Showing posts with label Tom Doctoroff. Show all posts
Showing posts with label Tom Doctoroff. Show all posts

Monday, October 23, 2017

How Alipay, WeChat became top-brands in China - Tom Doctoroff

Tom Doctoroff
Alipay, WeChat and Android are top brands, the Chinese consumer could not live without, says a recent report. Looking at brands works in China pretty different from the rest of the world, says branding expert Tom Doctoroff in the South China Morning Post. “There is no way in America that you are going to have PayPal [the western equivalent of Alipay] to rank No. 1,” Doctoroff adds.

The South China Morning Post:
All three Chinese companies on the top 10 brands list are technology related, with the music app NetEase Cloud Music coming in at No. 10, the global branding and marketing consultancy Prophet said on Thursday as it unveiled its 2017 brand relevance index for China. 
“Chinese consumers today live, work and play in a connected, digital world, so the brands that deliver useful, easily accessible and enjoyable experiences are going to be the most relevant to their lives,” said Tom Doctoroff, a senior partner at Prophet. 
The rest of the list is dominated by brands that include Ikea, Apple, Nike, Estee Lauder, BMW and Marriot hotels. 
The consultancy surveyed more than 13,500 Chinese consumers in 39 cities on the mainland about which among 235 household brands in 30 industries were most relevant to them this summer... 
“Overall, the relationship between digital and individual in the West is significantly more functional,” Doctoroff told the South China Morning Post in Shanghai. “But In China, where ambitions are huge but social regimentation keeps people from [expressing themselves or] realising their ambitions, people project a lot of their emotions onto their digital selves. 
“So that’s why I think these tech brands are all so rich and meaningful for people – it is not just an utilitarian, convenient relationship,” he said. 
“There is no way in America that you are going to have PayPal [the western equivalent of Alipay] to rank No. 1,” Doctoroff said, stressing the more apparent emotional connection between tech brands and Chinese consumers.
More in the South China Morning Post.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more branding experts at the China Speakers Bureau? Do check out this list.  

Tuesday, October 10, 2017

China: struggling for its position in the world - Tom Doctoroff

Tom Doctoroff
China gains economic and financial power, but is still struggling to find its place in the world, writes China veteran Tom Doctoroff in the Huffington Post."So China’s road to becoming a “soft” superpower will be long and rocky indeed," he says.

Tom Doctoroff:
Unlike Japan, a cocooned island, China is not apart from the world. Indeed, the country fancies itself the center of the universe, a cultural supernova that sucks in anything in its path. China - as much as civilization as a nation-state - has endured for thousands of years, a feat attributed to natural order. The “idea” of China is, in local people’s eyes, absolute truth. China analyzes, dissects and atomizes the political systems of other nations. It studies Western competitive advantages and applies them to local circumstances. But it is also a country in search of its own Copernican revolution. It remains unable to weave itself through the warp and weft of other societies. 
For example: Other than Huawei, a business-to-business telecommunications company, no Chinese corporation has achieved significant scale in any developed market - Haier’s fifteen percent share of cheap microwaves and mini fridges in the US does not count - due to, among other factors, the inability to balance marketing and sales functions; 
International cuisine is a hit in public settings where middle class Chinese bend over backwards to project an image of cosmopolitan erudition. However, even sophisticated Shanghainese rarely eat foreign foods at home. According to Treasury Wine Estates, only 5% of booming red wine consumption occurs at home; 
Chinese expatriates, particularly men, do not assimilate well. They often return home with a simplistic view that the West “looks down on” them. But reality is subtler. At business schools and in offices, clusters of Chinese retreat into self-effacing, gun-shy cliques reinforcing stereotypes of Chinese men as soft; 
Second- and third generation American Born Chinese struggle to reconcile the imperatives of Chinese heritage - obedience to parents, obsession with “face” - with US individualism. Identity confusion sometimes results in an odd hyper-Americanism; 
Oversees students, acutely aware of the deficiencies of China’s memorization-based education system, nonetheless avoid Western liberal arts like the plague. The most popular majors are still engineering, math and business; 
Starting in 2004, the government opened hundreds of Confucius Institutes to promote inter-cultural “harmony.” Due to a dearth of effective outreach ambassadors, they have ended up as language schools; 
So China’s road to becoming a “soft” superpower will be long and rocky indeed.
Much more in the Huffington Post.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more political experts at the China Speakers Bureau? Do check out this list.  

