1. Chinese Business Voodoo

    Jonathan Littman, the co-author of the Art of Innovation, Thinktopia® collaborator and founder of Snowball Narrative, just returned from a business trip to Hong Kong and China, where he delved into branding, brand counterfeits — and superstition. This is Part 3 of a series.

    Doing business in Hong Kong is not the same as doing business in New York, Paris or Rome. The biggest lesson for those planning to introduce a brand here or strike a deal is that superstition matters. Most know that the number 8 is considered a lucky number in Asia (remember how the Beijing Olympics opened on the eighth day of the eighth month at 8:08 and 8 seconds?). A Chinese company bought an all-eight telephone number for more than a quarter million dollars. Meanwhile, buildings here often skip the 4th floor. Why? Becomes when spoken, the number sounds like the word for “death.”

    Businesses in China sometimes consult fortune-tellers to pick company names, when to open, and how to lay out floor plans. Superstition is no joke.  Voodoo dolls became such a hit a few years back that authorities rushed to ban them when young Chinese buyers became obsessed with pin-sticking black magic.

    I knew that I couldn’t arrive in Hong Kong empty-handed, so I took care to bring two thoughtful gifts for my host. The first was a pair of beautifully designed glasses, considered an ideal gift, along the lines of a vase. I was sure my second gift would impress: One of my books, The Art of Innovation –the reason I’d been hired, had been published in 20 languages, and I happened to have a copy in Mandarin.

    My host had paid me in advance for a week’s consulting on a potentially large writing project. What better gift than a Chinese edition of my bestselling book, proof of my credentials?

    We met at his guest apartment, the location that this week would double as my sleeping quarters and office workspace. Strangely, his assistants had placed what resembled a tiny cocktail table precisely where the front door opened (so much for Feng Shui). There was scarcely room for my laptop and gifts, let alone a proper place to work.

    The doorbell rang and in walked my host—with the fourth assistant I’d met so far. I greeted him eagerly and offered my gifts, telling him that one (the glasses) was for his wife and family, and the other (the book) was for him.

    “Giving a book during Chinese New Year is bad luck in Hong Kong,” he stated matter-of-factly.

    This was the first time I’d ever been told that a gift would bring bad juju.

    “O.K.” I said, thinking fast. “How about you don’t open it. But, since it’s related to our work together, I’ll open it.”

    As I tore off the wrapping paper he took a half step back. I held up my book proudly and saw that he didn’t dare touch it.

    After an embarrassed silence, I gently placed the book and its wrappings on a side table.

    My client wanted to start work immediately, which seemed nearly impossible. There was no room for us at this miniscule cocktail table, and none of the tools I’d normally use to brainstorm a new project: say a white board or flip chart.

    After a couple of awkward hours during which I took feverish notes on my laptop, we ate a traditional Chinese lunch. Then my host led us around the neighborhood, buying a flip chart and pens and enough fruit to feed a soccer team. We’d barely gotten started again back in the cramped apartment, when he abruptly announced that he was tired and wanted to show me his office. So, off we went. As I walked around his sprawling office suite–accommodations regal enough to suit Donald Trump–I wondered, why in the world hadn’t we worked here?

    The next morning he phoned just before our scheduled 9:30 a.m. meeting. In a cheery voice, he instructed me to read my e-mail. His message stated that he’d like me to help him on a project that’s about a year out. “So, for the rest of this trip,” he wrote, “you can take it easy.” He encouraged me to see the sights and “take a side trip to Macau.”

    Translation: this friendly e-mail was an elaborate effort to put a positive spin on events. Direct confrontation or saying “no” is not in the Chinese psyche. This is called Saving Face, nearly as important as superstition.

    Fifteen minutes later he arrived by himself—without one of his ever-present assistants.  He informed me his secretary would buy me boat tickets to Macau, and his driver would take me to his private club one night for a dinner with his wife. He was smiling, which in China is often what you do when you’re uncomfortable. After he left, I couldn’t help noticing that my gift to him, the Chinese edition of my book, was still on the table.

    Since I was paid in advance, it turned out to be a rewarding assignment for a day’s work plus the international travel and accommodations. My week was mostly a vacation in Hong Kong and Macau, and yes, an incredible dinner at my host’s posh club. But my Western mind couldn’t wrap around what happened.

    After my return home to San Francisco, I scoured the Internet for answers. Wikipedia promptly informed me that the word for a book in Mandarin sounds like the word for “loss.” People investing in stocks or gambling who are “carrying or looking at a book,” may be inviting “bad luck and loss,” wrote Wikipedia. In other words, gambling and reading don’t mix.

    The voodoo from book giving would be especially perilous in Hong Kong for anyone who bets on horses or the lottery game Mark Six, common recreation for wealthy locals like my host.  Don’t give a book, advised another article, “because ‘giving a book’ in Mandarin sounds like ‘delivering defeat.’”

