Friday 1 July, 2011

The walls of glass, mosaic tile and white wishbone chairs of Café Vue at Melbourne International Airport offers a welcomed and quiet sanctuary from the hustle and bustle of the passes-by, rushing to their gates for final call. A second glass of Sauvignon Blanc in hand punctuates a week best only described as turbulent. Flight CX168 is called; it’s time to join the group.

Saturday 2 July, 2011

As was expected, a sleepless overnight flight blurred any perception of time or day. The intermittent waft of stomach bile remains in my nostrils from a neighboring airsick passenger.

The monstrous size of Beijing Airport confirms initial assumptions of the grand scale of public structures in China. Smog shrouds the skyline, with visibility down to a couple of hundred meters. The strikingly beautiful and overly colour-saturated billboard signs throughout the airport of German fashion house Aigner make me think about whether colour saturation in advertising must be used in Beijing to gain greater cut-through in a city dominated by muted colour tones.

Sunday 3 July, 2011

The idea of travelling in packs as a tourist has never sat well with me, but I had to get over it quickly as we descend en-masse to Tienanmen Square. A vast plateau of concrete slabs greeted us, abruptly divided by two recently installed LCD screens, each the size of a double-decker bus – ironically the screens roll ads for Shanghai tourism.

You can feel a history in the landscape. Not the type of history you feel when standing in front of the Pantheon, Borobudur or the cobblestone alleyways of Paris. The sense of history here is recent; perhaps still an open wound. The landscape reminds me of the weathered face of my grandfather, its seen wars, hardship and joy, but rarely gives away its secrets, revealing only that which seems relevant.

We head toward the Forbidden City, along with hordes of eager tour groups. Straggling elderly Chinese pilgrims are consumed by the moving crowds, as they move through the impenetrable walls and tunnels of the ancient city, only to be spat out the other end into a vast but baron courtyard.

Monday 4 July, 2011

I remember being introduced to pictures of the Great Wall of China for the first time by teacher Mrs Archer in Grade 6 at Rangebank Primary School. She and her husband were avid travellers and I reveled in hearing the stories of her Asian adventures. Perhaps this is where I can trace my interest and early fascination with all things “oriental.”

It was an early start to the day, but I was prepared. I had smuggled two Danish pastries in a napkin from the breakfast table and was ready to devour them at an opportune moment.

The wall was in site, peering through reaching trees and thick undergrowth. An opportunity to climb to the wall rather than take a chairlift offers a welcome break from the sea of matching yellow hats bobbing to the wave of the group-leaders flag. Shade inside the station-houses offer relief from the beating sun; a light breeze floated through the open archways – a moment of calm.

Tuesday 5 July, 2011

To celebrate the days’ efforts after visiting New Oriental and Lenovo, a small gaggle of eager researchers headed to The Opposite House in Beijing’s The Village. The Opposite House has been on my hit list of venues for a while now and rated very well by Mr & Mrs Smith, my travel bible when I need a bit of boutique R&R. I was hoping to understand further the true wealth of the super rich Beijing people and witness the stark contrast between Beijing’s haves, and have nots.

Despite the fact that The Opposite House is a five-star venue, I was surprised at the level of customer service. Staff training standards were high and sophisticated Beijing locals filled the minimalist but warm dining room. The menu was well written and the wine selection was adequate, but the execution of the food left room for much improvement. Ok, call me a food snob, but I was pleasantly surprised by the whole experience; ten years ago I'm not sure how many people would have been writing home gushing about a European restaurant they had stumbled across in Beijing.

What this experience highlights to me (and this may sound harsh) is that China is still "faking it till they make it" when in comes to competing on a world stage. You could build the most luxurious restaurant or hotel but until an understanding of true luxury is established as the Chinese customer matures, the experience will never be polished or convincing.      

Wednesday 6 July, 2011

I’m glad to have experienced Beijing but happy to be venturing toward the bright lights of Shanghai. A feuding family in the domestic airport terminal provides momentary comic relief and moments of shudder as their piercing accents cut through the crowd.

I can only describe Shanghai as a mix of Hong Kong and Kuala Lumpur with a little twist. It doesn’t yet have the sophistication of large international hubs, but it’s already hitting above its weight.

As prospective tourists we’re often shown pictures of Pudong and other the newly developed areas of Shanghai, but a pleasant surprise was the small tree lined streets of the French and Spanish concession. Leafy and secluded this area is cooling and calming, an historical sanctuary among a landscape of cranes and construction.

We alight from the bus to explore, the smooth and sultry tunes of old-school jazz plays in the distance and we need to investigate. The shuffling feet of Chinese Ginger Rogers and Fred Astaire-hopefuls fill the local park. The finely rehearsed but convincing dance moves reminiscent of an era gone bye brings smiles to our faces. The women’s skirts swirl and sway to the music, I’m reminded of Maggie Chung and In the Mood For Love. An unlikely moment in an unlikely city.

