Nov 26, 2007

Odds & ends

Queuing up
The people in China have DEFINITELY changed (at least those in Beijing and other big cities). When I was first here 22 years ago I remembered that organized queues didn't exist, and that the generally mentality was "push or be pushed". From personal experiences of riding the bus with my Great Aunt & Uncle - I still vividly remember hot summer days on a crammed bus was at least a foot shorter than everyone else...(with no air conditioning), and trying to look up the entire ride to get some room to breath.

Less pushing and crowding does wonders for one's own sanity...Now, people wait in lines - which is fantastic - but there's still more progress to be made. Por ejemplo, people love to stand on the left side of escalators, and stand directly in front of the subway doors on the platform (even though there are explicit markings & arrows of where to stand), rush to get into the subway cars even when they are jam packed with a huge crowd of people getting off. True, you could make the argument that these behavioral quirks are no different than in the US when a driver cuts in front of you in the leftmost lane...only to drive 7o MPH...but here, these are the norms - not the exceptions!

Of course, there is still the rare situation where you MUST push - such as on the subway when both direction cars arrive at the same time at a transfer station. Mind your wallet/cell phone/iPod/purse & get your elbows ready. :)

Netflix...don't even think about it(?)
Back in the States, Netflix is probably the best convenience to come along since pizza delivery! What does an average movie cost from Netflix...about $8.99 for a basic 2 movie/month subscription?...with average costs falling depending on how frequently you return movies in a given month...

Um, yeah...better keep that business model out of China - where you can own 13 new DVD's for the same price as a one month membership to Netflix. If you can deal with a couple of typos on the packaging, and perhaps an origination other than English (I've seen Ratatouille here, and the copy had all the signs & menus in Russian; and another movie where we couldn't get rid of the Russian subtles)...who needs Netflix in China?

Actually, on a more serious note...such a company should probably abandon its traditional distribution system (home delivery) altogether and focus on content delivery/"on-demand" - something it is still toying around with in the U.S. With 5,000 some-odd titles available for online viewing, that hardly scratches the surface. China has over 162 million internet users, 2nd only to the United States in total # of users (at 210 million)...it will also be the largest market for broadband subscribers in 2007. Main questions/issues are: 1) Where do most people access the internet? (work vs. home)... 2) How would you collect payment? (Even Chinese online travel sites don't accept credit card payment - it's C.O.D.!!)

[For those of you who know me well (and those who hardly know me), the following section may come as no surprise...]

Lucifer likes lattes...
In Beijing, one can hardly go a few blocks without seeing a Starbucks...and it drives me nuts!! I foresee this fast-food chain becoming solely responsible for eventually breaking China's millennia-long pastime - tea. Wait, did I just say fast-food chain? Hmmm...maybe that's a bit harsh, but Starbucks is definitely a QSR (quick-service restaurant) so its not too far out of the question. First it offers breakfast sandwiches...what next, "Would you like some StarFries with that?" or "Would you like to make that a Starry Meal?"Ah, let the tirade begin...

Do you think that most people drink Starbucks because of:
  1. Image?...the perceived image of being seen sipping from a white cup with a green logo on the side of it? Well, how prestigious will it still be if this establishment, born out of Pike Place Market, has aspirations to someday have more locations than McDonalds (currently with 30,000+ worldwide)?
    • Did you know that there is (or soon to be WAS) a Starbucks inside the Forbidden City? That's disgusting. [Hey, why don't they just stick one in the Potala Palace in Tibet, or in the middle of Valley Forge National Park, or aboard the USS Constitution?]
  2. Taste? DYK that Consumer Reports rated Starbucks coffee behind that of McDonalds in 2007? Mmmmm...yummy, nothing better than sippin' on some burnt coffee beans! (I've been complaining about its over-roasted burnt beans for years!)
  3. CSR? Ah, for all you corporate social responsibility (CSR) fanatics you better sit down for this one...
    • According to its website, Starbucks has given $12 million to youth related causes over the last 10 years...that would be $1.2 million/year...and for 2007, total revenues = $7.7869 billion - so that only equals 0.015% of revenues. Thank you for your generosity :(
    • Fair Trade only constitutes about 5% of all Starbucks coffee. Hmmmm, is fair trade a genuine effort for the company or more of marketing move? The counter argument could be made that there isn't enough fair trade coffee in the world to meet 100% of Starbucks demand - but if this Goliath wanted it...more farmers would turn out to supply it.
      • Heck, if Wal-Mart is successful in selling 100 million energy-saving bulbs this year, 1 for each of its customers, than Starbucks should be able to throw its weight around given its market dominance.
So...the next time you queue up at Starbucks for a fresh cup of burnt beanz - don't be pushy!...just think about whether you should have gotten that shot of wake-up juice at the Golden Arches.