    Of course books are not the only gifts off limits. Green gifts would be seen as a symbol of cuckoldry (don’t even think of giving greenbacks!). The color white recalls funerals and death. Clocks may also symbolize death or the end of a relationship.

    According to Wikipedia, I could have easily given my host fruit, a widely accepted gift. As long as I gave an even number, as odd numbers would bring bad luck, and as long as I avoided the dreaded, deadly-sounding four.

    The day before my return flight to the U.S., my host came to the apartment bearing a gift. Before he left he made sure to gather up a few voodoo-free books I’d brought him from San Francisco. Yet there sat my gift book all alone on the table, signed and untouched.

    He ordered me to open my gift, violating the Chinese prohibition against opening a gift in front of the gift-giver. The bright red wrapping paper revealed a large red silk-covered box. Nestled in felt sat two elegant gold leafed teacups. My host showed me the accompanying official paperwork, stating that the “National Emblem Pottery Collection are supervised by the Office of National Pottery Use.”

    The papers proclaimed that the cups were exclusively used for dinners and banquets in “The People’s Hall and in major overseas Chinese Embassies.”  Attached was my host’s imperial over-sized calling card.

    Red is the luckiest color in China. The gesture sunk in. He was sending me home with a box full of good fortune!

    Or was he?

    “You can’t buy these in China,” he said bluntly. “If you get stopped without the papers, they will assume you stole these.”

    “Thank you,” I said as I pondered a trip to a Hong Kong jail.

    All I can say is that on my next visit I will think three times (not 4, maybe 8) before giving a gift. Nothing white, no number four, and definitely, most definitely I will abstain from something as dangerous as a book.

    But that’s not the end of the story.

    Four weeks later, at 4 p.m., my host sent me an urgent e-mail asking for help on taking his writing “to a higher level,” saying “please let me know quickly when and how much so I can agree and you can get started.”

    This time I won’t come bearing gifts.


  2. From hierarchy to biology: designer Ayala Serfaty

    Ayala Serfaty Anana Poof Chair

    Israeli designer Ayala Serfaty‘s designware demonstrates the ongoing shift from the semantics of military hierarchy to the world of biology. Words like “symbiotic”, “diversity”, and “bio”-everything have sifted into our language over the last decade, heralding our renewed sense of oneness with the planet. Serfaty’s jellyfish-inspired, exoskeleton, cell structures posing as lamps, furniture, and lounge pads certainly demonstrate that it’s not all just words. It’s strange, inspired, primal, intoxicating new worlds.


  3. Chinese Brand Knockoffs: Hooking Us on the Real Thing?

    Jonathan Littman, the co-author of the Art of Innovation, Thinktopia® collaborator and founder of Snowball Narrative, just returned from a business trip to Hong Kong and China, where he delved into the reality of brand counterfeits.  He did not write about being offered a plate of grilled pigeon heads.

    Her eyes dart back and forth as she leans forward on a stool and gracefully unties the leather roll. Half a dozen gleaming women’s luxury watches on the glass counter, each worth thousands of dollars—if they were real.

    We can see and touch them, but she’s poised to snatch them up in a second.

    “You want Rolex? Omega?” she asks me, noting my hesitation. “I give you best price!”

    Just then my friend whispers to her: “They’re coming.”

    With the deft hands of a Vegas card dealer, she sweeps up the loot and slips it under the counter. Seconds later, two police sporting the red armbands stroll by the empty counter.

    It’s just another Sunday afternoon in Shenzhen China’s Luohu Commercial City, a gargantuan shopping mall a stone’s throw from the Hong Kong border.

    A well known Hong Kong joke goes like this: Locals hop the train to Shenzhen to buy fake luxury brands, while mainland Chinese flood Hong Kong to buy authentic goods. There’s ample truth behind the saying. Hong Kong rivals Milan, New York or Paris as a destination for the world’s most expensive luxury brands, and local authorities have made extensive efforts to drive cheap counterfeits farther underground. But in reality they are not far away.

    After a week in Hong Kong on business, I’m concluding my visit with a brief trip to Mainland China. Fortunately, I’m making the trip with two veterans: Friends from San Francisco working here for a year in Hong Kong. “Mrs. Jones” is not only a successful professional woman, but a talented international shopper, accompanied today by her bemused husband.  My goals are three-fold. I’ve always wanted to visit a communist country, hope to score gifts for my wife and daughters, and want to see and understand the counterfeit trade first-hand.

    Counterfeiting top brands is a hotly contested issue, especially if it’s your brand. When it comes to software, movies, and other intellectual property it’s hard to view it as anything but theft. But interestingly, when it comes to fashion, anecdotal evidence is emerging that Chinese counterfeits of international brands may be having an unexpected effect. Some market experts are arguing that Chinese women who first buy fake Prada or Louis Vuitton bags, for instance, later upgrade to the real thing.

