Fearing the polluted air, the American Olympic cycling team arrived in Beijing wearing masks. The West continues to wonder why China can not fix its problems, and think and behave like them. President Bush's address to the world on the eve of the Beijing Olympics raises some important questions¡­

On behalf of the United States of America, I congratulate the Chinese people and leadership for the impressive preparation they have made for hosting the 2008 Olympics. But while I say this, I must also urge the Chinese to learn more from the great nations of the world - particularly America.

We run a benign state, providing generous loans to our citizens, to buy houses which are larger than their incomes would allow, to live in a comfort that they can not afford. We allow them to live from month to month, borrowing from one credit card to repay the debt of another, to continue to flourish in an end less circle of debt fuelled luxury. The Chinese citizens are deprived of these benefits and need to pay 30% down payment for their apartment, and provide income certificates to apply for a mortgage.

I acknowledge that our poor are now facing unheard hardship, including facing the threat of losing their 4 bedroom sub-urban mansions, Most glaringly their very livelihood is threatened as they are unable to afford the gasoline to drive their 3 gas-guzzling sedans to work. The Chinese poor live in villages on their farms and struggle to feed their families and provide them with clean drinking water.

America has been tottering on the verge of recession, lost trillion of dollars in ingeniously crafted collateralized debt obligations and its legendary manufacturing enterprises are making losses in billions of dollars. China¡¯s economy, on the other hand, staged a record growth of 11.4% in 2007 and managed to grow at 10.4% in the first half of 2008, despite the chaos that we inflicted on the world.

We take natural disasters in our stride, neglecting hurricane Katrina till the man made disaster overshadowed the natural one. Chinese, also frequently blessed with nature's fury, fly their Prime minister to Sichuan within two hours of the being struck with an earthquake, and mobilize the entire nation to bring succor and comfort to the afflicted.

Our citizens quake to step after dusk in downtown streets of Chicago, New York and other great American cities, because of fear of getting mugged, stabbed or raped.  The Chinese youth roam freely and happily in Shanghai, Beijing and Chengdu, while solemn faced Chinese policemen patrol in total oblivion of their merriment.

Our citizens have freedom - freedom to sell sub-prime mortgages, freedom to buy them, freedom to disguise them as respectable debt instruments, freedom to give them as AAA ratings, freedom to gamble (absolute luxury, when they can lose so much in the financial markets), freedom to buy guns (to escape from it all, if nothing else works), freedom to bomb Iraq (to share and divide the misery that we feeling our own country). The Chinese enjoy none of this freedom and are tightly controlled by a draconian regime with a misguided determination to protect its citizens from harming themselves.

While in most areas we want the Chinese to become more like us, there is one area where we want to retain our unique position and unassailable lead. We are the largest emitter of greenhouse gases in the world. Unfortunately this is one area in which China is becoming more and more like us. But our position as number 1 polluter is unshakable. We will not let the Chinese poor benefit from electricity, motorized transport or air travel. As we steadfastly refuse to sign the Kyoto protocol, we are determined to use all our power to prevent the Chinese from enjoying an excessive lifestyle which threatens the world with dire consequences of global warming.

I wish a great success for the Olympics and hope that they will change China for the better.

Written by Ashok Sethi
Ashok.set@gmail.com

Despite repeated aftershocks, the dust is slowly settling on the devastation of the Sichuan earthquake and the Chinese media coverage has shifted its focus to celebrating the Olympics. In all the heart-rending destruction and devastation, there are two episodes from the earthquake which generate a quizzical smile. The first of these is the story of Fan Meizhong, a school teacher who ran for his life when the quake struck, leaving his students behind. Fortunately, his school remained standing and none of his students were hurt. However, the aggravating fact was that he later, in a fit of candidness, admitted to abandoning his wards and defended his action as guided by his own sense of morality and the natural instinct of self-preservation. He proclaimed that he loved his life and that he would not sacrifice it for anyone. Only safety of his daughter (not even his mother) could induce him to sacrifice his own life. Expectedly this proclamation elicited a huge hue and cry from the general public. Nicknamed "Run Run Fan¡" in light of his action, faced swift condemnation and was fired from his job. Not only that, it even prompted the Ministry of education to issue a new State ethics regulation, which says that protecting the students is a moral obligation of the teachers.

While Fan's detractors have been more numerous as well as more strident, the media has not been devoid of a few who have dared to praise him for his honesty. Fan could have kept quiet and possibly lived with a nagging feeling of guilt throughout his life. But he chose to publicly expunge it and in a way proclaim his innocence while admitting his guilt.

The second incident is perhaps even more intriguing. Jiang Xiaojuan, a 30 year old police woman in Jiangyou city in Sichuan province and a mother of a six month old child, breastfed six children who lost their mothers in the earthquake. Caught in the act by a press photographer, Jiang expectedly faced profuse showers of praise and approval. Clearly this was a unambiguous case of selfless compassion, of a member of the police force behaving with uncharacteristic tenderness and care. While most agreed to this, what caused the debate among the Chinese was her subsequent promotion to assistant commissioner of public security for the city. While her action was clearly commendable, the resultant promotion, the Chinese public felt, was not justified - as compassion alone, however heart-felt and moving it may be, is not an adequate criteria for elevation to a senior position in the police department.

