Image by Fantake via FlickrBest wishes and online peace on earth for 2011.
Thursday, December 30, 2010
Short hiatus in updates
Image by Fantake via FlickrBest wishes and online peace on earth for 2011.
Sunday, December 26, 2010
Buying a Joyoung soya milk machine (again in Mediamarkt)
One of the nice things of running around in Shanghai with a local family is that you can study purchasing patterns on a really micro level. From even buying one product, you can get very useful information. For the Shanghainese this behavior is part of their daily routine, so they cannot imagine outsiders have to get used to that. For foreigners doing business in this highly competitive climate, those stories hold a few valuable lessons.Today we bought a JoYoung soya milk maker in Mediamarkt, but rest assured that much water has gone through the Huangpu River, before the sales people could close a deal. It says much about how difficult it is to sell to Chinese - especially if you ever think of making a profit.
Interest was triggered off by a demonstration at the very busy Lian Hua Carrefour store. Triggering off interest was only the start of a lengthy process. At the stand we tasted at least four different combination of soya milk drinks that had been prepared with the machine. I thought they tasted equally disgusting, but our Chinese side decided it was worth more investigation after we had spent about half an hour at the stand. Cost of this Joyoung soya milk machine at Carrefour: 399 RMB. (Say 40 euro)
Since we passed by in Mediamarkt, we decided to check. The same Joyoung soya machine was there 100 Rmb cheaper: Carrefour was 30 percent over the Mediamarkt price. It was obvious that Carrefour had lost this potential deal. Carrefour offers to pay the difference, if you can buy a similar product for a lower price. But who wants to go back to Carrefour if you find a cheaper product elsewhere? Only if you are a very loyal Carrefour shopper and Shanghainese shoppers have not yet discovered the word loyalty when talk about retailers. (For manufacturers that might be different though.) Also at Mediamarkt, very well informed sales staff, with a lot of patience for demanding customers.
Next was Taobao.com, the popular e-commerce service that is increasingly used by Chinese customers. They offered a similar looking machine for 256 RMB, that had been bought by 860 customers over the past week and by thousands over the past months. That called for a family council, since mostly they would drop any deal for a cheaper offer, no matter who makes the offer, for a similar product.
Mediamarket by Qiao-Da-Ye賽門譙大爺 via FlickrIf there would have been more time at hand, they would have gone for Taobao, do they could check the quality. Taobao offers to take products back within 15 days. (For other products, like the CGG boots, they would have less problems with fakes, as we might see in another upcoming story.)
So, online sales are going to be the main challenge for Mediamarkt too, as well as their domestic competitors. Online sales are going up fast and especially for the older segment of consumers building up trust is key. When online providers can do that, they will beat the offline electronic retails, foreign and domestic. Both Mediamarkt and Best Buy are only minor players and will have a tough challenge in building up a sizable business.
Eating at Guang Ming Cun
Image by Fantake via FlickrThe queue outside for their snacks are famous for ages, and their previously very shabby interior got an amazing remake, staff got new clean uniforms. Their run-down looks had never stopped the Shanghainese from dropping in, and now you can feel yourself even a king - that is if your can find a place to sit down. Visiting the toilets is still not advised.
Food has been literally been the same, admittedly sometimes a bit on the greasy side. Service is quick, it seemed we got our food even before ordering had finished. And while Guang Ming Cun will never get a star from the Michelin guide, it keeps on getting a flow of customers. That might be just enough for them.
Friday, December 24, 2010
Qi Bao Old Street: a cultural Disneyland
Image by Fantake via FlickrBut what could attract them, I asked myself, when I wandered past the boring souvenir shops with overpriced products? I knew what they were coming for when we entered the food section of the two streets. Initially, it looked just like any food street anywhere in China, but the combination of really authentic food, in small shops for fair prices brought excitement in the thick crowds.
Even the fact that some of the shop owners had dressed up was barely noticed, as people jumped on the - indeed - delicious food. Would I advise Western tourists to take subway line 9 to visit this exhibit of pure Chinese tourism? When you are interesting in watching Chinese tourists, it is a great place. Otherw
IRelated articles
- Old Shanghai A-Z - Paul French (chinaherald.net)
- From the Great Wall to the Rockies: Chinese tourism boom expected in Canada (globaltvbc.com)
- Row seen denting Chinese tourism (search.japantimes.co.jp)
An old-people's home in Shanghai - one solution
Singing Party members by Fantake via FlickrA light entrance, much room for the sun to kick in, clean, spacious and cheerful uniformed staff.
