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McDonald’s, also known as the “Get-Out-Of-China-Free-Card”

A friend and classmate of mine had a terrible time with the food in Beijing 11-12 years ago. Food poisoning was a weekly event.

He began hitting McDonald’s almost daily to give his stomach a foundation to get by on. Having had my share of food poisoning in China since then, I agree. When you’ve just spent the last 12 hours on the “China Rapid Weight Loss Program”, you are NOT in the mood for more Chinese food. A Quarter Pounder with Cheese is the most welcome sight on earth.

He started referring to McDonald’s as his “Get-Out-Of-China-Free-Card”. What a perfect name.

It has nothing to do with PassageMaker or China Quality Focus – except that if you come visit us and get sick, we will make sure you are well cared for – but it is a reality of China travel that you will miss food you would never eat when you are home. When I am in the USA, I cook Asian food 3-4 days a week. When I am in China I crave hamburgers and hot dogs. The grass is always greener, I guess.

Anyway, here are three crazy articles from ChinaSMACK about McDonald’s and the impact it has on modern China.

Chinese Netizen’s McDonald’s Happy Meal Rotting Experiment

Chinese Grandfather Eats McDonald’s For The First Time

Pretty Chinese Girls Run Into McDonald’s & Begin Dancing

On the last one, you see this kind of stuff regularly in China. What a place.

Enjoy.

Why you always proof read

So I received an email the other day from the personal assistant to a businessman I know. As is my practice, I went to load her information in my address book. I noticed she had misspelled her own email address in her own email signature. I sent her a private email to let her know before her boss noticed.

This put me in mind of the importance of making sure all your business documents say what you intend them to, ESPECIALLY when doing business in a foreign language. One of the services PassageMaker offers our clients is help drafting the language on their purchase orders. Many of our clients come to us after having a bad experience or two in China, and it is amazing how vague some of their purchase orders are.

The Chinese legal system is rapidly improving and a properly written purchase order is a binding contract that can be the difference between getting raked over the coals and being the one doing the raking.

I see similar issues with design databases. Drawings are often given to us with no material specifications, no finish specs, etc. I had a drawing once from an client that specified “aluminum”. When I asked his engineer what type, he responded that he didn’t think it mattered. This for a part to be subjected to high heat and load stress – you’re darned tootin’ it matters.

We have also received drawings specifying titanium fasteners. After wasting time looking for these very hard to find fasteners, the project engineer in the USA tells us that he just cut and pasted the fastener drawing and forgot to change the material spec. Two seconds of his time would have saved two days of our team’s time.

This kind of BS is why we have Endorsed Service Providers. Choosing with the cheapest guy is very rarely the best deal.

Another area where we frankly NEED our clients to proofread is our Product Quality Manual (PQM), the core of our Assembly-Inspection-Packaging service. As Mike Bellamy says, “we are generalists; we depend on the client to be the expert”. We take the lead on drafting the PQM, and submit it to the client for approval, but once they sign off on it, that is what we are going to do, no more, no less. It becomes our warranty and if the client forgets to tell us something, once they approve the document, that is now the official record. We’ll happily amend the PQM for the next order, but if it wasn’t written down, not my fault.

Our system incorporates four (4) levels of approval before it is sent to the client for final approval. From the speed at which some clients approve the document, I know they barely looked at it. I would rather have a 17 page response as we got from one client than a signature 20 minutes later.

Doing things right takes time, but nowhere near as much time as doing things over. If your project is valuable enough to bring to market, you have time for some proof reading.

PS – I have dyslexia, and have proof-read this damn post five times looking for typos. I bet you all find at least one in spite of that effort.

Great interview with Mike Bellamy about PassageMaker’s “Black Box”

I can’t say it better, so here is the interview with our Founder explaining how PassageMaker helps clients protect their IP.

Mike Bellamy interviewed by Fiducia Management Consultants.

Is China the next bubble?

In my post the other day,”Eduscam?“, I pointed to the entirely anecdotal experiences I had recently with our college educated youth who haven’t a moment’s work experience between them when they leave school. I had one thought that I decided to save for today.

Many young souls seem to want to be bankers or lawyers, as though these are highly lucrative careers that guarantee a sweet life in the Hamptons. Certainly they can, but most bankers and lawyers slog along without ever making the big bucks. Moreover, they are careers without a real product that you can point to and say “I made this”. I tried explaining there are no safe corporate career paths anymore, and believe me when the cost cutting starts, they start in middle management.

I remember reading an article written by a British MP maybe 20 years ago that has formed part of my philosophy ever since. At the time he was writing about the challenge posed by Japan to the British manufacturing base, what was left of it anyway. I am going from memory and as the article predated the internet, I have had no luck finding it. But the quote went something like this,

British Leyland did not go out of business because of the Japanese. It failed because it made dreadful cars. Our economy today is almost entirely based on people in London trading bits of paper.

Real economies make things.

Did this make anyone substitute “Chrysler”, “Chinese” and “Lehman Brothers” in their heads?

The issue has been much debated of late about whether China’s economy is a bubble, perhaps the greatest bubble of all (see here, here, here, here and here). Certainly the yuan is undervalued. Certainly much of what you see in the Chinese cities is pastiche – empty buildings abound in any major city. There is vast overcapacity in many industries, driven by cheap loans from government banks to drive development and keep unemployment manageable, similar to the government role in the Japanese and Korean economies during their early growth periods.

But my mind and my gut keep coming back to that quote from the Brit – “real economies make things“. There is real manufacturing know-how in China and it grows stronger daily as they gain more experience. The infrastructure and man-power are real. These are not paper assets that vanish in the blink of the eye like the billions lost in the last two years in the USA.