    Can counterfeits act like gateway drugs? You buy your first knock-off handbag for $60 and then a year later find yourself driven to drop $2,000 on the real thing?  At first glance, the idea sounds sketchy, but evidence is emerging that this is actually happening to the rising class of Hong Kong and Chinese women. What about American women? What about this American man? It may sound far fetched, but is it really that crazy an idea? What if a little up-front loss on counterfeiting is returned by a steady percentage of shoppers who get hooked on high-priced fashion?

    George Orwell is one of my favorite authors, and having read 1984 multiple times, I approach the border with a curious mixture of anticipation and fear. The train from Shatin, New Territories to Shenzhen is just a half hour, when we disembark and begin the process of entering China. I need to complete a Hong Kong departure card and China arrival card, and pass the scrutiny of two security checkpoints. Once through, I pull out my trusty iPhone and am about to snap some photos, when Mr. Jones advises restraint.

    “The security officers might detain you and confiscate your phone,” he says. “Especially if you accidentally take their picture.”

    I put away my phone, and then Mr. Jones reveals another little known border secret. “Do you see what the guards are holding in their hands?” he asks.

    Small black devices are cradled in their palms. “Those are temperature guns,” he explains. “If you’re more than 1 degree above normal they can quarantine you indefinitely in China.”

    Being quarantined in China does not sound like a good idea. I’ve entered another world, and am a long way from home. Without noticing it, my friends have slipped ahead in the surging crowd. We’re walking over a broad enclosed bridge that crosses the muddy green Shenzhen River to communist China. The high stone wall and barbed wire is on the Hong Kong side of the river, summing up all you need to know about communism. Something deep within me clicks, and it’s as if I’m Winston Smith, the doomed protagonist of Orwell’s 1984. Panic grabs me. Where is my passport? I stop and furtively search my pockets. Did I drop it? Was it stolen? My friends, blissfully ignorant of my dilemma, walk on into China.

    A frantic minute passes, then two. I’m alone in China without a passport, and then I find it right where it should be—next to my wallet. Suddenly we are outdoors facing the eclectic skyscrapers of nearby downtown Shenzhen.

    Ahead lies the aptly named Luohu Commercial City. This is not a shopping mall or center. It’s a full-on indoor shopping city, a frenetic maze of escalators, elevators and tiny glass enclosed shops and booths.  Festooned with banners and lights this seven-story shopper’s beehive boasts 32 escalators, 16 elevators, and a phenomenal 1,280 shops.

    Once inside, the shopkeepers start clutching my arm, and selling hard.

    “Mister, you want iPad?”

    “Mister, you like watch?”

    “Mister, good deal for you.”

    Sales pitches come from every direction, but nothing is quite what it seems. I had foolishly imagined all the counterfeit brands would be on display. But that’s not how it works at all. Mrs. Jones, who has been living in Hong Kong for more than six months, has a system. On her first trip, she started with one vendor, built a relationship, and then created a friends and family plan.

    A bright sparrow of a woman named Lily dressed in black holds court at a small counter stuffed with strands of pearls and Chinese watches. A few weeks before she met all the phony branding needs of Mrs. Jones’ mom. An assistant pulls up three stools for us.  None of the watches in the glass case appeals. Omega is what we want, and after Lily scans the area for cops, she pulls out a leather satchel and lays out several, including the elegant women’s Aqua Terra. She tempts me with a Rolex, but I too prefer Omega, and so, after a little rummaging around behind the counter, out comes the Omega Speedmaster, which retails for $3,500.  Five minutes later, a hundred feet away, three cops in full uniform begin marching down the aisle. Lily’s lookout casually walks toward her, ahead of the troops. She sweeps the watches off the counter. A couple of minutes later the cops are gone, and the watches return.

    Mrs. Jones understands the game. The woman’s timepieces would retail for more than a thousand U.S. dollars each. Lily wants $30 apiece for them, and Mrs. Jones returns with her best opening line.

    “Lily, I live here,” she laughs good-naturedly. “That’s much too expensive.”

    Mrs. Jones takes the clunky, oversized calculator from Lily— every shopkeeper has one— and divides the price by three to $10 U.S., and hands the calculator back to Lily.

    “I no make money on this,” Lily responds, looking at the calculator and shaking her head.

    So begins a friendly calculator tug of war, which ultimately results in a price of $12 a watch. The Omega Speedmaster starts at $80, and Mrs. Jones quickly cuts it down to $37, which she advises me to walk away from. But what can I say. I’ve always wanted an Omega.

    The handbags are another matter. Fortunately my sixteen-year-old e-mailed me images of her favorite brands. I hand Lily the printout, and out comes a massive catalog from beneath the counter. Lily flips through and finds the Louis Vuitton women’s purses, picks up a landline phone and makes a call. Ten minutes later, a young man in a black sports coat strolls up, glances around and hands her another leather satchel, this time containing four wallets. Retail ranges from nearly $400 to $1,500—if they were real. Mrs. Jones quickly reduces the price on the $400 wallets from $30 to $15. Lily is stubborn on the $1,500 patent leather one, (wrapped in felt in a nice box). Mrs. Jones haggles it down to $30.

