Category: china | 中國 | 중국 | 中華

Ni hao – this category features any blog posts that relate to the People’s Republic of China, the Chinese communist party, Chinese citizens, consumer behaviour, business, and Chinese business abroad.

It is likely the post will also in other categories too.  For example a post about Tong Ren Tang might end up in the business section as well. Inevitably everything is inherently political in nature. At the moment, I don’t take suggestions for subject areas or comments on content for this category, it just isn’t worth the hassle.

Why have posts on China? I have been involved in projects there and had Chinese clients. China has some interesting things happening in art, advertising, architecture, design and manufacturing. I have managed to experience some great and not so great aspects of the country and its businesses.

Opinions have been managed by the omnipresent party and this has affected consumer behaviour. Lotte was boycotted and harassed out of the country. Toyota and Honda cars occasionally go through damage by consumer action during particularly high tensions with Japan.

I put stuff here to allow readers to make up their own  minds about the PRC. The size of the place makes things complicated and the only constants are change, death, taxes and the party. Things get even more complicated on the global stage.

The unique nature of the Chinese internet and sheltered business sectors means that interesting Galapagos syndrome type things happen.

I have separate sections for Taiwan and Hong Kong, for posts that are specific to them.

  • Lunar new year culture clash

    Just before lunar new year an incident happened on Hong Kong’s MTR mass transit system between a group of ‘mainlanders’ and Hong Kong natives.

    So what drove this flare up around lunar new year? There are a number of points at which friction occurs between the two societies.

    The modern city of Hong Kong has largely been built on the rule of law. It has the second largest police force in the world in term of number of police per member of the population. The ICAC (Independent Commission Against Corruption) cleaned up Hong Kong bureaucracy for the past four decades to a standard that surpasses countries like the UK and the US.

    Hong Kong runs on rules that are designed to keep things civil but without the rigidity of say Singapore. China is a bit different. It has gone through enormous wrenching changes over the past three decades and societal norms and customs have struggled to keep pace. Wider altruism that was fostered during Mao’s era is frowned upon and there are legal implications around being a good samaritan that are an unintended consequence of Chinese case law. That doesn’t mean to say that the civic society doesn’t exist, but that it exists in a more laissez-faire environment which can be good in terms of less barriers and more experimental approaches to social problems.

    As a Chinese friend once told me:

    In the UK you can largely say what you like, in China you can largely do what you like

    This is a foundation for some of the very different world views. Then there are specific points at which friction arises, some of which is similar to the kind of inter-territory rivalry you see between London and other UK cities, or different counties in Ireland:

    • Perceived levels of sophistication and urbane living versus ignorance, a lack of taste and poor manners
    • Perceived focus on money and consumerism over everything else in life
    • Culture or the lack of it (language and food being the main fault lines)

    Some of which is legitimate, to name two:

    • Mainland Chinese desperate to ensure their kids have a Hong Kong identity using underhand techniques to have their children born in Hong Kong. One can understand the desire to do the best for one’s child, but I can also see the Hong Kong side to this as well. In addition, all of this running around cloak-and-dagger style adds additional risk and stress – which can’t be good for mother or child?
    • Over exploitation of Mainland tourists being forced to shop in certain stores and spend money. This is partly due the subsidised business model that tour operators used to get mainland Chinese to go on shopping trips to Hong Kong. The subsidy came from ensuring that they purchased from certain Hong Kong shops. It is similar in nature to the cheap or free holidays offered to sell timeshare properties in Spain and Portugal – immoral but the rational consumer would realise what they were likely to be stepping into

    Here is the video on Tudou without English subtitles:

    More related content here.

  • Taoism & social media

    I was watching this video and thinking about taoism and social media. The video is by Irish-Chinese film maker Edwin Lee on the refurbishment of of the Wong Tai Sin Temple in northern Kowloon and thought that it was an excellent metaphor for something I’d been looking to talk about for a while.

    Sik Sik Yuen is the Taoist organisation who look after the temple were faced with a challenge. They were renovating a hall of worship, but didn’t want to see their handiwork be adversely affected by the smoke of traditional prayer offerings. Their solution was an ‘electric’ temple that signifies the offering being accepted. The prayers are then burned in the traditional way by Taoist priests elsewhere.