Does the Chinese economy need to make adjustments. Yes, indeed it does. So does the USA. And as with all things, we will all be forced to one way or the other. But the knowledge gained in this Chinese industrial revolution will persist and remain a real asset even if the bubble does burst. Japan is still the #2 economy despite 20 years of stagnation. They have not fallen back to the misery of late 1940’s. I am confident China will survive as well, even with their monumental challenges. They have come so far in 30 years, I just don’t see them giving up, and when the world economy does recovery, they will still be the largest source of low-cost manufacturing capability on the planet.

And future bankers of America need to remember it is a whole lot easier to move a financial center than the infrastructure required for manufacturing.

PS – If you have never watched Top Gear, I highly recommend it. The 30 minute episode on British Leyland is well worth your time, if only to remind yourself of how awful cars used to be.

Stand Up While You Read This! More validation that the TrekDesk is the right product at the right time.

Here’s a great article from the NYT by Olivia Judson about the health benefits of staying active while working. I am a huge believer in this concept, and I built my own treadmill desk some years ago with the help of my brother-in-law. I was thinking about taking the idea to market when PassageMaker was approached for a Sourcing Feasibility Study by the inventor who beat me to the patent office, Steve Bordley of TrekDesk. Over the course of the coming months, he worked with our Endorsed Service Provider, Dwight Smith of Contract Engineering Services, on the design and then with our team for Vendor Coordination / Product Development, led by Dave Learn. The VC/PD team handle the research that goes into the Sourcing Feasibility Study and should our client decide to proceed with the project, Dave’s team is then introduced, fully up to speed and ready to roll.

This project has now transitioned to Pramod KC‘s team for production. Pramod’s team manages the vendors (we call it Vendor Coordination / Export & Logistics) and coordinates to make sure our Assembly Center gets all components and performs Assembly-Inspection-Packaging to the customer approved Product Quality Manual. When all is complete, our Logistics Department arranges the shipment, often shipping directly to the client’s distributors and retailers, often in customer-specific packaging, including point of sale displays and barcoding. In short, this is not only a great product, but it is a great example of how the PassageMaker system works start to finish.

But enough about us, back to the article. Key paragraphs:

You may think you have no choice about how much you sit. But this isn’t true. Suppose you sleep for eight hours each day, and exercise for one. That still leaves 15 hours of activities. Even if you exercise, most of the energy you burn will be burnt during these 15 hours, so weight gain is often the cumulative effect of a series of small decisions: Do you take the stairs or the elevator? Do you e-mail your colleague down the hall, or get up and go and see her? When you get home, do you potter about in the garden or sit in front of the television? Do you walk to the corner store, or drive?

Just to underscore the point that you do have a choice: a study of junior doctors doing the same job, the same week, on identical wards found that some individuals walked four times farther than others at work each day. (No one in the study was overweight; but the “long-distance” doctors were thinner than the “short-distance” doctors.)

But it looks as though there’s a more sinister aspect to sitting, too. Several strands of evidence suggest that there’s a “physiology of inactivity”: that when you spend long periods sitting, your body actually does things that are bad for you.

As an example, consider lipoprotein lipase. This is a molecule that plays a central role in how the body processes fats; it’s produced by many tissues, including muscles. Low levels of lipoprotein lipase are associated with a variety of health problems, including heart disease. Studies in rats show that leg muscles only produce this molecule when they are actively being flexed (for example, when the animal is standing up and ambling about). The implication is that when you sit, a crucial part of your metabolism slows down.

Nor is lipoprotein lipase the only molecule affected by muscular inactivity. Actively contracting muscles produce a whole suite of substances that have a beneficial effect on how the body uses and stores sugars and fats.

Which might explain the following result. Men who normally walk a lot (about 10,000 steps per day, as measured by a pedometer) were asked to cut back (to about 1,350 steps per day) for two weeks, by using elevators instead of stairs, driving to work instead of walking and so on. By the end of the two weeks, all of them had became worse at metabolizing sugars and fats. Their distribution of body fat had also altered — they had become fatter around the middle. Such changes are among the first steps on the road to diabetes.

Some people have advanced radical solutions to the sitting syndrome: replace your sit-down desk with a stand-up desk, and equip this with a slow treadmill so that you walk while you work. (Talk about pacing the office.)

Why yes, yes we have. It feels to good to be a radical sometimes!

I have found that walking at 2.2 mph at 6 degrees of incline is just right to really get your heart rate going and still be able to type, write and talk on the phone. So go order a TrekDesk, and if you need help bringing your product to market, give PassageMaker a call!

Days 32-36 – Wrapping it up

Day 32 1 dongmen shoping district

Day 32 – After recovering from the party the night before, Adam Supernant and I pick up a couple of our clients for a shopping outing to Dongmen. It is actually quite brisk – south China this time of year can go from the 80s to the 50s in one day – and neither of them are feeling 100%. We head to Ajisen, a Japanese noodle chain. Service is atrocious, but food is good. Like McD’s, it’s always the same, which makes me wish we had Ajisen in my part of the USA. Oh what I would give for good noodles here…

Day 32 1 dongmen shoping district

Day 32 2 dongmen shoping district 2

Day 32 3 dongmen shoping district 3

Day 32 4 dongmen shoping district 4

Day 32 5 a micro mcds that only sells ice cream in dongmen

Day 32 6 chinese new year decorations in dongmen featuring disney knock offs

Day 32 7 dongmen kobe skyscrapers faux temples and a giraffe

Day 32 8 chinese breakdancers

Day 32 9 yes thats a dunkin donuts in dongmen and no i did not have one

Day 32 10 the incomplete building across from di wang da sha it has been this way for years

That evening we head out to meet [name redacted at the request of her employer on 7 April 2011], aka Banana (adopted from China and raised in Germany and Hong Kong – yellow on the outside, white inside – her term), and one of our Endorsed Service Providers, Ms. Li Yan of the JunZeJun Law Firm. Li Yan and I have been referring people to each other for a while now and she’s done an exceptional job with our clients, 8-0 on IP cases. It was nice to finally meet her face-to-face. We dine at the Da Yu (Big Fish) the crazy teppanyaki place with the all-you-can-eat, all-you-can-drink special for 150 RMB. The place is packed to the gills for CNY celebrations. Ultimately we are seated and have a spectacular meal.