Admitted, yesterday was a bit of a special day, as we bumped by accident into a larger group of members of the Communist Party performing and handing out presents in an end-of-the-year party. At the second floor a group of apprentice hairdressers offered today free haircut, even less than the normal 5 Renminbi (0.5 euro) they charge.
The home for about 250 people is pretty new and most of the families are living in the neighborhood, often at the other side of the road. Most parts of the day family members can be found at the dormitories with seven beds per room. Food look good and healthy, and the people say they enjoy it.
The costs are relatively high: 300 euro per month, so, way to expensive for many families in Shanghai. And f
or the really rich, they might mostly be able to afford in-house service.
The staff seemed to be really caring, and are mostly women from outside Shanghai: without immigrants Shanghai will of course never solve its aging problem. But these paid-for, sustainable solutions, available for the so-called middle class, can take out a major chuck out of the macro-economic problem.
Tuesday, December 21, 2010
Facebook should be in China - Kaiser Kuo
Kaiser Kuo via FlickrKaiser Kuo (in the Q&A Answer service Quora, here quoted in Forbes)
…a Facebook entry into China would be fraught with challenges but personally I believe that having Facebook in China, even if it were compelled to abide by China’s strict censorship requirements, would still be better than not having it here. I believe that it would be a net positive for China’s Internet users. More connectivity is better than less. I felt the same way when Google entered China and acquiesced to the demands of censors: Even though they were censored, they nevertheless helped to expand the information horizons of Chinese Internet users, and I’m very thankful that some compromise was arrived at.He admits such a move would not be without problems, in the debate that follows:
But yeah, I agree that it would be difficult. And if they did something like this it would bring down a major storm of condemnation from rights groupsCommercial
Kaiser Kuo is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.
Monday, December 20, 2010
Shanghai's Huai Hai Zhong Lu seeking queues for luxury goods
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| Wrong queues at Huai Hai Zhong Lu |
Over the past few years, Huai Hai Zhong Lu has been focusing on the high end luxury market. That move is especially clear in the segment east of Maoming Lu. On both side of the street, in pretty recent developments, previously shabby shops have been turned into life advertisements for all the global brands you can think off. It is the kind of street you will find in Zurich, London, Berlin, or any other city that strives for world fame.
We also noted queues of eager consumers in this segment of the street, but not at the luxury stores. The redevelopment has not wiped away the old popular food stores that sell those tasty goodies, the Shanghainese crave for. That was where we noted almost all afternoon hungry consumers.
How different was the shopping experience in the stores for luxury goods. We were here on a lousy Monday, so that might not be indicative for the whole week, but they were pretty empty. The idea of clustering famous global brands in one segment of this miles-long Huai Hai Zhong Lu is a smart one, but might be five to ten years too late. Shanghai is already stuffed with other outlets of the same or similar brands, and a new row of the same stores, be it in a better location, might not do the trick.
In the past, owners of luxury good stores in Shanghai could tell with a watery mouth that every now and then one of the new rich Chinese out of the provinces would drive to their store, buy half of it, and go home. Many of the two- and three-tier cites now have the luxury stories of themselves, and those goods are also available outside Shanghai. And more of the new rich Chinese, say many researchers, would rather buy those goodies in Hong Kong or Europe, pay a premium, but get a more fulfilling shopping experience.
We hope all those global brand will continue to pay the price for such a great shop on a great location. We do not promise them a very profitable revenue stream.
Saturday, December 18, 2010
Less carbon, more bicycles in Shanghai
In China making a difference between official rhetoric and reality is often tough. But what I saw this morning in Shanghai is real: an extensive orange bicycle program that allows citizens literally to take a free ride. Just outside the compound where I stay for the time being, I found this row of orange bicycles.They are part of a municipal program to reduce the carbon imprint and reduce the pressure on the traffic on four wheels. Later I saw more of those rows and most subway stations have one, people told me. It is meant for local citizens who have to register with their neighborhood committee, they will get an electronic card to release the bikes without any charge.
An overnight maintenance team makes sure the bikes remain in a good condition. The program is not meant for tourist and you will find the bikes only in the suburbs, not in the city center (where the local government often tries to get rid of bicycles).
According to my informants the bikes are pretty popular; anything in Shanghai that is for free would be popular, of course.
Friday, December 17, 2010
Hope for Mediamarkt in Shanghai? - Updated
Image by Fantake via FlickrI was amazed to see especially long rows of coffee makers, surprising since Chinese do not drink often coffee at home. They do drink coffee at Starbucks and the growing number of other chain stores, but that is to be fashionable and Starbucks did a good job in actually hiding the coffee taste.
