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.
A magnitude 7.8 earthquake struck Nepal early on Saturday, centered 10 miles below the surface, less than 50 miles from the capital of Kathmandu. At least 1,100 are already reported to have been killed by the quake and subsequent avalanches triggered in the Himalayas. Historic buildings and temples were destroyed, leaving massive piles of debris in streets as rescue workers and neighbors work to find and help those still trapped beneath rubble. Below are images from the region of the immediate aftermath of one of the most powerful earthquakes to strike Nepal in decades. (Editor's note, some of the images are graphic in nature.)
In her new book No One Understands You and What To Do About It, Heidi Grant Halvorson tells readers a story about her friend, Tim. When Tim started a new job as a manager, one of his top priorities was communicating to his team that he valued each member’s input. So at team meetings, as each member spoke up about whatever project they were working on, Tim made sure he put on his “active-listening face” to signal that he cared about what each person was saying.
But after meeting with him a few times, Tim’s team got a very different message from the one he intended to send. “After a few weeks of meetings,” Halvorson explains, “one team member finally summoned up the courage to ask him the question that had been on everyone’s mind.” That question was: “Tim, are you angry with us right now?” When Tim explained that he wasn’t at all angry—that he was just putting on his “active-listening face”—his colleague gently explained that his active-listening face looked a lot like his angry face.
After more than a year of rumors and speculation, Bruce Jenner publicly came out as transgender with four simple words: “I am a woman.”
“My brain is much more female than male,” he explained to Diane Sawyer, who conducted a prime-time interview with Jenner on ABC Friday night. (Jenner indicated he prefers to be addressed with male pronouns at this time.) During the two-hour program, Jenner discussed his personal struggle with gender dysphoria and personal identity, how they shaped his past and current relationships and marriages, and how he finally told his family about his gender identity.
During the interview, Sawyer made a conspicuous point of discussing broadly unfamiliar ideas about gender and sexuality to its audience. It didn't always go smoothly; her questions occasionally came off as awkward and tone-deaf. But she showed no lack of empathy.
Where did it come from, and what are its intentions? The simplicity of these questions can be deceiving, and few Western leaders seem to know the answers. In December, The New York Times published confidential comments by Major General Michael K. Nagata, the Special Operations commander for the United States in the Middle East, admitting that he had hardly begun figuring out the Islamic State’s appeal. “We have not defeated the idea,” he said. “We do not even understand the idea.” In the past year, President Obama has referred to the Islamic State, variously, as “not Islamic” and as al-Qaeda’s “jayvee team,” statements that reflected confusion about the group, and may have contributed to significant strategic errors.
Today was the latest installment of the never-ending Clinton scandal saga, but it won’t be the last. Yet in some ways, the specifics are a distraction. The sale of access was designed into the post-2001 Clinton family finances from the start. Probably nobody will ever prove that this quid led to that quo … but there’s about a quarter-billion-dollar of quid heaped in plain sight and an equally impressive pile of quo, and it’s all been visible for years to anyone who cared to notice. As Jonathan Chait, who is no right-wing noise-machine operator, complained: “The Clintons have been disorganized and greedy.”
“All of this amounts to diddly-squat,” pronounced long-time Clinton associate James Carville when news broke that Hillary Clinton had erased huge numbers of emails. That may not be true: If any of the conduct in question proves illegal, destroying relevant records may also have run afoul of the law.
Our patient—we’ll call him W.B.—is a 56-year-old father of three who, until last year, had always been healthy. He had worked his entire life, in jobs ranging from automotive repair to sales, taking great pride in providing for his family, even though doing so had recently meant combining three part-time positions. All of that ended in February 2014, when he was diagnosed with amyotrophic lateral sclerosis, or ALS, commonly known as Lou Gehrig’s disease. A neurodegenerative disease characterized by progressive muscle weakness, ALS leads to the loss of all voluntary movement, difficulty breathing, and, in the end, death.
W.B.’s life was turned upside down by the diagnosis. But once the initial shock passed, he began researching his condition intensively. He learned that he was unlikely to survive five years, and that in the meantime his quality of life would diminish dramatically. With limited options, many patients retreat. But, quite bravely, W.B. had other ideas. After much consideration, he decided that if he was going to die, he would like to try to save another person’s life in the process, even if that person was a stranger. And so last May he approached the University of Wisconsin’s transplant program, where we are surgeons, as a prospective organ donor.
The Dr. Oz Show provides critics with ample material: séances, energy healing, miracle diet products. Once a media darling, Oz has been subjected to a steady stream of public humiliations, from his shaming in front of a Senate subcommittee to an April 15 letter that a group of doctors wrote to Columbia University, urging his dismissal from the faculty, accusing him of promoting “quack treatments and cures in the interest of personal financial gain”—to which Dr. Oz responded with an ad hominem attack on the letter-writers and a defense of free speech. But despite numerous subsequent think pieces about the man behind the curtain, a crucial question stands out: Why call for Dr. Oz’s dismissal, when many medical schools and hospitals endorse the most outlandish of his claims?
The editors of Smithsonian magazine have announced the winners of their 12th annual photo contest, selected from more than 26,500 entries. The winning photographs from from the competition's six categories are published below: The Natural World, Travel, People, Americana, Altered Images and Mobile. Also, a few finalists have been included as well. Captions were written by the photographers. Be sure to visit the contest page at Smithsonian.com to see all the winners and finalists.
“Oh my God, can you grab him?” I shouted at the woman at the door, as my 3-month-old puppy darted out into the cold and I tried to stop my 6-year-old twins from following suit. She obliged, and I was able to get a proper look at her. It was in the 30s outside, unseasonably cold for Florida, and the young woman holding my squiggling puppy was wearing nothing but a light spring sweater, shivering and looking miserable. I invited her in.
Over a cup of coffee, she introduced herself as Tysharia Young and tried to do what she’d come to do: sell me overpriced magazine subscriptions. It was not the first time someone had knocked on my door for this purpose, and I was sure it wouldn’t be the last. Gainesville has had such issues with magazine sellers that our local police department recently issued a public warning.
When healthcare is at its best, hospitals are four-star hotels, and nurses, personal butlers at the ready—at least, that’s how many hospitals seem to interpret a government mandate.
When Department of Health and Human Services administrators decided to base 30 percent of hospitals’ Medicare reimbursement on patient satisfaction survey scores, they likely figured that transparency and accountability would improve healthcare. The Centers for Medicare and Medicaid Services (CMS) officials wrote, rather reasonably, “Delivery of high-quality, patient-centered care requires us to carefully consider the patient’s experience in the hospital inpatient setting.” They probably had no idea that their methods could end up indirectly harming patients.