Lenovo CEO Yang Yuanqing attends a news conference in Sao Paulo (Nacho Doce/Reuters)
Here's a little thought exercise: Think of a Chinese brand. Any Chinese brand. Go on, I'll wait. Give up? Don't feel too bad: According to a recent poll conducted by HD Trade Services, 94 percent of Americans cannot think of a single brand from the world's second-largest economy.
Strange, isn't it? Japan and South Korea, countries China zoomed past in the GDP-rankings, boast globally-respected brands across a variety of industries. Even Sweden and Finland -- mere minnows in comparison to China -- offer IKEA and Nokia, respectively. Given China's incredible transformation into an economic powerhouse over the past three decades, why doesn't the country have more recognizable brands?
Before we tackle that question, it's worth exploring why having globally recognized brands even matter for a country. As David Wolf, managing director of the Global China Practice at Allison + Partners, a PR consultancy, says, "there are two ways to add value to goods and services in a competitive industry. The first is through innovation, and the second is through branding. When you create a brand, you're creating a distinction that people are willing to pay more for than just by its own virtue. That's added value -- and added revenue -- without much additional cost per unit."
Brands, then, benefit a country's economy with no downside. So why is China struggling in this area? The answer lies at the nexus of history, economics, and culture -- with a bit of geography thrown in.
Let's start with geography first. China, as you've no doubt heard, is very, very big. It's the fourth largest country by land mass in the world and has more people than anyone else. As a result, Chinese companies have a large domestic market to play with, and don't always need to attract overseas markets in order to be profitable. In addition to its size, China's economy -- for one that is still somewhat centrally planned -- is actually highly fragmented, with local provinces and municipalities acting almost as independent economic units. Accordingly, across a broad swathe of industries and markets, there are a lot of small-time players in China, making it difficult for one company to amass the scale necessary to invest in global marketing campaigns.
Secondly, in comparison to countries like Japan and South Korea, state-owned enterprises (SOEs) play a dominant role in the Chinese economy, comprising 35 percent of all business activity and reportedly 43 percent of all profits. China's banks loan money to SOEs on favorable terms, allowing these companies to operate inefficiently and still survive. It's no wonder, then, that they have less need for marketing and branding. Wolf relates a common joke among China business observers: "for most SOEs, 'branding' means getting a new logo, 'marketing' means buying ads on China Central Television, and 'P.R.' stands for 'pay the reporter'"
Indeed, Chinese executives across a variety of industries often don't see the point in investing time and money into building their brands. As Scott Markman, the president of the Monogram Group, a brand consultancy, put it, "building a brand is messy, it takes time, it involves soliciting and following advice from outside counsel, and the vast majority of Chinese managers are deeply suspicious of things in which basic proof of effectiveness is difficult to provide," Wolf adds that few Chinese companies treasure innovation, preferring to follow rather than to lead. "The typical approach is to avoid sticking your neck out first; wait till the other guy does it, and see if his head gets chopped off."
In spite of these roadblocks, there's evidence that Chinese brands are beginning to make an impact in foreign markets. Beijing-based computer manufacturer Lenovo, which made a splash in 2004 by purchasing IBM's PC-unit, is a prime example; the appliance manufacturer Haier is another. While these companies have yet to become household names in the United States and elsewhere, they've embraced marketing and brand-awareness to a degree unusual for a Chinese firm. And -- by experiencing financial success -- they could serve as role models for skittish firms unsure how to approach foreign markets.
Chinese brands still have a long way to go, not least in battling the perception that Chinese-made goods are inexpensive and low-quality. But, as Markman points out, Japanese and Korean firms faced the same perception a few generations ago; even Japan's world-class auto industry once produced cars that were considered inferior by American consumers. It's no less unlikely that, in the not-too-distant future, Chinese goods will enjoy a similar surge in appreciation.
They may soon have to. As wages rise, Chinese goods will become more expensive, and companies will find that they can no longer compete solely on price. As a result, branding will necessarily play a larger role than before simply out of necessity; Chinese companies will have to find a way to distinguish their higher-quality goods in a highly competitive marketplace, and building popular brands is the best way to do that.
