Going Global!

Door To China Could Be Closing For Late Comers

Over 18 years I have visited hundreds of factories in China. These factories were making items for famous brands like Timberline, Mattel,Nike, Apple,HP, and retailers like Wal*Mart,Sears, and Target. 

This week I visited several factories making automotive aftermarket products for famous US aftermarket companies. These factories were eager to make products for export to Europe, the Middle East, Latin America, and Asia, except China.  When I asked about selling their products in China (because we have a Chinese company with a full business license), they said we would have to work with their ‘domestic sales department’. When we toured the production lines, we saw thousands of beautifully packaged products being produced for Citroen, Toyota , and Lexus to sold in China. What is happening in China is the car manufacturers and ‘4S’ (car dealer) groups are developing their own products and aftermarket supply chain for accessory items.  This will make it much more difficult for latecomers to get their business established in the booming Chinese auto aftermarket.

This also signals the dramatic change that occurred during the recent economic crisis when export orders fell and the Chinese government stimulated the economy, hundreds of Chinese factories hired sales teams and worked hard to develop their domestic business. We saw the fruits of their hard work and success as we watched thousands of aftermarket products destined for domestic Chinese consumption roll off the production lines. In fact on that particular day I do not think we saw any products destined for the US or Europe, what a change!

Foreign Faces Sell in China

I have been going to China regularly for 18 years and I am constantly amazed at things that come up in day to day business. On Friday I went to Beijing to call on a distributor who ordered from us at the Zhengzhou Auto Accessories Show in July. I was going there to train his team and collect another order. We went through a thorough product training and the customer rewarded with  an order: great Face for all of us.

Then he asked for a photo with our Posh Pile products and his sales team. View this photo The he asked please hold this product and let me take a photo View this photo

Soon it dawned on me that he wanted to use my foreign face to help sell his other lines of auto accessories. On Friday in The China Daily newspaper, I found the attached article: View this photo

 and Download Chinadaily_pdf_20100827171208  This is an amazingly frank article!

According to the article: westerners are getting up to $45 per hour to act as advisers at meetings or to participate in photo opportunities. I should have gotten a bigger order!

Top Pollution Fighter Must Leave Hong Kong for Health Reasons

Image by Let Ideas Competevia Flickr

On April 26th the Hong Kong Standard Newspaper ran an article titled: Top Pollution Fighter Flees to Get Lungful of Clear Air. Please click the link for the full article View this photo

In this blog, we have shared data and stories of the amazing economic growth in China and Asia. Unfortunately this growth has taken a heavy toll on the air we breathe in Hong Kong and China. Six months back I asked a customer in Nanjing in eastern China when the last time was that he could see all the stars at night. He responded matter of fact-ly:  "not for more than ten years'.

30% Chinese

Image via Wikipedia

This was a big week at our little Hong Kong company. Meguiar's our primary focus for the last 10 years moved out today, and we bought majority share in an adhesives factory in Shanghai whose other shareholders wanted our sales & marketing help to take global.

Our printer who I have dealt with since I moved from the U.S. in 1992, stopped in to talk with me about some new business cards. About 5 years ago this fellow told me that he used to print marketing materials for my oldest brother when he ran 3M  Far East in the 1970's! Since our printer is one of our most special suppliers, I shared my plans and vision for our new business.

He looked at me seriously and said "Tom you are 30% Chinese". I took this as a true complement from this man of very few words. I love working in Asia, particularly Hong Kong, because the people are so pragmatic and fast. The place has a buzz and an enthusiasm. If you are entrepreneurial, it's your kind of place!

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Beware of Dog Flu

Wow it has been a long time since I had a spare moment to blog. Been traveling like a crazy person: Bangkok, Dubai, Riyadh, Doha, Hong Kong, Seoul, Dongguan, Beijing, Bangkok and finally three days in the Hong Kong office!

Anyway: here is an interesting article from the South China Morning Post from late last month. Apparently two sick dogs in China have tested positive for human swine flu (H1N1). Click on the link to read on...View this photo

Putting the 'Park' into Parking

Image via Wikipedia

Danny Kwan of our office found an amazing link to the South China Morning Post's website with a great article detailing the efforts of several creative and determined Hong Kong university students to change a public parking space into a public park for a day. The video presentation gives you a feel for the international aspects of Hong Kong, our clever and multilingual university students,strong rule of law, and the generally tolerant and non-confrontational nature of the Hong Kong Police. Check it out: it is really something! Please click on the link to download: Download Menuitem

Did you Know?

There is an amazing You Tube video floating around the internet that apparently was prepared for an executive conference at Sony.  As of this morning over 6.6 million people have viewed it on just one site alone. It is amazing to see the impact of education, globalization and technology on our present and future world.

Check it out here: it is worth the time to view.,..Download __Sony's Executive Presentation..

