New York Times economics columnist David Leonhardt wrote a massive (10,000 word) article titled “In China, Cultivating the Urge to Splurge”. Truth be told, it was a hard read that might strike all but the most devout China expert and enthusiast as a bit bloated. Nevertheless, the overall gist of the article was interesting – an examination of the difficulties that lay ahead for China as the country inevitably transforms from an industrial economy to a consumer economy. The problem being for China, that their capacity to produce goods now exceeds the world’s ability to consume those goods and that it’s time for China to consume more of the goods they themselves create in addition to foreign products.

For the rest of the world, the Chinese consumer is one of the best hopes for future economic growth. In the years ahead, when the United States, Europe and Japan will have no choice but to slow their spending and pay off their debts, China could pick up the slack. Millions of Americans — yes, millions — could end up with jobs that exist, at least in part, to design, make or sell goods and services to China. This possibility helps explain why Democrats, Republicans, economists, business consultants, corporate executives and labor leaders all devote so much time to urging China to consume more.

But there’s a cultural issue afoot: while young Chinese tend to be very tech savvy and spend a great deal of time on the internet, middle-aged and elderly Chinese believe strongly in saving money for large scale purchases, e.g. university education for children and home purchases, than on buying the latest gadget from Apple. In fact, as exemplified in a series of images I found just wonderful, many Chinese view some of the new super-consumer centers, like IKEA’s 460,000 square foot Beijing superstore, as destinations better suited for an interesting outing than actual shopping.

Shopping, or napping? Lars Tunbjork

For Chinese, a new way of consuming. Lars Tunbjork

So, savvy business traveler with ties to China, my question is: From your personal experience, how can non-Chinese companies develop products that will appeal to cultures so distinct and diverse? How do you motivate Chinese individuals to shop? What do you think about China’s likelihood of transforming from a production economy to a consumer one?

Annoyed by that swath of skin every time your boss crosses his legs in a meeting and his slacks suddenly vault above his sock line? Bothered by the blond hair and dark roots of your co-worker down the hall? Irked by the all-too-hip five-day stubble on the twenty-something hot-shot at the next cubicle? Fear not, thee of well coiffed and charcoal colored suit wearing masses, UBS feels your pain! The Swiss bank is so exacting about its retail employees’ image and grooming habits that it released a “43-page code dispensing advice on how to impress customers with a polished appearance.”

The Swiss culture, known for its love of clocks, is not only precise in terms of its perspective on time, but it is one of the most direct cultures in terms of communication. Hence, the dress code that leaves nothing to misinterpretation. Law abiding, rule-oriented Swiss citizens may be more comfortable with an extensive guide, such as the one UBS has written, but from a cross-cultural perspective, it’s quickly construed as an overly detailed, if not intrusive, attempt to control some very private aspects of its employees’ lives. According to the code, for example, underwear must be flesh-colored.

That stubble has got to go, says UBS. Also, the tie may be a bit too wide for the morphology of his face.

So, speaking from your own cultural background, how would you react to the code? Tell us, as you assess the personal grooming habits and style of your co-workers and office, what rules might you wish to add to UBS’s opus? And, from a cross-cultural standpoint, what UBS rules might you (secretly) wish to enforce when you’re working abroad?

Adam

RW3 CultureWizard

The importance of intercultural competency for people who may never work outside their home country is the theme of “Going Global, Stateside,” an article by Tanya Mohn in the New York Times.

The excerpt below describes RW3 CultureWizard and the experience one of it’s clients, Thomson Reuters, had with its CultureWizard site.

Andrew P. Walker, vice president of global mobility for Thomson Reuters, said online training was easier, quicker and cheaper than in-person training. Thomson Reuters uses CultureWizard, a Web-based tool created by the company RW3, for its employees in 93 countries for what he said was ‘a fraction of the cost’ of formal training.

Mr. Walker said he also used it himself. ‘Without the course, I think I would have made a lot of mistakes,’ said Mr. Walker, who moved back to the United States in July after five years in London. He said his low-key, light-hearted manner was fine on business trips, but when he was working there full time, ‘I wouldn’t be able to get away with it forever.’ He said the program helped speed the transition.

Michael S. Schell, chief executive of RW3, recounted how a mining and exploration company in Britain contacted his firm because the mining company was unsuccessful in winning business from an American company. ‘During the training, we pointed out that the proposal turned off the Americans,’ Mr. Schell said, because it began with 10 pages detailing all the risks of the venture and how much failure would cost.

Americans tend to view failure as a learning experience that inspires creativity, Mr. Schell said, so the American company considered the proposal negative and unenthusiastic. The British tend to be risk-averse culturally, he said, and perceived the Americans as unrealistic. When the British company redid the proposal with a positive spin, they got the deal the next day, he said.

‘Differences got overlooked because we speak English,’ Mr. Schell said. ‘They look like us, wear the same jeans and use the same cellphones.’

The assumption is that we’re all the same, but we’re not all the same.

Click here to jump to the article.

RW-3.com