Monday, June 26, 2017

How to gain loyalty from China's consumers - Tom Doctoroff

Tom Doctoroff
China's consumers are perceived to be some of the most promiscuous in the world when it comes to picking brands. But there are ways to avoid this conundrum, says branding expert Tom Doctoroff at his LinkedIn page, using the Prophet’s Brand Relevance Index (BRI).

Tom Doctoroff:
China is bimodal. Premium brands, which are usually multinational, command high margins but narrow scale. While mass brands, which are usually domestic, sell at a lower price point, but have broad penetration. The white space in between is vast. By tapping into each of the above golden rules, brands can take advantage of this opportunity to become more relentlessly relevant. 
International companies can be more ruthlessly pragmatic by increasing accessibility without degrading cachet. Luxury brands, for example, can leverage sub-brands to expand reach. Armani appeals to different segments through Armani Collezioni, Emporio Armani, Armani Exchange and Armani Jeans without diluting its master brand appeal. Premium brands can target youthful segments by expanding the range of lower out-of-pocket cost items. Gucci retail stores are already accessory meccas, with bags, sunglasses and mobile phone straps moving to the front of the stores. 
Local brands should pull themselves up to higher price tiers. They should define a single-minded proposition and brand purpose, then reinforce their commitment to distinctive inspiration and pervasive innovation. Shenzen-based drone brand DJI’s “future of possible” proposition and Starbuck’s “share the love” gifting app are great examples of the former. Baidu’s aggressive foray into artificial intelligence and Dyson vacuum cleaners’ breakthrough designs – wireless, bladeless, colorful – epitomize the latter. 
All brands, both local and multinational, should become more customer obsessed. Leading internet insurance brand Da Te Bao’s use of everyday language to simplify buying decisions and Ping’an’s “good doctor” app both signal respect for ordinary people. In the end, deep insight into the lives of consumers is the key to locking better, more profitable, growth.
More tips and tricks at Tom Doctoroff's LinkedIn Page.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more branding experts at the China Speakers Bureau? Do check out this list.  

Tuesday, June 20, 2017

Online-to-Offline (O2O): learning from China - Tom Doctoroff

Tom Doctoroff
Blending online and offline operations has become an art in China, where the West can learn from, argues marketing expert Tom Doctoroff, on his LinkedIn Page. In Europe and America are offline retail operation declining, while that is not needed, he things.