    After Mr. Jones picks up his three elegant custom sport jackets, (each about a fifth of what they’d cost in New York), we enjoy a pleasant Chinese lunch, and then cross back to Hong Kong. I’m carrying Omega, Louis Vuitton, Longchamps, silver bracelets and silk scarves.  Chinese customs is friendly as can be. Half the people are returning with large suitcases and oversized bags—and yet no one is stopped. We walk the bridge back to Hong Kong and I drift as far as possible from the temperature guns.

    But I’m not quite home free. That night I take the Singapore Airlines red-eye back to San Francisco, and get stuck in the line with the chatty customs officer. I mention I’m a Contributor Editor at Playboy and that amuses him and he inquires about Hugh Hefner’s sex life. It’s going swimmingly well until he stares tellingly at my wrist,

    “Where’d you get the Omega?”

    What should I say?  If I say it’s real, he may assume I just bought it and owe import duty. And if say it’s a Chinese phony? Like most Americans, I don’t really know the rules.

    Later, I’m surprised to discover that my fears were unfounded. Our government is largely ambivalent about tourist purchases of minor counterfeit fashion items overseas. As long as you don’t go hog wild it’s perfectly legal to bring counterfeit fashion brands into the U.S. According to Customs Directive No. 2310-011A dated January 24, 2000, “Customs officers shall permit any person arriving in the United States to import one article, which must accompany the person, bearing a counterfeit, confusingly similar, or restricted gray market trademark, provided that the article is for personal use and not for sale.”

    The only limitation appears to be that you can only import one of each counterfeit good: one Rolex, one Mont Blanc pen, and so on. If only I’d know this in advance I wouldn’t have had to make up such a silly story.

    Now, if I can only figure out how to switch my Omega from Hong Kong time!

    Jon@snowballnarrative.com


  4. Globalism not new, dopamine drip, ignorant bliss.

    Thinktopia® has conducted business in every continent on the planet, except Antarctica. An intercontinental sweep from New York City to Amsterdam to Cape Town to Beijing to Paris to Moscow to Bogota reveals some similarities (and differences) that exist in our 21st Century.

    Departing the Ngala Game Reserve in South Africa on a two-hour drive to the Nelspruit airstrip, our African driver slipped a Jimmy Reeves CD into the player. As we listened to Jimmy’s warbling honky-tonk woes, we passed freight containers (the kind usually found in ship cargo holds or on the back of truck semi-trailers) whose contents were the local village cell phone. Hot sites where remote villagers call friends and family on other parts of the planet. Cut to Moscow. The container-cum-cell phone trendspotting was contrasted by a young woman in Moscow who flaunted her new iPhone—at that time still unavailable from Apple—which had been purchased in New York, then blackmarketed back to Moscow. It was subsequently uploaded with pirated software that not only connected her with Moscow mobile phone company Beeline (check out their online television programming), but also enabled her keypad with the Russian Cyrillic alphabet.

    In a grocery store in Cape Town, we saw Lays Oven-Roasted Chicken with Thyme potato chips. Doritos in Poppy Seed with Roasted Garlic and Italian Cheese flavor. A trip to inside a Moscow market revealed Moscovites not only have a fondness for Bentleys and Rolex watches, but also for Danone’s Activia. We had already seen Activia launched on the streets of Paris (before it launched in the U.S.), and a hallway chat with Danone product managers in Bogota learned their exclusive Bifidus regularis was to launch later that year.

    Cold turkeyed from Starbucks in Africa, we were forced to attempt tasty African coffee from our tent, as lions—rather than Starbucks iTunes downloads—roared in the background. I also savored fine espresso at an Italian café in Cape Town, European roast at the National Hotel in Moscow, and in Bogota (home of legendary icon Juan Valdez—Juan Valdez coffee cafes are sprinkled like Starbucks throughout Bogota), I consumed the best cappuccino of my life.

    The stark contrast of tribal innocence against the Age of LVMH and Starbucks continues today in the context of global consumerism. Similar contrasts are evident in mental snapshots: native South African women wearing Aeropostale t-shirts carrying oversized loads on their heads. The Russian army lining up in formation in Red Square for the 90th Anniversary of the Russian Revolution, in front of a block-long Rolex billboard. Shopping at the Albert & Victoria Mall in Cape Town, just a few minutes from widespread slums in the Cape Town Flats–and the highest murder rate in the world.

    Globalization is not new. The Mongols and Chinese spread trade from Vietnam to England in the 13th century. The Portuguese, Dutch and English followed suit centuries ago. What is new is the speed to market and the ubiquity of primary brands. Even mundane staples like potato chips, yogurt, pizza, blue jeans promote cultural context and connectivity, even as they breed an overall sameness. The more we come together, the more we become the same.

