Sunday, March 16, 2008

We have moved….

As our readers in mainland China have been experiencing problems accessing Off The Record, AC Capital has completely redesigned the blog and moved it to www.accapital-blogs.com.
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Monday, March 19, 2007

Terminally Wireless in China



This correspondent still finds it mind-boggling that many airports in
China do not provide wi-fi Internet access.  It is particularly mystifying that some airports in key commercial centres such Guangzhou do not provide wireless access.  Guangzhou’s brand-spanking new Baiyun Airport provides it in Terminal B but not Terminal A.  Your correspondent would like to know the rationale for providing one terminal with wi-fi access but not the other.

Even more astonishing is that many first and business class lounges, including in key commercial centres like Shanghai and Guangzhou’s Terminal A, still do not provide free and easy wireless Internet access.  Come on Chinese airlines – get your act together.  The additional cost of providing free and easy wireless access to your premium-end passengers would be marginal compared to the benefits of developing brand loyalty amongst the jet-setter class.  So let’s name names.  China Eastern – you suck in Shanghai.  The only wireless Internet access in the First Class lounge is via the hit-and-miss CNC.  Give us wi-fi now!
 

Readers, please tell us which airlines and airports are driving you terminal.

Posted by AC Capital Strategic Public Relations at 02:21:31 | Permalink | Comments (1) »

Monday, January 29, 2007

Pigs Won’t Bring Home The Bacon In Their Golden Year


China Central Television (CCTV) is reported to have banned TV advertisements featuring pigs from next month.  Although next month kicks off the Year of the Pig, Chinese authorities are apparently concerned about the possibility of advertisements and other imagery involving the pig offending the country’s 20 million Muslims.

 

While the majority ethnic Han Chinese revere the pig and consider it a symbol of prosperity, Muslims, comprised of several of China’s ethnic minority populations, abhor pigs as unclean animals and avoid eating pork meat.


The decision by CCTV has forced a number of foreign companies to cancel planned TV advertisements, some of which had completed production already and were due to commence airing next month.  The Year of the Pig commences on 18 February.

For Han Chinese 2007 will be the Year of the Golden Pig, which only occurs every 60 years.  This is considered especially propitious and many Chinese couples deferred having a child during 2006 so that their baby will be born in the special year.

Now that
China has decided to be more mindful of its multiculturalism, foreign companies will need to plan their PR and advertising campaigns more carefully, taking into account the sensitivities of the nation’s 56 ethnic minorities and numerous religions.

 

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Friday, January 5, 2007

‘Hey big spender, spend a little time with me’ - luxury brands hurting for attention in the world’s hottest economy

According to an article carried by Bloomberg and reported in The Seattle Times, many luxury brands are facing difficulties in the
China market despite double-digit economic growth.  The article puts the phenomenon down to the large number of high-end brands “chasing the nation’s limited pool of big spenders.”  It says that has “made profits elusive for most.”


The article quotes a Boston Consulting Group manager saying that only about one in 10 luxury brands are “profitable in China.”  Among the reasons quoted by the article for the poor performance of most luxury brands in China is that the government’s estimates of the size of China’s middle class have been inflated by two to three times.  As well, import duties mean that many luxury brands are 35 per cent more costly in China than in other markets.  Most importantly, status conscious Chinese only want to buy the top brands in each category, leaving second and third ranked brands on the shelves.  Finally, China’s dismantling of its cradle-to-grave welfare system is pushing savings rates up in the nation as people ponder an uncertain future.

The article did not mention the impact of the wide availability of counterfeited luxury brands in the market as a possible cause for low sales of genuine product.

 

The article quotes spokesmen from luxury brands who say they are in China for the long haul and that they “are willing to lose money as long as [they] can keep learning about the Chinese market.”  If only companies would afford their executives such luxuries in other markets.