Tom Doctoroff
In America and Europe, O2O delivers largely functional benefits such as convenience. In China, however, O2O is one of the most dynamic – and, for consumers, satisfying -- areas of commercial innovation.   Offline and online blend into holistic, rewarding experiences. Outstanding examples abound. 
Suning, the appliance retailer, has partnered with Alibaba, combining the latter’s online retailing assets with the former’s physical stores and distribution facilities to turn purchasing of consumer electronics into themed experiential “zones” – for example, “gaming command centers” and “kitchens for fine cuisine.” And “cloud stores” merge e-retailing with brick-and-mortar shops. Large screens display and sell products unavailable on-site. 
Ping’an Insurance Group’s “Good Doctor” app liberates citizens from China’s sclerotic medical system. Seventy million have downloaded the service that provides diagnosis and treatment support, appointment booking, and consultations with doctors through text, pictures and video. 
China’s embrace of online-to-offline is partly driven by the country’s unique commercial landscape. Characteristics include: a non-responsive and oligopolistic service sector that fuels demand for innovative O2O solutions; low credit card penetration that catalyzes development of online payment systems; cheap labor costs for inexpensive delivery; ubiquity of quick response (QR) codes – thanks, WeChat! – that propel “retail-tainment”; and the Communist Party’s active push of growth through digital transformation of an “Internet Plus” economy. 
Chinese psychology is also a critical factor in the spread of O2O. 
Most fundamentally, O2O provides reassurance to China’s safety-seeking population. Non-individualism militates against institutional protection of economic interests. There are no impartial commercial courts or consumer protection bureaus. So the ability to “kick the tires” before virtual transactions are finalized is comforting. 
In China, a country that reveres the concrete, anything nebulous is suspect. Operational scale, on the other hand, buoys spirits. Aversion to virtual transactions was mitigated only after Alipay, the payment system operated by Alibaba, became universally accepted. 
The flip side of self-protection is the need to feel in control. That’s why dao jia (door-to-door) – even more consumer-centric than O2O because service is “whenever, wherever” -- is so popular. The tracking capabilities of Ele.me, a food delivery service, makes the America’s order-and-pray Seamless app feel prehistoric.  Pizza delivery crews riding GPS-enabled bicycles minimize China’s national trust deficit. 
Finally, the Chinese are shrewd bargain hunters who demand value, not just low price.  Wei Long, an online spicy snack retailer, recently opened high-tech, screen-enabled restaurants inspired by Apple stores. Vivo, China’s third largest online mobile phone brand, now operates hundreds offline stores with “selfie centers.” Celebrity photo ops can be broadcast to the world on social media platforms. 
Yes, O2O is “strategy with Chinese characteristics.” But, as Western brand builders elevate transactional efficiency into multi-dimensional experience, it’s finally time to look to China for new ideas.
More in Tom Doctoroff's LinkedIn page.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more e-commerce experts at the China Speakers Bureau? Do check out this list.  

Wednesday, June 14, 2017

New technology is not enough to sell cars - Tom Doctoroff

Tom Doctoroff
Lynk & CO and NIO both launched their first production models at the Shanghai auto show in April, but the question is whether new technology is enough to sell their cars. Branding expert Tom Doctoroff says to Wardsauto that the newcomers on this market need a bit more to succeed.

Wardsauto:
It won’t be easy for the startups to use customer experience to brand themselves, says Tom Doctoroff, senior partner at global brand and marketing firm Prophet. Most Chinese companies still are much more focused on sales than service, he says. 
“When you want to talk about customer experience, you have to look at corporate structure and whether it can provide an integrated holistic experience,” says Doctoroff, who lived in China for decades and is the former Asia Pacific CEO of communications firm J. Walter Thompson. “The ecosystem that is required is a very refined ecosystem.”
More at Wardsauto.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more branding experts at the China Speakers Bureau? Do check out this list.  

Tuesday, June 06, 2017

Why advertising does not work in China - Tom Doctoroff

Tom Doctoroff
China's consumers have always been very suspicious of any top-down broadcasting, says marketing guru Tom Doctoroff. Anything that looks like spoon-fed propaganda does not work. Advertising can work, but it is a trick country, and easy to get it wrong, he says.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more branding experts at the China Speakers Bureau? Do check out this list. 

Tuesday, May 30, 2017

Chinese: the world's smartest shoppers - Tom Doctoroff

Tom Doctoroff
Chinese belong to the smartest shoppers of this planet, says branding guru Tom Doctoroff. They do not mind to pay a premium, as long as there is a good value proposition. "They seek both reassurance and inspiration" from brands, he says. And if a brand like Apple does not offer a new phone this year, they will just wait, hurting Apple in its revenue.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more branding experts at the China Speakers Bureau? Do check out this list.

Wednesday, May 24, 2017

Chinese brands: no price premium - Tom Doctoroff

Tom Doctoroff
Chinese brands might be improving, but they can still not offer a price premium, says marketing guru Tom Doctoroff and author of What Chinese Want: Culture, Communism, and China's Modern Consumer at Campaign Asia. They are lacking long-term concept and are mostly sales-driven, he adds.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? 

