The Man who sold the World

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My initial purpose of starting SLC also included exploring MBA topics. Before I went on my Beijing vacation with family, my idea for a post on marketing was to dissect the upcoming Tata Nano as per the tenets of the brilliant book ” Blue Ocean Theory” and predict whether it will be a hit or a miss ( Yawn I know. But its coming) In Beijing, I came across 3 brilliant examples of sales/marketing- brilliant because they left us many Yuan short in our pocket AND left us smiling too.

Our first day in Beijing was wasted by our guide Yon. A visit to a silk factory & a Chinese Government owned tea shop were deemed more important than, say, the Great Wall. Obviously, the Great Wall doesn’t hand out commissions. We went along thinking we’ll take a look and walk out. Naive travellers.

In the “Silk Factory”, we were met by our guide, John, a Chinese 25-yr-old who spoke fluent cultured English. You have no idea how impressive that feels in Beijing where the average Joe ( or Chang ) on the street does not speak a word of it. Even rickshaw-wallah-talk of left, right, straight is lost on them. John gave us a tour of the silk making process starting with a silkworm cocoon, one of which was given to my “pretty & intelligent” 12 yr old sister ( Strike 1 : Parents so happy and proud ) Several steps and “silkworm poo” jokes later, the 8 of us stretched a fluffy ball of silk to the size of bed ( Strike 2 : gave the impression that the silk is indeed, genuine & handmade ). Last & the easiest, discounts were rolled out since we were “friends”. ( Strike 3. Ka-ching! ) No pressure to buy. He showed us the silk blankets/pillowcases/shirts & left us to make our own choice. We bought the whole lot. Why ? We didn’t know that the silk was even 100 % silk ( it rarely is ) I didn’t even know China was famous for silk! Yet the shop made a lot of money off us. And we were happy to give it. The ideal results of good sales work.

Next up was a Chinese tea outlet run by the Chinese Government. We were ushered into a cozy room with those Chinese-style short stools. In entered 2 pretty young girls dressed in cute pink traditional Chinese attire. They spoke English too. We were treated to different kinds of Chinese tea, shown how it is prepared & eventually consumed ( with a PHRRRR sound, the kind we find crude & impolite ) Then, they threw in the 2 golden words that are deal-sealers for most people- LOSE WEIGHT. This coupled with lowering of cholesterol, relieving of backaches and our parents were sold. Ka Ching ! We now have lychee tea & “pyor” tea on our shelves at home. Also on sale, were traditional tea sets, a Pee-Pee boy ( You pour hot water over him. If its the right temperature, he pees. Funny. Surely not traditional ) and even tea whose value increases every year & you can sell it back to the Government after years, theoretically, for a higher price ( kind of like wine, the tea matures. Or like me)

Chinese tea anyone?

Honqiao.Yash.Look at his shoes next time.

 

Saving the best for the last, Hongqiao Pearl Market. A 4 storied megastore that sells purely fake stuff- and branded too ! So u have Ipods ( with TV!! ) competing for space with Rolex watches, Nikon cameras, Adidas shoes, Billabong jackets, Liverpool jerseys, Oakley glasses and the PSP. Everything. The store is divided into many small shops with a cute Chinese girl in each- a calculator in hand. A typical exchange goes like this

Yuri : How much for the jacket ?

Salesgirl ( types on calculator ) : 1200 Y ( Y= Yuan= Rs.7 )

Yuri : WHAT ? Do I look stupid ? ( type 50 Y )

Salesgirl : Nooooo.. you look cute.. this jacket looks sooo gooood on uu ( 100 W smile & types 500 Y )

Yuri : I’m not American. I’m a poor poor Indian ( sad face & type 60 Y )

Salesgirl : HEHEHE.. You’re sooo funnyyyyyyyy ( types 200 Y )

Yuri : Ahem.. Did u say funny? I think so too !! ( smile, blush & type 90 Y )

Salesgirl : Ok, just because you’re my friend & you’re cute ( types 100 Y, holds hand, shy smile )

Yuri : Alright, 100 it is. So when you said I was funny, what exactly…

Salesgirl : So something for your girlfriend ???