By the way, the video predicts that China will be the country with the most English speakers on the planet. Mandarin is already the most spoken language today.

Amazing International Education

Many U.S. based executives I know tell me they would love to live and work overseas, but they always ask: "what about school for my kids?"  School for your kids is perhaps the very most compelling reason to take an international posting.

 My eldest graduated from HKIS in Hong Kong and went on to the Ross School at Michigan. I'll never forget when I picked her up from the HK Airport after returning from her senior trip helping Mother Teresa's Sisters of Charity work with Calcutta's street children. Cathy was so excited to help others yet  humbled. She has a superb world view and great understanding of different people and cultures.

Our little kids: 9 and 6, attended The International Montessori School (IMS) in HK since they were 3. We did not intend to send them to school at 3, but when Claire, now 9, saw her big sister going to high school, she made it clear that she wanted to go to school as well. It is amazing what our kids learned at IMS: they both love learning to speak and read Mandarin, they are avid readers and great at math!

Monday they both start at HKIS or The Hong Kong International School (a.k.a 'the American' school).  HKIS has an amazing faculty, beautiful campuses, and truly international students.

We are so thankful and fortunate that we have the opportunity to give our kids a excellent international education.

During the Flu Pandemic Be Smart and Considerate

The H1N1 Flu is being taken very seriously in Hong Kong, China, and most of Asia. The Hong Kong government closed all primary schools and kindergartens over 10 days ago to protect the little ones.

Take a look at these public service announcements shown on TV, aired on radio, and shown in public places:

Keep Clean  teaches hand hygiene.

Be smart and considerate  stresses not going to work, school or public places with the Flu.

Be vigilant  reminds the Hong Kong Public that the WHO has raises the pandemic alert.

Hong Kong learned a lot since SARS and is doing their very best to protect the public.

Hong Kong Primary Schools Closed due to Swine Flu

The HK government announced today that it is closing all primary schools for two weeks to protect younger students from swine flu. For more information: www.kirstafloat.com

Asia is ready for Flu

On Sunday I boarded the flight from Atlanta to Minneapolis , connecting to Japan, and to my final destination: Hong Kong. Two weeks earlier when connecting to the U.S. in Tokyo, I noticed many of my fellow American passengers rather extreme annoyance at the delay in boarding out going flights.  The reason for the delays was because all the incoming passengers to Japan had to be checked for the Flu. I tried to understand why the U.S. travelers were so annoyed (one guy vowed to never fly through Tokyo again. He said he would connect through Alaska - little did he know only air freight now connects through Alaska). It was obvious that they had not experienced SARS in Asia in 2003 and perhaps they had not read up on the Flu. Newsweek reported recently that back in 2005, a teenage boy in Wisconsin was helping his father slaughter some pigs on their farm. It seems that the family also kept a chicken as a pet. The boy soon contracted some unusual flu symptoms which the CDC recorded were a combination of Avian and Swine Flu in a human host. This is the same flu that surfaced recently in Mexico and is the reason health authorities worldwide are being so cautious.

After living through SARS in Asia, I applaud the efforts the authorities are taking to protect their citizens. I only wish the two passengers on various legs of yesterday's flights from the U.S. who sneezed on fellow passengers were more aware the dangers of their poor health and hygiene practices. It is quite worrying that people in the U.S. seem so much less aware of the dangers of an outbreak of this new flu strain.  

Last night when I boarded the plane in Japan , I read the headlines below from two Hong Kong newspapers:

The Masks are Back

Just flew yesterday from Langkawi, Malaysia to the capitol Kaula Lumpur. The Malaysian Airlines domestic flight was completely normal. However, once we walked towards our gate to catch the Cathay Pacific flight to Hong Kong,we saw arriving passengers lining up to be screened for Swine Flu .  On the Cathay flight, the flight attendants all wore masks (something they had to fight their management in court to do). In my opinion, the attendents certainly have the right to protect their health. Masks are great.  Once we arrived in Hong Kong, we had to fill in the full health declaration forms from the SARs era. Also great. Police, immigation officers, airport workers, and some passengers were wearing masks. It is excellent to see both governments taking serious steps to protect people.

 Read an interesting article yesterday on the plane in the Asian edition of the International Herald Tribune. It was written by a mother, also a doctor I believe, who stayed with her family in Beijing throughout the SARS crisis of 2003. Her kid's school remained open. She noted that there was virtually no illness at that school during SARS because parents kept their kids home when sick and everyone washed their hands frequently or used sanitizer.

Got a message two days ago from our customer in Mexico who just returned from Asia. In his email, he said the Mexican government is handling the Flu situation well and those who caught the Flu were being hospitalized, given Tami-flu and were recovering in a matter of days.

It is great to see global cooperation to combat this illness.