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 Modest Proposal makes a passing reference to “the famous Psalmanazar, a native of the island Formosa.” This blond, blue-eyed “savage” claimed people ate children in his homeland. “When any young person happened to be put to death,” Jonathan Swift recounted, “the executioner sold the carcass to persons of quality as a prime dainty.” George Psalmanazar claimed to be a kidnapping victim who was snatched from Formosa (now known as Taiwan) by a Jesuit named Father de Rode of Avignon. This sinister missionary brought him to Europe and pressured the fair young lad to convert from paganism to Catholicism. He was thrown into prison after resisting their overtures but soon escaped their clutches. Soldiers belonging to the elector of Cologne captured Psalmanazar and shipped him off to another batch of scheming Catholics, but he got away again. Then Dutch soldiers detained him and pushed Calvinism on him, to no avail (he just couldn’t buy into the doctrine of predestination). While in the Netherlands, Psalmanazar crossed paths with an Anglican priest named Alexander Innes, who dazzled him with the Church of England’s teachings. “At my arrival at London,” he later recalled, “Mr. Innes, and some worthy clergymen of his acquaintance, introduced me to the bishop of London, and got soon after a good number of friends among the clergy and laiety.”
Two recent events—the spectacle of Garry Trudeau, the Doonesbury creator, attacking a group of murdered cartoonists for offending his sensibilities, and the protest organized by a group of bien-pensant writers against the PEN American Center for planning to honor those cartoonists tonight in New York—have brought the Charlie Hebdo controversy back to public consciousness. So has the failed attack Sunday in Texas on a group of anti-Islam militants staging a Prophet Muhammad cartoon contest, though, unlike Charlie Hebdo, the organization that sponsored the Texas event is run by an actual anti-Muslim extremist who, I'm proud to say, is a personal nemesis of mine.
Much has already been written about both the Trudeau and PEN controversies. I particularly recommend David Frum on Trudeau, and Katha Pollitt and Matt Welch on PEN, as well as this fine op-ed by Andrew Solomon and Suzanne Nossel, the president and executive director, respectively, of the PEN American Center. These represent only a handful of the many dozens of writers who have risen in defense of free speech, and of Charlie Hebdo’s right to lampoon religion.
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.
Last year, as part vanity project, part science experiment, I decided to adopt a new skin-care routine, something that an aging celebrity might use on a daily basis. My goal was to determine whether, in fact, a high-tech routine can make a difference. Are beauty products worth it?
A dermatologist friend introduced me to Marie, who ran a “skin science” clinic next to his office in Calgary, Canada. This was not a medical office, but a clinic that provided cosmetic services and products aimed at helping people enhance the look and condition of their skin. “I am, really, a skin coach,” Marie told me as she showed me around the office. She had a degree in microbiology, was infectiously good-natured, and had absolutely flawless skin.
I recently spoke with Pugh about what this means for American workers, society, and public policy. A lightly edited transcript of our conversation follows.
Rebecca J. Rosen: A central premise of your research is that work is about more than money—it's also about identity and relationships, particularly within a family. How does work shape us beyond our bank accounts?
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.
In a desert in eastern Sudan, along the banks of the Nile River, lies a collection of nearly 200 ancient pyramids—many of them tombs of the kings and queens of the Meroitic Kingdom which ruled the area for more than 900 years. The Meroë pyramids, smaller than their Egyptian cousins, are considered Nubian pyramids, with narrow bases and steep angles on the sides, built between 2,700 and 2,300 years ago, with decorative elements from the cultures of Pharaonic Egypt, Greece, and Rome. Though the pyramids are one of the main attractions for Sudan's tourists, the local tourism industry has been devastated by a series of economic sanctions imposed by various Western nations throughout the course of the country's civil war and the conflict in Darfur. According to reports, Sudan now receives fewer than 15,000 tourists per year, compared to past estimates of as many as 150,000.
BEIT HANOUN, Gaza Strip—Eight months after last summer’s war between Israel and Palestinian militant groups, Gaza remains in ruins. Drive five minutes into the territory from the crossing point in southwestern Israel and you reach Beit Hanoun, one of the areas hit most severely by land and air during the conflict. Bright blue sky spreads over buildings with big bites taken out of them. Half-eaten bedrooms and kitchens yawn open to reveal tangled wires, broken rock, and household goods: a slipper, a pack of sanitary pads, a ripped-up schoolbook. People peek over mounds of rubble from tents behind their former homes, like aliens come to settle an abandoned planet.
In Gaza City, the flags and slogans of Hamas, the Islamic militant group that governs Gaza, cover the street corners: “Resist, O Palestinian people, your perseverance is our only hope for freedom.” Driving through the city, you see murals of doves and children holding hands, UNRWA cartoons about saving water and picking up trash, and then a stick figure blowing up an Israeli tank. Across the street, someone has scrawled a Star of David on a garbage bin.
The question that most people ask themselves as they walk into their boss's office to negotiate their salaries is likely some variant of "What am I going to say?" But according to hostage negotiator Chris Voss, that might be the least important thing to keep in mind when negotiating.
Voss, now an adjunct professor at Georgetown University's McDonough School of Business, spent 24 years at the FBI. It was as an FBI agent that he started to get interested in hostage negotiations. At the time, a supervisor told him to start by volunteering at a suicide hotline to gain the set of listening abilities that a hostage negotiator needs. By 1992, he was training at the FBI's school for negotiators, and from 2004 to 2007, he was the FBI's lead international hostage negotiator. After retirement, Voss founded The Black Swan Group to bring negotiation know-how to the business world.
Expo 2015 officially opened in Milan, Italy, on May 1. As visitors had their first views of pavilions and displays from countries and corporations around the world, thousands of "NoExpo" protesters took to the streets. They voiced anger about a wide range of issues, from the impact of globalization, corporate influence, and austerity measures to expo-related corruption charges, reports of wasted money, and accusations of hypocrisy around an expensive global exposition with the theme "Feeding the Planet." A smaller group of violent demonstrators broke off from the larger demonstration, clashing with police and torching cars and businesses. Gathered here are the two stories - the brief but violent outburst and the exhibits on display inside the newly opened Expo 2015.