Do get in touch or fill in our speakers' request form. Are you looking for more marketing experts at the China Speakers Bureau? Do check out this list.

Monday, May 15, 2017

Coca-Cola is on the wrong track selling a tin of water for US$9 - Tom Doctoroff

Tom Doctoroffr
Coca-Cola surprised many branding experts by launching a tin of sparkling water called 'Valser' to Chinese consumers for US$9. It is not impossible, says branding guru Tom Doctoroff to the South China Morning Post, but then they have to change their marketing dramatically. “Turn it into a social currency,” Doctoroff says.

The South China Morning Post:
“Turn it into a social currency.” 
That’s the advice being given by one China marketing expert to Coca-Cola, as the US drinks giant launches what it is being billed as an ultra-luxurious Swiss sparkling water brand, a bottle of which costs double what a Starbucks venti cappuccino might cost. 
Its “Valser” water first appeared in the US soft drinks giant’s store on Chinese online marketplace Tmall a few weeks ago, highlighting specifically that it is sourced from “Switzerland.” 
But what raised many eyebrows was its price tag: a 750ml Classic bottle costs 64 yuan (US$9.29)... 
“Theoretically, it is possible [to sell at that price], but you would have to make it not just about water, but also a social currency,” said Tom Doctoroff, senior partner with global marketing consultancy The Prophet, and author of book What Chinese Want: Culture and Communism... 
“Our water comes from The Alps, which was formed 200 million years ago,” the world’s largest beverage company said of Valser in its Chinese advertisement, adding that its source is fed from melted snow and rain that filters through glacial sand. 
But other than focusing on origin, Doctoroff insists Coke should be adopting a vastly different marketing approach from what the industry is simply accustomed to. 
So far Coca-Cola has opted for a group of heavyweight endorsers, among them Chinese heartthrob Lu Han, the Korean actor Park Bo-gum, even the billionaire investment tycoon Warren Buffett – but just how successful they could prove for an ultra-premium, ultra-pricey Swiss bottled water remains a mute point. 
“The Chinese who would buy Coca-Cola’s luxury bottled water are likely to be the same group of people who are connoisseurs of Louis Vuitton handbags,” he said. 
“So to help build its prestige, you need new partners, and right opinion leaders .”
More in the South China Morning Post.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more branding experts at the China Speakers Bureau? Do check out this list.  

Wednesday, April 12, 2017

Business in China: hard but doable - Tom Doctoroff

Tom Doctoroff
Marketing guru Tom Doctoroff left China after two decades. For Mumbrella Asia he explains how doing business with China and the Chinese is different. "China marches to the beat of a very different drum," he says.

Mumbrella Asia:
In terms of collaboration though, just how easy is it for global brands to penetrate and work with local brands? And how will the current political climate affect, for example Trump’s relationship with China? 
“The Chinese do not play favourites; they will deal with different types of companies fairly. And they are pragmatists. When it comes to doing business, politics doesn’t make a huge difference. The Chinese are always looking to occupy their own piece of the sky. But they are not aggressive; China does not want to take over or conquer. It wants to stand tall on the world stage, shoulder-to-shoulder with the United States. 
“But they are focused on their own people, elevating living standards and securing stability. It’s not an expansionist power. So when you look at how commerce and politics intersect, for example the relations between China and Korea, the effects are going to be minimal except in a few specific industries – like travel for example. But Korean brands will remain just fine as the Chinese consumers are pragmatists. Plus Chinese brands are not as cool as Korean brands.” 
Given this pragmatism and China’s positioning as major player on the global stage, do you anticipate things becoming easier for businesses to set up in China in the near future? 
“It will not become easier because China has a different worldview. It marches to the beat of a very different drum. The relationship between the individual and society is fundamentally different from the West and it impacts everything from the role that brands play in life, the hierarchy of corporations and the way trust is established – which affects contract development and negotiation. 
“All these things are challenging for someone who does not open up to a different way of viewing things. If you do not bring your operations, your mentality and your brand into alignment with this worldview then you make many major mistakes, from pricing to rent negotiation. But the Chinese are extremely adept at establishing a strong negotiating position. Although unless people become more open to understanding [China] then it will not get easier than it is today.”
More in Mumbrella Asia.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more consumer experts at the China Speakers Bureau? Do check out this list.      