    We are trained as consumers to anticipate new things. When the new does not come from existing brands, we become disappointed and move on. As consumers, we are addicted to the stim of the new, the dopamine drip that stimulates and satisfies us.

    What we seek, traveling to new places, is thrill refreshment. As frustrating as it is to find Coke, McDonald’s, Levi’s and Starbucks wherever you go (there is even a Sbarro just a few blocks from Red Square), they exist because of the most fundamental marketing truth of all: we enjoy them, and we trust them. When we put down our money, we know what we are getting. And, globalized or not, that’s as true in Chicago as it is in Beijing.

    The appreciable point of global consumerism is that distance does not always mean difference. Because we can find the same products on the shelves even after flying 18 hours, perhaps it’s time to appreciate the experience that we experience.

    If we cannot be stimulated by new things to stimulate our dopamine drip, we must rely on existing brands to continually excite and titillate us.

    Predictably, what becomes rare and remarkable is the unfamiliar. In Bogota, I tasted fruit (still unidentified) I had never seen before. We brought back microwavable pappadums from South Africa. Le Petit Ferme chardonnay from a Franshhoek winery founded in the 17th century. Some things are not transportable. The smell of Africa. The smell of Mumbai in the morning. Moscow has some of the best bread on the planet, incredible fish, and an unimaginably tasty crab dish unanimously agreed worth flying 10 hours for. A small South African soap store called Rain that could become the next Body Shop. A bookstore in Cape Town that had its own unique charm, in a world curiously without Barnes & Noble booksellers. And back in the homeland, on a street corner in Seattle, a wonderful gift shop named Watson Kennedy.

    Thirty years ago, a picture appeared in the German magazine Stern. In the photograph, a naked New Guinea woman leans against the shining aluminum of a jet airplane, a visual culture collision. She smiles into the camera lens, blithely unaware of DKNY, the potential sociological consequences that might come if we really can’t buy fake “Made in China” Kate Spade, Gucci, or Chanel purses, or the differences between this year’s Jimmy Choo bag and last year’s.

    Perhaps ignorance really is bliss.


  5. The Social Media Equation: Randomness+Dispersion+Speed=Contagion

    It’s no secret that media has turned social. The Internet’s merry band of strangers have created their own encyclopedia, their own products, their own language, their own movements, their own voice. Individuals are creating their own books, photographs, music, video, film, and movements. It’s all out there to be spotted, heard, blogged, chatted, and tweeted. It falls around us like rain, as we splash together in the wet zone of social media.

    As we have witnessed from the clouds now covering the digital storm, all this activity can be puffed up and cumulated like Facebook, Twitter and Google, or run high and thin on the hundreds of thousands of blogs posted everywhere.

    The lines between traditional and social media have been drawn.

    Traditional media is a hierarchy of branded publishers, producers, editors and other curators who have given themselves the authority to shout. Social media is shared on Facebook walls, and whispered in millions of txts, tweets, and conversations by random personalities all over the globe. Citizens. Influence is not traditional top-down hierarchies, it’s side to side, it’s back and forth, and it’s upside down.

    Such civic complicity is not necessarily new. Our sharing pool used to be the Monday morning water cooler. The advocacy magazine Consumer Reports launched in the 1950s to provide objective advice that was effectively peer-to-peer.

    But today’s social media shift is more dramatic, more dispersed and the nanosecond magnitude of global sharing is unprecedented.

    Examples. Not only is three-letter acronym “LOL” ubiquitous in China, Moscow and Mill Valley, but social contagion also accounts for Lady Gaga becoming a worldwide celebrity in little more than two years (it’s no accident that Lady G also has the highest ranked Facebook page).

    What’s more, the fact that Lady Gaga’s community—and the other billion people online—are conversing with people they’ve never met in Singapore, Shanghai and Sao Paulo is transformational.

    Even though those conversations have only been possible for a few years, now it’s almost taken for granted. The dispersion of ideas, concepts and (sometimes) misinformation has never been greater, and the potential for even further conversations is exponential.

    What’s different about right now is that randomness, dispersion, and speed, not only seem routine. They spark globally contagious wildfire.

    Note how even after Egypt’s Mubarek promised to concede rule in favor of September elections, mobile citizens continued to gather and push in both virtual and physical realities, until Mubarek toppled.

    Within weeks, YouTube videos can go from a few thousand views to hundreds of thousands and then exponentially reach millions.

    To remind us just how connected the flat crowd is, LEGO enthusiasts who were once brand outsiders relegated to garages and basements, now have the inside track with over 700,000 LEGO citizen-generated videos posted on YouTube. It would take from now until 2015 to watch them all.

    Another reminder. We are no longer consumers, we are citizens.

    For citizens who are connected, the number one medical resource is not the traditional (read hierarchical) family physician, but each other.

    Sure, mothers go to WebMD.com, and Mayo Clinic.com, but they also go to parenting sites to research symptoms, diseases, as well as the potions, side effects and complications, prescribed for them.

