Chinese Imitation vs. European Innovation

With just about 6 months of ‘real corporate experience’ as some of my professors would call it, I’ve realised some of the vital differences between the Europeans and the Chinese.

Both the communities have gone through different periods of highs and lows; each economy had their own share of downfalls, but how they’ve eventually grown up is whats so interesting about them...

Coming to the point, my examples would probably refer more to the cosmetic industry, but I’m sure a lot of it applies to other industries too...

If you go to an international trade exhibition for instance, the way the Europeans set up their stalls is way different from the way Chinese people do. The white dudes always have that panache, that extra thing in their stalls... perfumed tissues and chocolates(tiffany’s and not some shady brand), coffee vending machines, freebies and all that... while the yellow dudes have completely plain and simple stalls, with the weirdest names possible. All they can offer you are bulky brochures and have some thousand pieces on display... As for Europeans, they have minimalistic display of actual products on the stalls... rather there are flat screen displays and cute little ladies with laptops ready with the latest presentations on new products...

While the Chinese people take out a visitor register for you to enter you name and email address and the company you work for, the Europeans have a bowl somewhere to drop your visiting card in... while the Chinese people welcome you with a genuine smile, they really cant get ahead more than that since their language skills are limited... While a European makes sure that he’s not too forthcoming in welcoming attendees to his/her stall and keeps the talk rather focused.

While the Europeans guarantee the best in terms of cutting edge research (even for something as boring as plastic bottle packaging), the Chinese guarantee that you give us anything, and we’ll give you a cutting edge copy of the same!

While the Europeans blabber a lot about R&D and innovation in design, thats sadly not something that a Chinese supplier would ever be able to do. But tell him what you want, specify it, guide him, and he’ll give you exactly what you asked for.

The Europeans feel the product. Its as if they add a soul to something so boring as a glass jar and call it exotic or something. But the Chinese just look at the product as a product. A glass jar, is a glass jar, is a glass jar. Cut the crap and get to the point types! They cannot innovate. They cant think on ‘how can I make this better’. They can always say, that, ‘you tell me what to do, and it’ll be done’...

And even when it comes to dealing with Europeans on a business relationship, they’re way too finicky, especially the French. They talk as if, even making a plastic bottle requires so much of care and precision like probably a gourmet dish does. They’re extremely slow in replying to queries and take their own sweet time. The Chinese on the other hand, are like hungry cats, waiting to get new orders. They will do as many changes as asked, to make sure that they get the final order.

And I feel all this is really sad. Its sad because the Europeans just dont see that their businesses are being taken away by Chinese suppliers, while they’re busy being finicky with the customer on how should a bottle look like. And, its also sad to see that a Chinese supplier has no knowledge base of the product he’s making at all, so as to make some improvements to it and give it to the customer...

While one supplier base, can provide real customer service, they’re overdoing at certain areas, whereas the other supplier base can give great value for the goods, but is zilch on any most kinds of customer services... Its like choosing the lesser evil...

Arabs and food

There’s some pretty interesting stuff I found out about Arabs and their relationship with food. Firstly, Arabs as a tribe or as a community is plagued by a compulsive eating disorder. They have to eat… all the time. Doesn’t matter whether they’re hungry, or thirsty, or what time it is… they just have to eat. And that’s really one of the reasons why a large part of the Arab community is so obese. This includes young Arabs too.

Whats more interesting to know, and it’s a sad thing too, is that they purposefully waste food. That is, they never buy things in small sizes. They always buy things in family packs or large quantities. It’s always more than what’s required. If 2 packs of chips would do, they’d buy a family pack of 4 instead, and obviously there’ll be some leftovers, which they’ll throw away.

In a way, its proving that we have so much (in terms of opulence) that we can afford to throw it away.

Sad no?

Zara enters/should enter/should not enter India - Part 3

There are alredy 2 blogs written on this topic earlier. Assuming you’ve read them already, I’ll not waste time on the technicalities of the Zara model, and get to the point.

Should Zara (really) enter India or not? If you look at it in that sense, perhaps every other international brand should enter India. And why not? A sizable part of the population of India is under 30 years of age; disposable incomes are rising, so are aspirations, living standards, customer awareness, and all the economic lingo stuff.