Fortunately, the no-doubt stubborn European management had also listened to their Chinese staff and I noted long sets of dehumidifiers - more than in Europe and important in humid Shanghai - and many, many rice cookers. There were actually more rice cookers than customers in the store on a Friday afternoon. That of course does not spell good for the sales in China. Is Mediamarkt taking the same direction as Best Buy?
Update I: We went back to Mediamarkt to compare some prices with some of the appliances we bought in Europe, so not the products that are also common in China. For an espresso machine and advanced cleaning equipment we paid in Europe half of the price tag at the Mediamarkt in Shanghai. Quite a premium, we thought. The high margin might make it affordable to keep products in store that seldom sell.
Update II: We visited again Mediamarket on Saturday, after we concluded that an electronic product we wanted to buy an electronic product that was actually cheapest in Mediamarkt. The number of (window) shoppers was also reasonably high. We discussed our changed views with a few customers, and indeed Mediamarkt is offering a better shopping experience than any other outlet (including Chinese stores, Best Buy and Carrefour). That includes a wealth of choice and - most important in Shanghai - the cheapest prices. Unless you go for overpriced imported products. We actually found today on three spots qualified staff giving us good and relatively unbiased expert views. It it not help the people at the cashier: we literally had to wake up one of them when we wanted to pay. Real business is not yet brisk.
Returning goods is also not a policy in Mediamarket (probably for good reasons), but cost us another ten minutes in negotiating a possible purchase with the highest manager in charge.
Tuesday, December 14, 2010
Chinese men now "dressed to impress" - Shaun Rein
Shaun Rein by Fantake via Flickr"Men in China are more open-minded than those in the US," says Shaun Rein. "They now want to dress to impress." Where they US counterparts had the masculine, smoking, shooting cowboy as the image to refer too, Chinese men just do not want to look like their parents, the farmers of the past.
Rein expects the market for male cosmetics products to grow 25-30 percent in the next 3-5 years, although often the first purchase is still done by the wifes and girlfriends.
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Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference, do get in touch.
From Journalism to Self-Publishing Books - Nieman Reports
John Harvard, founder via WikipediaSo earlier this year we at the China Speakers Bureau decided to help potential authors get their words published as books. The bureau is a venture I started a few years ago with fellow Shanghai correspondent Maria Korolov Trombly. Now in addition to arranging for speakers in China we are guiding authors through the process of publishing books on demand. Earlier this year we published our first book, “A Changing China,” a collection of essays by 17 of our speakers about how they have seen China change.
When we decided to produce “A Changing China,” we discussed briefly whether we should try to find a traditional publishing house for it. But authors who were part of our speakers bureau were telling us how much harder it was getting to find a publisher for what they had written—or wanted to write. Some turned to us for help in gaining access to a publisher, but by then we had decided not to head in that direction. For this collection of essays, we knew it would be hard to find the right publisher, and we also thought that doing so could add to our costs and not necessarily give us any benefit. In addition, if we went with a traditional publisher, it would mean that our book would not be available for sale for a year or more.More in the winter edition of the Nieman Reports.
Monday, December 13, 2010
How Ivory Coast dropped in wealth, compared to China - Howard French
Howard French by Fantake via FlickrMy frustrations, though, went back even further. I had moved to the country in December 1979, when Ivory Coast was still well ahead of China in per capita wealth, its main city, Abidjan, reflected both a polish and ambition seldom associated with the continent, and Cote d'Ivoire, as its leaders insist on calling the country, was the sub-region's surest engine, drawing economic migrants from far and wide.
That country, a place with a seeming bright future, began to come unraveled before my eyes after I returned there for The New York Times after a nearly decade-long absence, in 1994.And on China and Ivory Coast now, Howard French reports:
An interesting footnote here is a notably quiet China, which has famously claimed non-interference as the basis for its foreign policy; a point it drives home in its relations with African countries. In the real world, where situations like that of Ivory Coast proliferate, with a stance like this, can China be the friend of African peoples and not just of governments?Much more in The Atlantic.
Increasingly, with China's profile fast rising on the continent, the answer, like the open question of how the United States engages the continent, will make an enormous difference in the lives of millions.
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Howard French is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.
Sunday, December 12, 2010
Meeting at Sasha's, Shanghai
Image by Fantake via FlickrDo you have time to catch up, do show up or give me a call at +8613916329827 (only working starting at 17/12) for another meeting if you cannot make it.