 

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Sunday, December 24, 2006

Stop Complaining And Suck It Up, China Aviation Bosses Tell Passengers

According to a report in the China Daily of 23 December, passengers flying on Chinese airlines are being told to stop complaining by the nation’s civil aviation authority.

According to the report, the authorities blame poor education of passengers for the high number of complaints received each year.  Complaints cover high prices of food at airport eateries, tasteless in-flight food, lost and destroyed baggage, and poor service by aircraft cabin crew. 


The aviation authorities believe passengers would be more understanding if they acquired an appreciation of the complexities of flying hurtling metal cylinders through the air.  They say safety is the paramount consideration.


 

That makes me feel much better.  What the heck?  Destroy my baggage and be rude to me during the flight if that’s going to get me to my destination in one piece.

 

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Friday, December 22, 2006

Christmas With Chinese Characteristics?


It looks like Christmas is being shanghaied.  According to an article in the China Daily of 21 December, a local website is calling on young people of
Shanghai to rebel against Western traditions for celebrating the holiday and move to more traditional Chinese ways of celebrating it.  The article even quotes a number of young Shanghai-ren who say Christmas is not what they remember it to be from their youth.  What?  Bring back Red Guards to burn images of Santa, Prancer and Dancer?


 
According to the article, the website is calling on locals to meet at the city’s Fuxing Park to celebrate Christmas in a traditionally Chinese way.  The Chinese celebrations will include playing badminton, rubber-band dancing, hopscotch and roller-skating.  Locals are also being encouraged to wear traditional Chinese padded clothing to stay warm – there’s even a prize for the person who wears the most clothing.

 While it might all seem a little bit odd to foreigners, there’s nothing wrong with trying to localize the festival in some way.  Indeed, Christmas has always subsumed local customs.  For example, climatic conditions in Australia meant sleigh-rides and building snowmen had to be replaced by BBQ’s and cricket on the beach.

 

But why the need to take such a Bolshevik approach to the whole concept of Christmas?  A clue is provided by one of the Shanghai-ren interviewed by the China Daily.  A Ms. Xu Qian told the paper she was tired of how commercialized Christmas had become and wants to find something different.

 

Hear, hear to that.  We fully support a more Chinese Christmas and, hopefully, one that finds the true meaning of this festival.  Something worth reflecting on as you walk through China’s shopping malls this festive season listening to “Hark the Herald Angels Sing” and “Silent Night” playing in the background.

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Thursday, December 21, 2006

China’s “Paragon Mistress” Jailed For Six Years


 
A Chinese court has sentenced a woman who had been hailed in Chinese chat rooms and blogs as a “paragon mistress” to six years imprisonment for arranging the escape of her lover who was being held as a suspect for corruption.

 The 27 year old Liu Qian had orchestrated the escape of a former director of a state-owned construction company Yao Chuanrui. The escape involved 16 others, including one of
Yao’s guards who had been promised an apartment by the couple. 

 The couple had apparently been together for eight years and had a child.  According to chat rooms she was a model mistress because of her loyalty to sugar daddy Yao.

 

Yao is still awaiting trial for embezzlement of more than RMB70 million of company funds.  It may be some time before the couple see each other again.

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Wednesday, December 20, 2006

Are Golden Week Holidays Impoverishing China?



China’s State Council, the executive arm of the government, has just announced that the country’s so-called “Golden Week” holidays which close down the nation for seven days three times a year will be continued in 2007.    The announcement was posted on the website of the National Tourism Administration according to a report of the English-language China Daily.


However, the holidays which occur at Chinese New Year (a moving feast due to the lunar calendar), Labour Day (1 May) and National Day (1 October), have been controversial since their introduction in 1999, particularly amongst foreign businesses operating in China.

The concept was inspired by economic thinking that expats in the country quickly dubbed vactionomics.  The idea was that the three week-long holidays would encourage Chinese to take time off, travel and spend more of their hard-earned money.  To a large extent that has indeed been the case as air tickets and accommodation generally become scarce during Golden Week periods and most retail outlets and restaurants report spikes in consumer spending.