But that’s not the point. Just because things are getting better in an economy doesn’t mean that we have graduated to any other brand/product in the world. As a primer to this statement, lets take the example of a microwave. I think about 7-8 years ago, microwaves were first introduced in India. I really don’t know when, but what I do know is that consumer acceptance of that product wasn’t exactly high. For any American, a microwave is a necessity. Probably an American can live without a stove for a while, but not a microwave. That clearly didn’t happen in India. Heating cold food and feeding it to the children was like a disgrace on a mother’s part.

Today, after such a long time, things are changing aren’t they? And mind you, they’re still in the changing mode. Microwaves still haven’t received absolute acceptance even after giving the consumer so much amount of time to graduate to one.

Same goes for Zara. We as Indians used to wear only traditional dhotis and salwaar-kamiz 80 odd years ago. The transition to the western clothing apparently began during the British rule. So firstly in absolute numbers we’re about 300 years behind the Europeans as far as fashion for western clothing goes.

Think about it; even today, if you wear your dad’s shirt and go out, no one would be able to point out that this is an ‘old cut’. The cuts, the stitching techniques have remained the same since a really really long time.

Think about women’s formals for instance. There’s an extremely short range of women formal shirts available in India. And mind you, I’m talking about the design and cuts, not the color of the shirt.

To put it in simple mathematical sense, this is how the 2 ideologies differ:

For Indian Fashion Industry its –
few cuts x lots of color variations

For the Zara Model its –
many cuts x very few color variations

And even if we take colors as a basis, even that sadly isn’t our strongpoint. We were shades of red in summer and wear shades of yellow during winter.

We wear linen in winter sometimes and synthetic materials in summers as well.

There’s no synchrony in us as far as colors, shades, cuts, fabrics go. We wear whatever we feel looks good on us. Every season, has its own shade, color swatch, designs, cuts etc. etc. We’re never so detailed as far as these attributed go. And the Europeans are extremely fetish about these minor details; the same way we’re fetish about cricket maybe.

Also, India follows a 2 season process; Summer/spring collection & winter/monsoon collection. While in Europe there are 4 different collections released for all the 4 different seasons.

Also, I don’t know how many of the readers have seen a Zara store, but Zara doesn’t play with colors a lot. It plays with cuts. And to save on its supply chain costs, you wont find colors other than white, black, grey, cream, red and a few more. Their color swatch is extremely limited, and their design swatch is much higher than an average Indian apparel outlet. You really think Indians will gladly buy only base colors and wear them, when they have so many other vibrant colors being offered by other apparel retailers?

Mango, one of the leading fashion wear brand for urban women has a few stores in India. The collection that it keeps on the Indian stores is one season old already in the International markets.

After reading all this some might see this as a drawback in us Indians, that we’re not so sensitive towards colors and cuts etc; that we haven’t graduated to these details like others have. But honestly are we supposed to graduate? Were shirts and trousers a part of our cultural heritage? We have our own saaris and salwar kameez. That’s where our forte lies. And that’s precisely the reason why Zara originated in Spain and not some shady town in India.

Zara has not been quite a success in the US, and for the simple reason that an average USUS, not in Europe. citizen wants clothing that is completely relaxed, functional and rugged. That’s why jeans were invented in the

Europe has its own fashion, US has its denim jeans, India has its bandhani.

Its seriously wrong for any of us to expect to graduate to the fashion sense that Europeans have. Simply because their definition of fashion is different than ours.

In Gujarati, there’s a saying, ‘gaam khase ke gaadu?’ (should the village move or the bullock cart?)

P.S. Thanks a lot to Sharimbal Kanishk (ex-Globus merchandiser & a NIFT grad) for all the info on Indian Fashion Industry.

cam expose

aha! Another hidden cam expose! Stumbleupon is the sweetest thing on web I’ve found. Good time pass if bored!

Anyways, so this one talks about glasses that says ‘sterilized’ actually being washed in your wash basin instead of some clean washing space.

I’m like so what? At least they’re being washed. One should come to the kitchen of an Indian hotel. That guy will probably faint and wont ever come to eat at a hotel again. Typically Indian 5 star hotels have frozen everything. Frozen juices, frozen chicken, paneer, and stuff like that. All they do is take it out, heat it, add gravy and give it to you.