Since both this weblog and Facebook have some trouble with the GFW in China, some friends without a VPN might not get this message. Do feel free to take them along too.
Military pondering combat plane for space - Wendell Minnick
Not only for space via WikipediaRevealed at the recent 8th China International Aviation and Aerospace Exhibition (2010 Zhuhai Airshow), the winners of the 4th National Future Aircraft Design Competition were the Merlin fighter-bomber, SkyNet airship, Wolf Rider unmanned combat aircraft and the Shadow Dragon unmanned bomber. Though the four design concepts are well beyond China’s technical capabilities and “smack of science fiction fantasy,” all four represent a real effort on the part of the People’s Liberation Army to militarize space, said Ian Easton, a specialist in Chinese aeronautics at the Washington-based Project 2049 Institute.More information on the different models (including pictures) at Wendell Minnick's weblog.
 Wendell Minnick by Fantake via Flickr |
Wendell Minnick is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
Saturday, December 11, 2010
China inside out - Bill Dodson
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| Bill Dodson |
released at the publisher Wiley's.A highly animated and energetic speaker, he presents in a clear and understandable way the important trends impacting China markets, business interests invested in the country and international relations with other nations. He uses high-profile current events underscored by personal anecdotes from his years of living and working in China to explain China's culture, politics, industrial policies and investment trends.
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Bill Dodson is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.
Friday, December 10, 2010
Young Chinese less romantic about the US - Helen Wang
Helen Wang via Flickr
. How do young Chinese look at the US?Twenty years ago, when I first came to the US, China was just opening. Chinese had very little information on the world. After all, during the Cold War we were adversaries. Once China opened, we began to see that the world was very different than we had been raised to think. And once we could, we all wanted to go to America. I viewed America as a place for the impossible, a romantic version of what the world was not - a dream come true.
Even now, young people in China still look up to the US, but that has begun to change over the last couple of years. Largely because of the financial crisis, some say: "See, maybe they don't know what they are doing." Also, as a Chinese living in America, I felt that up until about two or three years ago, American news coming out of China was very biased - not very right on - but that has changed recently. I feel the coverage now by American media outlets is actually quite fair and balanced on China. I think a lot of American media has done a better job recently of focusing on getting first-hand information in China, less surface stories, and less American-centric...
When I left China twenty years ago, there was no Chinese dream. But now there is: now people in China can start a business, they can own homes, they can drive new cars, and they can send their children to college. In many ways, Chinese see how Americans live and they want more of the same thing. The difference is that Chinese are very much focused on their own economics - they feel that as long as they stay out of politics they can have a good life.More at Atimes.
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Helen Wang is a speaker at the China Speakers Bureau. When you need her at your meeting or conference, do get in touch.
The sensitive words on the internet today - Jeremy Goldkorn
Jeremy Goldkorn by Fantake via FlickrInternet companies in China are treating Chinese characters for "Liu Xiaobo," "Nobel," and peace prize as "sensitive words," said Jeremy Goldkorn, editor of Danwei.org -- a website about Chinese media and Internet. Acting on government instructions, the companies are deleting text containing those words, preventing such text from being uploaded, or returning no results on searches for the words, he said.
"I think the main aim is to reduce the chances of Chinese citizens seeing that the Liu Xiaobo Nobel Prize is big news internationally, and to make it more difficult for articles sympathetic to Liu Xiaobo and photos of him to be copied and circulated inside China," Goldkorn said.Many foreign websites hit the international filters of China's censors, or are block altogether. As is Goldkorn's website Danwei.
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Jeremy Goldkorn is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.
Scary China bubble develops in the US - Shaun Rein
Shaun Rein by Fantake via FlickrCommercial
Shaun Rein is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.
Taiwan to mass produce cruise missiles - Wendell Minnick
A Tomahawk cruise missile via WikipediaTaiwan's Deputy Defense Minister Chao Shih-chang told legislators on Nov. 8 that production for the two missiles [ of the Hsiung Feng 2E (HF-2E) land attack cruise missile (LACM) and the Hsiung Feng 3 (HF-3) anti-ship cruise missile (ASCM)] had already begun. Chao made the comments during questioning by the Legislative Yuan's Foreign and Defense Committee. In response to a question about the missiles by legislator Lin Yu-fang of the ruling party Kuomintang (KMT), Chao said the programs, code-named the Chichun (Lance Hawk) and Chuifeng (Chasing Wind), were "progressing smoothly."...
