The Chinese have a lot to learn about Marketing
The Chinese have a lot to learn about Marketing
Second in a series about Chinese culture and traditions
In Chinese cities there are supermarkets which include big ones like Wal-Mart, the French-owned Carrefours, and big box stores like the German-owned METRO stores, all of which sell a complete variety of products including food items, hardware items, appliances small and large, TVs and electronics including computers and cell phones, clothing, gardening items, and office supplies. As well, of course, there are even more Chinese brand stores of that kind.
Some franchises did not go over well in China, such as Home Depot. I have to imagine it's because labour is so cheap here it isn't worth trying to build or renovate anything, besides the fact tha the average Chinese person is not tremendously competent at doing so. For some things I've seen, the professionals are not that competent either.
However, it's my intent to point out where in most (but not all) cases they fail at marketing. I often shop for imported foods, and there are certain supermarkets and big box stores that stock and sell them. As an example of their marketing incompetence, when I first came here, a very substantial store called "Dennis" had a whole large area of imported foods, canned, bottled, packaged, frozen, whatever. I found hot dog relish, Kraft macaroni and cheese, Campbell Tomato soup, and other very familiar items that I have always used and enjoyed. After a little while, those items were sold out and not replaced - in fact NEVER replaced. If they were sold out, establishing that they were items worth keeping in stock, were they not sensible to reorder? That logic seems to have escaped the Chinese store managers. It has also happened to me at the Chinese brand supermarkets where they carry minimal sugarless or low sugar products. Once in a while they display some no-sugar cookies, or low sugar items, but they sell out fast and are not replaced for a long time, if at all. Is that smart marketing? An item that has a fast turnover is not replaced?
When I was in Toronto I had a client many years ago who was a manager of a Canadian Tire store. (There are many of those franchise stores all across Canada.) That is a big box store that sells replacement car parts and all kinds of other hardware items. He was also a bit of a computer genius early in the days of computers. When the stores started using the bar code reading system at the checkout cashier counters, he got the idea of tracing every item using the bar codes, and set up a coded system where every item was counted, and the numbers reduced when paid for using the computer in order to see what is selling out. Before an item would sell out completely the system flagged it for re-ordering, so that the selling product was always restocked on the shelves ready to be sold. It was a kind of automatic hourly inventory counting system. The benefit was that a fast-selling product never sold out - was always available to be sold. Can you imagine that if you didn't have this system (and I think many different retailers have adopted it by now) your sales were bound to be a lot less than one that did?
Some stores must use the system, or have a more competent inventory-taking system but at many stores where I shop the evidence is not there. The products that sell are not replaced promptly if at all. I call that really incompetent marketing.
There is another unusual circumstance about marketing here. For example, if you are seeking a computer there will not necessarily be a computer store in the area where you live. What you will find is that there will be hundreds of computer stores side-by-side in a certain area of your city. That means that instead of having a neigbourhood store where you can buy or repair a computer, you may have to travel an hour or more to an area where those stores can be found. I first noticed this when I saw a row of tire stores, one after the other all the way along the block, but don't even look for a tire store somewhere else.
In the commercial mall where I live there must be at least 50 little restaurants, many serving the exact same things. Sometimes I don't see anyone in them, and then naturally, at the end of a month there's a lock on the door and it's "Goodbye Charlie". Fortunately there are also some bigger and more successful ones here. In a few months a McDonald's and a KFC will be opening in a huge department store and supermarket complex across the road from me, so I can get my occasional fix of back-home meals.
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Happy 4th, America.
Interesting information on marketing in China, Buzz.
BTW it's only the 3rd here...
At my age one never knows if they're going to be around tomorrow.
LOL, staying ahead of things...
Happy 4th, Buzz!
I sometimes notice that here, too. And the picture of the Chinese store you show looks just like the Chinese store here... But they do sell tea pots! Thankfully! I add to my collection just about every holiday!
You like and collect teapots? You would go broke if you came to China.
I know I would! I have a couple of Chinese teapots from the 1930s... Beautiful! They inspired my collection!
Will you post a photo of them?
I have some in a cabinet in my bedroom, and will have to 'dig out' the rest, but I can, if you want. None of them are valuable, except for my teapot that came from Japan, but I love them! I drink hot tea all winter from them. I love the Jasmine tea, with honey. It is a special treat to use my tea pots!
I also have a pewter coffee pot that I use sometimes. From the Burlington Railroad... From Grandpa. I'll look, Buzz-- it will take a few days, at least!
Buzz I have two peacocks from China. Hand painted and quite beautiful.