Still we hog like crazy no? And brag about it in front of the neighbors too the next day… “We had lunch at Le Meridian!”… yeah right… and the food was like probably a year old! But who listens to me anyways!

teachin n all that

sometimes i get an immense feeling that i shall some day teach. i know its not at all an easy task to make people listen to you especially if their hormones are raging and they're too busy noticing the opposite sex.

but yes, this is the first time i'm getting the hang of what a practical work environment looks like. and it seems completely off tangent to what i've been taught in many aspects. there are so many things that one can tell the learning generation to take care of, or to acknowledge so that they stand a better place in the job market.

and apart from that, there are certain notions that i would really like to clear them of. its necessary to make them realise that marketing is not just about big words like branding and advertising and all that. every single aspect in a product or service creation and delivery is a way of marketing your brand.

i remember my marketing classes during my under graduation were always filled with the mundane and long acknowledged examples. for examples related to luxury you immediately had mercedes and bmw names popping out, for cult followings you always had harley davidson and apple ipods as the most favorite examples, for any other normal question posed by the professor any damn FMCG brand would do just swell. that's how my marketing class ended (and we still thought that we did a pretty darn good job and learned a lot in it).

i really wish that i could make the students realise that there are a lot other brands, a lot many other marketing activities that might give a whole lot of learning than the regular mercedes and Lifebuoy. its not about bragging the fact that i know about brands that you've not even heard of; its about telling that there are products and services which are far more fascinating and technical than a regular FMCG brand.

HLL (or Unilever) has been a star recruiter at IIMs. No offence to the placement committee or the people who join the company, but clearly what they do is not marketing. because if you're trying to tell me that you make brands by letting it eat into your own market share of some other brand, that you make brands by making the holes of your toothpaste nozzle bigger, that you make brands by selling buckets free with your detergents, that you make brands by pushing inventory and pushing even more inventory to your stockist to sell, then honestly you're not really building a building. i mean as far as FMCG is concerned, today a time has come that the market has saturated. you cant make a person use more toothpaste than he previously was by more advertising. you cant make a person use more detergent more than what she previously used. the only way to expand market share is through geographical expansion. there might have been innumberable instances of IIM grads citing experiences of being sent to rural villages for the first 2 months after joining HLL or whatever. but bottomline, thats a sad place for getting to know what marketing is.

alright, enought badgering the FMCG giant.

but if i had the chance i would really like my students to explore about how to market cord blood banking... or i would ask them to study how to market a bottle like SIGG (hit google if you dont know.. but SIGG is probably one of the world's strongest water bottles. each bottle is made out of a single piece of alumnium metal. no welding, no riveting, no clamping of any sort. and one 500ml water bottle costs rs.1000)... or probably how to market an industrial good like motors or machine tools and things like that...

i would want to make them realise, that with websites like blogger, deviantart, istockpro, adobe's softwares, youtube, orkut and facebook, one has as much tools under his/her belt as a normal media powerhouse. i want to make them realise that if they really want, they can easily be a one man(or woman) company, if they know the right trades and techniques, that access to information has become easy that it has put everyone on the same platter, on the same level... you have as much information about the world and its happenings as much as the Prime Minister or the President would have. i would like to tell them that one can really prove his/her worth in this world if the person really has talent; that you dont need politics, or contacts to get to the top.

Today there are bloggers, in their late 30s or so, who are equally popular to the writing sphere as the contemporary people like Shobha De or Sashi Tharoor might be. There are people on youtube who've gained more fame by just uploading 20 videos of the songs they sung, than what Abhijeet Sawant could even imagine, and are far ahead than the ones who won/lost at Indian Idol and other such reality shows. today, most people think that the nearest advertising agency is the best possible solution for their media needs. little do they know that just a computer away at guru.com they'll have access to options far than they could even fathom and at rates which could put even the local ad agency to shame.

and even after such proliferation of information, such access to a wealth of knowledge, people simply overlook aspects that are right on their face, but fail to acknowledge it, or take it for granted.

