I am writing this article after a gap of a few weeks which was on account of several factors, mainly I needed some time to relate to the feedback I have been getting on my Monday Musings and to make it more meaningful and relevant for the readers. I am indeed grateful to all the readers who have spared time to send feedbacks and will hope that their support will continue. Another reason for the gap was my trip to China, about which I am writing in this article.
I was fortunate to be part of the delegation that visited China, last month, to take part in the Agri China summit, being held in Beijing. I was really looking forward to this visit as one has read so much about the post reform China and the booming Chinese economy that I was looking forward to seeing these reforms first hand. China has excelled in manufacturing and the whole world is surprised at the costs at which the Chinese are able to produce their goods. It is this advantage of China in the manufacturing sector that has led to their domination of the markets all over the World and contributes to the tremendous trade surplus of China with all major countries. This has also resulted from the excellent infrastructure created by China. Shanghai alone has 3800 kms of elevated roads which has eased the traffic congestion to a great extent. Chinese excellence in production and manufacturing is similar to India’s domination of Knowledge Economy of the world and the pace at which the Chinese Economy is growing may lead to their being the largest economy in the world in a few years.
When we landed at the Capital Airport, Beijing, we were met by Mr Ted Wang, Director of Chinese Travel Services, who was to be our guide and friend for the next week. The first thing that one notices about China is that very few people can speak English, and if one does not know Chinese or does not have a guide, who can speak English and Chinese, one is as good as a blind, deaf and dumb person. Survival can really be difficult and hence our friend Ted advised us to carry the Hotels card which had the address in Mandarin, so that in case we are lost, the taxi walah can take us back to the Hotel. On our way to our Hotel, Mr Ted gave us a preview of China as it exists now. The most remarkable thing about China is that they have a dictatorship and the Communist Party has got absolute powers. Ted told us that Chinese people do miss the freedom and the rights of a democratically elected Government, but development is better and faster in a dictatorship if the top person is sensible and sincere, as is the case in China today. One can not agree more as it is indeed true that democracy promises freedom but sometimes decision making can be difficult when one has to take the opinion of diverse groups of people. This is illustrated the most in the One Birth Policy of China, where any citizen is entitled to only one Birth. This has led to control of their population and ensures that they have enough to feed their population in the years to come.
Another factor that leads to faster development and industrialization is the land policy of China. In China, all land belongs to the Government and no private person or company can own land or property. All properties and land, whether residential, industrial or commercial, is given on lease for 70 years. This ensures that Government is able to acquire land whenever it wants and the associated delays in establishment of industries or projects can be avoided. It also leads to equitable distribution of land amongst all citizens and the issues of landless labourers in not there. In production, the costs are minimized as industrial and manufacturing units are given State land and thus the capital cost of production is reduced making Chinese products the most competitive.
Another very remarkable issue about the Chinese society is that religion plays a very limited role in the lives of people. Most of the Chinese people follow Taoism which is basically about the clash between Ying and Yang which are the equivalent of light and darkness and most Chinese strive hard to increase the lightness issues and decrease the darkness factors, making them more satisfied and happy. Chinese people are very hardworking and even though they don’t pray a lot, God has blessed them. May be this is what one means by Work is Worship.
Mr Ted was not only a good guide but he was very knowledgeable about the Chinese economy, society and political system. He had been a part of the famous Student rebellion at Tiananmen Square, a few years back. Still, the booming economy and the improved standard of living has made him less critical of the Chinese Government where the Communist Party has absolute powers and they have elections with One Party and One candidate making it nothing but a sham. It shows that ultimately what is important for people is to have a better economy and better standard of living. He gave a very interesting example which illustrated the way Chinese society is changing. He said that these changes are best illustrated by the way Greetings of Chinese people has undergone a change. In the 1980s before Deng Xiaoping, the traditional Chinese greeting used to be ‘Have you had food’? A few years later when the TV boom occurred people used to ask at social functions ‘What about the TV programme last night’? This was a way of discreetly conveying that they had bought a new TV set. In the 1990’s the greeting changed to ‘I got my Driving License’? This used to imply that they have bought a new car. Still later in the late 1990s, it changed to ‘I am moving to the country side next week’. This implied that they had bought a new villa and the latest trend was to live in independent villas rather than apartments in the town. Recently it has changed to ‘Have you got divorced’? This is because the increased incomes and hectic lifestyles has taken its toll on institutions like family life and many young couples are opting for divorces even though most Chinese marriages are love marriages. This simple example on one hand illustrates the evolution of Chinese economy and the associated social dynamics.