The Western media and political leaders are obsessed with what they see as absence of democracy and free speech in the China. Some even go to the absurd length of saying that the country suffers from a moral vacuum. The lively and open debate around the Run Run Fan and Jiang Xiaojuan shows that it there is spirit of debate and moral discussion which is alive and vibrant in China - it is just that the issues that the West considers as the core of morality are perhaps not the same as the ones that excite debate and passion among the Chinese. West needs to resist the temptation of judging every country and every person by the single minded view of Western morality and democratic ideals. The Sichuan earthquake revealed a profile of the country which is compassionate, considerate and reflective. There is a sense of balance and intense reflection on what is right and wrong. Recognizing such a mindset, the West needs to let go, relax and let China find its own path at its own pace.

 

The red envelop

Red is the most "Chinese" of all colors. "Hong bao", literally a red envelop, is one of the most fundamental parts of Chinese life and is traditionally used to house money which the adults gift to children on Chinese new year. The concept is extended to any kind of gifting (voluntary or obligatory), including gift to the married couples, to employees from the company boss, but most importantly to grease the palms of those who wield the power to make your life easier by conferring favors or removing impediments. Red is very special color in China - the most auspicious of colors, a color which is steeped in tradition and a color of celebration. Red is also sexy, warm, vibrant and exciting. It is one of the favorite colors in China - though not the most favorite.

The heavenly blue - favorite of Chinese

In fact it is blue, which is the favorite of the Chinese - for both men and women and young and old. If red symbolizes prosperity on earth, blue connotes the heaven and the sky. If red is exciting blue is calming, and preference of blue over red indicates that given the hectic existence that the Chinese are leading (and perhaps the turmoil that they went through earlier), they now prefer serenity and peace over excitement. Blue offers that feeling of tranquility and also manages to stay cheerful and modern. Blue apparel is particularly favored by both men and women - including shirts, trousers, suits and also skirts for women. Paying a heavy cost of economic development in terms of urban pollution, blue is also a color the Chinese are seeing less and less of - as formerly blue skies bear a depressing grey and erstwhile limpid water looks turbid and muddy.

In black and white

While colors like red, pink and yellow bring up vivid imagery and associations, for practical use black and white rule the roost. Black is considered prestigious and sophisticated and a favourite color not only for apparel (suits, trousers and even skirts fro women) but also for cars, mobile phones and other electronic equipment. Traditionally, associations with black in China have not been very positive, but modernization has bestowed the color with respectability and even prestige. Same holds true with white - while traditionally associated with funerals, it does not bear that stigma now. In fact, white has been adopted as a color of the dress that an urban Chinese bride will wear at her wedding. White also has associations of purity, and is also seen as bright and calming. It is a color for shirts and underwear for men and women, but also shoes and skirts for women. Of course it is the desired color of the skin and Chinese women spend a fortune on whitening lotions and fairness creams. It is the most popular hue of paint for the walls (along with cream) of the living room and the bedroom - though for children's room, many would prefer a warmer and more cheerful shade of pink. White also forms the name of China's most popular tipple - bai jiu (literally white spirit or wine) - a potent potion that causes much grief at wedding banquets and other parties, as victims (the newly married couple or the hosts) fall in exhaustion and inebriation after interminable rounds of obligatory "gan bei" (bottoms up) with the guests.

The sexy pink opportunity

Pink is expectedly seen as the most feminine and sensuous color, but is also strongly associated with children. Men are most turned on by pink, though women find black to be sexy. It is the favorite color among women to paint the bedroom walls with - their husbands may have to settle for this for the sake of marital bliss, and the joy of sharing the wife's bed - though their own preference lies with white and cream. While more men and women go for the obvious choice of black and silver for mobile phones, notebook computers and television sets, a sizeable opportunity exists for pink among women in these product categories. With increasing participation of women in durable purchase and other areas of decision-making which have traditionally been dominated by men, the manufactures of these products may well give a second look at the feminine and sensuous pink for cars, mobile phones and laptops.

The green revolution

Green also finds favor with the Chinese - a bit more with men, as women are drawn to many more colors. While green is one of the favorite, it lacks a unique personality other than being cheerful. Though green does not feature very high in the external or internal apparel of the Chinese, more and more environmentally savvy Chinese will like the companies to sport this color in a spirit of environmental sensitivity. In fact, from that point of view, green is the most important color of 2008 - as consumers show higher and higher levels of environmental awareness and willingness to pay a premium (and even suffer a bit of discomfort) in their bit to preserve this earth for the future generations.

The coming of gold and silver

A home to many dynasties, China well recognizes gold and purple as symbols of royalty. Gold is also seen as bright, prestigious and an obvious, if kitsch, symbol of the rich. Gold is the second most auspicious color after red, and the third most "Chinese" shade (after red and yellow). Always a better judge of value, gold is closer to women's hearts than men's - and they are willing to color their hair with this and some even paint their toe nails in glittering gold.