Monday, February 13, 2017

What makes Confucian countries tick? - Tom Doctoroff

Tom Doctoroff, fmr AP CEO JWT
Western values do not match with Confucian values, but what does Confucian countries like China, Vietnam and Korea tick? Marketing expert Tom Doctoroff lived for two decades in China, and defines on his LinkedIn page what makes the consumers in those countries different.

Tom Doctoroff:
Whenever I am asked what makes Confucian countries -- China, Korea and Vietnam -- really different from the West, it’s not just the lack of individualism—it is the level of ambition. In China, for example, everyone is ambitious. Women want their piece of the sky, just as men do. A study by the Center for Work-Life Policy found that just 36 percent of college-educated women in America described themselves as “very ambitious,” compared to 65 percent in China. A further 76 percent of women in China aspire to hold a top corporate job, compared to 52 percent in America. 
The “tiger mom,” forcing extracurricular activities upon her child to make sure he gets into Harvard 18 years later, is not a myth. Not all mothers are like this, but ambition remains a palpable force in Confucian societies. They were the first to become socially mobile societies; engrained in the Chinese psyche is people can achieve success by mastering convention and internalizing the rules. The desire to get ahead binds people together. From the bourgeoisie in the bustling metropolises of Seoul, Beijing, and Hong Kong right down to the farmers in the fields, all want to be an emperor of their small corner, no matter how modest their origins. 
So the relationship between individual and society in Confucian countries is fundamentally different than in Anglo-individualistic ones. Across the Confucian cultural cluster, brands need to do more so cross-market resources should be pooled accordingly.
More at Tom Doctoroff´s LinkedIn page.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you looking for more experts on consumers at the China Speakers Bureau? Do check out this list.

Thursday, January 26, 2017

Comparing China´s generations - Tom Doctoroff

Tom Doctoroff
Marketing guru Tom Doctoroff explores his insights in the different generations he saw in China, born in both the 1980s and 1990s, in a lecture for the Asia Society, just before leaving China after 18 years. "They want a free mind, but within a framework," he tells his audience.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you looking for more experts on cultural change at the China Speakers Bureau? Do check out this list. 

Tuesday, October 04, 2016

Why the Chinese prefer Clinton over Trump - Tom Doctoroff

Tom Doctoroff
Tom Doctoroff
Chinese have no vote, and even no polls,to decide who they prefer as the next president of the United States, but China veteran Tom Doctoroff, author of What Chinese Want: Culture, Communism and the Modern Chinese Consumer, expects a majority will prefer Hillary Clinton over Donald Trump, even though few really like Clinton, he writes in the Huffington Post.