There are many more learning from China. The main learning was about their Agriculture and Food processing industries, which require one full article. We were exposed to many interesting facets of China in the modern day, the cities of Beijing and Shanghai and the Chinese way of life, which I hope to write about in the days to come.
Have a nice week ahead.
PS Readers can send their feedback to abhish18@gmail.com or by SMS to 9436434432.
Saturday, June 23, 2007
Chinese Checkers
Chinese Checkers
I had promised readers that I will be sharing some more insights about China, based on my experiences during the recent tour where I along with my colleagues from Nagaland visited Beijing and Shanghai for the Agri China summit. One remarkable thing that I observed about China is their skills in marketing and selling. They are professionals when it comes to convincing their prospective buyers in getting to buy what they are selling. The Chinese salesmen, actually saleswomen, as there are more Chinese girls selling things in the markets are persistent. They will ensure that the customer does not leave without buying even though the maximum English that they know is ‘Your Price?’ They will keep on repeating that with a small size desk top calculator in their hands. It is used more for quoting the price of the commodities being sold, and they will thrust the calculator in your hand for you to quote your price. The pretty Chinese salesgirls will not even desist from holding the hands of the customers firmly and showing their other products, right from garments to shoes to electronics to watches. So you have them selling Rolex Watches, Beijing Olympics Hats and Caps, DKNY handbags to almost everything, even on the road side. While all this haggling is going on, there eyes are open for the Chinese Police who try hard to chase them from selling on the streets.
Apart from these salesgirls and marketing on roadsides and malls and markets, there is another area which one notices is about organized marketing of their products. The second day of our trip to China, our local guide told us about what all China is famous for. In particular, he told us about Chinese silk and how renowned it is world over. In the afternoon he took us to a Chinese Silk Factory where silk garments and silk products are made. Right at the entrance, we were welcomed by an English speaking Chinese lady who was supposed to show us around. She took us to a room which had several glass boxes in which all the stages of a silk worms life was shown. We saw real silkworms and real mulberry leaves and she told us how the lifecycle of a silkworm continues for 44 days. We were also shown how the cocoon is formed from one single thread and how sometimes two silkworms interwine together to form one cocoon. Thereafter, she took us to an area where the cocoons were being boiled. She showed us how after boiling the cocoon is broken, the pupa removed and then the boiled cocoon is stretched to form a hat type shape with the silk coming from the cocoon. Then there were a group of about 6 young men and women who would stretch this hat into a layer of silk, soft and smooth, of the size of a bed sheet. We were amazed when we were told that it is one thread of silk, coming from one worm, taking the shape of a thin sheet of silk. Several layers of that silk was then shown to be put, layer after layer, to result in what was supposed to be a silk blanket. They also asked us to try out our hands on stretching one silk hat. We failed, they told us don’t worry as the wasted silk can be recycled. Then we were shown how the silk fabric was made and how it was used to make garments, scarves, shawls, etc. No wonder, we were dumbstruck. Then we were taken to the other level, where they had showcased their products. Of course, after going through such a treatment, we bought a lot without much haggling over the prices, only to realize a couple of days later that, in the Super Market, similar products were available at much cheaper prices with lots of scope of bargaining. That’s the Chinese art of Marketing.