Silver also has a sizeable following (and increasing in popularity). Considered vibrant and bright, the most distinctive attribute of silver is its modernity. It is the second most popular color for electronics equipment and automobiles (black being the most popular). In fact among women it is nearly as strong as black and even preferred.

Marketing of colors

While the "little red book" (a compilation of quotations from the Chinese leader Mao Zedong) is now reduced to a mere tourist attraction, the color red still resonates in China and the consumers feel that it will be one of the most fashionable colors of 2008. Other colors which are likely to be seen more prominently in 2008 are prestigious black, shining silver and glittering gold. Color holds strong associations in the mind of the Chinese consumers which are steeped in traditional, but tempered with modernity. Understanding and monitoring these as they evolve further, would be an important distinction between companies which reach for the gold and those who face red in their balance sheets.

Based on an online research among 403 Chinese, aged 18-44 and living in key tier 1 and tier 2 cities of China. The research was conducted by TNS, the largest marketing information provider in China, and the second largest research agency in the world.
Written by Ashok Sethi, TNS China

It was in the TNS office on the 28th floor of Finance Square in Shanghai, where I sat with a concept test brief in my hand, in deep contemplation on how to add value to the research design, when my cogitation was interrupted by the tinkling of the blinds against the windows. Before I could get time to puzzle about why the blinds were moving inside the building with all the windows tightly sealed, I realized that it was not just the blinds but the whole building which seem to have broken into a gentle dance. If my colleagues were frightened at the realization that we were experiencing an earthquake, they did a great job of disguising their fear and with great aplomb and composure we started shuffling down the stairs to evacuate the building (including me, with the research brief still in my hand). The tremors were persistent and I kept on feeling the building¡'s sway right till our dreadfully slow descent to the 20th floor. After that, while the earth seemed to have steadied itself, the legs had acquired a momentum of their own and I kept feeling the sway for quite some time to come.

Finally out of the building, we were puzzled at the strange occurrence - Shanghai has almost never had an earthquake and it was the first time that most of us experienced the trembling of the building and having to evacuate it under the fear that it will collapse on top of us. While engaged in animated discussion, some irritated and some relieved with the unexpected break in the office monotony, little did we realize the tragedy that had taken place more than a thousand kilometers away in Sichuan province. While the Finance Square kept standing and did not bury us in its steel and mortar blocks, 900 school children in Dujiangyan city near the provincial capital Chengdu, were not as fortunate. Nor were thousands of other children and adults, who could not escape their schools, factories and homes in time and were trapped under plies of rubble. Gradually the magnitude of the disaster unfolded in front of us, numbing us with grief and stupefaction.

While natural disasters are inescapable and we have little choice but to stoically and philosophically accept their tragic consequences, the subsequent human ineptitude and neglect which often compounds the misery is definitely preventable. Fortunately, China¡'s response was in sharp contrast to the apathy of the Generals of Myanmar when faced with the devastating cyclone which struck the country a few weeks ago. Chinese Premier Wen Jiabao was in Sichuan within hours of the earthquake. With a megaphone in hand and moist eyes, the nation saw him addressing the victims in a tremulous voice, offering condolences, reassurance and hope. It was clear in the days to come that the country mobilized every possible resource to rescue those who were still alive under the rubble and offer relief and succour to those who suffered the most.

It was a tragedy that touched the hearts of the people throughout the country. In an overwhelming wave of sympathy, the people are reaching for their wallets, donating blood, volunteering to work in the affected areas, even offering to adopt the children who lost their parents.

It will be a while before China can forget the tragedy that struck it out of the blue and traumatised the nation. Those who lost their loved ones, their homes or livelihoods will possibly live the rest of their lives with indelible physical and emotional scars. However, it will also be a while before China and the world can forget the efficiency, promptitude and compassion with which China dealt with the tragedy. It is reassuring to see that it is not only the Chinese mind which has transformed the country into an economic powerhouse, which deserves praise, but that its heart is also in the right place.

Chinese ratatouille

The Chinese new year of the rat has been a turbulent one so far. Right at the start of the year, many Chinese who work in cities, away from home, could not make the mandatory journey back home, a victim of mayhem in transportation as a result of the worst snow to hit China in over 50 years. As soon as the snow thawed and a semblance of normality was restored, the age old issue of Tibet raised its troublesome head again. Not a positive press for China in the year of the rat - the year in which China will don the mantle of the Olympic host and bask in the glory of their achievements as the world gazes with awe and amazement.

The bite of the snow still gnaws, and the counter allegations and invective on Tibet still ring in the air, encouraging reflection on the state of the nation and the challenges it faces on the march to fulfill its ambition to become a moderately prosperous society (xiao kang shui ping, in Chinese). While fueling the improvement of the rural living conditions in countryside through remittances from the urban workplace, the migrant workers continue to lead a miserable existence in the cities. Subject to quetionable contracts, some times below legal wages, and little paid leave and social welfare, the workers provide the cheap labour at the country¡¯s economic engines in its factories and construction sites. The relatively well heeled urban dwellers often look at them with fear as the "haves" often look at the "have-nots".