Tom Doctoroff:
The Chinese are relentless pragmatists. Yes, the Communist Party has made untenable territorial claims in the South China Sea. True, the country’s military build up has been, and will continue to be, aggressive. In China, stability, domestic and international, is sublime. Ascent will not continue without robust international institutions, many of which are anathema to Donald Trump. No matter how successful the central government is in rebalancing the economy toward domestic consumption, exports to Western markets, which have fueled more than 60 percent of economic expansion since 1990, will determine growth rates for decades to come. China grasps the dangers of chaos on an almost primordial level. It has learned from the thirty years of economic and social disaster triggered by post-Liberation isolation that walls, at least outside cyberspace, are counterproductive. In China, there is no desire, even among reactionary military factions, to become divorced from global forces of progress.
Donald Trump represents a threat to the global international order and, hence, a threat to the well-being of Chinese families and their children. Hillary Clinton will not be loved. She’s too emotional inaccessible and tends to hector in a patronizing way proud Chinese find offensive. She also doesn’t the charisma of Obama, a savvy cool cat who conquered the conventional order to actually become the order. (Mold-breaking is tolerated in China but only as a means to an end, a tool of advancement within an omnipresent hierarchy.) And she is a more brazen proponent of American exceptionalism. But she is, above all else, a rationalist and a proponent of the existing international order. In her words, she is “afflicted with a responsibility gene.”
Hillary Clinton is China’s safe, albeit not emotional satisfying, choice. A vote for Hillary Clinton is a vote for stability. And, in the Middle Kingdom, stability is sublime.
More in the Huffington Post.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you looking for more political experts at the China Speakers Bureau? Do check out this list. 

Thursday, September 08, 2016

The post-90 generation: why rebels are not appreciated - Tom Doctoroff

Tom Doctoroff
Tom Doctoroff
A fast changing China has produced highly different generations, although the concept of individualism is even for the generation from the 1990s mostly Western wishful thinking, argues China veteran Tom Doctorof, author of What Chinese Want: Culture, Communism, and China's Modern Consumer at the Asia Society. Why rebels are not appreciated in China.

The Asia Society:
China’s post-90s generation tends to be seen as very individualistic compared to the collectivist conformist mindset that marked earlier generations. But you seem to have a different take on this. Can you explain? 
I will boldly say that that individualism is a Western concept. Individualism is the encouragement of society to define yourself independent of society. Of course, we are all social animals and we all need to engage with society, but individualism is the encouragement to have an internalized identity, and in China, that still does not exist, even among the youngest generation. Individualism in China should not be confused with ego projection. In China, egos are big, but this ultimately means the demand to be acknowledged by society. So the way that you move forward in China — and this has been true forever and continues to be true — is through a mastery of convention and then clever resourcefulness to adapt that convention, but not rebel against it. 
So the admiration for rebels does not exist in China, because when you rebel, you cross the red line into dangerous territory and risk becoming ostracized. This is very true from generation to generation. In simple terms, the willingness for young people to challenge their boss and ask a question in a hierarchal situation has not changed in the 18 years that I have been on the ground in China. So there is no youthful individualism, even for the post-90s generation. There hasn't been that evolution. Ultimately, the desire to climb the social hierarchy remains as trenchant now as it was then, and the anxiety of not living up to expectations is as trenchant now as it was then. 
But everywhere you look in China today, you do see young people expressing themselves in ways that would have been unthinkable even a decade ago. There’s a huge range of opinions on all sorts of issues and all sorts of anti-conformist subcultures. 
There is subcultural tribalism, but the question is, number one, does that start impacting the broader society? Does it ever begin to penetrate the mainstream? Or does it exist on a shelf out of reach? I think that it does not greatly impact the mainstream. So you don't see an evolution of the mainstream embracin individualism. 
The second aspect is, what happens when people get married and start having families and start having careers? Then you see this flirtation with self-identification tend to evaporate a little bit. And honestly, this subculture tribalism is really very small relative to what it would be in a Western society.
More at the Asia Society.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you looking for more experts on cultural change? Do check out this list.  

Monday, July 18, 2016

China will stay open for international business - Tom Doctoroff

Tom Doctoroff
Tom Doctoroff
Worries are mounting about China´s international stance, and increased difficulties foreign companies and organization experiences in the country. But China is unlikely to follow a course to isolationism and will act pragmatic, writes China veteran Tom Doctoroff in the Huffington Post.