On the downside, many Chinese complain about over-crowded tourist sites and poor service during Golden Week periods.  To be sure, Golden Week holiday time is not the time to climb the Great Wall or see the Forbidden City.  And many restaurants are short on good quality staff as they have to hire temporary waiters and waitresses because their regular employees are holidaying somewhere else – and no doubt complaining about the poor quality service where they happen to be.

Those Chinese who can afford it plan their overseas holidays to coincide with a Golden Week holiday.  And herein lays the rub.  Those able to really drive economic growth by spending more are probably doing so in the US, Australia or Europe.  Vacationomics is starting to prove more of a boon to overseas markets than for China for which it was intended.

 

And there’s another issue.  Vactionomics slows productivity.  Imagine a whole country shut down for a seven-day long period.  Seven days in which not a single widget is made.  Seven days in which not a single bank is open for business. Seven days that your accountant and lawyer and everyone else you need to get things done is unavailable.  It’s not slow productivity.  It’s not even low productivity.  It is no productivity.

The Chinese Government is aware of this and has taken steps to address it by having everyone in the nation work during the weekend prior to the holidays and/or following the holidays.  That means the nation’s entire workforce ends up working seven to nine days straight in order to get their Golden Week holiday.  Imagine how tired people are at the end of that period without rest.  Imagine how hard it is to do business with the rest of the world because they don’t work the weekends before or after a Golden Week.

The truth is not much gets done in the week immediately prior to Golden Week because everyone is gearing up for their week off.  The only thing that really seems to get done in China during Golden Week is the booking of holidays and idle chat around the office in the lead up to the holidays.  And of course the week after the holiday is spent trying to get back into the swing of work again.

The situation is so bad that some companies, especially foreign companies and companies in the manufacturing sector, ignore the holidays.  They choose instead to keep working and pay the penalty of overtime rates to their employees.  They do so because the cost of paying overtime is still lower than the costs of lost productivity during Golden Week.

Mr. Hu, tear down the Golden Week holidays!

P.S. Off the Record blog will be unavailable during the Chinese New Year Golden Week Holiday as we sun ourselves in Phuket.

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Thursday, December 14, 2006

China Airlines Tell Passengers To Hold Bladders


“We’re at cruising altitude so please remain seated, fasten your seat belt, cross your legs and hold your bladder”.  That could well be the announcement on
China Southern flights henceforth.  The New York Stock Exchange listed airline company is on a cost-saving mission and is seeking to enlist the assistance of passengers who are being asked to refrain from visits to the bathroom during flights.

 Passengers are being asked to visit the bathroom prior to departure and the airline is only filling its water-tanks to 60 per cent to save on fuel costs.  According to a report by Xinhua, and subsequently carried by Reuters and other foreign media, the fuel consumption used in one flush of an aircraft’s toilet could run a small car for 10 kms. 

 Xinhua estimated the “aggregated” loss of Chinese airlines in the first half of the year at RMB3 billion.

 In response, Chinese airlines are also expected to cut back on the amount of blankets, newspapers and magazines carried on board flights as all increase weight to the aircraft resulting in higher fuel consumption. 

 

China’s new no frills airlines will offer less frills than in the past.  “Preaze to enjoy fright with us.”

 

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Monday, December 11, 2006

Nimble Fingers Nabbed In Act


The world’s dumbest pick pocket has been caught as a result of choosing the wrong venue in which to practice his craft.  BTV-7 reported that the
Beijing man who usually works the city’s various trade exhibitions and fairs was caught on camera picking numerous pockets and handbags at a security equipment fair.  One policeman commented that it was not an ideal venue to commit crimes given that the exhibition was filled with live security cameras.  Images of the man wandering through stalls and picking pockets were seen live by numerous participants at the exhibition, leading directly to his capture.

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