In spite of the harsh existence that this group ekes out, they are still responsible for bringing money to the otherwise impoverished countryside. The Chinese government is paying special attention to this, as evident in their development plan, embodied by the slogan of a "new countryside".

While the rural residents are learning to cope with these basic challenges and the urban folks face the ordeal of rising prices. The Consumer Price Index touched 8.7% in February this year, an 11 year high. For the first quarter as a whole the inflation stood at 8%, a 5.3% increase over the same period last year. Apart from domestic disasters such as the snow storm and the blue ear disease afflicting the porcine population, international rise in grain prices is also contributing to the rising food prices. 

At the same time rising real estate prices are making housing more and more inaccessible. Buying houses, is a new way of spending new money in China - just 15 years ago there were no houses to be bought, nor was there much money to buy them. But now buying a house has become a de rigueur pre mating condition and the steadily rising price line is converting many young Chinese into fang nu (house slaves) as a result of having burdened themselves with frightening mortgages. The alternative is forced bachelorhood, if they couldn't muster up the courage to take the loan (even if they did muster up the courage to ask the hand of the loved one in marriage!).

While the real estate was in the ascendance in the just concluded year of the pig, its flight paled into insignificance when compared to the 96.7% increase in the Shanghai composite index. For the 136 million Chinese who climbed onto the stock bandwagon, buying houses became a lot easier with this gift from the financial markets. However the many others who balked at what they saw as the irrational exuberance of the market, rued the fact that they did not have the courage to haul their hard earned savings to the nearest brokerage. However with the over 40% decline that the market has seen from the dizzy heights of the peak in 2007, they are now congratulating themselves at their foresight.

In spite of the fact that the issues confronting the Chinese are weighty, they have much to look forward to and bring back a cheer in the lives. Of course they will beam with pride when they will host the Olympics this year. In fact the pride is already on display as are the marvellous facilities, including the Bird's Nest stadium and The Water Cube several months ahead of the schedule.

The new apartments in the cities may stretch the bank accounts of the young Chinese who rush to acquire them, but they offer distinctly improved living conditions from the old and cramped houses they inhabited earlier. The new owners are enjoying the modern acquisition and converting their homes into sanctuaries of comfort and privacy. The stores are brimming with goods to furnish the apartment and make it an exclusive abode, making its owners glow with pride.

The new middle class created as a result of entrepreneurship and well paying jobs from multinationals and Chinese companies bulging with corporate profits, are aspiring to a lifestyle of the Western elite. They visit bars, sip red wine, enjoy gourmet food, watch Hollywood films (including Ratatouille, dubbed into Chinese) and plan for holidays abroad. The chilling frost which heralded the year of the rat has done nothing to dampen the optimism and the enthusiasm of the urban Chinese who plan to continue the celebration into the year and many more to come. The year of the rat represents the start of a new cycle in the Chinese calendar - and perhaps for China too as it gets ready to stage the Olympics. Rat is believed to embody qualities of being quick witted, nimble and charming. "Rats" like to be in the thick of action, are sociable and are never late for a party - qualities which will undoubtedly be on display in Beijing during the Olympics.

A holiday to sweep the tombs

Chinese traditionally bury the dead. However, after the enlightened communists took reign of the country, they very rationally declared that the priority for the land is for the living and not the dead. Chinese were told to cremate the dead, burials were banned as was the erection of tombs. Given this, it seemed surprising when earlier this month, the Chinese government declared Tomb-sweeping day to be a new holiday in China. Along with the Tomb-sweeping day, holidays were also declared for two other traditional festivals of Dragon Boat festival and Mid-Autumn festival. Are the Chinese re-discovering their traditions? After years of efforts to obliterate the traditional shackles, is the Chinese government now encouraging the people to celebrate their traditions? What makes it even more surprising is the fact that these holidays will replace the three day holiday observed for the May Day celebration - an occasion of symbolic importance to socialism, whose ideals the Chinese government still claims to espouse.

The three day May Day holiday was, in fact, used to be extended into a "golden week" by adding the intervening days to the weekend (the additional holidays compensated for by working on the preceding or following weekend). Before this declaration, China observed three "golden weeks¡" in a year - three week long holidays for the Chinese New Year, the National Day in October and the May Day celebration. This has been the policy since 1999, when the Chinese government decided that the citizens must get an opportunity to spend their new wealth and in the process further boost the economy. Now China retains two of these golden weeks, but has substituted the third with three one-day holidays for traditional festivals.

Rediscovering the traditions

The Chinese government, as one would expect, is governed more by practical logic than tradition or sentiment. The real reason for this change perhaps lies in the fact that the three golden weeks had started to create a mayhem by the en masse movement of millions of Chinese. The populace takes the opportunity to get out of their homes, visit their families or go for vacations. This causes an immense strain on transportation and other services, and people started complaining about the exorbitant prices, traffic snarls and poor service during these weeks. Additionally, for a country so dependent on foreign trade, it is perplexing as well as vexing for its international trade partners when they see the frenetic trade coming to an abrupt halt as often as three times a year.

