of helping the country and its people in a land where poverty is ripeâ€¦.For example, the Gates Foundation, the Bill and Melinda Gates Foundation sends money for helping a variety of schools there. But in one state, the governorâ€¦thought that Microsoft was too much of a monopoly, and instructed the schools not to use Microsoft Office. Despite the fact that the company had products that were much in demand, had through its foundation, contributed a considerable amount of money to easing poverty and improving the schools, [that still was the governorâ€™s decision]. Microsoft, to its credit, also reacted specially by making sure there was even more in the way of free software and free education to this particular state as well, and the governor relented. But thatâ€™s the sort of issue that a local company faces there and Iâ€™m afraid that not many â€“ outside of a Starbucks or Microsoft â€“ are as alert to these issues as they should.

Jocelyn: Sure. You know, that makes me think about how, you know, you talk about autonomous regions in India, you know, of course China has quite a few of its own. Like Xinjiang is an example of an autonomous region. Of course, countries such as India and China, they have thousands of years of history of these regions operating as just separate states. And each has its own culture, its distinctive identity. A lot of times, we come into a market, we assume that that market is just, you know, itâ€™s all one homogenous being, you know, itâ€™s all what we see in Shanghai or Beijing or in the case of India, New Delhi.

Wells: Particularly in a market as gargantuous as China — so many regions, so many cultures, languages or dialects â€“ it is absolutely incumbent on any companyâ€¦consumer products, business products â€“ to understand the cultures where they establish operations.

Jocelyn: Right.

Wells: If youâ€™re in the north, youâ€™re in the south, itâ€™s a much different operation. Youâ€™ve got to be aware of which dynasty ruled going back centuries, youâ€™ve got to be very alert to not just the current issues but the past issues as well. It has an impact on how youâ€™re perceived in the community, it has an impact on your ability to recruit employees for a region in China as well. Itâ€™s a huge issue for companies moving into China or India. The war for talent is acute. If you want to attract the best and the brightest, to borrow a phrase, then those people have to look at you as a tremendous opportunity. And not just to join your organization, but to stay with your organization. They have to see that thereâ€™s opportunity for them to grow. You also have to be well-regarded, well-respected in the community because they have to save face in the community as well.

Jocelyn: Sure.

Wells: If you donâ€™t have a good reputation in the community, if youâ€™re not seen as contributing to the community, you may have a difficult time even further attracting, much less retaining, employees.

Jocelyn: That reminds me of last year when you spoke at the [Going Global] panel and that was something that you had emphasized, was the internal communications in a company, correct? And thatâ€™s something that a lot of companies who go global, they often overlook this small piece of the puzzle that can be so important in perhaps, as you said, retaining employees and reminding people of the value they get from the company.

Wells: Itâ€™s actually reminiscent of the story over centuries about workmen in France. One of whom is asked what heâ€™s doing, says heâ€™s cutting stone. Another is asked what heâ€™s doing, says heâ€™s mixing concrete. Another is asked what heâ€™s doing and he says â€œIâ€™m building a cathedral.â€ Heâ€™s got a much larger vision and heâ€™s part of a larger team. And if youâ€™re establishing operations in China, or in India or elsewhere around the world, itâ€™s not an isolated facility. Those arenâ€™t people who work in isolation. Those are people who are part of a larger team. They will feel much more engaged if they understand they are part of a team which means introducing them â€“ perhaps electronically, perhaps personally â€“ to others on the same team, either in the same country or elsewhere around the world as well. Itâ€™s hugely important and I think too many companies miss out on that too.

(To hear more about Gary Wells’ views on international communications and China, listen to our full podcast. Total time: 18:32….WARNING – this is not NPR quality on the recording side, but it’s a great conversation.)

McKinsey looks into China’s hinterland…and sees opportunity

Jocelyn — Fri, 16 Mar 2007 20:51:35 +0000

Seems like Shanghai, Beijing and other major cities in China are the current darlings of the international business world. Who can blame them? The breakneck pace of development has produced a dizzying array of buildings, shopping malls — and accompanying stats — to make any marketer swoon.

Meanwhile, one has to wonder about the 70 percent odd people outside of China’s mega cities?

Enter McKinsey. They’ve just released a special report on Marketing to China’s Hinterland — and frankly, it’s about time. Here are a few juicy teasers from the intro:

The most attractive consumer segment in these markets consists of the aspirants: some 35 million households with average monthly incomes of about 3,800 renminbi ($475)â€”not far behind the average income in China’s biggest cities.