Tom Doctoroff:
Despite recent belligerence, China has rejected isolationism. It has assiduously pursued leadership roles in multinational organizations such as the World Health Organization, the G20, the World Economic Forum and, most recently, the International Monetary Fund. The “One Belt, One Road” is development strategy and framework proposed by President Xi that focuses on connectivity and cooperation among countries primarily between the the PRC and Eurasia.
In return, many overseas companies, from mobile phone and auto manufacturers to airlines and hotels, have achieved sustainable profits and broad scale in the mainland market. Compared to Japan, regulatory hurdles are simpler, although still opaque and, according to the America Chamber of Commerce, becoming more onerous since 2013. Still, on the street and in the lanes, foreigners’ are surprised by the friendliness and openness of ordinary Chinese. Eyes are bright, thirsty for knowledge.
However, multinational engagement - economic, political or social - is über-practical and sharp-edged. Joint ventures are meticulously negotiated; contracts demand technology transfer to domestic partners. Affairs between foreigners and locals are rooted in material gain, not romantic satisfaction. Casual chats are English practice; American Chamber of Commerce “mixers” are for networking, not finding friends.
The pragmatism inherent in China’s broadened worldview is reflected by a new passion for travel. According to the Chinese Tourism Authority, outbound departures reached 120 million in 2015, up thirteen percent year-on-year. Despite limited incomes, figures will continue to skyrocket. But the Chinese do not travel to discover cultural riches. Expensive hotels and restaurants are unnecessary extravagances, indulgences that yield no return. The real motivation is buying luxury brands. According Global Refund, a company specializing in tax-free shopping for tourists, in 2015, the Chinese account for fifteen percent of all luxury items purchased in France but less than two percent of its visitors. Trips to Paris and London are expensive but they are not sunk costs; they are status investments. They reinforce identification with a sophisticated middle class lifestyle. Today’s Chinese “collect destinations” and post them on micro-blogs as ego puppy uppers and use social network platform to convert “experience” into social currency.
More in the Huffington Post.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you interested in more stories by Tom Doctoroff? Do check out this list.  

Friday, July 15, 2016

How the Chinese view the US - Tom Doctoroff

Doctoroff, Tom
Tom Doctoroff
While most Americans keep on having a very simplistic view on China and the Chinese, the reversed view is more complicated, explains China veteran Tom Doctoroff in the Huffington Post. Ambivalence, deep affection are just some of the feelings Chinese feel for the US, he tells.

Tom Doctoroff:
The Chinese, on the other hand, are fascinated by America, although often perplexed by its inherent contradictions. The US is free and unfair, creative and fashion-challenged (some describe blue button-down shirts and khaki pants as our “uniform”), sporty and grossly overweight, individualistic and self-deluded (they love to laugh at narcissistic, talent-free American Idol contestants). They are amazed a nation of 300 million self-starters does not come apart at the seams.
Deep ambivalence. On a personal level, the Chinese admire - are even intoxicated by - US-style individualism. At the same time, they regard it as dangerous, both personally and as a national competitive advantage.
In 1999, when America bombed the Chinese embassy in Yugoslavia, the nation erupted with rage, but it was the fury of betrayal, disorientation and stunned rejection. No one chanted, “America is evil.” Instead, there were tears of disillusionment. The US, then widely perceived as a land of endless opportunity and noble ideals, was exposed as “just another country” in which the powerful protect their interests at any cost. I had been in China for a year, always greeted with openness, curiosity and warm facial expressions. When the news of my country’s misdeed swept the airwaves, the lights went out. No one’s eyes met mine. They wondered whether I, too, was a fraud, a commercial hack intent on profiting from China at the expense of China. After a week, tempers cooled but a scar of regretful suspicion has since marred the cultural landscape.
Deep affection. Evidence of deep affection for the American way of life is everywhere. Illegal DVDs of US movies and television shows sell like hotcakes, especially the likes of Friends, Sex and the City, Desperate Housewives and The Big Bang Theory, which celebrate a quintessentially American fusion of community and individual idiosyncrasy. The election President Barack Obama, a black man with no dynastic credentials, is regarded with awe, a tribute to genuine egalitarianism. Every conglomerate wants to become the “GE of China,” while Bill Gates and Warren Buffet are role models of the highest order, respected for personal vision and achieving master-of-the-universe status. Amongst denizens of rural China, less worldly than their coastal counterparts, America is not only esteemed for its freedom; it is also described transcendentally as “a land of dreams.”
More in the Huffington Post.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you looking for stories by Tom Doctoroff?Do check out this list.  