However, apart from the rational, there are also emotional factors guiding the change. The Chinese, with their new found wealth and prosperity, now have a reason for celebration and pride. Embracing the old traditions, and practising the associated rituals with openness and confidence is a part of that resurgence of national pride.  Chinese today not only want acknowledgment for their economic success, but they also wish to be applauded for their history and traditions. Chinese have set up Confucius Institutes in 50 countries, sent their terracotta warriors for display in the British Museum - all in an attempt to demonstrate that not only is this a country of extraordinary manufacturing prowess and technology, but also has a cultural richness which deserves noticing and appreciation.

Embracing the West

Not only does China seem to be rediscovering its own traditions, it seems to be embracing the ones from the West with equal gusto and enthusiasm. Christmas celebrations began early and cut-out figures of Santa Claus started appearing in shop windows of departmental stores from the middle of November. The silver bells, figures of reindeers, elves and snowmen jostle each other in almost a chaotic, almost desperate representation of the Christmas spirit. In a rousing finale, earlier this week large pictorial displays of Christmas scenes appeared in most office buildings and a Christmas tree with twinkling lights, encircled with gold paper covered pots of poinsettia embellish the entrance of every office or hotel.

For a country of atheists, this celebration of a Christian festival with such enthusiasm is perhaps baffling. However, Christmas in China is not about religion, but a modern paean to consumption and fun. Masses of people throng the streets, visit bars and haunt the stores for discounted products. Chinese celebration of Christmas, is a typical example of how China embraces the West to its own advantage and adapts it to selectively pick its best from their own point of view. So no Christmas cake or plum pudding ¨C we prefer our dumplings (according to a TNS survey, Chinese consider no food in the world to be anywhere as good as their own) and no midnight mass - religion has no part to play here. But shopping, gifting, drinking and merry making is embraced with zest and passion.

The marketing challenge of understanding the Chinese consumer

Neither burdened with strong traditions and rituals, nor under the blind sway of the West, Chinese are behaving in an eclectic way in deciding what to embrace and what to discard. Their decisions are based on practical logic, commerce and now also a sense of national pride. For marketers it is essential to understand how the Chinese weigh several, often contradictory, arguments and pulls to make the decision. This is as true for which festivals to celebrate as it is for which products and brands to adopt. Only keeping a hand permanently on the Chinese consumers' complex pulse can guide the marketers in the right direction.

 

The Unknown India

What do the Chinese think about India? Well, they don¡¯t. 398 urban Chinese were asked to associate 24 attributes with 14 nations, including the US, Japan, Korea and India. 58% of the people associated no attribute whatsoever with India. By no stretch of imagination is India a salient nation in the mind of today¡¯s Chinese. Among the younger generation, at best, it brings up image of excellence in software. Some envy the facility of Indians with the English language and wonder whether English is the mother tongue of many Indians. The older generation, particularly the taxi drivers, spontaneously start humming ¡°awala hoon¡± on the discovery that their fare hails form India, bringing memories of a time when Raj Kapoor¡¯s Awara was perhaps one of the five films that the Chinese government allowed its citizens to watch in a year.

A missed opportunity

The obscure status of India in the Chinese minds is a missed opportunity for India. There is much that India could achieve by raising their profile among the contemporary Chinese, as they gaze at the external world with awe and bewilderment and whose view of the world is yet to fully crystallize. It is the appropriate time to invest in creating a clear image and a distinctive identity for India, and by doing so, benefit from the momentum of the fastest growing economy in the world. While there are many areas of opportunity, the following do stare prominently as the ones that India is particularly well suited to exploit.

Tourism

34.5 million Chinese visited a place outside China in 2006 ¨C not even a small fraction of these visited India. To the Chinese today, the most attractive tourist destinations are the European countries such as France, Italy and the UK as also Australia.
How can India start to attract the Chinese tourists? There is a seed of a perception which could be exploited  - according to a survey of Chinese attitudes towards different countries, while as a country with rich culture and traditions, the Chinese are proud of their own place ¨C India and UK are at the second place. This perception of culture and tradition could be built upon to attract the Chinese tourists. While the Chinese material needs are being satisfied, little sustenance is available for their spiritual needs. Yoga is already a bond (albeit still a weak one today) which attracts the Chinese to India, as thousands of Chinese have taken to yoga it all its forms and exotic variants. These elements of Indian tradition and culture could be effectively marketed to attract a fair share of the Chinese tourists.

Software

In the field of computer hardware and software, US is the clear leader in the Chinese minds - India is rated next - though a distant next. However, a foundation already exists for India to exploit this image with a mild recognition that the Chinese give to Indian software expertise.  Perhaps this is one area that the Indian software companies are already acknowledging and have taken steps to exploit. Infosys, TCS and Satyam have set up development centres in China and are gearing up to carve a share in the huge domestic Chinese software market. Chinese service industry is still in a primitive state in China and to grow and enhance its quality, software is perhaps one of the more important tools that it needs. Indian companies are in a good position to carve out a niche for themselves in this market -  provided they build further on the existing image, make their presence felt in China and invest in learning about the needs of the Chinese industry.

