min-myinnersoul

China is a producer’s economy. The marketer seems slightly out of place in the factory to the world. This post is completely from my perceptions, with no research and I could be dead wrong. But I think, China could learn marketing from India. In my local supermarket, their pricing astounds me. An veritable mountain of stock of say white T shirts arrive. Dead cheap today. Tomorrow more expensive. One weak later triple the price. Why ? because the cost of carrying the inventory adds up each day !! I would have thought things get cheaper because they are lying unsold. The opposite. Next week, black T shirts … One week I can get Kellogg’s corn flakes. Next week Nestle. Both on one day – no chance. Pack sizes of consumer products are mostly “big”. I haven’t seen a single sachet in Guangzhou. This is not America – this is also a poor country. Single unit packs – no way. Why ? Its easier to produce large packs. The organization of street markets also is revealing. A whole street is a computer...

Education, as we all know, is a fundamental driver of a society’s development. Both China and India, with massive populations, roughly spend the same % of GDP on education. But China’s economy is three times larger than India’s – so per capita China spends a lot more on education than India. China is developing institutions of higher learning with a vengeance. And therein lies a lesson for India to learn. In the good old days, IIM Ahmedabad was considered the best business school “east of the Suez” and one of the best in the world. The Asian Institute of management at Manila was the only real competitor and this was often derisively dismissed . And for years and years IIM A stayed still. Today, in the Financial Times listing of the top 100 business schools in the world, IIM A does not even feature. The eighth rated school in world is the Ceibs in Shanghai. In the Academic Ranking of Word Universities (across all disciplines), there is not a single Indian or Chinese university in th...

Innovation is not the greatest of strengths in China. China is disciplined, but that is a strength as well as a weakness. Innovation, and even entrepreneurship, is not on the same page as in India. That’s a difficult lesson for China to learn. In the last post, I argued that Chinese are disciplined in their work. I said “In the BPO business that I was involved in, you could rely on the team in China not to deviate from the standard process”. That’s also a weakness. The average Chinese employee is uncomfortable in an unstructured situation. “Tell us what to do and we’ll do it well” is a mindset that’s common. “You’re the boss, why are you asking us ?” is another phrase , which is often unsaid, but meant many times. Hierarchy counts for a lot here. When I ask colleagues to challenge the process, innovate, rationalize, argue, and fight, there’s fidgeting and discomfort. It doesn’t come naturally to them. Indians, by nature, are an argumentative lot. Challenge comes naturally to them. Its...

The word “follow up” is rarely used in China – at least by me. I would like to dreamily believe that there is no word for follow up in Mandarin (not true of course). The Chinese work hard, but with a difference – and therein lies a lesson for India to learn. In the office, once the job is well understood and within the capability of the individual to perform, you can leave him alone. He needs little supervision. The job is done precisely as it needs to be done. No short cuts, no scrimping on the edges. Nobody needs to look over his shoulder. No lounging around over coffee, no extended lunch break, no going missing. In the BPO business that I was involved in, you could rely on the team in China not to deviate from the standard process. And you didn’t need to check on it. At home, the maid does not bunk. If she’s not able to come , she tells a day before. If she’s to start work by 9.00, she comes at 8.55. If we call a plumber or an electrician, he comes at the appointed time. And finishe...

Chinese are reluctantly going global. Indians are enthusiastically going around the world. And therein lies a lesson China can learn from India. This is another counter intuitive lesson than I am proposing. After all Chinese have gone everywhere in the world. There’s a Chinatown in virtually every city. And yet, I say Chinese are reluctant globetrotters. In the past, Chinese migrated and travelled enthusiastically. I think they lost that globalizing spirit during the Cultural Revolution and haven’t still regained it. Today, they’d rather stay at home. Indians on the other hand are going everywhere. Even the junior most Indian employee will jump at the chance if he is sent to any country in the world to work. Walk into any company anywhere and you are likely to see at least a few Indian nationals working there. This is a huge advantage for India. Many Indian professionals today have some experience of working in a different country. They have learnt what it takes to work globally. The...

In the spring of 1992, Deng Xiaoping visited Shenzhen and uttered 9 words that changed China. “To get rich is glorious, Poverty is not socialism”, he said. The rest is history. Remember, where China was at the end of the Cultural Revolution and the Mao era. For Deng to say that is the most visionary thing that has happened in the world in the 20th century. Some 300 million people were yanked from abject poverty to a good standard of living in a very short period. Whatever may be his other faults, for this achievement alone, he is one of the greatest leaders of that century. In China, business and economic activity is considered glorious. There is little backlash against industry. Agriculture and industry do not confront as much as in India. The migrant labour that has enabled China’s manufacturing miracle all came from agriculture, willingly. Businessmen are not generally seen in China as rogues . The mindset of the people in China is massively in favour of economic advancement. It is ...

This might come as a surprise, but China is not as cost competitive anymore. China has a cost problem it does not recognise. I am alternating posts between what India can learn from China and what China can learn from India. This is the first of what China can learn. China’s great strength is that it can produce at low cost and on scale. There are other countries which are cheaper eg Vietnam. But none could match the scale and deliver the cost advantages. That was so in the past. Not true anymore. India is cheaper and can match the scale. What has happened in China is that costs have risen and risen in the eastern seaboard where much of the economic activity has happened. And the currency, the RMB has strengthened. The twin impact has been that China no longer enjoys the massive cost advantage it had. Like for like, India is cheaper than China. Cost of living in a top city in India vs a top city in China. Cost of labour in a small town in India vs a small town in China and so on. Indi...