The pattern was the same when we visited the Jade factory. Jade is a precious stone and China is the largest producer in the world. In the Jade factory also, they first showed us the raw stones, the various grades of Jade and how it is cut and polished. Then we were taken to the showroom side which was selling Jade ornaments and jewels and decorative pieces. The showroom was jam packed with people. And the Jade factory was doing good business! In Shanghai, we went to a Pearl Factory. There also first we were given a lecture on how to distinguish between fake and genuine pearls. They demonstrated how to grade and identify pearls. This was done by breaking open, the oysters in front of us by English speaking Chinese salesgirls who also showed how the pearls are graded, and polished to make pearl necklaces, bracelets, bangles, ear rings etc. This was on the 5th day of our trip and by this time we had mastered the art of bargaining to quite a good extent. However, still, the prices that we, in our group bought the same product ranged from 20 Yuans to 100 Yuans, when the printed price was 300 Yuans!!! And some of the salesgirls indulged in cheating the management also, as they helped some people to get items at throw away prices, on the consideration of a side tip for them!!! China is indeed the land of possibilities.
The best was to come, when our guide told us that he will get all of us a complimentary foot massage. Foot massage is an art that Chinese excel in and indeed it is quite refreshing and relaxing. So he took us to a Herbal Medicine Centre, where once again, we had an English speaking expert on Herbal and Tibetan Medicine, explain us the benefits of their treatment. Then Chinese boys and girls came with tubs of warm water, and some herbal powder in it and we were asked to soak our feet in it. They massaged our feet, which was quite relaxing. During, the same time, some Chinese speaking experts on herbal medicine came to each one of us and started checking our pulse and asking us some questions with the help of some semi English speaking translators. And within forty five minutes, six people in our group were diagnosed with problems ranging from Diabetes to High Blood pressure etc and they were convinced enough to buy herbal medicines for three months, costing about Rs Thirty thousand each in Indian rupees. I was lucky enough to have refused a herbal check up as I personally feel that it would be shocking if somebody told me that I need so much of medicines at this age!!
Of course, these experiences also made me think that can we not market our products in a similar fashion. Most of our salesmen and salesgirls in Daily Market of Mokokchung or Super Market of Kohima or Hong Kong Market of Dimapur are least interested in persuading the customers in buying their products. It may have changed recently in Dimapur, but in Mokokchung and Kohima, I find the sellers to be very laid back and not really interested in bargaining. Actually bargaining is something that buyers like as it gives them the feel of having got a good deal. And that is a must in selling. I hope readers will enjoy this dose on Chinese Marketing.
Have a nice week ahead.
PS Readers can send their feedback to abhish18@gmail.com or by SMS to 9436434432.
I had promised readers that I will be sharing some more insights about China, based on my experiences during the recent tour where I along with my colleagues from Nagaland visited Beijing and Shanghai for the Agri China summit. One remarkable thing that I observed about China is their skills in marketing and selling. They are professionals when it comes to convincing their prospective buyers in getting to buy what they are selling. The Chinese salesmen, actually saleswomen, as there are more Chinese girls selling things in the markets are persistent. They will ensure that the customer does not leave without buying even though the maximum English that they know is ‘Your Price?’ They will keep on repeating that with a small size desk top calculator in their hands. It is used more for quoting the price of the commodities being sold, and they will thrust the calculator in your hand for you to quote your price. The pretty Chinese salesgirls will not even desist from holding the hands of the customers firmly and showing their other products, right from garments to shoes to electronics to watches. So you have them selling Rolex Watches, Beijing Olympics Hats and Caps, DKNY handbags to almost everything, even on the road side. While all this haggling is going on, there eyes are open for the Chinese Police who try hard to chase them from selling on the streets.