an intruiging example would be the state transport of Gujarat. over the years i've been travelling in buses, and the upsruge of privately running buses have been increasing. but sadly the state transport which has the largest network under its belt is still incurring losses. why? we saw a turn-around in the railway sector, why not here?

or lets take something else. today cricket by itself is getting a make-over. Cricket is truly becoming the cricket it is supposed to become; where money is paid to cricketers to perform and not for their names. a cricketer is now finally being evaluated as a financial instrument; where he's judged on his Net Present Value, or the expected future returns over money put in right now. this means that any investor looking to invest in a cricketer would like to have a marketplace where he can have all the vital stats of all eligible investments (read cricketers). the first thing that struck to me was that this calls for a centralised data warehouse system which collects performance data of all the state run cricket associations. sure enough no investor would like to roam from state to state trying to hunt for a suitable investment. just a website that keeps a record of all the vital stats for all cricketers who play under the state banner or the national banner can be an ideal place for any investor to vsit. but i doubt if anyone thought of that.

there are similar such experiences that i've faced, and i've felt that all these anomalies that need to be expolited cant be done by me alone. and i need to make someone else realise that there are these many things and you can exploit them too. creaing value is a highly time consuming job. but if you can also help me out in making life simpler for everyone (and a little more richer for yourself) there's nothing wrong about it.

Oracle.! That ain't my job!

Disclaimer: people with no prior knowledge of Oracle (the ERP solutions software) might find this post equivalent to reading Hebrew or whatever!

It’s been a while since we’ve been haggling with the Oracle implementation in our firm. And the views of everyone around as well as myself are quite varied. But it would be fun to surmise all the feelings into one post.

As a background I’d like to note that we’re the only (read again: the only) organization to have implemented Oracle 12.x version of the ERP software. Now I don’t know how big a deal that is, but since I got a mail from the Central IT dept., I reckon its worth a note! Alright. Enough chit chat. Lets get to the whole analysis thingy.

One of the first things that strikes me, is that essentially any ERP solutions software is supposed to be built around a business model, so that it can enhance the efficiency of business and enable free flow of information and the usual yada yada. But more often than not, it so happens that the business unit starts molding itself around the ERP software. Job responsibilities change, work load shifts from one department to the other; and that inevitably leads to resistance. People who loathe excel sheets and their short comings would prefer sticking to the long list of rows and columns instead of getting the responsibility to enter additional data which either they didn’t use to handle earlier or is inaccessible to them.

And sadly when most Central IT Teams responsible for implementing Oracle announce the changes in the job profile, they’re badgered left and right. “Why should buying dept. define in what size of boxes will the final product be shipped? That’s the job of the Shipping Department!”“Why should we go to the Finance people to create a Supplier? Isn’t Supplier maintenance a job of a Buyer?”

And the only answer that the IT team can give out is that ‘these are the best industry practices and that’s why we follow them’. Well according to me, what might be the best for the industry might not be the best for my organization! But who listens to me anyways.!

The second problem I see is the cold-war sort of situation between the Central IT team (who implements Oracle) and the other office users. The IT team, a bunch of enthu chaps that they are try to boost up people around by holding meetings and praising how Oracle will change their lives as well as the company’s.

This is one of the times I feel Change Management becomes so crucial. And the reason is simple. Shifting from one style of working to the other will always face resistance. Moreover, in the previous style of working, there always used to be a human being who could be held responsible for any goof-up. But here, if the system goofs-up sadly you cant just go to any desk and start blaming any person for not finishing his/her work.

On the other hand, Orcale does prevent the loss of important information. Call it intellectual property protection or something like that. But essentially what it means to say is that if tomorrow I stand up and say bye-bye to the company, it doesn’t mean that all the supplier level relationships in terms of pricing and other conditions also go out of the window. The new guy who comes in has complete access to the deals I struck and can exploit them for future references. Pretty dainty I would say.

Also, I think what Oracle would (hopefully) do best, is that it’ll give clean data, scrapped off all the anomalies across departments which will be updated faster and will be far more accurate than what it has been till now.

I’m just waiting for things to fall in place and Oracle to start pouring in data. Once that happens, people will immediately transform from self-interested midgets to strategic analysts and all that management enhanced jargons.