Achieving these changes will be a challenge. But it shouldn't come as a big surprise if, in 10 years, a few Chinese brands are as familiar to Americans as Samsung, Toyota, and Mitsubishi are today.
Trump’s greatest gift to the GOP may be the distraction he’s provided from other party meltdowns.
Even though 2016 appears to be the year of painful, public disqualification from higher office, you may be forgiven for not noticing the extraordinary implosion of New Jersey Governor Chris Christie. After all, the Trump surrogate and White House Transition chair has benefitted from his early endorsement of the Republican presidential nominee in unusual fashion: Christie’s power in the Grand Ole Party has decreased, rather than increased. The likelihood of a plum position in the Trump administration—Attorney General, perhaps, since Christie was spurned as the Republican running mate—is decidedly dim, what with the presently apocalyptic predictions about November 8th.
Instead, Trump’s gift to Christie has been shadow: the top Republican’s national meltdown has obscured that of the one-time rising Republican star and sitting New Jersey governor. But make no mistake—Christie’s is a fall of epic proportions, precipitated by an unfathomably petty revenge plot. The contrast of the two, the top-heavy-ness of the fallout compared to the insignificance of the initial transgression, would be comic, were it not so tragic. Remember that in November of 2012, Governor Christie had a 72 percent approval rating. Today, it stands at 21 percent.
In the Republican nominee’s nostalgia-fueled campaign, older voters see their last chance to bring back the 1950s. But he could be starting to lose them, too.
PANAMA CITY, Florida—The crowd at the Donald Trump rally was a sea of gray and white. They hobbled on walkers and canes into the massive amphitheater, searching for a place to sit on the lawn.
They were old enough to remember a different America—an America that was great. A place of strength and confidence, where men were men and women were women, where people respected the flag and their elders and prayed to God. That was not the America they saw today.
“I am 72 years old, and I have seen our country absolutely fall apart,” Jim Smith, a gray-haired grandfather with an eagle on his T-shirt, told me. Smith retired to the beach after a career in the Army that took him all over the world; at one point, he worked for NATO running logistics in Bosnia. But today, he did not like what he saw all around him.
Some researchers believe that the microbiome may play a role in regulating how people think and feel.
By now, the idea that gut bacteria affects a person’s health is not revolutionary. Many people know that these microbes influence digestion, allergies, and metabolism. The trend has become almost commonplace: New books appear regularly detailing precisely which diet will lead to optimum bacterial health.
But these microbes’ reach may extend much further, into the human brains. A growing group of researchers around the world are investigating how the microbiome, as this bacterial ecosystem is known, regulates how people think and feel. Scientists have found evidence that this assemblage—about a thousand different species of bacteria, trillions of cells that together weigh between one and three pounds—could play a crucial role in autism, anxiety, depression, and other disorders.
Services like Tinder and Hinge are no longer shiny new toys, and some users are starting to find them more frustrating than fun.
“Apocalypse” seems like a bit much. I thought that last fall when Vanity Fair titled Nancy Jo Sales’s article on dating apps “Tinder and the Dawn of the ‘Dating Apocalypse’” and I thought it again this month when Hinge, another dating app, advertised its relaunch with a site called “thedatingapocalypse.com,” borrowing the phrase from Sales’s article, which apparently caused the company shame and was partially responsible for their effort to become, as they put it, a “relationship app.”
Despite the difficulties of modern dating, if there is an imminent apocalypse, I believe it will be spurred by something else. I don’t believe technology has distracted us from real human connection. I don’t believe hookup culture has infected our brains and turned us into soulless sex-hungry swipe monsters. And yet. It doesn’t do to pretend that dating in the app era hasn’t changed.
Hillary Clinton and Donald Trump prepare for the final sprint to Election Day.
It’s Monday, October 24—the election is now less than three weeks away. Hillary Clinton holds a lead against Donald Trump, according to RealClearPolitics’ polling average. We’ll bring you the latest updates from the trail as events unfold. Also see our continuing coverage:
The president’s final appearance on the whimsical late-night show indulged in some humor, but for the most part it made a case for seriousness.
The Choice, Frontline’s quadrennial documentary about the two final candidates who have become the major-party presidential nominees, made a remarkable argument this cycle around. Donald Trump’s candidacy, the documentary suggested, may have arisen as a result of some jokes made by President Obama. During the height of Trump’s birther phase in 2011, Obama gave a speech at the White House Correspondents’ Dinner, laying into Trump with joke after joke.
