Day 7 (Caroline)
Today we had our first set of meetings. After having breakfast with the group, we all went our separate ways. Gaby and I had our addresses written in peng yen for us (the Roman equivalent to Chinese) and Mandarin for our cab driver. We were also prepared to point to a map – no tour guide or translator here, only our academic advisor! With one of our research focuses being on podcasting capabilities/acceptance in China, the first meeting we had was with Chinesepod (http://www.chinesepod.com/). It was started by two Canadian guys (still looking for some more V.C. if anyone is interested). They saw an opportunity for creating pre-recorded language lessons (i.e. learn English like you would with Berlitz) by podcast; they record their own and are building new recording studios as we speak in the Shanghai office we visited. They identified a need for convenient, customized, quality in teaching -- there are many English teachers in China, but people are concerned about the quality they receive and in this manner the company can ensure the best quality for their customers since location of the teacher in relation to the student becomes inconsequential. People who use this service are very price insensitive and are part of a potential $9 B dollar market if you can believe that. Most of their customers are businesspeople and students wanting to learn another language. While there are no true revenue models in place for potential people looking to advertise on these sights (another goal to find while we research here), concerns about advertising on training materials does not seem to be a viable option (it runs the risk of diluting the brand image) – whereas working with entertainment podcasts could. When we met the two men, we did exchange business cards in a typical Chinese fashion, with two hands and about a 15 second look-over before putting it in your pocket (sign of respect). It was fascinating to be in a startup environment (literally, there was construction going on during our meeting) and seeing people abut our ages sitting in little cubicles (just like the US) typing away. After a wonderful meeting with them we sat in a park and enjoyed some tea (only 1 person took a picture with us this time, perhaps we are looking more like the locals?) and then went to lunch (trying some new things like boiled buns and eel) before heading off to our next meeting. The second meeting was with Pacific Epoch, a blogging medium and research firm (http://www.pacificepoch.com/). To show what a small world it is, it turns out he is friends with a friend of mind from E & J Gallo! A graduate of UNC’s MBA program, he came to manage this startup last year. Another small office with about 6 employees, we met for a couple hours discussing our second research topic, blogs; we were curious as to things such as loyalty, buzz marketing potential, and content of blogs in China. Gaby and I learned that blogs can aid in personal expression which has why they have become so popular… We were taught that Chinese society is like a group of concentric circles, with the family + 1 child in the center, the next ring as the 2 grandparents, the next ring as the building or block, and the last as the neighborhood, and so on… but for a marketer the only part that matters is the inside of the circles because that is where the most potent referrals in way of product recommendation will occur. Because blogs help create brand awareness, but not necessarily loyalty, tapping into that center target is most critical in getting people to and loyal to your product… this seems a bit different to the U.S. because the opportunity for impression is much more finite. We also learned about QQ, a platform much like AOL, and the impact it’s had over here. The impact is the reach it has… to give you some idea (while sparing you the details), on a Friday night it might have a total of 14-22 million people in China online chatting… that’s compared to a TOTAL subscriber base of 20 million in the U.S. for AOL. So as you can see, the possibilities for an entity wanting to advertise or reach consumers with blogs are limitless! We also learned about life for an Expat here and how tight their international communities are (with other Expats) in addition to the acculturation period. The term was ‘Having a bad China day’… that sometimes things are going great and then the culture shock just gets to you and you break down and start trying it all over again for another couple weeks, then it happens again. So even people who have spent a reasonable amount of time over here experience it… which as a first time visitor I thought was interesting… after all, we could never really become ‘Chinese’ but everyone can become ‘American’. The night was finished off by our group reconvening to share our experiences. Everyone seemed wired from having conquered the city – the cabs, the streets… we are after all ‘veterans’ now after Beijing! Looking forward to another adventurous day tomorrow!