Managerial expertise

While the economic growth of China is clearly because of policies of the Chinese government, the Indian acceleration is perhaps in spite of the Indian government. The Indian growth is clearly attributable to the private sector and their ability to efficiently exploit both the domestic opportunities and the export potential of Indian services. On the other hand, the big corporations of China are still largely state owned behemoths. The growth in the size and profitability of Chinese companies and the huge Chinese banks, is not because of their skills and innovation, but because of their monolithic position coupled with increasing money in the hands of the Chinese consumers. Few Chinese have heard of the Tata's and their purchase of global companies and brands or the Amban¡'s who seem to be expanding their skills to touch every area of Indian life. A knowledge in China of the proficiency of Indian private enterprise and the skills and expertise of the Indian manager, will create a huge opportunity for Indian talent and businesses.

Entertainment

Karishma (translated into Chinese as Qi Ji or miracle) has been on the air on several Chinese television channels. A few other Indian serials have also hit the Chinese television. The most popular Asian cultural imports in China are, however, Korean. Korean films, television drama and music are a rage in China (as they are in many other Asian countries). Korean films and drama, offer plots of family intrigue and romance, that are quintessentially Indian, indicative of the fact that Indian storylines and plots are likely to appeal to the Chinese audience. In fact Indian entertainment industry, given their experience and expertise could even develop special programmes for the Chinese audience. India is in a better position to do this than any other country - both in terms of the technical prowess and creativity, as well as their ability to understand what will move their Asian neighbours.

Education

While India has always prided itself on its education institutions, the irony is that Indian students are coming to China for higher education in medicine and there is practically no reverse flow. Indian Institute of Science at Hyderabad gets more MBA applications from Asia than any other management school other than Harvard. Indian Institutes of Management and Indian Institutes of Technology are often rated as among the best in their class globally ¨C a fact that India could gain tremendously by advertising to the Chinese. Chinese are travelling all over the world in quest of higher education, often enrolling themselves at poor quality institutions in obscure locations. While it is true that India is hardly able to meet the demand of its own citizens for high quality higher education, attracting international students is sorely required to raise the profile of Indian education. India needs to actively market its education institutions in China. While success may be limited in the short run, the long term potential is extremely attractive.

Need to create the Indian image and identity

Chinese do not have a high opinion of Indian products. For quality products they look up to Germany, the US and Scandinavian countries. When it comes to perfumes and luxury products, they think of France and for consumer electronics Japan and Korea dominate their thinking. However, India has a foundation of an opinion which could serve as a basis for creating a unique image and identity for India and what it can offer to China. India stands to gain immensely from embarking upon this effort - or in omitting to do so faces an enormous opportunity cost of further growth and international prominence.

Pigs in china

China Daily, the leading English language daily newspaper in China, reported some time ago that a hog weighing more than 1,040 kg was crowned the "king of pigs" in Ningxiang County, Hunan province over the weekend. To the best of my recollection, PG Wodehouse, while describing the adventures of the Empress of Blandings, never really mentioned her precise weight, but it would perhaps be a fair assumption that Lord Emsworth would have been proud of this achievement, if his own sow had reached such heights (or weights, to be more precise).
The story on the fattest pig is not the only porcine story in the Chinese papers. In fact, pig and pork have been extremely salient in china for some time. China¡'s consumer price index (CPI) jumped 4.7% in 2007, with the price of food showing particularly ballistic tendencies. Specifically pork prices almost doubled last year due to short supply and mounting feedstuff costs. Apart from rising prices for grain used as feed, blue ear disease - also known as porcine reproductive and respiratory syndrome - killed a large number of pigs nationwide last year. As a result, the Chinese farmers, despite their love for pigs and their meat, were less enthusiastic in rearing them than in the past. The central and local governments plan to launch a concerted effort to rekindle their enthusiasm for raising pigs and boosting pork supplies. China is on a comfortable and steady growth path and maintaining stability ¨C whether it is in currency valuation, consumer incomes, political climate or pork prices ¨C is of the essence.

The year of the golden pig

Ironically the scarcity of pigs came in the year of the pig (there was no shortage of chicken in the year of the rooster in 2005, and no shortage of dragons is expected in the year of the dragon in 2012) - though rat population hopefully would be contained in the year of the rat which started this February. In Chinese tradition, each year is cyclically assigned one of the 12 animals, each of whom are believed to bestow some specific benedictions and character idiosyncrasies on the humans born in that specific twelve month period. The year of the pig is one of the more cherished ones and thought to bring luck, prosperity and ampleness (like itself). A person born this year is likely to be intelligent, honest, courageous, gallant, and sincere. They are good implementers can be relied on to see things through. They also tend to be popular and make lasting friendship and are good neighbors.

The years also rotate through five elements of metal, wood, water, fire and earth ¨C and when pig and metal (gold really) coincide (as it was believed to have happened this year) the floodgates of fortune are expected to open like never seen before (or only seen 60 years ago, as that is when it would have occurred before). 