Day 32 dinner at da yu 2

Since we were one of the last tables to eat, the chef used our grill to make a massive batch of egg fried rice for the staff’s dinner.

Day 32 dinner at da yu 7

Day 32 dinner at da yu 8

Day 32 dinner at da yu 9

The group breaks up after dinner, though some of us go for a few more drinks – Erdinger at McCawley’s (my favorite German beer). Banana is with us and says I’m pouring it wrong. That may be so, but I’m pouring it the way I like it. Besides, my way is more fun for entertaining the wait staff. No way to describe it, just have to show you the next time I see you. Starts raining which sort of kills the fun sitting outside. Head for home.

Day 33 – rained hard all day, forcing us to cancel our trip to Hong Kong and Macau. We did nothing except sit inside all day working and watching movies. When the rain finally started to abate, headed out to get some KFC. Yes, I know, but sometimes you feel lazy. We pay for it later with wicked acid indigestion. KFC is much spicier and greasier than in the US. Later in the evening we head out to Shekou to get rooms at the cruise ship so we can watch the Superbowl live in the morning at the sports bar downstairs. We take our clients to dinner at Tasca, the Spanish tapas bar and have a grand time. Early to bed.

Day 34 ship hotel room at seaworld

Day 34 – Up early to watch the Superbowl. I don’t care about either team, but fun nonetheless. Our clients head out early via hydrofoil ferry to HKG, which is much quicker than crossing by land (the “business” excuse for our trip to Shekou – have to take care of those customers). This is the first time I’ve been to Seaworld in the daylight in years, and after the rain it is a gloriously clear morning.

Day 34 seaworld in shekou on superbowl morning

Day 34 seaworld in shekou on superbowl morning 4

Day 34 seaworld in shekou on superbowl morning 5

Day 34 seaworld in shekou on superbowl morning 8

Day 34 seaworld in shekou on superbowl morning 2

Day 34 seaworld in shekou on superbowl morning 3

Day 34 seaworld in shekou on superbowl morning 6

Day 34 seaworld in shekou on superbowl morning 7

Day 34 merry christmas in shekou in february

Because it’s Monday (China is 13 hours ahead of the east coast of the USA, so Sunday night is Monday morning), after the game we head to work. We have to stop by B&Q again.

Day 34 i was thrilled to see this tool trucks that deliver make plant life in the usa much easier and it is a good thing this in now available in prc

On the way home from the plant, we see a VW Santana with a big involved graphic across the back of the trunk lid. It says “SOCCER” and has a picture of some famous footballer. Only one problem – it’s backwards, a mirror image of what it’s supposed to be. You see this kind of stuff all over the place here – English words on t-shirts, handbags, advertisements, etc. that are misspelled or upside down or backwards or just thrown together at random. My wife has a t-shirt from our time in Taiwan that says “I’m Fine Muck”. Yes you are, sweetie.

We are interviewing a Filipino process engineer to work with me at the Assembly Center. He looks like he’ll be a good fit. He’s got loads of plant level experience working for major global companies and has lived in Shenzhen before. He has family in Dongguan up the road. He tells us a harrowing story about his last time in China when he was kidnapped and robbed at knife point in broad day light. I have heard these stories about SE Asians in China, but never about a Westerner. I guess the gangsters assume the police will care less about the SE Asians. Sadly, they are probably right.

Day 35 – Last day at the Assembly Center. We hired the process engineer, Harold Roman, this morning and he’ll spend today and tomorrow with me reviewing our kaizen agenda for the next couple months. I intend to return for the month of April, but don’t want things to go cold after CNY.

The last lunch is celebratory, the first lunch with beer since I’ve been here. Had I been doing the factory visit two-step, every vendor would want to treat me to an alcohol-soaked luncheon. I was not here for that, but in this case, a couple cold beers in the afternoon is an appropriate reward. Only problem, no cold beer. No problem, we’ve got ice. Iced beer. That was honestly a first for me.

Day 35 the chicken was exceptional

Day 35 sizzling black pepper steak

Day 35 the chicken feet were not eaten by the ladies because they were too small

Day 35 1 landscaping a street in an industrial part of town. The new china takes civic beauty increasingly seriously

Day 35 typically traffic on a chinese sidewalk

When we get back the postman is delivering the mail on his green China Post motorcycle with saddlebags. Very cool. We get back to work until Julien Roger of China Quality Focus calls and asks me to join him for a business dinner. The schedule requires me to wrap things up early and head back to Liantang. We have our closing meeting and say our goodbyes. I’ll be back in April, but will miss these folks in the meantime. A good team all around.

Day 35 chinese postman

Day 35 our team at buji. wonderful folks

On the way home I finally get a not-completely-blurry photo of the “staircase street” we pass every day. They are not good, but this is a very cool little oddity of Shenzhen.

day-35-i-tried-everyday-tO take a photo of this staircase street which we passed daily on the way back from the assembly center these are the best two very cool 2

Day 35 I tried everyday to take a photo of this staircase street which we passed daily on the way back from theassembly center these are the best two very cool

When I get back to Liantang, the driver drops me at the end of the street. Our street is private, meaning that you have to pass through a gate and take a ticket to get in. If you stay on the street for more than a few minutes, you have to pay to get back out. We have a parking spot outside the wire, so this is typical. Nearly every shop is already shut down for the Chinese New Year, a bit of a ghost town. I come across one scene outside of a restaurant that is very cute and hugely disturbing at the same time.