Thursday 7 July, 2011

Today was the day I was waiting for. Every time I walk past the KPMG office in Melbourne I imagined myself in a masterfully tailored Saville Row tweed suit, off-set with a pair of tan Oxford wing-tips. Ok, maybe I'm going overboard but let me have my moment...

The location of the KPMG office was impressive and perfect for my research on luxury goods. I'm not sure how I will explain to my accountant that a shopping tour of Prada is a marketing project...hmm.

Following another company visit at DDB we took a leisurely walk around the local district. I was excited to see the old French and British concession in Shanghai; tree lined streets, European architecture and a warmth not felt in other parts of Shanghai. I was relieved to discover that many of the old homes were being restored, rather than torn down for another mass development. This area is a true selling point for Shanghai tourism, just a shame they don't make a greater fuss over it. But I guess if I were them, I'd want to keep it to myself as well.  

Friday 8 July, 2011

This morning was an opportunity to meet with people working in marketing and PR in China. The function room at the Ritz-Carlton Shanghai was an elegant backdrop to the occasion. I continue to be surprised by the level of luxury and wealth in Shanghai, but it also reminds me of the divide between rich and poor. The divide isn’t obviously apparent when walking the streets of Shanghai - unlike my experience in South East Asia where both rich and poor co-exist in a very public way.

When speaking to people about doing business in China it seems that China is the golden goose; the market that everyone wants to get into in order to thrive and gain immeasurable wealth. The visit to AusTrade was an opportunity to bring us back to earth. I’ve been looking at business opportunities in China myself, and I was keen to understand the common pitfalls of eager Australian entrepreneurs.

At the end of the day the main difference of doing business in China, like any foreign country, is understanding the cultural differences and adjusting accordingly. We could go into Horfstede’s Cultural Dimensions to understand the theory of doing cross-cultural business, but it’s pretty common sense really, but something that has proven the downfall of many.

Downing two large Starbucks lattes to shake off the predicted post-lunch-induced-coma, and slow but sure death by powerpoint at the final company visit for the week, we entered ANZ’s Shanghai head office. I was surprised to see the fusion of modern corporate and traditional Chinese interiors. The round configuration of the meeting room and the ornate traditional Chinese artifacts seem to promote equality among Chinese and Australian representatives at the meeting – I’m sure an important strategy for ANZ when doing business in China and certainly a move toward gaining mutual trust.

The first week of the trip is over and it’s been difficult to reflect given the pace of the program. I can’t say I’m shocked, surprised, delighted or indifferent about the experience in China so far. It’s plausible to draw close comparisons between Tier 1 cities in China and other major metropolitan centers across Asia. However, what is surprising, is the pace of economic development, immediately visible by the number of cranes erecting sky-scraper after sky-scraper.

Saturday 9 July, 2011

Today was an opportunity to take time to explore Shanghai, not only as a tourist but as a consumer. Shopping was on the agenda and I was pretty keen to witness retail therapy in China at its best. I could at least say it was research for my assignment.

As we walk through the shopping malls it becomes pretty clear that international designer goods are the items of choice. Balenciaga, Dior, Gucci, Prada, Lanvin and Louis Vuitton line the glistening walkways of the air conditioned malls. It was pretty hard to spot any Chinese designers or retail outlets; actually none at all. Perhaps they were tucked away behind the mall so customers could buy their twelve-hundred dollar Valentino cardigan then sneak away to pick up a matching two-dollar t-shirt.

While the designer-specific advertising in the malls was occasionally bi-lingual, the communications messages, and look and feel of the campaigns were distinctly European; the models were always European, but occasionally featured a token Asian face. Like most luxury ad campaigns, I can only suggest that this approach to advertising builds and develops a story around the brand for the consumer to plays out, or aspire to. A recurring theme in conversation on the study trip.

Sunday 10 July, 211

I heard that Suzhou is described as the Venice of the east. Man-made canals appears seemingly out of nowhere as you wonder through the streets.

Suzhou is divided into three very distinct sections, none of which resembles the other. Like a patchwork of history, each district seems to represent a period in China’s economic progression. White walled and black tiled homes, fragrant street stalls and sidewalk shopping represents the original and authentic China experience. It’s warm and homey, with a sense of community.

The heat of the day was smothered by darkness, but the humidity remained. I walked through the park adjacent to the hotel, where a group of at least two hundred women congregated to take their evening exercise. Half preferring to stick to traditional Chinese dance, slow, almost tai chi in style, while the other group waited for their Chinese aerobics instructor, a.k.a. a Chinese Denise Austin look alike sporting a stunning 1970's moss-green track suit, warming up to a grape-vine to kick off the class.