Who wouldn’t you buy from her ? I loved the jacket ( fake Billabong ), I loved the “haggling”. I did my entire shopping for my Singapore-Beijing trip in 3 visits to Hongqiao. I kept going back each day ! So did so many Indians, Americans & Britishers who were enticed by the incredible bargains on offer there. I can truly say I’ve never had as much fun shopping as i did there. So what is the mantra behind these 3 different yet obviously very successful ventures-

1) They not only sold good ( or shit cheap ) products, they sold an experience. The silk fluff stretching, the tea-tasting, the bargaining all added to the perceived value of the product. It’s how u feel when u go to the salad bar in Pizza Hut. The salad you make is probably more expensive and less tasty than the default one on the menu. Yet its infinitely more fun and the sense of value is heightened because you participated in a fun process. Learning : Don’t just sell a product, sell an experience.

2) Your product may be very very good, but the quality of your salesperson has a direct bearing on your sales. All of the above examples had a salesperson that had taken the efforts to learn my language even if it might not be taught in their schools. The salespeople at the Tea Parlour and the Silk Market did not pressurise us into buying, but their personalities, their knowledge and their enthusiasm did it for them. The flirty style of the girls at Hongxiao did it for me. When I like a t-shirt in a shop, an overenthusiastic ( Should I pack it ? Where’s the money? ) or an underenthusiastic ( No size. You’re too fat ) quite regularly put me off buying. Too often when my family looks to purchase a car, we know more about the car’s specs than the salesperson. When the customer enters a showroom, he’s at the tipping point between reluctance to part with his money and enthusiasm towards purchasing and using the product. Its the salesperson who pushes him over the edge- on either side. Learning : Its pays to invest in a knowledgeable, presentable and perceptive sales staff.

3) The salespeople at the Silk Factory & the Tea Shop directed their efforts towards our parents. They knew that no way the kids are going to blow their cash on silk blankets and tea. After selling me the jacket, the salesgirl at Hongqiao immediately asked if I wanted something for my girlfriend. After catching me staring at a Manchester United jersey, the salesgirl immediately took out her collection of United caps, banners, mufflers, wrist bands. Looking at my Cybershot camera without a cover, the salesgirl sold me a cover and the scratchguard for the same. Learning : Know your target audience.

I know this post might have been a complete bore, but I do want to use SLC to look at the world from the eyes of a wannabe manager. I’m reading Kishore Biyani’s ( entrepreneur, started Pantaloons & Big Bazaar ) “It happened in India” of how he came up with the succesful Big Bazaar model when all the biggies were going in for uber-cool megamalls. His reading of the average Indian customer is quite brilliant- how very well designed shops with beautiful displays overawe the average Indian buyer ( hence the shabby appearance of BB ), the untapped wealth of buyers in inner cities such as Panipat, Vijaywada, and the need for the average Indian to have a bazaar-like atmosphere where he can touch and feel the vegetables, grains, etc on offer. He understands that the atmosphere or the experience of buying is almost as important as the product itself. Rather than cater the atmosphere for the elite, he’s catered it to the huge average Indian middle class and is reaping the rewards.

If you’re ever in China, do stop by Hongqiao AFTER you do all your sight-seeing because shopping there is super-addictive. I’m truly in love with the place. Coming up next is a blog on the brilliantly staged Singapore F1 Grand Prix and maybe a photo blog of my top-7 photos in China & Singapore. Stay tuned.

Xie Xie

Yes, the title is a song by Nirvana. No, the song has nothing to do with Chinese girls selling stuff.

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Filed under China, MBA

Tags: Beijing, China, Chinese tea, Hongqiao, Kishore Biyani, marketing, sales, shopping, silk