Day 35 this is a lot less cute when you realize that the bunny is dinner

Julien and I head out to meet up with Renaud Anjoran of the Quality Inspection Blog at a northeastern style restaurant. I love this style, and was wickedly disappointed by the last place I tried, so I went in hoping for a good experience. Julien said this was his favorite place and I see why. It was excellent across the board.

Day 35 this is the best salad in the world warm onion and cilantro with peppers

Day 35 this is by far the best fish I ate boneless deep fried and sweet sour whats not to like

Day 35 a light meal for 3 people with 9 beers total of 178 rmb or us26

After dinner, I go for my last massage of the trip. I have a bad back, had to wear a back brace when I was a teenager and am used to regular pain and discomfort. On this trip, I have definitely been spoiled by the affordable and effective massages. My back feels better than it has in years. The woman tonight is in her 40’s and her experience shows – she is an expert and despite the momentary thrashing when I wake up in the morning I feel like a million bucks. Total cost around $25. Love. This. Place.

Day 36 – Last day at the office. Beautiful morning. We battle the usual chaos before the CNY, mainly problems with customer payments clearing in time to release goods to get a berth on a freighter. Customers often can’t envision the traffic at the ports during this time of year, and think that if they get the check out on the last day that that will translate to goods on the water. To clarify, no it won’t. If you are one of these customers reading this blog, it is nothing personal and trust me you are not the only one, but in the future, send the money early. The earlier the better. The Chinese have been celebrating CNY for 5,000 years. It’s not like you weren’t warned, and trust me, there is NOTHING I can do about it.

Day 36 last morning beautiful

Our favorite local restaurant is still open and so we have our final lunch there. All the favorites plus this that I’d not had before.

Day 36 last lunch very good sizzling beef dish

We have a very productive day and then select Mao’s House for the final dinner. How I love those chili shrimp skewers. We have at least 4 plates between us – Mike Bellamy, Brian Garvin, Adam Supernant, and Harold Roman of PassageMaker and Julien Roger and Ludovic Larry of China Quality Focus. Much later we head out to meet up with Dave Learn at Viva, running into Banana and other friends on the way. How bizarre it is to have such a dual life. And how exciting as well. I am looking forward to being home and seeing my family, but I will miss this place when I am gone.

Home at a reasonable hour and to bed. Early day tomorrow.

Days 27-30 – Plenty of hard work and plenty of visitors

Day 28 yes our assembly center includes a clean room assembly facility with sterile packaging equipment

I’ve already returned to the States a few days ago, but the last couple weeks in China were so hectic, I am filing these posts late. Days 31-37 to come shortly.

Articles, articles, articles…

A little random tidbit from Dave, who is going on another Asian adventure for the Chinese New Year. Airlines are just no damn fun anymore (from the terms and conditions on his plane ticket):

– Guests can no longer carry guns and/or ammunition on flights to or from Indonesia

Killjoys.

Day 27 – A client from the USA arrived today, one of a group of three we were expecting. The other two were delayed by fun winter weather in the USA, so they will arrive tomorrow. After a long day at work, I met the client for drinks at our preferred corporate hotel, the 999 Royal Suites. Nice rooms for a very reasonable price. The bar caters to foreign businessmen and they have the standard Filipino cover lounge singers. Some have been there for years and it was catching up with old friends. The Filipina hotel day manager, Queenie, looks great and I am glad to see her rising in her career with the 999. I once spent 5 weeks living at the older 999 hotel across the courtyard, so I got to know the staff pretty well.

Day 28 – We have visitors today from [company name redacted 7 April 2011], a German 3PL based in Shanghai with offices in Shenzhen [and no sense of humor apparently]. The head of the Shenzhen office is a self-described “banana”, yellow on the outside and white on the inside. She was adopted from China as a baby by a German family and raised in Germany and Hong Kong. Very interesting young lady. We have a great lunch and then they head off to tour our facilities. Here they are with Mike heading into our medical assembly center with clean room and sterile packaging capabilities.

Day 28 yes our assembly center includes a clean room assembly facility with sterile packaging equipment

L-R – Mike Bellamy, founder of PM, and anonymous employees of an anonymous German logistics company that no longer wishes to be named in this blog [as of 7 April 2011], prepare to enter our Clean Room Assembly Center. Too funny.

Later the rest of the clients arrive and off we go to the traditional first-night-in-China Xinjiang dinner. Great time. The highlight was the staff practicing their traditional dances out in front of the restaurant late at night. I’ve seen them do this before, and really don’t understand it, because none are from Xinjiang and they don’t work in local costume and don’t perform at the restaurant. But this is one of my favorite scenes from China. I’ve tried before to take photos and this is the first time they were any good.

Day 28 dance practice

Day 28 dance practice 21

Day 28 dance practice 3

Day 28 dance practice 4

Day 29 – Very productive day of meetings with our clients from LimbGear and our Endorsed Service Provider, Camrett Logistics. They have a great new family of products and I expect we will see great things from them in 2010. At night we head out for a Northeastern style dinner, normally one of my favorite styles, at a restaurant called 东北人, dōngběirén, literally “northeastern person” or “northeasterner”. We were told it would be awesome. It wasn’t. The food was a warm cup of OK, but the service was bloody atrocious. After waiting more than 10 minutes I actually had to get up to go find a waitress and mildly berate her for leaving us sitting so long with no tea. She was embarrassed enough to come immediately and take our drinks order, but the service stunk throughout the meal. This is extremely rare in China, where most of the time you have almost too much service. If you are in Shenzhen, Dong Bei Ren near King Glory Plaza (GuoMao station on the subway) is one to skip.

Day 29 its not mons beer.

Day 30 – Another day at the Assembly Center. I am starting to feel the end of the trip and have so much to do I eat lunch at my desk. When I lived in Taiwan, I loved the lunch boxes (bien dang in the local dialect). Today’s take out was not the same (bien dang are more complete rounded meals) but it reminded me a bit. A good light and healthy lunch all the same. Now if I can just get my TrekDesk (one of our clients!) set up in China, maybe I could actually LOSE weight on these trips.