Wednesday, June 22, 2016

How China´s media became a winner, against all odds - Tom Doctoroff

Tom Doctoroff
Tom Doctoroff
China´s media and entertainment industry has long been watched with pity: boring, curtailed by the Communist Party and part of moribund state-owned molochs. But China veteran Tom Doctoroff discovered this observation needs urgent correction and he tells in the Huffington Post how the industry became a winner.

Tom Doctoroff:
Despite financial and cultural headwinds, however, several factors merit optimism.
First, the Mainland market is both gigantic. As Oriental DreamWorks’ James Fong puts it, “In China, niche is mass.” After decades of limited diversion options, the new middle class, now 300 million strong, is clamoring for choice. The Communist Party seems more open to foreign investment in entertainment companies than “strategic” sectors such as health care, education and financial services.
Shanghai Disney’s Magical Kingdom, now in the middle of a soft launch, is already drawing huge crowds. Under the watchful eye of municipal cadres, the park has been designed with Chinese characteristics. Main Street USA and Space Mountain are out. The Wandering Moon Teahouse and a vast central garden aimed at older visitors, are in. In partnership with Li RuiGang, the well-connected former CEO of the Shanghai Media Group, Oriental DreamWorks will open the Dream Center, a five million square foot entertainment complex, on Shanghai’s South Bund. Attractions will include a Broadway musical theater, a stadium for concerts and sporting events, a Lego Discovery Center, several art galleries and a next-generation Apple store.
Second, China’s mass market is apolitical, unbothered by censorship regulations. Most folks are eager to take a break from the stresses of modern life and like light-hearted fare. Big hits such as Goodbye, Mr. Loser, Tiny Times, Lost in Thailand and Pancake Man are irreverent comedies that depict a regular guy striking it rich or getting the girl.
Third, a dynamic, expressive online creative community has blossomed. It is only a matter of time before internet celebrities become creative forces, both on- and offline.
Chinese story telling skills are evolving quickly. Web series such as Go Princess Go, Surprise S1 and Year Hare Affair are hugely popular. Writer Chai JiDan’s Heroin, China’s first gay-themed internet series, was so popular during 2016 Chinese New Year that it was quickly banned by SARFT, the government arm responsible for enforcing film, television and content regulations.
Tang Jia Shan Shao is the king of web novel. (In 2014, he received royalties of more than RMB 50 million.) He harnesses the immediacy and speed of the online universe. Although he bases his novel on classical stories, he creates fresh characters, coins new words and provides continuous updates for fans addicted to his work. Mr. Tang is not alone. Digital platforms such as Douban - a quintessentially Chinese fusion of Amazon, IMDB and Facebook - allow artists of all stripes to congregate as a virtual community and attract a mass following.
Fourth, e-commerce presents opportunities to experiment with new monetization models. Online shopping is instant for consumers and cheap for companies. Content-hungry consumers do not drive to DVD stores to buy a Toy Story video game or the Frozen sound track. The ubiquity of mobile phones eliminates set up costs and lowers incremental cost per unit sold. Marketers also anticipate convergence of online and offline properties. IP-based content, easier to enforce online than offline, will drive offline merchandising, and vice versa.
China’s infatuation with digital transactions is difficult to overstate. In 2016, the country is projected to spend $911 billion dollars online, or almost 20% of total retail sales. The United States will spend only $384 billion. Meanwhile, per capita in China income is only 14% of America’s.
More in the Huffington Post.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch fons.tuinstra@china-speakers-bureau.comor fill in our speakers´request form.

Are you looking more more media experts at the China Speakers Bureau? Do check out this list.