"You've Got to Fan It" || Impromptu lessons in product communication

Firms often employee hoards of marketing research specialists, strategists, and intuitives as they attempt to settle upon how the famous ‘5 Ps‘ relate to their product/service.  These departments sometimes Ivory-Tower themselves from the rest of the firm, unfortunately, given their work is deemed so elite and central to how customers connect with their product.  The basics of this marketing work is not to be missed or skipped by small firms, a notion not missed by the latest of street vendors I’ve frequented in Shenzhen, China.

Simple meals are not difficult to source in China as their is an abundance of street vending entrepreneurs and all serve equitable foods at similar prices.  The simplest of shops must not serve more than $20/day in my guess, making these operations the smallest of personal businesses.  However, each owner has learned how to fan their product to a hungry customer-base. 

Shop infrastructure amounts to a light bulb, burners, pots/pans, and wooden chairs for those dining-in.  They have also reserved part of their operating budget for powering a jet-like fan tightly connected to their cooking wok, which blasts the gorgeous aromas of their product sky-high into the ambiance of all who pass by.  In mastering this simple trick, they've conquered one of the most underdeveloped abilities of micro/small businesses; understanding, finding, and communicating their product’s qualities to worthy customers.  Both small and large business leaders cannot stray from the basics of “fanning” their products. 

a final dash of Salt…

Lightning Hopkins wrote about fanning-it in his 1961 track titled "Fan It (though possibly about another topic).   Though unrelated, it's clear Hopkins and countless Sino-business owners understand it.  I say this as a reminder to MNCs to not stray from the basics of product communication amongst their multi-million dollar marketing campaigns.

Mj

"Red Dragon Disposable Income"

I open Grain-of-Salt (GoR) with a post from the far East as I am currently spending time for business and leisure in China.  It only seems relevent to comment on my current location and what is the "hottest spot" in the world right now by measure of cultural and economic happenings.

Zhonghua, Middle Kingdom, or the People's Republic of China has been awake from its cultural slumber for close to 40 years now, but it is now abundantly clear the 1.39 Billion people residing within are ready to consume as the West has for so long.  The austerity of the past has given way to endless concrete jungles and legions of roving laborers all making up a new country that is in no way your grandfather's China.  As it is now 2011 (the year of the Rabbit), development in China has been in high-gear since Mao's death in 1976.  U.S. firms have been here for some time exploring the nuances of the country, which there are many, but it is only in the past 10 years that the Chinese have slowly begun to embrace their purchasing power.  This is most notable from the countless white papers, government reports, and corporate fortune-tellings prepared by monitoring bodies and MNCs as they all predict that China will be the biggest luxury goods market be decade's end or earlier.

A notoriously high savings rate and a cultural inhibition towards displaying wealth has been righted and begun to align with the glamourous, brand-loving lifestyles of many Western consumers.  "Showing-off" is now the norm in anyway possible and foreign brands of all types are continuing to Joint-Venture their way in-country in order to satisfy the trend.  Walking around my current place of residence (ChongQing), my personal fashion and demeanour are quickly outdone by the Emergenildo Zegna, Chloe, Burberry, etc. wearing fashionistas around me.  These shopping habits are extended into every range of durable product, thus cars, art, property, and sport industries are also soaring.  Amongst the scurry to show-off are the impecable black and grey markets across the country, which with NASA-esque precision, are producing some of the best copy-cat products and services I've ever seen.  I believe the "iPad 2" is already floating around in some markets here (and Steve Jobs knows it) and it works!   French luxury goods powerhouse Louis Vuitton's past CEO was famously cavaleir about these happenings amongst his own products saying; "Copying is the most sincere form of flattery."  Even amongst all this "flattery," these brands are still seeing amazing margins and predict sequential growth for many years.  So is it possible for less well-known, SMEs from the U.S. to get in on the action without following the typical JV route?

I believe a progessive and forward thinking business owner/operator who manfuctures a unique product should shed the local market mindset and learn how they can become involved in global trade though even if they only operate a 250 employee organization.  As we know, SME's power most economies, but lack the mega resources often needed to connect with foreign markets.  SME leaders have many resources to begin this process that they rarely engage.  Approaching your state chamber of commerce is a sure way to begin building prospects and learning how to easily navigate the world of cross-border trade.  The internate-age has also spawned many respetable B2B and B2C sales platforms, which expedite the process further.  The point being, more can be done by local U.S. business owners/operators to connect their unique or special products with this unsatiable Chinese marketplace.  We've passed the days when only P&G, CocaCola, and General Electric could hack it in China.  Everybody and their brother has an import/export company over here!  Again, not your grandfather's China.  Heck, not even your older brother's China.

a final dash of Salt…

SME's need to get in on the game.  Claiming to operate your local business with a global mindset does not mean you can simply read the Financial Times and watch the action play out amongst bigger and better competitors.  Owner/operators producing novel products and even commodity products still have room to be part of the economic circus that is China and should make strident efforts to do so.

-Mj-