    So what does taoism & social media have to do with each other?

    Well if you’re like me you’ll have heard a number of times that ‘we need to do something on <insert the social software platform of the day here>‘ or ‘we need to have a <insert owned social media platform here>‘.

    It’s hard to get people to think about things the other way around:

    • What is the problem that you are trying to solve?
    • Is it a new problem or an old problem?
    • If its an old problem, what is wrong with the old way? (If there is nothing wrong with the old way, apart from the fact that its old, is the realpolitik of the new worth it?)
    • How can you solve it and fit into the lives of the people who you are trying to solve the problem for?

    Don’t get me wrong, I am all for innovation and I am quite happy to sell someone the new new thing – particularly if I can use it as a case study to sell other people the new new thing at a later date as well. But a significant amount of the time innovation occurs for all the wrong reasons, delivering little and wasting marketing resources.

    Does your brand really need that latest, greatest Facebook commerce application or are their easier picking to be made optimising what you already have?

    Is there a better creative vehicle rather than social media for what you are trying to achieve; like creating some sort of real-world experience or web-of-no-web application to knit offline and online together?

  • Gucci + more news

    Gucci

    Shenzhen sweatshop allegations force Gucci to act – FT.com – PR nightmare and management FAIL for Gucci. The Gucci story is unusual in that it affects service workers. Luxury in Asia requires a certain servility of service that I find uncomfortable and the Gucci story of long oppressive days for retail staff sounds emblematic of it. That its happening in the Gucci Shenzhen store doesn’t surprise me at all

    China

    China Favors Direct Investment to Create ‘New Blood’ in Europe – WSJ

    Maersk builds LatAm “reefer” factory | FT.com – because the cost of production is growing faster in China than Latin America

    Consumer behaviour

    What Wealthy Women Really Want – WSJ

    For Their Children, Many E-Book Fans Insist on Paper – NYTimes.com – the tactile arguments for toddlers are the same reason why I prefer print books

    Culture

    Alan Moore – meet the man behind the protest mask | The Observer – it was a nice literary tail for the Guardian to loop back with Alan Moore

    Paris Review – The Art of Fiction No. 211, William Gibson – interview with the cyber punk don

    Economics

    Housing prices fall in Chinese cities – FT.com – property developers and small businesses have been suffering

    Brussels warns on risk of UK double-dip – FT.com – UK economy stagnating and government’s deficit reduction strategy isn’t working according to a European Commission report – a deep and prolonged recession complemented by continued market turmoil cannot be excluded

    The way (not) to rein in the yen – FT.com A more aggressive quantitative easing programme, targeting 10-year government bonds instead of shorter maturities, would contribute more decisively to ease the pressure on the exchange rate. More importantly, it would also stimulate the largely stagnant domestic economy (paywall)

    The Long Haul to Capitalizing on Web Trends – Digits – WSJAccording to comScore Inc., almost 62% of the ads shown on Facebook in the July through September quarter came from advertisers that are not among the top 1000 digital advertisers in the U.S.; on Yahoo Inc., just 23% come from such small advertisers. These sorts of Facebook advertisers range from nail salons marketing to people who live a particular town, to recruiters targeting employees at a specific company – going down the long tail due to targeting ability, not great on context like Google local search though

    Ideas

    Information: Be careful what you signal | The Economist

    Possibility Is Thrust of 100-Year Starship Study – NYTimes.comin 10,000 years, the speed of humans has jumped by a factor of about 10,000, from a stroll (2.6 m.p.h.) to the Apollo astronauts’ return from the Moon (26,000 m.p.h.). Reaching the nearest stars in reasonable time — decades, not centuries — would require a velocity jump of another factor of 10,000

    Innovation

    Marubeni Launches 3D Printing Service — Tech-On! – interesting that it is aimed at making precision resin dies etc

    Japan

    Japan’s #1 Mascots: Kumamon, Bary-san, and Nishiko-kun | Japan Probe – Japan seems to have mascots for everything, kind of cool actually