Day 30 lunch at my desk better than 95 of american chinese foodday 30 lunch at my desk better than 95 of american chinese food

On the way to dinner, we saw one of the more memorable sights of this trip. We are fast approaching the Chinese New Year, and families stock up on fresh produce to last through the long holiday (1-2 weeks). And when I say fresh, I mean live.

Day 30 m r ducks actually 3 chickens and 2 geese for chinese new year

Dinner was one of the best of the trip, which is really saying something.

Day 30 personal hotpots chicken broth seasoned with garlic ginger thousand year old eggs you add green onions cilantro miso paste and chiles to a soy dipping sauce

Day 30 raw beef sashimi with soy + wasabi dipping sauce this is the best thing in the world

Everyone’s tired and a little lubricated, so early night. More adventures tomorrow!

Days 6-13 – Shanghai Hooters, Mao’s Revenge, and rotten cell phone companies

1 view from the apartment 1

Day 6 – Woke to steady rain after a fitful sleep. The Chinese believe in sleeping on hard beds, as it is supposed to be good for you. And when I say hard, I mean sheet of plywood hard. And how having your hips so sore you can barely get out of the bed in morning after tossing and turning all night is supposed to be good for you beats me. We will be upgrading the mattress shortly.

View from the apartment window.

1 view from the apartment 1

2 view from the apartment 2

And though it feels cold here because of the damp, it is about 62 F. Salem, VA was in single digits in comparison. The company apartment is decorated with Chinese art (Mike has good taste). We even have a life sized terracotta warrior.

6 this guy startles me everytime

4 love the screws

5 ill have one of these in va soon

Our apartment complex

11 the fountain

he walk to the office takes maybe 5-6 minutes. The rain was coming pretty hard and the wind overwhelmed the umbrella. One thing you notice about side streets like ours is how poorly they are sloped to drain the water. Makes for enormous puddles.

Stopped at my snack shop for dumplings and a tea egg. I make tea eggs at home, and they are just that – eggs boiled in tea, dark soy sauce and spiced with star anise. The flavor is very subtle – it is 90% a regular hard boiled egg, but the last 10% makes all the difference.

12 tea egg for breakfast

Worked the morning in the office, and then had lunch at the restaurant around the corner. It has a few dishes that are wonderful, but is certainly not fine dining. The highlights:

Day 6 lunch best use for broccoli

Day 6 best use for squid

Back to work until late in afternoon, then I head to Futian district to take an old friend from Taiwan to dinner at an Italian restaurant. We were the only ones there, so service was exceptional, as was the food, as was the wine, AS WAS THE PRICE. Dinner for two cost 7 times as much as dinner on the street the night before! Luckily she is bringing some of her USA friends to PassageMaker, it was a legit business dinner, but man it is easy to get spoiled by the cheap food over here. I figured we all know what Italian food looks like, so I’ll spare you photos of gnocchi and tiramisu.

Day 7 – A clear day, rain has stopped. It’s knocked the smog out of the air, so a bright blue morning.

Day 7 morning

Day 7 street-scenes

Off early to our Assembly Center in Buji. I’m working on continuous improvement initiatives there as part of our new ISO 9000:2008 certification, something we achieved just last month. My background is in manufacturing, and since we are gearing up for what we think will be a very strong 2010, Mike asked me to come over and assist with introducing the alphabet soup of kaizen related initiatives – 5S, JIT, OJT, etc. Meet and greet the staff, which is dominated by women at the manager level. Only one man on the senior staff. You are seeing more of this in China, but my impression is PassageMaker is ahead of the curve here. On to lunch, which is fabulous as usual.

Day 7 an even better use for squid1

Day 7 best use for duck

Day 7 i love these little fish

Day 7 man they do vegetables well

Day 7 you have to get used to your food staring at you

On the way out, we passed the fish tanks that hold the seafood fresh and alive until it’s time to cook it. Everything in China is prepared fresh.

Day 7 if id known they had had geoduck

Day 7 duck fish

Later that afternoon we headed back to the office to pick up Julien Roger of China Quality Focus, our sister company. Mike, Julien and I flew to Shanghai for the Global Sources trade show, a trip that wasn’t scheduled for me when I came over, but I’m glad I went. The show went well and I’ve never really been to downtown Shanghai before, just the industrial area around the old Hongqiao airport. We flew into the new Pudong airport and I am convinced the planning went something like this – “To demonstrate the greatness of the People’s Republic of China, we will build the longest airport in the world!”. We landed late at the last gate and walked for 10 minutes in a straight line down the terminal until we got to the baggage claim area. This is a seriously long building. And thoughtfully they included no people movers like the trams at the Detroit airport. Considering the late hour and the lack of other arrivals, you’d think they could’ve found a found a gate closer to the exit.

Heading to the hotel, Ibis, a chain of affordable hotels owned by Novotel, a French company, what struck me about Pudong at night were the vast highways. Six to eight lane interstate grade roads as compared to the cramped streets typical of most Chinese cities. Pudong was farmland just a few years ago, and it definitely has a planned feel.

Although they fed us on the plane (a 2 hour flight with meal service – haven’t seen that in the States in decades), Mike and I were still hungry, so we found an American bar, Malone’s across the street and had a very good hamburger while listening to a GREAT Filipino cover band. Every bar and hotel in China has a Filipino band, all playing English cover tunes, even when the clientele is Chinese. And nearly all of them suck. This was an astounding exception. They were tight and the covers were quite good, including good hard rock and heavy metal. The singer had some serious pipes.

Back at the hotel, I noticed the bathroom is a pre-fabricated assembly. Smart idea for a chain. It was one of the nicer bathrooms I’ve had in China.