It was under this expectation, that the youth of China timed their sexual activity to ensure the arrival of their off-springs in this auspicious period. It is reported that this year saw the birth of a lot more babies than the previous years. Of course, none thought about the pressure it will bring to the lives of the Chinese obstetricians, who were getting used to an easy life, thanks to China¡¯s one child policy. Similarly, the supply of maternal beds and other wherewithals related to child birth are also reported to be strained. On the happier side, figures indicate that the companies manufacturing diapers, baby foods and other goods of "little" interest upped their advertising and reaped generous rewards.

The marketing opportunity

Marketing companies often struggle with the extent to which they need to balance their global strategies with the subtleties of local culture and traditions. The fervent communist era in China and the cultural revolution did its best to liberate the Chinese from the shackles of their traditions and beliefs. However, the interest in Chinese Zodiac, the strong beliefs about lucky and unlucky numbers (most Chinese buildings do not number the 4th floor, as number 4, because of the similarity of its Chinese pronunciation with death, is believed to bring misfortune) and the increasing enthusiasm with which Chinese traditional festivals are celebrated, seems to suggest that companies will be well advised to take cognizance of the traditions, and develop their marketing campaigns to take advantage of the consumer interest in these. The more marketing savvy companies in China are already launching special communication and marketing campaigns around traditional festivals. The festival related marketing activities are likely to receive a further boost from the recent government decision to declare three additional holidays for the Chinese festivals of Tomb-sweeping day, Dragon Boat festival and Mid-autumn festival.

The fattest pig in China

While marketing companies deliberate on appropriate strategies to win the hearts of the Chinese consumers, it is reported that the owner Xiao Shahong of the Chinese ¡°king of pigs¡± apparently declined an offer to part with her precious animal, at a record of more than 50,000 yuan ($6,730). It is befitting that the prized pig is preserved, loved and cherished while the Chinese just finished celebrating the last few months of the year symbolized by it.

The 17th National Congress of the Communist Party of China took place in Beijing late last year, with over 2000 delegates attending from all over the country. In his two and a half hour address to the delegates, President Hu Jintao described several important achievements as well as several significant challenges facing China today. The speech clearly exhibits the pride that China feels in its achievements as well the candid concern for the current issues and problems. However, it was interesting to see that while China has made immense strides in many spheres, the tradition of the rhetoric and the use of slogans is firmly in place. Of course, the old slogans have been replaced by the new. The current rage propounded by President Hu Jintao is “harmonious society”. Some time ago when the government abolished the agricultural tax, the move was accompanied by a slogan of “new countryside”. Also talked about for quite some time is China’s ambition to achieve a “moderately prosperous society” (xiao kang). President Hu added a few more in this congress – scientific outlook on development (implying balanced and sustainable development) and socialism with Chinese characteristics (implying that China is different and outsiders should stop telling it what it should do!).

Slogans or biayo yu as they are called in Chinese, have been integral to life in China since the communists took over in 1949. In fact during the earlier days of communism, the country was practically wired up through public address systems which incessant broadcast of slogans, exhortations, party doctrine and even threats. Prominent slogans from that time are – down with imperialist running dogs, suppress counter revolutionaries, serve the people.  From time to time new slogans made their way and the one which really changed the country and paved the way for rapid economic strides was the one proclaimed by Deng Xiao Ping when he said “to get rich is glorious” (or words to that effect).

With the opening up of China to the rest of the world in 1978, the scale and shrillness of slogans substantially decreased. Over a period of time political slogans have been replaced by commercial advertising and messages of indoctrination gave way to messages of inducement of unspeakable joys of consumption or unthinkable relief on usage of various products. Coming from the tradition of sloganeering, it was not surprising that the initial advertising often resembled the tone and form of traditional slogans. Even now a large proportion of advertising seen on the Chinese television comprises models holding the brand to the camera and ecstatically recounting its virtues.

It was thought that the Chinese consumer is a simple soul and can not understand the subtlety of soft advertising which attempts to endear the brand through use of emotions or clever creative devices. Direct communication of the benefits in unambiguous terms was considered the safe route of communication. As a result while advertising in many other markets is as much entertainment as brand communication and attempts to engage the consumer through subtle creative devices, in China it is often a direct onslaught with the core benefit – often repeated several times within the same advertisement.

However, research done in China shows that this direct route does not have to be the one that an advertiser needs to embrace to succeed. Emotional advertising works and so does humour, endorsement or any of the other genres of advertising practiced elsewhere. The success of advertising in China, as elsewhere, depends on the ability of the advertisement to address the key consumer concerns, to overcome the deterrents for use and offer persuasive motivations for adoption of the brand. It also depends upon the extent to which the advertising portrays a social imagery that the target group can identify with and its ability to reflect consumer culture and aspirations.

