Asia 5 Bringing you a flavour of business trends in Asia...in just 5 minutes A Futures Coaching initiative www.futurescoaching.com
acceleratingInconceivable rates of changeExamplesBefore the Expo, Shanghai had 4 metro lines; 3 years later there are 10There are 6,500 kms hi-speed train lines; by 2020 there will be 20,000 kmsAnecdotesInterviewee left for a week; returning she couldnt find home due to a new tunnelBar advertised as venue for world cup TV; it had closed before opening matchInsightState capable of rising to almost any challengeRate of change likely to accelerate through own momentum; no signs of inertiaReasons for changeSize, stupid1.3 bn (damn!) : you feel the pressure of people and the need to fight to surviveUltra competitive: 1 place for every 90 university applicantsStarting overCultural Revolution = no intellectuals, no city culture, no entrepreneurs, no changeChange is so good because past/history is so badKeeping up with change is a key status indicator; even the old feel this pressureConversations regularly start with dialogue about whats new, whats the latest Going underground
climbingGetting to the topStressChinese hide stress well; no visible tension, aggressionThere is mental illness however; e.g. 3 student suicides in early June 2010But face is important concept i.e. best to not show stressLetting off steam through alcohol is OK; bosses get tipsy on nights outWork rateWork long hours, but to western eyes workers can seem less productiveIn truth, there is always a good cultural reason for taking the long way roundCommon to see people asleep in publicLeaving the ratraceAlmost impossible to slow down, down shiftPressure of having to support 6 adults in retirement (2 parents; 4 grandparents)Social pressure is enormous to keep up with the changes and not be left outNew ways to succeedNew parents want their kids to be more rounded, to have funKids still need to pass exams but are being taught to be innovativeInsightWhilst achievement is all motivating, already signs that success has to be funLittle Emperors (single kids) values will change Chinese society forever At the top : Park HyattIn 10 years, a creative generation will change Chinese brands image & success is Worlds Tallest hotel
shoppingRetail TherapyIt really works!Going shopping is a hobby for most middle-class urbanitesIt is explicity claimed as an anti-stress tool; work hard to spend hardYoung spend everything; makes work worthwhile; a very tight connectionFrom thin airWith low salaries & high rents, how do they spend so much?In 1998 most were virtually given their homes; since then prices are up 10 timesHome prices have tripled in last 3 years in Shanghai: people feel very wealthyGrandparents are extremely thrifty but will give anything to their Little EmperorsThe stock market has risen 160% in 5 yearsGiftsA gift is a term often used to mean a bribe in ChinaState officials can expect to at least double their salaries through giftsLuxury brands might gain as much as half their sales revenues because of giftsAnecdote: Salvatore Ferragamo customer ordered 300 ties to give as giftsMunicipalities fight to have luxury brands locate in their district, for presige - & giftsWhat a luxury! Land-grab: LV have nearly 40New middle-classes want Western luxury brands – now moving to tier 2 & 3 cities outlets in China; Burberry aimLuxury wants China – prices 2.5 times European rates; shops look empty but at for 100 in mid-termthese margins, they can afford to wait!However, C&A, Zara and H&M having success too
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