Monday 11 July, 2011

SND or Suzhou New District is the latest addition to the Suzhou landscape. It’s vast but green and many of the plots of land are vacant, poised for the next corporate to take advantage of attractive tax breaks and other forms of local government support to bring business to the region. It’s starkly different to “old-Suzhou” and doesn’t even appear to be the same city. It's yet to find its personality or its character. SND, as its name implies feels rigid, manufactured, forced; somehow confirmed by the army of green works desperately watering patches of freshly planted greenery.       

On approach, the BlueScope Steel facility at Suzhou is impressive and the architectural design and the rolling shape of the facility rooftop is striking. Some believe it resembles the shape of a Chinese dragon or perhaps even Ayres Rock; an Australian monolith in an unlikely location. The facility was much cleaner than I imagined and the sea of Colorbond provided a moment of homely comfort.

I was interested to hear about the supply chain process for BlueScope in China. I assumed that a company of their size would manage the whole production process from up to down stream. But despite their monolithic presence on the Suzhou landscape, they truly are dwarfs in the world of China.

Tuesday 12 July, 2011

The Journey to Yiwu was an opportunity to experience a Tier 3 city in China. The contrast is obvious when we arrive but I was surprised to see such a rich and thriving middle-eastern community. Yiwu is a closer reflection of what I anticipated China to be.

It's time to head to bed but the 1km stretch of shopping mall adjacent to our hotel is waiting for exploration. An Aladdin's cave or a warehouse for disposable rubbish, feeding the world's addiction to disposable goods, awaits. We'll soon find out.

 

Wednesday 13 July, 2011

We wondered the halls of the Yiwu wholesale shopping mall. Store after store selling a tweaked variation of the merchandise in the store before. The sensory overload would prove too much for some.

I’m not usually a tree-hugger by any means, but it becomes frightfully obvious the waste produced in this mall alone. If this is happening in one place in China, how much unnecessary manufacturing of in-disposable waste is being produced globally. The packaging, materials and transport of these goods add to seemingly pointless and wasteful global consumption.

Thursday 14 July, 2011

A visit to Wahaha was my first opportunity to visit a FMCG factory in action. Watching the bottles wiz along the conveyer belt was mesmerizing; like watching an open fire, I could do it for hours!

Although Wahaha develops its own products for the Chinese market I was surprised to see the similarities in packaging between their green tea products and Nestle green tea, particularly the similarity to Coca-Cola packaging and the Wahaha cola product. Nonetheless, their achievements in the Chinese market have been astounding.

I was thinking about Wahaha's success during the presentation. Drawing from comments made by presenters from other company visits, trust truly is the key to business in China. Why would a Chinese consumer purchase a can of Coca-Cola when a perfectly good, locally manufactured product and Chinese owned alternative is available? The Chinese consumer inherently trusts the brand because it is Chinese; while foreign companies must build trust over time. Strangely, it seems that this logic completely goes out the window when it comes to luxury goods...I'm confused!

Friday 15 July, 2011

I'm immediately surprised by the dense greenery and lush gardens of Hangzhou. After almost two weeks of concrete jungle, green grass underfoot and the rustling sound of the soft breeze sweeping through bamboo leaves is somewhat calming, but the incessant honking of car horns is a continual reminder of where I actually am.     

I continue to be amazed at the wealth in China. I guess I expect it in cities like Beijing and Shanghai, the center of Government and big business, but rarely would I associate such wealth with satellite cities such as Hangzhou. It seems quiet and peaceful, not a factory or coal mine in sight.

When we visit Hangzhou Tower it's a beacon of luxury nestled in the bustling streets of Hangzhou's retail district. When we listen to Mr. Tong's presentation he reaffirms that demand from the market is allowing for sustained and continued growth. It was interesting to hear that Hangzhou Tower is developing into a shopping destination rather than just a shopping centre, a concept also adopted by companies like Westfield at Chadstone. More interestingly Hangzhou Tower facilitates the rise and ultimate success of new and upcoming brands in the Chinese market. My mind continues to churn and process as business ideals swirl in my head - but I dare not ask for a quote on the rent.        

Saturday 16 July, 2011

The end of a journey, the start of enduring friendships and new inspiration to venture into unknown territory and start a business of my own. Each of the company visits have provided me with further insight, knowledge and confidence to jump in and just do it. Not only does the Chinese market now seem accessible, it doesn't actually feel too intimidating. I've met people on the trip who have started their own businesses and I've heard their stories; I've met manufacturers, designers and marketers. If I scroll through my list of contacts I have the tools to make something work. And perhaps this program wasn't just about fast-tracking my studies, but rather the kick in the butt I need to mobilise and take on a venture of my own.