(And if you're curious about what I brew at home...I order Deans Beans online, which is 100% fair trade & organic. + costs about $7.50/lb.)

Nov 16, 2007

Long, long overdue

Alas, despite my best intentions, it has been difficult to spend time with my family these days...let alone get to a posting. Finally, classes are starting to wind down, and I only have 2 exams (and some papers) due next week.

The girls arrived safely on Friday (2 weeks ago), and we were able to spend that first weekend together. Kyla got over jetlag (seemingly) overnight since she hardly slept during the 13.5 hour flight. Ella took 4-5 nights to get on track...and those first few nights for us were tough getting woken up at 3:00am - not knowing if that was all the sleep all of us were going to get.

In terms of the adjustment of being in Beijing with a toddler, well we're still trying to get the hang of it. The subway is NOT stroller friendly; taxi rides are REALLY exciting for the little one since she has been constrained by a car seat her entire life until she came to China; Ella has to sit in one of our laps for most meals, locals (especially older women) tell you that your child needs to be wearing more clothes, etc.

As adults, we take for granted that we can adapt to new environments quickly, and we thrive off the adventure of being in a new place. But...what about for a toddler who is just learning how to communicate, and who has grown accustomed to the bucolic suburbs of Boston?

Consider this as an 18 month old: A 12 hour (now 13 w/ Daylight Savings) time difference, busy city life, and new sights/sounds...not to mention a more aggressive attempt by your parents to each speak a different language to you! Yeah...you'd probably be throwing a few tantrums and just sprawling out on the ground in protest at least once/day...(such as in this picture to the left...)

But in the end...she's a still a love. She understands a TON when you speak to her in either English or Chinese...and it's interesting to observe which language she defaults to for certain words ("thank you" has now become "xie xie"...although "bye bye" and "zai jian" are used interchangeably).

With my classes still in full swing, we needed to get some help here! Last week we hired an Ayi (or "auntie") to help take care of Ella a few afternoons during the week, plus help keep the apartment in good shape. Ayi is amazing!! Although she doesn't speak any English, she's incredibly patient and has a great demeanor...not to mention - all our Chinese is improving with Ayi around!

The 'hood
You know the criteria for real estate "location, location, location"? Well...our sublet apt is absolutely stellar. There's a great park just 2 blocks North (Ritan Park - photo to the left) that the girls like to go visit any day it's sunny (and above 50 degrees)! It's hard to distract Ella from the balloons - so far we've ended up with 2 at home. :) For the early birds, there is a large group of folks doing tai chi daily...

We're right on the subway line, so it's pretty convenient (and cheap) to get to places like Tiananmen Square & the Forbidden City, Wangfujing, etc... The only challenges are that the subways are not stroller friendly (or anything with wheels - like luggage) and we have to plan our outings around Ella's nap schedule. Classes, group projects, exams and commuting have limited my time at home - but we've managed to sneak in some great half-day adventures (like the Temple of Heaven earlier today - see pic on left).

Where we live, it's actually a challenge to get some good Chinese food! If you want Mexican, Sizzler, pizza, TGI Fridays, "Steak & Eggs", etc...all of that is a stone's throw away. Searching out hole-in-the-wall places is a (fun) challenge. One of the closest places to get such food lies just behind the soulless Silk Market.

Last week, we went off wondering for such a place and found ourselves a few blocks North of the embassy district (just northwest of Ritan Park) First we passed "Moscow Restaurant" and thought it was just a random place for a Russian establishment... The 3 of us kept wandering and ended up in another country - or at least it felt like it! We stumbled upon Beijing's Little Russia...where all the signs are in Russian, there's an enormous wholesale fur (or faux fur) market, and every caucasian you see has distinct Russian/eastern block features. Moreover, all of the Chinese street peddlers where asking Kyla questions in Russian ("Blah blah blah...phone card?"). Fascinating!

Shopping
Aside from groceries, the only things we've bought are WARM clothes for Ella. The mercury has dropped drastically from when they first arrived - and someone today told me that this week recorded temperature lows not seen in 20 years. With Ella at home with Ayi, we went to the Silk Market earlier this week...and the place was a ghost town (in a good way). Sellers were just hanging out and chatting with one another, and joking around - which I haven't ever seen there.

In and out in an hour (b/c I had to go to class), we got some really warm outer clothes for the little one. We bargained hard enough that by the time we sealed the deal, the 2 ladies from that stall were arguing with one another. Piss piss. We thought the drama might have been an act - but when I checked with Ayi about the prices we paid, she said we got good prices (especially since the Silk Market has the highest rents for vendors...and they are among the best-trained hagglers around). That place always gets me down. Too cramped (even without the big crowds), overly aggressive sellers, and bad lighting...arggggghhhh!