Apart from these salesgirls and marketing on roadsides and malls and markets, there is another area which one notices is about organized marketing of their products. The second day of our trip to China, our local guide told us about what all China is famous for. In particular, he told us about Chinese silk and how renowned it is world over. In the afternoon he took us to a Chinese Silk Factory where silk garments and silk products are made. Right at the entrance, we were welcomed by an English speaking Chinese lady who was supposed to show us around. She took us to a room which had several glass boxes in which all the stages of a silk worms life was shown. We saw real silkworms and real mulberry leaves and she told us how the lifecycle of a silkworm continues for 44 days. We were also shown how the cocoon is formed from one single thread and how sometimes two silkworms interwine together to form one cocoon. Thereafter, she took us to an area where the cocoons were being boiled. She showed us how after boiling the cocoon is broken, the pupa removed and then the boiled cocoon is stretched to form a hat type shape with the silk coming from the cocoon. Then there were a group of about 6 young men and women who would stretch this hat into a layer of silk, soft and smooth, of the size of a bed sheet. We were amazed when we were told that it is one thread of silk, coming from one worm, taking the shape of a thin sheet of silk. Several layers of that silk was then shown to be put, layer after layer, to result in what was supposed to be a silk blanket. They also asked us to try out our hands on stretching one silk hat. We failed, they told us don’t worry as the wasted silk can be recycled. Then we were shown how the silk fabric was made and how it was used to make garments, scarves, shawls, etc. No wonder, we were dumbstruck. Then we were taken to the other level, where they had showcased their products. Of course, after going through such a treatment, we bought a lot without much haggling over the prices, only to realize a couple of days later that, in the Super Market, similar products were available at much cheaper prices with lots of scope of bargaining. That’s the Chinese art of Marketing.
The pattern was the same when we visited the Jade factory. Jade is a precious stone and China is the largest producer in the world. In the Jade factory also, they first showed us the raw stones, the various grades of Jade and how it is cut and polished. Then we were taken to the showroom side which was selling Jade ornaments and jewels and decorative pieces. The showroom was jam packed with people. And the Jade factory was doing good business! In Shanghai, we went to a Pearl Factory. There also first we were given a lecture on how to distinguish between fake and genuine pearls. They demonstrated how to grade and identify pearls. This was done by breaking open, the oysters in front of us by English speaking Chinese salesgirls who also showed how the pearls are graded, and polished to make pearl necklaces, bracelets, bangles, ear rings etc. This was on the 5th day of our trip and by this time we had mastered the art of bargaining to quite a good extent. However, still, the prices that we, in our group bought the same product ranged from 20 Yuans to 100 Yuans, when the printed price was 300 Yuans!!! And some of the salesgirls indulged in cheating the management also, as they helped some people to get items at throw away prices, on the consideration of a side tip for them!!! China is indeed the land of possibilities.
The best was to come, when our guide told us that he will get all of us a complimentary foot massage. Foot massage is an art that Chinese excel in and indeed it is quite refreshing and relaxing. So he took us to a Herbal Medicine Centre, where once again, we had an English speaking expert on Herbal and Tibetan Medicine, explain us the benefits of their treatment. Then Chinese boys and girls came with tubs of warm water, and some herbal powder in it and we were asked to soak our feet in it. They massaged our feet, which was quite relaxing. During, the same time, some Chinese speaking experts on herbal medicine came to each one of us and started checking our pulse and asking us some questions with the help of some semi English speaking translators. And within forty five minutes, six people in our group were diagnosed with problems ranging from Diabetes to High Blood pressure etc and they were convinced enough to buy herbal medicines for three months, costing about Rs Thirty thousand each in Indian rupees. I was lucky enough to have refused a herbal check up as I personally feel that it would be shocking if somebody told me that I need so much of medicines at this age!!
Of course, these experiences also made me think that can we not market our products in a similar fashion. Most of our salesmen and salesgirls in Daily Market of Mokokchung or Super Market of Kohima or Hong Kong Market of Dimapur are least interested in persuading the customers in buying their products. It may have changed recently in Dimapur, but in Mokokchung and Kohima, I find the sellers to be very laid back and not really interested in bargaining. Actually bargaining is something that buyers like as it gives them the feel of having got a good deal. And that is a must in selling. I hope readers will enjoy this dose on Chinese Marketing.
Have a nice week ahead.
PS Readers can send their feedback to abhish18@gmail.com or by SMS to 9436434432.
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