    When Obama raised half a billion dollars online through the social network (while Hilary Clinton prolonged her campaign using her own checkbook), it was the statement of social net worth that declared which candidate was truly of and by the people.

    Disregarding the citizen chit chat (e.g. “I’m at the airport headed for LALA”), Twitter, Facebook and YouTube have played important roles, reminding us that while all politics is local, it’s also global. The contagion that forced out authoritarian leaders in the Arab world happened under the communal lens of the entire world.

    What is perhaps most interesting, is how the social media equation has dulled our communal citizen’s sense of wonder.

    The swirl of nonstop streaming info and twitterific sound bytes is mind splattering. Tunisia and Egypt toppled only a month ago and while the fact that the contagion is spreading and hierarchies are toppling like dominos is in fact revolutionary, the communal sense is that it’s already mainstream.

    Time for another tweet.

    Where does it all end? No one can say for sure. What does it all lead to? No one can say for sure. But being flat as it is, with nothing standing in its way, such social contagion is the great flood. And whether you swim along or build a boat, we’re all in it together.


  6. Three Part Series: Branding and Business in China

    Jonathan Littman, the co-author of the Art of Innovation, Thinktopia® collaborator and founder of Snowball Narrative, just returned from a business trip to Hong Kong and China. He’s written a series of stories on branding in China, the role of superstition and the controversial subject of brand counterfeits.  He did not write about being offered a plate of grilled pigeon heads.

    Part I: Chinese Branding Secrets

    The past week I’ve enjoyed a rare window into Asian culture and thinking. I hopped a Saturday night flight on Singapore Airlines from San Francisco and fifteen hours later—on Monday morning—my host’s driver picked me up at the sparkling Hong Kong airport.

    Hong Kong assaults you with its verticality. Office towers and skinny concrete apartment spires sprout skyward like jungle bamboo.  Zoning, planning and architecture are an afterthought, other than the landmark buildings like I.M Pei’s ingeniously geometric Bank of China Tower. Interestingly, Pei wrote that he was attacked by the local Feng Shui “police” for his building’s “sharp corners (which would) bring bad luck to one’s neighbors.” But the irony is that while Feng Shui may ward off the evil spirits it appears to do little for urban aesthetics. Laundry haphazardly hangs from windows hundreds of feet in the air, generating the overwhelming sense that function has beaten beauty.

    Yet Hong Kong is an astonishing social accomplishment. In a week I will see but one beggar here, whereas on any given day in Mill Valley, California, I’ll encounter several panhandlers. Though the tiniest studio apartment in Hong Kong costs a million dollars, the tightly woven social fabric of parents, aunts and uncles routinely pitch in more than half a million in starter cash to insure young professionals gain a toehold. Even the poor are provided for in public housing.  Employment is virtually universal, as I experienced first hand one afternoon when I dropped the wrapper from my tasty pork bun. Before I could pick it up, I watched it deftly swept up by one of the ubiquitous street sweepers. While the city may not look beautiful in the same way as San Francisco or Paris, natives enjoy other privileges. The government of Hong Kong regulates what in practice is nearly indentured servitude. Young women plucked from the desperate Philippines slave away as live-in servants for families six days a week for a government mandated $640 dollars a month—that’s less than $27 a day. These “Amahs” shop, cook and clean, providing the ultimate in luxury, a live-in servant. Something you’d rarely find in the U.S.

    Hong Kong is an ongoing social experiment in space and a strict social contract. Down in the gleaming super-efficient MTR subway, order and politeness rule. Men and women cue up neatly between yellow lines for the trains. There’s none of the rough pushing and jostling you’ll find on the mainland (Hong Kong natives consider most mainland Chinese rude and ill-mannered). Young men freely give up their seats to the elderly. As for the blue hospital masks you see on locals and especially food handlers, no one is immune. Public pressure, and the constant threat of another bird flu scourge, makes them essential. The smallest sneeze or cough requires that you don one, or risk being attacked with brutal glares.

    Brands here live in this cross section, a city of mannered, orderly citizens capitalizing on a bustling economy despite being crammed into impossibly small spaces. My host’s driver delivered me to my room in what locals consider Hong Kong’s Upper East Side—the Happy Valley district. The garage is filled with BMW’s, Audi’s and a couple of Porsches. My apartment for the week is a clean and unremarkable one bedroom valued at three million U.S. dollars—ten times what it would fetch in a top U.S. city. (Price, in other words, is relative) Next door the tiger mom relentlessly pushes her son through his daily piano lessons, and out my window is a view of laundry and concrete soiled with years of humidity and grime.

    “Joy is BMW,” is a tagline you see all over Hong Kong. I know what I see out my window and on the streets. But what does a native see? What does a BMW or an elite brand mean when your daily physical reality is largely devoid of design and beauty?