This segment is spread out among about 12,000 towns and small cities that dot China’s landscape. Companies must carefully weigh the costs of reaching them against the potential gains.

Appealing to the sophisticated aspirations of the segment and effectively sealing the purchase at the point of sale could be critical.

I think it’s a solid report worth looking into. Here’s to marketing life beyond China’s big cities!

Full moon fever on the Lantern Festival

Jocelyn — Wed, 07 Mar 2007 03:16:21 +0000

The brightest moon of the new year welcomes a festival of light – the Lantern Festival, also the official end to Chinese New Year.

Thought the new year was over after Chinese New Year’s Eve? Think again. In China, celebrating the new year is not just a matter of swinging around a few firecrackers and enjoying a great meal. In the 15 days following Chinese New Year, nearly every day has its own customs and traditions. We won’t get into all of that, in the interest of space. But it all culminates on the 15th day of the new year which is — you guessed it — the Lantern Festival.

As you can see above, part of the lantern festival is about…well…getting out to enjoy these giant lanterns. To the uninitiated, lanterns might just seem like large glorified light-up floats. Unlike floats, lanterns just stay in one place — while people move around to have a look. Usually the lanterns draw from traditional Chinese folklore and, especially, the Chinese zodiac. Since this is the year of the pig, you can bet that, across the world, hundreds of thousands of people are gawking at glowing larger-than-life representations of these oinkers. Meanwhile, the kids often carry around little lanterns — either made by themselves or bought from a seller — as a part of the celebration.

Given the full moon, it’s not surprising then that “roundness” is an inextricable aspect of the holiday. Tang yuan (æ±¤åœ†), the traditional snack for Chinese Lantern Festival, are round balls of glutinous rice flour filled with sweet or savory paste. One time I celebrated the holiday with a friend who went out of her way to make a meal of nothing but round foods — including the tang yuan. And actually, the word describing the very act of family togetherness encouraged for the holiday — tuan yuan (å›¢åœ†ï¼‰– has a character in it meaning “round”.
It is also a time for auspiciousness and good fortune — celebrating the holiday is a part of that. And there are certain traditions that carry this idea forward. For example, some people will put a “lucky” filling in certain tang yuan, such as a strawberry. If you happen to get this filling in your tang yuan, you can expect good things to come in the new year.

Want to connect with Chinese people over this holiday? If you’re looking for a terrific symbol of Chinese New Year, you’ve found one with the lanterns. Think about how you might integrate them into your marketing and communications ideas. Consider also the idea of roundness surrounding the holiday, and use it to your advantage — whether in your marketing materials or your business dealings. For example, impress your guests with a meal of only circular foods! But whatever you do, make it auspicious.

The Golden Pig Year baby boom and the power of superstition in China

Jocelyn — Thu, 22 Feb 2007 19:19:17 +0000

It’s no secret that superstition runs deep in Chinese culture. And this Chinese New Year is yet another reminder of that, as this NPR news story discusses in the baby boom for the Golden Pig year:

In China, city-dwellers are only allowed one child, so many are timing their pregnancies according to the traditional lunar calendar to promote the most auspicious birth. Some newspapers have called 2007 an especially lucky “golden pig year,” which only comes around every 60 years. And that is spurring a baby boom….

The city government has even stepped in, warning women to try to avoid getting pregnant this year. As Huiyuan points out, these piglets will compete for hospital beds and go on competing throughout their lives â€” for school places, university places and eventually, wives.

Still, commercials for baby products are taking up double the air time, and companies are preparing for bumper sales.
Outwardly, China may be changing unbelievably fast, as skyscrapers sprout and farmland is gobbled up by ever-expanding cities. But beneath a modern veneer, traditional superstitions run deep.

What’s interesting to note is that the public seems mostly unphased by the prospect of looming competition for their “piglets”. Taking advantage of this “auspicious year” trumps all practical concerns.

So what’s the take home here? Never underestimate the sway of superstition to the Chinese public. Many practices that we might consider superstitious are simply part of life in China — such as choosing a fortuitous wedding date through a fortune teller.

If you’re marketing to the Chinese public, it pays to have some basic knowledge of superstitions and how they may affect your products/services. Sometimes, in the case of the companies selling baby products in China, you might just find yourself on a wave of profits — all because of good timing and superstition.