It is interesting that it is not only the commercial world which is changing its attitude and strategy of communication. The Chinese government’s adoption of the one-child policy in late 1970’s was accompanied by strident and heavy handed communication. The slogans at that time included – “one less child is one less tomb”, “have less children and more piggies” or even "houses toppled, cows confiscated, if abortion demand rejected". In an effort to reflect the modern times, the National Population and Family Planning Commission in early August decided to begin replacing offensive slogans with new, more gentle communication. The new messages revolve around positive motivations of "healthy childbearing," "reproductive health," "rearing better children," and "care for girls," and focus on expressions like "life," "health," and "happiness". The new kinder messages like "Mother Earth is too tired to sustain more children" and "Both boys and girls are in parents' hearts" reflect the changing mood of the nation and a population which is demanding and getting more and more respect, consideration and a distinct voice.

Written by Ashok Sethi. Based in Shanghai, China Ashok heads research methods and analytics for TNS in region.

From China to Spain

Tuangou.es is a team buying website in Spain. Consumers who want to buy a particular product, register on the website, the group of consumer interested in the same product then flexes its muscle and wrings the retailer’s arm to secure unimaginable bargains. Tuangou.es is managed by Sonia who lives in Alicante in Southern Spain. However you will not find the word “tuangou” in the Spanish dictionary – nor in fact in the Catalan or any of its variations heard in Spain. You will, however, be able to locate “tuan” and “gou” separately in a Chinese dictionary, meaning “group” and “buy” respectively, which have come together to mean group buying, which combines the power and reach of internet with the bargaining power of a group.
Tuan gou (team buying in Chinese), emerged from China in online chat-rooms, and graduated to more organized websites, such as 51tuangou.com and www.teambuy.com.cn. Tuangou marries innate Chinese propensities for social-networking and haggling in a contemporary bundle to the advantage of the consumer. This has now spread to Spain, indicative of the fact that not only are the Chinese consumers exploiting the power of the Internet to the hilt, they are also setting trends and examples for the rest of the world to follow.
The power of Internet in China

Xu Jinglei, a popular Chinese actress and film director, has the world’s most visited blog (sina.com.cn/m/xujinglei) with 86.97 million clicks in 18 months. Blogging is popular in China as it allows an easy avenue for expression, which has traditionally been hard to find in China. Blogging has caught the imagination of the Chinese who use it to express their views, share their feelings and express their personality. Not surprisingly, the Chinese government felt compelled to make some efforts to contain this phenomenon. In an attempt to tighten its grip on bloggers, it demanded that they register in their own names – a move that the authorities quickly reversed on facing the crying protestations from the blogging sites and the bloggers.

Currently a little over 10% of the Chinese population has access to the internet. However this translates into over 130 million internet users, making China the home to the second largest group of internet users in the world. The penetration in the big cities, rivals that of the Western world and internet has gradually become an integral and all-pervasive part of the lives of the urban Chinese. Today the Chinese buy on the net, sell on the net, watch movies and television on the net, seek employment on the net and look for romance and marriage on the net. The recent stock market boom is greatly fuelled by millions of Chinese betting their savings through their accounts on the net.

Need for information

The explosion of the net and the overwhelming acceptance from the Chinese populace needs to be seen in the context of the enormous amount and the incredible pace of change which has taken place in the Chinese society. Change implies an increase of opportunities, a multiplication of choices and the concomitant need for information and advice to exercise these choices. Unlike the countries which developed gradually over a longer period of time, the traditional Chinese information systems could not keep pace with the change. The traditional information network and media was anyway designed to pass the party doctrines to the citizens, and inculcate values of moderation and conformity, not to inform them about how they can improve their consumption of product and services. In other societies, consumption and choice is guided by experience of others, word of mouth, and experience passed down in families and friends. Today multitudes of Chinese are going abroad on holidays, buying automobiles, buying apartments, and have no one to turn to for information and advice in their immediate family of close circle of friends who have done these before. It is not surprising then that the internet fills this vacuum and takes the role of the source of information and the guide.

Implications

To the marketers, the phenomenon of internet offers both an opportunity and a challenge. Clearly no manufacturer can afford to be missing from the net – and that holds true whether the company is a manufacturer of a consumer electronics, household cleaners or a provider of financial services. The presence on the net is required to inform about the products, to advertise their advantages and to encourage user feedback. With the advent of Web 2.0, the flow of information between the manufacturer and the consumer has truly become a two-way phenomenon, and manufacturers need to tap into the enormous bag of consumer creativity and power for innovation. Companies are already using the net to encourage user contribution to the development of the brand, its communication and the product portfolio. The net offers the opportunity to use the consumers, not merely to test products and brands, but to participate in their creation.

Guanxi for sale

It is amazing how China adopts the new while retaining old habits and practices. Guanxi is a much touted concept, and refers to the Chinese predilection for depending upon relationships and connections to move files and get things done. Gaunxi is now for sale on the internet through websites that puts you in touch with the person who could get your child into the best kindergarten in the locality, help in getting an approval secured or a payment expedited or any other similar tasks, both dubious and legitimate, where your normal, unaided efforts may be expected to face difficulties. The opportunities offered by the net are only limited by your imagination – and possibly, your scruples.

By Ashok Sethi

The author lives in Shanghai and is the regional director for research methods and analytics for TNS.