China continues to deploy more short-range ballistic missiles (SRBM) and new cruise missiles along its coast targeting Taiwan. The only alternative is to deploy a counter response to that threat, he said. China currently has roughly 1,300 to 1,500 SRBMs aimed at the island. Taiwan has no offensive missile capability, [according to an official with the Ministry of National Defense (MND)]
The HF-2E could "be a tactical deterrent and strategic bargaining chip in possible military confidence-building measures" with China, said the analyst.More in Defense News.
 Wendell Minnick via Flickr |
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Wendell Minnick is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.
Thursday, December 09, 2010
How good is China's education?
Image via WikipediaEven after she explained the survey was done by the OECD, I could not change my verdict. Together with health care, education is one of the most problematic areas in China - as also Shaun Rein explained earlier in the week. Any survey saying differently must be a load of bullshit.
But my interest was triggered on how such a misunderstanding could emerged and during the day the OECD report popped up on my radar screen, as reported here by the New York Times.
For the defense of the OECD: the journalist made a classic mistake by assuming that the report - which was actually about Shanghai students - would easily apply on the whole of China. That is an unfortunate lack of logic.
But then, how come Shanghai students score better than countries in Europe and the US where they love to received their education. Are Chinese students wrong by leaving their own country for a better education and should they move to Shanghai in stead?
The tested subjects in the survey were reading, math and science. I'm still not sure what that really means, some of the assessments of the OECD test were rather critical. Shanghai will be ahead of the curve, at least in their own country.
Wednesday, December 08, 2010
Pin the nail on the donkey investment decisons - Amy Sommers
Amy Sommers by Fantake via FlickrAre US investors in China companies intrigued by the China brand and playing ‘pin the tail on the donkey’ in their investment decisions? From where I sit in Shanghai, that’s my general impression.
For those interested in investing in China companies, I would recommend viewing a company’s reverse-merger history as a potential red flag deserving of further scrutiny of business fundamentals before proceeding. An IPO led by a reputable investment bank may be somewhat less risky.
Also, bear in mind that the listing standards for the Shanghai exchange are very high – China’s capital markets are still relatively undeveloped and so the CSRC limits listings to companies they deem mature. Consequently, the Chinese companies that are pursuing listings on exchanges outside of China generally are doing so because they can’t qualify to list in China, perhaps in part because they are more volatile/immature. As a result, generally speaking such companies have a higher risk profile. If investors recognize this and allocate their capital accordingly, then they are consciously assuming risk and can plan accordingly.More in Forbes.
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Amy Sommers is a speaker at the China Speakers Bureau. When you need her at your meeting or conference, do get in touch.
The China Speakers Bureau will be live on air at the American Entrepreneur Radio tonight. Check here for more details.
China's nationalism - Helen H. Wang
Helen Wang by Fantake via FlickrHelen Wang:
Americans are highly respected in China. Jim Chapman, an American corporate lawyer in Silicon Valley, told me that he was pleasantly surprised that he was treated so well when he was in China. “That’s why I like to go to China,” he said. “People there are very nice and polite to me, although they treat other Chinese somewhat rude.”
Yes, there is a nationalistic tendency among Chinese youth. Especially during the 2008 Olympic torch relay, Chinese youths stood behind their government and protested against Western media’s reportage on Tibetan unrest. Some of China’s “angry youth” called for a boycott of French products.
However, I believe that the nationalistic rhetoric by China’s “angry youth” is reactive rather than proactive...
China can be a threat to the U.S. if the U.S. treats it as one. There is a profound mistrust between the two countries. China suspects that America seeks to stop China from rising and interprets everything the U.S. does through this lens. America worries about China’s nationalism and sees China as a growing power that will challenge its global hegemony. Such mistrust can be a self-fulfilling prophecy and a source of global instability.More arguments and stories in Forbes.
Helen Wang's book The Chinese Dream: The Rise of the World's Largest Middle Class and What It Means to You is available now. The official launch will take place in Palo Alto on December 10. Please check in here for more details.
Helen Wang is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference, do get in touch.
The China Speakers Bureau will be live on air at the American Entrepreneur Radio tonight. Check here for more details.
China Speakers Bureau on American Entrepreneur Radio tonight
Zhang Lijia by Fantake via FlickrYou can tune in to the show at 9PM CET, 3AM EST:
- Listen live on 1360 AM (local only)
- Stream online at TAEradio.com
- Don't have access to the radio or internet? Listen to TAE from your phone by dialing (724) 898-9669 (WMNY)
- Interact Live on TalkShoe - www.TAEradio.com/talkshoe
- Missed the appearance? Download the podcast at TAEradio.com/episodes
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