The Chinese are becoming increasingly modern, but they are not becoming
'Western. In a recent conversation with a visiting European professor, I
realized that seeing is not believing.
He mentioned to me that it must be easy to live in such a modern city in
the midst of China. I reassured him that
of all the places in China to live, that Shanghai was probably the most like
the part of the world from which they come (at least outwardly). Therefore it is interesting and easy for the
tourist to enjoy their experience in Shanghai.
But when you take a deeper look, the cultural nuisances are very strong,
it is really “Mutton dressed up like Lamb” (to coin an Australia saying).
Don't be deceived by appearances. Consumers in
China aren't becoming "Western." They are increasingly modern and
international, but they remain distinctly Chinese. If I've learned anything, it
is that successful Western brands craft their message here to be
"global," not "foreign"—so that they can become part of
Chinese culture.
While it is certainly
true that the country's economy and society are evolving rapidly, the
underlying culture has remained more or less constant for thousands of years.
China is a Confucian society which combines top-down leadership with loyalty
and respect. In Chinese society, individuals seem have no identity and really
do not normally want to stand out in a crowd. The “squeaky wheel” really doesn’t
get the grease. Rather the “best employees”
and society members are the ones that spend all their time trying to make the
boss look good even if the boss does not have the best ideas. Independent thought is left to those in charge. Self-expression is generally
frowned upon, and societal acknowledgment is still tantamount to success.
Societal pressure is great and the best will
fall into line. Liberal arts majors are
considered inferior to graduates with engineering or accounting degrees. Few
dare to see a psychologist for fear of losing "face” or being branded
sick. Failure to have a child is a grave disappointment.
The speed with which
China's citizens have embraced the digital transition is one sign that things
are in motion in the country. But e-commerce, which has changed the balance of
power between retailers and consumers in the rest of the world, is almost nonexistent
in China. Even when transactions are arranged online, most purchases are
completed in person, with shoppers examining the product and handing over their
cash offline.
Self-expression needs to
be safe and cloaked in anonymity. Social networking sites such as Sina Weibo (a
Chinese version of Twitter), Renren and Kaixing Wang (Chinese versions of
Facebook) have exploded. But users hide behind nicknames and fake profiles.It
is interesting that most Americans believe that they are not really free to say
and do anything they want on-line but the Chinese do (a reversal of the norm).
Chinese at every level try to
"win"—that is, climb the ladder of success—while working within the
system, not against it. In the Chinese consumer culture, there is a constant
tension between self-protection and displaying status. On the one hand, we see very
high savings rates, a need to “get a good deal” and an aversion to credit-card
interest payments. On the other, there is the Chinese fixation with luxury goods
and a willingness to pay as much as 120% of one's yearly income for a car, and
another 20% just to register it for the streets of Shanghai.
Despite all the governmental controls, I find it
very interesting that there is such a high rate of social issues: High air pollution, trash thrown on the
street instead of using the trash can which is never more than 50 feet away, peeing
on the nearest wall and spitting on your neighbors shoes, contaminated food
products and myriad other risks to home and health.
To win a following among
Chinese buyers, brands have to follow three rules. First and most important,
products that are consumed in public, directly or indirectly, command huge
price premiums relative to goods used in private. The leading mobile phone
brands are international. The leading household appliance brands, by contrast,
are cheaply priced domestic makers. The
average middle-class Chinese spends only $15,000 to fit out a completely bare
1,000-square-foot apartment, but will buy a watch for $6000.
Luxury items are desired
more as status investments than for their inherent beauty, functionality or
craftsmanship. The Chinese are now the world's most avid luxury shoppers. For Example, the Chinese account for 15% of
all luxury items purchased in France but less than 2% of its visitors. Even for luxury goods, celebrating
individualism—with familiar Western notions like "what I want" and
"how I feel"—doesn't work in China.
As I mentioned in my
previous blog entry, marketing establishes brand recognition. For example,
kids aren't taken to Pizza Hut so that they can enjoy pizza; they are
rewarded with academic "reward feasts." Beauty products must help a
woman "move forward." And even beer is marketing as bringing people
together. Men want
to succeed without violating the rules of the game, which is why wealthier
individuals prefer Audis or BMWs over flashy Maseratis.
With the now prevalent “one
child culture” Chinese parents are totally focused on making their child
successful. Therefore many products and
services are focused on "stealthy learning" for their children:
intellectual development masked as fun. In Shanghai Disney has a learning
institute which is becoming more of a success than its theme parks. Here, McDonald's restaurants have morphed into scholastic playgrounds in
China: Happy Meals include collectible Snoopy figurines wearing costumes from
around the world, while the McDonald's website, hosted by Professor Ronald,
offers Happy Courses for multiplication. Skippy peanut butter combines
"delicious peanut taste" and "intelligent sandwich
preparation."
The American
dream—wealth that culminates in freedom—is intoxicating for the Chinese. But
whereas Americans dream of "independence," Chinese crave
"control" of their own destiny and command over their daily life.
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