Last week we were walking towards Tiananmen from home, and outside the Forbidden City we found a gem of an outside market - where there were only locals, with some amazing (no bargain) prices. We passed on getting some long underwear - but we HAVE to go back to this "forbidden market" b/c the quality was great, prices were close to rock-bottom, and most importantly...b/c our legs are freezing!!! This place is so UNDISCOVERED that I hesitate to put it's coordinates into this posting...somethings are best left a secret.

Nov 1, 2007

Out of the black hole...

As we are all aware, China's economy is really advancing at a break-neck pace. However, I think the ultimate limitation on its growth and progress may be inefficient processes and bureaucracy. Let me provide you with an example...

Do you know how your mind deliberately forgets small details that aren't worth remembering (or that you REALLY don't want to remember)...well, mine discarded any recollection of the bureaucracy involved when I had to move into the dormitory nearly 2 months ago.

Checking out of the dorm this morning, I thought it would maybe take 30-4o minutes. Nope... I was staying in bldg 21, and after having the attendant look over the condition of my empty room (and her supervisor too), I then went to building 19 to return my key and get my deposit returned... Before getting my deposit back, I needed to go to bldg 22 and get an ink stamp on a form (recording that I was moving off-campus). That office didn't open until 1:00pm so I just waited around for 20 minutes. After receiving the stamp on my form, I returned to bldg 19 to give that form to them in exchange for my refunded room deposit. From there, back to bldg 21 where I had left my suitcases and belongings. In summary, 21 --> 19 --> 22 --> 19 --> 21. WHY can't the offices in 19 & 22 be located in the same bldg?

Once out of the dorm, I was able to escape the "black hole" and take a taxi to the new apartment. What is this black hole?... Its the area just southeast of Tsinghua called Wudaokou. Since there are a lot of universities (and foreign language schools) in the area, there is a vast array of coffee houses, restaurants, shops. Actually, some jokingly refer to it as "K-town" because there are so many korean restaurants/shops/signs/etc. Its a fun-enough area, but a cultural void because its very easy NOT to go anywhere else around Beijing (aside from night life). Sitting in the apartment downtown earlier this afternoon, I had this bizarre sense of liberation at this moment.

The heat is on...
Although the government regulates when the heat comes on - which is typically November 15th, Tsinghua flexes some of its alumni muscle to have the heat come on November 1st (which was this morning). The last week has been REALLY cold in my room at night, and ironically the day I move out is the day the heat comes on.

In case you think I am just exaggerating - my classroom yesterday morning was so cold that the professor was wearing her coat during class, some students had hats and gloves on, and you could almost see your breathe. Why do people just leave the door to buildings wide-open when it's 38 degrees outside and the heat isn't turned on yet? (This is one of China's magical unsolved mysteries...)

Power hitters
With all the business leaders on Tsinghua SEM's Board of Advisors, what do you do when most of them are in Beijing for their annual meeting? Host a global forum on business issues (the inaugural event).

There was very little advanced notice about the event - 26 hours, to be exact - at least to the international students (incl. exchange students). [In all fairness, the word has been out about the forum on Chinese media websites as early as Oct 18th, but we didn't get the heads-up until the day prior to the event.]

On short notice, without knowing what the forum was about, or who was going to be a speaker, or what the topics were going to be discussed...I signed up. The panels featured speakers incl. CEO/Chairman from Walmart, BP, Vodafone, Blackstone, Sony, etc. Of particular note, there was a panel on globalization for Chinese companies. What will Chinese companies compete on when low costs (particularly labor) continue to rise over time? Being the world's hub of manufacturing is not the nation's true aspiration...

How can Chinese companies bring forth more innovation?...How long before Western companies try to emulate market moves made by Chinese firms? Actually, the (chinese) company for my group's operation strategy project has exactly that vision. Boloni has over 50% of the premium market for home furnishings in China. Its key strategy for differentiation is design (high quality), although much of that style is heavily influenced by European designs and fashion. However, for the market in China...they are the market leader. Going forward, Boloni aims to export not only its products, but also its designs which other (Western-based) firms incorporate into their products. Anyway, Beom (from Babson) and I are privileged to have a tour of Boloni's factory tomorrow afternoon... we're definitely looking forward to it!

Airborne Chicken
Speaking of tomorrow (Friday), I can't wait to head to the airport tomorrow evening!! Ella's sprouted another 2.5 inches (6.4 cm) since I last saw her, and she is talking A LOT now; she's picking up new words by the hour! I heard her latest words are "cool" (thanks Aunt Jess), "airplane", and "cho-co (late)".

For Halloween yesterday, Ella was selectively picking through people's candy baskets for the shiny gold wrappers, sharing her trick-or-treat goodies with new doorsteps, and also walking into people's homes to explore... I don't know if China is prepared for who's arriving tomorrow. :)