“It just kept going and going,” recalled Trump’s now-campaign staffer, Omarosa Manigault, “and he just kept hammering him. And I thought, ‘Oh, Barack Obama is starting something that I don’t know if he’ll be able to finish.’” Trump’s fellow adviser, Roger Stone, agreed: “I think that is the night that he resolves to run for president. I think that he is kind of motivated by it. ‘Maybe I’ll just run. Maybe I’ll show them all.’”
In the 1970s, a new wave of post-Watergate liberals stopped fighting monopoly power. The result is an increasingly dangerous political system.
It was January 1975, and the Watergate Babies had arrived in Washington looking for blood. The Watergate Babies—as the recently elected Democratic congressmen were known—were young, idealistic liberals who had been swept into office on a promise to clean up government, end the war in Vietnam, and rid the nation’s capital of the kind of corruption and dirty politics the Nixon White House had wrought. Richard Nixon himself had resigned just a few months earlier in August. But the Watergate Babies didn’t just campaign against Nixon; they took on the Democratic establishment, too. Newly elected Representative George Miller of California, then just 29 years old, announced, “We came here to take the Bastille.”
The Barefoot Contessa’s latest cookbook doubles as an insight into the workings of “the most cherished celebrity couple in the world.”
There are some couples in pop culture who are more than simply couples. Barack and Michelle. Rita and Tom. Ellen and Portia. Jay and Bey. They could always break up—romance is romantic in part because it is so fundamentally fragile—but the more urgent point is that nooooooooooonono they can’t break up, because their enduring togetherness suggests not just that contemporary coupledom can work, but also that a chaotic world can be made sensible, and the cruelties of entropy can be resisted through that most unpredictable and yet stabilizing of things: love.
Ina and Jeffrey—Garten, officially, but they have also, at this point, transcended their shared surname—make up one of those couples. They are, in fact, according to one assessment, “the most cherished celebrity couple in the world.” The Gartens met in the ’60s, when he was a student at Dartmouth and she caught his eye as she was visiting her older brother there; they married when she was 20 and he was 22. And nearly five decades later, now that Ina is a culinary celebrity and Jeffrey is an occasional guest star on her popular Food Network show, they seem more in love than ever.
The rise of Donald Trump has left the speaker of the House, and the Republican Party, in an almost impossible situation.
What happens to the Republican Party after November 8, particularly if Donald Trump loses? One clue comes from a recent Bloomberg Poll: When asked which leader better represents their view what the Republican Party should stand for, 51 percent of likely voters who lean Republican or identify as Republican picked Trump, while 33 percent picked House Speaker Paul Ryan (15 percent said they weren’t sure.)
Paul Ryan: The highest ranking Republican elected official, the former vice presidential standard bearer, perhaps the leading elected policy intellectual in the GOP, who is now being attacked regularly by the party’s current presidential standard bearer; who has Breitbart.com calling him a secret supporter of Hillary Clinton, and Sean Hannity calling him a “saboteur” who needs to be replaced; who has both conservative Freedom Caucus members and other discontented Trump-supporting colleagues ripping him and threatening to vote against him when the vote for Speaker occurs on the House floor on January 3 next. The Paul Ryan, who has struggled manfully to walk the fine line between Trump supporters and Trump himself, getting distance from Trump without renouncing him, and who has tried even harder to turn the focus to the policy plans of his House party.
Just why was Tom Hanks dancing in a black-and-orange suit on Saturday Night Live so funny?
This weekend’s episode of Saturday Night Live offered a mini masterpiece: a gloriously silly Halloween-themed piece revolving around a “Haunted Elevator” ride and its unusual star attraction. Beck Bennett and Kate McKinnon played a couple looking for spooky thrills who instead found something far more bewildering: a pumpkin-suited man who would randomly appear alongside two cheerful skeletons and perform a dance routine. “Who are you?” asked a frustrated Bennett after the man (played by Tom Hanks) appeared for the second time. “I’m David Pumpkins!” came the reply.
McKinnon followed up: “Yeah, and David Pumpkins is … ?”