Day 7 pre fabed bathroom

 

Day 8 – After the best night’s sleep so far, up early to get to the show and set up the booth. On the way to the convention center, I saw this:

Day 8 just bizarre

They switched us at the last minute to give us a corner booth, which meant we had to cut up the posters to make them fit. I think the booth looked pretty good, considering.

Day 8 our booth

I’ve been to a fair number of trade shows over the years. Heavy truck shows are dull unless you really like trucks and truckers, car shows are fun, and motorcycle rallies are a blast. But in every case before, I was selling a product. If the guy’s got a Road King we have something for him, but not if he has a Dyna. We’re on this model of Peterbilt, but not that one. But now that I’ve done it, nothing beats selling a service. EVERYONE doing business in China needs Quality Inspections, Product Testing, Sourcing Feasibility Studies, Vendor Coordination, Intellectual Property Protection, Logistics and Assembly Inspection & Packaging. The industry doesn’t matter, they all needed at least one of our services. This was a gift and clothing fair, but it is the same at every show. It’s like we are selling beer at a NASCAR race. We got business cards from USA, France, Australia, Saudi Arabia, Venezuela, Israel, Nigeria, Iran, South Africa, New Zealand, etc.

Mike is a featured speaker at every Global Sources trade show (including Dubai, Hong Kong, Mumbai and South Africa this year), and he gave a two-part presentation spread over the first two days of the show. He did a great job and it was extremely well received by the standing room only audience. Rather than a canned sales pitch, he tells it like it is, barely mentioning PassageMaker or China Quality Focus. The soft sell works and many attendees stopped by the booth afterward to tell us so. They figure anyone with enough confidence to NOT shove his company down their throats must have it going on. And they are quite right. We do.

Day 8 mike is featured speaker

Day 8 mike giving his presentation

Julien Roger is also a tremendous salesman and very knowledgeable. I learned a great deal from watching his methods. Selling China Quality Focus’s services is easier, as Quality Inspections are very straightforward compared to PassageMaker’s services, but the combined message of the two companies meshes very well. We often have the same customers.

The convention center is still under construction and gigantic. As with the airport, the point seems to be making you walk as far as possible to get anywhere. Despite the impressive size, they apparently forgot about effective HVAC. It is unseasonably cold and I packed for south China. Day 1 of the show had no heat at all, which made it a real grind. Day 2 was a little warmer, but still uncomfortable. By Day 3 they’d gotten it going to the point it was now actually hot inside. HVAC needs some work for sure.

They also have very little in the way of food. The restaurants inside looked just plain bad, serving cold rolls and sandwiches wrapped in plastic like a vending machine. However, there was a McDonald’s right across from our hall, W2. It turned out to be the world’s smallest McD’s, about the size of a broom closet, with one little girl selling horrible looking “chicken sandwiches” out of coolers. I put that in quotes, because they were actually pork. Menu says chicken, she will say in English it is chicken, the box says chicken, but she insisted in Chinese that they were pork. We passed and were directed to the other McD’s at W5.

W5 is an international airport runway away from where we were. In 30 F weather, I was not interested in the walk, but there was nothing else, so walk we did. Entering W5 was a shock as it was still under construction, freezing cold and reeked of paint fumes. The McD’s was even colder than the rest of the building. It was a huge McD’s, brand new and manned by an army of eager young staffers in winter parkas. McDonald’s can’t heat their own place. It was also completely deserted. We were it for customers stoopid enough to walk that far in the cold for genuine simulated food. Our “food” in hand we sat down to eat our rapidly cooling cheeseburgers (with cucumbers instead of pickles) in 25 F comfort, huffing paint. Then the staff helpfully turned on the Backstreet Boys at headache inducing volumes to entertain us, because what lao wai doesn’t love the Backstreet Boys? We’d shout over the music to tell them to turn it down please. And they would, just a little. As it was the only food around, we ate there all three days of the convention. Our experience was exactly the same each time, including the yelling over the music to turn it down. Note to China: the progress over the last 30 years has been astounding, but build convention centers with decent places to eat and heaters.

Day 8 holy crap this place is big

Day 8 holy crap this place is big 3

Day 8 holy crap this place is big 2

Day 8 this is the smallest mcds in the world

Day 8 why put the real mcdonalds as far away as possible

Day 8 w5 under construction

Day 8 way to plan fellas

The interior of the McD’s was just as bizarre.

Day 8 mcds posters wtf

Day 8 mcds posters wtf 2

Day 8 mcds posters wtf 3

Day 8 rarest sign in china

With the first day of thee show successfully behind us, we head out into a bitterly cold Shanghai sunset.

Day 8 shanghai sunset

For dinner, we are off to meet friends at Shanghai Hooters. Yes, really. This turns out to be loads of fun. Mike, Julien and I meet up with one of our sales reps, Dan Welygan, who worked in our Shenzhen office for about 4 years. Also in our quintet is a classmate from the University of South Carolina now living in China. Many, many wings and beer later, I have a new found appreciation for Hooters. It was a bold decision to open this restaurant, as typical Chinese girls lack the requisite body type required of a Hooters waitress. And they have to be attractive and be able to speak English. A pretty small labor pool. Our waitress was very good, spoke solid English and really new how to work a room. A very bright young lady, she has a future in sales for sure.

Day 8 our waitress elva

Day 8 hard to find hooters in chinaDay 8 hard to find hooters in china

Day 9 – Second day of the show went as well as the first. Part two of Mike’s seminar was very well received and many of the attendees have stopped by the booth, several 2-3 times. After the show, we meet our web developer, a French graphic designer living in Shanghai, at a trendy coffee shop for sandwiches. This place was in a glittering new mall, still decorated for Christmas. My cameras does a poor job in low light, so my apologies for the quality of the photos.