    The answer, my Hong Kong friends tell me, is that they don’t see what I see. Just as I see Manhattan as bustling and vital, to a native’s eyes Hong Kong is an Asian symbol of success. Unemployment here hovers around 4 percent. Opportunities for professional advancement here and abroad are excellent.  Hong Kong may ostensibly be part of China but in practice it is largely free of the censorship and rigid authority of the communist party.

    Luxury brands, especially those that can be seen or carried, are all the rage here. Chic Canton Road, home to many of the world’s most elite brands, is nearly always packed with shoppers happy to drop thousands of U.S. dollars for a purse, shoulder bag or tote—as long as it’s the genuine article from Hermes, Mulberry, Louis Vuitton or Prada. Conventional wisdom once dictated that top-end consumers dominated these upscale purchases: China is home to more than 900,000 millionaires.  But this past week AFP reported “The market is now being driven by China’s burgeoning middle class, with the truly rich going ever further up-market—happily spending tens of thousands of dollars on the right bag.” Handbag sales for Prada grew by over 80 percent in China in 2010, Sebastian Suhl, chief operating officer at the Prada Group told AFP, while those of the group’s Miu Miu brand rocketed by over 500 percent. China is expected to become to the world’s largest luxury goods market in nine years, according to the brokerage firm CLSA Asia-Pacific Markets, accounting for 44 percent of worldwide sales.

    What makes this market explosion even more extraordinary is that 45 minutes away in Shenzhen, China, knock offs of thousand dollar bags can be had for $15 to $80,  depending on your haggling skills. The new contrarian thinking is that those rip-offs have been good for major international brands, whetting the appetite for the real McCoy.  The Asian love of the luxury bag has become “a cultural fact,” blogs Christina Ko, at HK Fashion Geek. “In the same way that Asians prefer rice to potatoes, they also prefer luxury handbags to non-branded ones.” And carrying a fake bag to many Asian women is no longer worth the risk of being exposed as a phony.

    With branded luxury bags going stratospheric in Hong Kong, I wonder what will happen with brands that can’t ride the wave of  human billboards. Hong Kong natives rarely entertain at home for business or even friends. It’s partly cultural quirk, and partly about space. The elite join outrageously expensive clubs designed to exclude the public and to entertain other elites. Young professionals aspire to move up the ladder of miniscule (though expensive) apartments simply too small to entertain.

    That makes for two kinds of brands. Those you drive in or wear—the visible, luxury brands—and those that live in isolation behind the doors of seldom seen homes and apartments. The visible brand must shout that you are more than just another anonymous cog in Hong Kong’s throbbing mass of humanity—in the teeming subways, crowded restaurants and jam-packed streets. That’s a big part of why middle class women here are willing to save and then splurge thousands of dollars on a luxury bag.

    The homebound brand raises another question. How do you launch a brand no one else is likely to see? What does it take to win the heart and mind of a Chinese consumer in a product she may never get a chance to show off to friends or associates?

    Whoever unlocks that secret may win the biggest prize of all.

    Jon@snowballnarrative.com


  7. File this as “Book Vase”

    Books may in fact be a dying breed. Over the last few days we have seen old book covers re-engineered into journal covers, book spines replete with gold embossed titles as wine rack and and now the reconstituted book vase. Poor Gutenberg.


  8. The Path To Enchantment: Success in The Age of Twitter, reviewed by Jonathan Littman, co-author of Ten Faces of Innovation.


    Read Guy Kawasaki’s new book. Now.

    This is a man who breathes buzz. Others talk about how to create product lust, marketing momentum, and runaway sales.  Kawasaki is the original Apple evangelist, and in his latest book, he’s compressed a quarter century of wisdom.

    When Kawasaki’s publisher first sent me Enchantment, The Art of Changing Hearts, Minds and Actions, a month ago I knew it would be a bestseller. The title, so important with any product or offering, is spot on. Kawasaki has hit on a captivating word—Enchantment—that elevates what we’d all like to be doing on our good days, enchanting customers, colleagues and partners, and, yes, inspiring ourselves to a level higher than we imagined possible.

    Why did I know Enchantment would be a bestseller? Because the cover is drop dead gorgeous. And because Kawasaki understands that books—like many products or new offerings—live or die based on building an early wave of fans. I wrote this review the day before this title was released on March 8, 2011. By then Enchantment was already ranked #77 on Amazon, and climbing. That’s extraordinary for a book you can’t even buy yet. The reason: Guy knows how to enchant a lot of people.

    Enchantment is proof positive of Kawasaki’s method—a cheerleading, social-media fueled blend of product creation and enthusiasm that is ultimately about the art of persuasion. No less than Sir Richard Branson of Virgin has given Kawasaki a blurb, and the advance reviews and articles seem likely to snowball into the kind of buzz that becomes self-perpetuating.

    This is Dale Carnegie’s How to Win Friends and Influence People for the twitter generation, from how to smile, Facebook, tweet, craft a message, and most of all earn the trust necessary for achieving lasting enchantment.