    Japan Today | Toshiba to close three semiconductor plants

    Korea

    South Korea’s economy: What do you do when you reach the top? | The Economist – interesting economic profile on Korea

    Luxury

    Von Furstenberg to Chinese Women: Stop Chasing Men – WSJ

    The rise of quiet luxury: Understated chic that is very, very expensive. – Slate Magazine

    China’s Menswear Market (Quietly) Booming « Jing Daily

    Luxury’s anti-social (media) brigade | FT.com – variable adoption

    Brussels finally recognises luxury | FT.com

    Luxury Second-Hand Shops Spreading Like Wildfire In China | Jing Daily

    The moral of Dior’s numbers | FT.com – Galliano story didn’t affect Dior sales

    Media

    Secret documents reveal the flimsy case for Ofcom to give into BBC’s public TV DRM demands – Boing Boing

    Technology

    HP CEO: Apple will become market leader in personal computers | MacNews

    Wireless

    Nokia’s Microsoft Phones May Not Get Traction, Analyst Says – NYTimes.com – no USP, apart from a bucketload of advertising

  • CIC on China’s luxury market

    CIC who provide the IWOM set of reports and flakey tools (think Sysomos, Radian6 or Adobe SocialAnalytics for the mainland Chinese internet eco-system) have come up with an interesting report on online conversations around the Chinese luxury market. CIC is increasingly being integrated with GroupM. It will be interesting to see how CIC copes as China exerts increasing control over social and marketing data access.

    Key take-outs

    • They are motivated to buy luxury goods as a way to ‘show-off’ and most of the online conversations are around this subject. Status itself is a tool designed to engender trust in things like business interactions rather than self actualisation per se
    • The distribution system is complex with overseas purchasing and purchasing agents (presumably to avoid China’s luxury goods tax and for more choice) also a popular subject. For luxury brands it means that Chinese expansion needs to be tapped by also having presence in places like Hong Kong, Japan, Korea, Paris – France and the major cities of the US
    • Real-time reporting of runway shows initiated by the brands doing webcasts has been extended by netizens to their own platforms. Much of the commentary is similar to the social television interactions you used to see on early video platform Joost; and on Twitter during shows like The Apprentice or The Only Way is Essex (TOWIE)
    • Counterfeit – there was a significant group that own both counterfeit and authentic versions of a product because it is ‘interesting to mix and match usage between real and fake’. This is a really interesting brand interaction and raises the question: what if authentic isn’t authentic enough in terms of brand experience? This is something that I could see impacting the likes of Louis Vuitton. Gucci, Chanel and Hermes as they become over-exposed in the marketplace. One of the ways to approach this is to educate consumers on what luxury means: craftsmanship, heritage or being at the forefront of something (which may mean an intersection between streetwear and luxury)

    More related content here. More from CIC here.

  • Beyond The Crash by Gordon Brown

    On leaving office, Gordon Brown immediately spent a lot of time hammering out a book Beyond The Crash. Unlike Peter Mandelson this wasn’t the Westminster equivalent of a sordid kiss-and-tell exposé or a Tony Blair-esque sales brochure to secure speaking engagements. Instead Brown set out to do what he does best, putting on page deep thought and analysis about the knotty problem of global finances. He did an excellent job of marshaling ideas and sources in the book. His grasp on Asian economics and China in particular is very good. There is a whole section on the Asian crisis of 1998 which is well worth reading on its own.

    In this respect, the Beyond The Crash is a solid piece of work, Brown isn’t as compelling a writer as other economic thinkers that the Labour party has looked to like Will Hutton; but he does a good job at making his ideas and concepts understandable to the average reader.

    Where things go wrong with the book is where Brown tries to humanise his writing. His comments of praise for colleagues and other politicians feels wooden, as if it was written into his book as a postscript. And it is because of this that we see a glimpse of Brown the politician; the polar opposite of his predecessor Tony Blair. Someone who thought at great depth and knew what to do but didn’t have the surface finish.

    If you are prepared to persevere with the book, it is a good read, and is currently for sale in Amazon Marketplace at a massive discount to the cover price. More book reviews here.