Day 9 christmas decorations

Day 9 first of two ferraris in 2 minutes

Day 9 yep thats a christmas tree

Day 9 this is what irony looks like

So far no Chinese food in Shanghai. After the meeting, off to meet another USC classmate at The Boxing Cat Brewery, the nicest brewpub I’ve ever been to. As I was once in this business, that is quite a statement. It was in a 100+ year old home in the old part of Shanghai, beautifully refurbished. The brewpub was 3 stories, with a bar on the 1st and 3rd floors. It felt exactly like a British pub, with beer selection and menu to match. Since we had already eaten we did not order anything, which now that I know the chef was trained at Le Cordon Bleu in Paris, I heartily regret. I have a feeling it will not be my last trip. My, how far this country has come in just a few short years. However, even The Boxing Cat has moments that confound.

Day 9 were the heck do you want me to put it

Day 10 – Last day of show, and the pollution is pretty bad today. Traffic is light, and some exhibitors start packing up almost from the opening bell. We stayed until nearly the scheduled end at 5:30 PM, though we give up when they start dismantling the booth around us at about 5:10 PM. Global Sources has been good to us and we thought it the honorable thing to do to stick it out to the end, though honestly the show really ended around noon. Off to Pudong airport (which is even more gigantic from the outside and has the coolest road system connecting it I’ve ever seen) to catch our flight to Shenzhen. Our first Chinese meal of the trip is some very good Cantonese cuisine at the airport.

Day 10 shanghai pollution

Day 10 always a bad sign when the gates are in triple digits

 

Day 10 cantonese food chinese airport food is much better than usa

Day 10 cantonese food chinese airport food is much better than usa 3

Day 10 cantonese food chinese airport food is much better than usa 2

Day 11 – Worked all day to get caught up from the show. Verizon’s data service here stinks, a pale comparison to my old AT&T service (of course, that is reversed in the USA, which is why I switched). Many emails did not come through to my blackberry. I also discovered that Verizon is charging me $2/minute to RECEIVE CALLS. This was one of the specific questions I asked before adding the “China plan” for this trip. I have already written about how woefully trained their salespeople are, and this takes the cake. Since the trip began, I have been receiving calls from clients, family and friends – including a call a 3 AM from a client who had missed I was not in USA. My team in the USA is having words with Verizon about this, but let’s just say, it was a cute phone bill. China Mobile by comparison, charges nothing to receive an international call. Heck, their rates to MAKE an international call are less than Verizon. So, if you want to get in touch with me, send me an email and I’ll give you my China Mobile number.

I join Mike and Adam Supernant for dinner at a local place in Liantang.

Day 11 chinese donuts I like the fried ones steamed ones not so much

Day 11 gross

Day 11 very common to have fire at the table

Day 11 quite tasty tofu and pork

After dinner I was invited to join some of our Chinese co-workers at a nightclub. I was flattered to be invited and went along. After several hours, I had my first run in on this trip with the dreaded Mao’s Revenge. I am trying to tell it like it is for those of you who don’t travel overseas, and if this strikes you as TMI, it isn’t. You need to know what you are in for.

While western style “sitters” are becoming more common, squatters still dominate. In a sense this is good, as sitters are not as sanitary ( I mean, everyone else is sitting there too). But when you’re in an emergency situation and you are not used to squatters, this can get dicey fast. My advice for survival in these situations:

  1. Wear sensible shoes with good rubber shoes – I prefer Blundstones.
  2. Wear jeans. Avoid khakis – not the color issue but the way the pockets are cut. I always keep everything – wallet, keys, passport, phones – in the front pockets of my jeans.
  3. This is a very uncommon position for a Westerner. I have pretty strong calves and thighs, and have learned how to balance, but if you never done it before, try it and hold the position for 2-3 mins. It takes some getting used to and you don’t want to find out the hard way you can’t do it. Luckily the squatting position is more conducive to the situation at hand, and so things tend to go quickly.
  4. Carrying a small packet of tissues is a good idea. Toilet paper in a public restroom anywhere in the world is never a given. Handkerchiefs and socks (single use of course) will do in a crisis.
  5. Carry a bottle of prescription Lomotil or the generic. I always do and there is no OTC medicine that comes close. It WILL stop the drama.

My evening cut short, off to sleep. Day 12 is Sunday, market day in Liantang, and Mike and I head to Mian Dian Wang, or “Noodle Snack King”, my favorite fast food chain in the world. 14 line cooks actually making the food by hand. Total cost of the meal is about 60 RMB, or less than $9.

Mian dian wang

Day 12 mian dian wang

Day 12 mian dian wang 2

Day 12 mian dian wang 3

Day 12 mian dian wang 4

That evening, Mike threw a dinner party at his home. It was great to see old friends and an even better meal. Simply the best food I’ve ever eaten in China. Mike’s wife and the maid did all the cooking.

Day 12 two women in this kitchen in about 2 hours..

Day 12 two women in this kitchen in about 2 hours.. 2

Day 12 made this

Day 13 – Monday – Last night there was a little too much “medicinal wine”. Whenever you hear that phrase, run screaming in the other direction. After such an amazing meal, we needed something basic to calm the acid seas, so off to Subway (yes, really). A steak and cheese later and all is right with the world. With some lingering Mao’s, I head to the apartment to work from home. It was a glorious day, 70 F and clear blue skies with a light breeze.

Day 13 our apartment complex

Later Mike asked me over to finish up the leftover ingredients from the dinner party – there was no left over dishes, just raw materials. This is the modest result.

Day 13 a light meal

Two customer visits tomorrow and time at the factory.

All for now…

 

Stupid ads solving non-existent problems and other bad sales pitches

I’ve been cogitating recently on some of the marketing campaigns out there that seem almost designed to not sell the product or otherwise turn off customers. What the **** were they thinking?

The creepy plastic faced Burger King ad campaign has won awards in the ad industry, but resulted in a declining market share for the client. I refuse to take my kids there. The food is nasty anyway.