    But first my own disclosure: I am one of the many who was long ago drawn within Kawasaki’s enchantment circle. While promoting one of my recent books, I found that if Kawasaki liked an article that I wrote related to my book, he’d tweet it and suddenly thousands of people would be drawn to my author’s website and potentially my book. That’s gold for an author, and I quickly learned his tastes and interests. Kawasaki knows how to wield this power. With more than 305,000 followers on Twitter he can create his own little tsunamis.

    By the way, I am fulfilling one of Guy’s Enchantment Rules, found in Chapter 3, How to Achieve Trustworthiness. Conflicts are not conflicts if you’re honest up front. Guy advises to come clean early, “Most People won’t care that you are an interested or conflicted party as long as you disclose the relationship,” he writes. “Also if you’re trying to enchant people because you love a cause, disclosure is good marketing. It means you believe in the cause so much that you have chosen to work for it.”

    Kawasaki is no ordinary marketing messiah. One of the original evangelists for the Macintosh, he cut his teeth as a marketer back in the day when Apple’s success was anything but certain. IBM dominated the market, and Steve Jobs and his maverick computers were not considered hardy or practical enough for the Fortune 500.

    That’s hard to imagine today, as Apple takes over the world, and IBM and Microsoft struggle to play catch-up. And that’s why Kawasaki is the ideal mentor for a new generation. He’s old enough to know what it takes to overcome the naysayers, yet has managed to stay youthful and relevant.

    Enchantment is about how to succeed on a personal and product level. You’ll learn how to “Push” and “Pull”, technically, of course. Kawasaki is a master of social media, and how to use his influence to build his buzz. He knows how to inspire interns and countless others to join his cause. Indeed, each chapter ends with an individual’s personal story of enchantment set off in a box with a photo.

    Many of his truisms are classic, such as “Make it Short, Simple and Swallowable.” As someone who does corporate branding I enjoyed a section on how people respond to words, rhymes and the importance of a good brand name. Sprinkled within the narrative you will find stories of how Virgin, Zappos, and yes Apple got ahead by being good—taking the enlightened path of trustworthiness and a good cause to market success.

    Enchantment is really about how to enchant you, how to create something far more authentic and enduring than a personal brand. If some readers wonder why there aren’t more tales of knock your socks off, enchanting brands, I’ve got news for you.

    Kawasaki is no fool. My hunch is that Enchantment The Sequel may focus on the end result. On the enchantment blog he launched to help create his new book, I found this intriguing note: “I would like to include a few personal stories of enchantment in my next book. I am looking for examples of how people, products, services, organizations, ideas, or causes (sic) swept you off your feet.”

    Time is a wasting. Kawasaki wants it under 200 words. My advice is to start writing now. Who knows? Get your act together, and you just might find that you—and your company—will ride the Enchantment wave.

    jon@snowballnarrative.com


  9. Designer Marc Newson launches boat

    A bit of old but beautiful news. Riva brand yachts launched Aquariva by Marc Newson a limited edition of 22 sublime vessels, available worldwide through Gagosian Gallery. Established in 1842, Riva is one of the oldest and most celebrated boat builders in the world.


  10. The mythic Charlie Sheen: Freakin’ rock star or cosmic flameout?

    Full disclosure. I think Charlie Sheen’s last good acting performance was as Chris in Oliver Stone’s 1986 movie Platoon. I have never been able to watch Two And A Half Men from start to finish. I don’t know what Denise Richards was thinking, and it’s none of my business.

    Nevertheless, Charlie Sheen’s coming out on national media has a brazenly self-destructive flavor to it that puts Lindsay Lohan, Britney Spears, Michael Jackson, and Tiger Woods to shame.

    Pushing his role as entertainer to its rawest edge, Sheen’s quotes (as we all know) have been quoted and requoted by kittens, baby sloths, have spawned dozens of new web sites, and given the coffee mug/t-shirt specialty business a magic boost.

    At best, the whole Sheen thing has been a distraction from the union-busting going on down at the  Wisconsin capitol, and the videostream of democratic uprisings in the Arab world. At worst, it’s a display of the further dumbnification going on in American pop culture. We can’t name the first three Presidents of the United States, but we know the Kardashian sisters and “I’m an F-18, bro,” all too well.

    If we can set aside comments like, “I’m tired of pretending like I’m not special. I’m tired of pretending like I’m not bitchin’, a total freakin’ rock star from Mars,” we can look at this cosmic meltdown as an archetypal Hero’s journey.

    Set loose from his King father Martin Sheen, Prince Charlie set out on a voyage through a forest of movies and TV shows, and is currently on his mythic crawl through the underworld. It is a place where dragons and monsters and furry horned (or horny) creatures live.

    Whether Sheen comes out the other end carrying a flaming torch or—more importantly—whether or not his viewers will still carry a torch for him, we’ll just have to stay tuned.