Microsoft’s TV ads for their new “decision engine” Bing show people experiencing “search overload syndrome“. Apparently, people using those other plain old search engines get too many random results and become confused. It’s never happened to me, or anyone I know, but let’s do a little test.

Google “china assembly and inspection“. PassageMaker is #1 and #2 on the natural results.

Yahoochina assembly and inspection“. PassageMaker is #1 and #2 on the natural results.

Askchina assembly and inspection“. PassageMaker is #1, #2 and #3 on the natural results.

Now Bingchina assembly and inspection“. PassageMaker is #1 and #2 on the natural results.

Wow. Do you think they can ask the advertising agency for their money back?

Although Bing is prettier and it is nice to see our friends at China Quality Focus at #4 in their natural results, their ad campaign turns me off. If you have to tear down your competition to sell your product, you don’t have much of a product. To the folks in Redmond, how about making amends for the twin travesties of Vista and Office 2007 by givingaway the upgrade to Windows 7 instead of charging $200, before everyone calls it quits and switches to Mac?

What’s next? Ads warning everyone away from that horrible Firefox 3.5, now that it has taken 25% market share? Not bad for a free browser developed by an not-for-profit foundation. Oh, and it’s the best product on the market. That’s got to hurt.

I switched to Firefox after buying a new HP laptop earlier this year with Vista (yes, I know). I had no choice as the old XP machine was nearly dead and wasn’t ready to make the running transition to Mac (though after 6 months of Vista, I am now). The default security settings made Internet Explorer 7 completely unusable – after 3 or 4 days of trying to figure out how to configure the security settings to allow normal browsing without constant warnings, blocked pages, etc., I installed Firefox and I will never go back to IE. They lost me for good.

US Cellular is aggressively promoting their new “battery swap” program with radio ads in my area. The idea is you forget to charge your battery, so you drive to the store to swap your perfectly good but temporarily depleted battery for a fully charged one. I guess they figure if you are in the store anyway for such a reason, you might just be dumb enough to renew your contract ahead of schedule, buy a new phone when the old one still works, etc. The first thought I had when I heard this campaign was “boy, business must really stink”. Are uncharged batteries a problem requiring a multi-million dollar as campaign? I have a charger in my car, in my office and a spare in my brief case. Methinks poor phone sales are the problem, so how about reducing the prices on the plans or offering better phones?

Yesterday my wife told me about a phone book salesman (I still can’t stop laughing at that one) who came into the boutique where she works and tried to renew the ad for this year’s yellow pages. This was the second salesman from the same company that day to visit with the shop owner trying to get this ad. The owner says no, she’s launching her website this month, she’s well established, premium location, and she doesn’t need the print ad anymore. The salesman responds with “everyone who cancelled their ads last year went out of business”. What?! That is the worst line I’ve ever heard, even if true! How about encouraging her to buy the ad to promote the new website? Keeping the ad for her older clientele or new students at the local colleges? There apparently is a rung lower than used car salesman.

Now Apple is trying to charge $1000 in China for an iPhone that is Made in China when in the USA it costs $600? My first impression was maybe I need to reconsider that Mac purchase. How is charging nearly twice the price not trying to alienate the PRC market? There are many other options for smartphones in PRC than the USA. I mean, why not just post the “ no dogs or Chinese” signs (supposedly an urban myth, but you get my point)! Dan Welygan, one of our sales reps and formerly a project manager in our Shenzhen office tells me this is common practice, to charge outlandish prices to capture the cream of the market. I am sure he is correct, but considering it lacks wi-fi, and the Hong Kong versions have been available on the gray market for 2 years, this is not exactly a new device. I’ll be watching to see what happens with Droid or some other iPhone killer when it hits the China market. My gut tells me this is a mis-step for Apple.

The primary reason why I joined PassageMaker was because it was a positive environment and a positive message. We sell Trust & Transparency – the services themselves are almost incidental. Sourcing Feasibility Studies, Vendor Coordination, Assembly-Inspection-Packaging, Logistics, VAT Planning, Factory Formation , etc., all provide solid value to the client, and are so flexible and fungible that we can do pretty much whatever the client needs.

I tell all our sales reps that they don’t need to talk down our competition. There are other good companies doing business in China. It is foolish to pretend otherwise. We don’t need gimmicks or mascots or incentives. We are selling exceptional service, fair pricing and peace of mind. What more do we need?

The truth shall set you free.

Sick of China

I’ve been an expat several times in my life, from studies in the UK to stints in Singapore, Taiwan and China. All were relatively short, so my sense of excitement and wonder never wore off. For that I am grateful.

I’ve known expats who stayed away for 15 years or more, and many were counting the seconds until they could return home. They were “Sick of China” (or India, or Mexico, or Japan…you get the idea). The thrill was long gone and the tedium and irritations of daily life – amplified a hundredfold due to their surroundings – were sadly all that remained.

In the last few years PassageMaker has picked up a wide variety of new clients, but the ones that make the biggest impression on me are successful mature companies who have been doing business in China for 15 years or more. Why would a profitable company with that many years under their belt turn to a “sourcing company” like PassageMaker?

If we were just a sourcing company, that would be a valid question. But PassageMaker brings real bricks-and-mortar to the equation and provides a much wider range of services than just sourcing. Our core services – Sourcing Feasibility Studies, Vendor Coordination, Assembly-Inspection-Packaging, Logistics, Factory Formation – are so flexible that we can easily tailor them to suit a client’s requirements, whether providing quality control for millions of dollars worth of electronics or creating a consolidation regime to control VAT and shipping costs. These mature clients see our services as not just a cost-saving move, but as a hassle-saving move. When you talk to them, you can hear that they are sick of the day-to-day attention success in China requires. They just want to go home and have us handle it for them.

Mike Bellamy has been in China full time for 12 years and is happy right where he is. PassageMaker is NOT sick of China, and we will be happy to take over for you whenever you wish.