Blunden’s crucible

There was nothing across the river 15 years ago

One of the first things you notice on the drive in from Shanghai’s international airport is the number of VW and Ford motor cars on the road and very few other brands. VW’s are locally made and servicing & repairs are easier as parts are available – a valuable facility given the negligible use of indicators or concern for other motorists (or indeed passengers as far as taxi’s were concerned). “The Chinese manoeuvre, signal and then mirror” my local contact tells me. As a result nearly all the local taxi’s are VW and despite the economic downturn there are a lot of them with a typical fare costing less that a decent Latte in London.

In the papers Tuesday morning the two major stories were the US bail out of Citibank to the tune of $25b and the Chinese government’s rescue of the bean producers. The price has dropped so far that local farmers may stop planting which could lead to shortages down the line. Ironically, US bean growers stand to gain as imports will have to rise – an unsatisfactory outcome which at least everyone agrees on. The difference in the measures taken illustrates perfectly the wide variation in issues caused by the economic downturn although building work doesn’t seem to have abated. The entire city looks like one big building site and the pace of change is phenomenal. I was told that 15 years ago there were no buildings on the other side of the river. Now it is home to some of the most breathtaking skyscrapers in the world.

I am in Shanghai on business representing one of our customers in the mobile, or should I say ‘cell’ phone sector. Is the UK the only region to continue refer to these devices as mobile rather than cell? We seem never to have got it right and I remember getting my first ‘car-phone’ back in early 90′s! Maybe one day we will finally catch up.

The research is interesting on a number of levels and not least because our client has asked us to test a prototype device that uses a different input mechanism. Radical design and risk taking are seldom seen in the mobile arena and since the launch of the iphone everyone seems to have become a follower. A radical departure this may not be but at east it is challenging current thinking which can only be a good thing.

Of great interest was the market and perception differences between what in the west we are told about the Asian market, and what is in fact the reality. Connectivity for calls and text messaging was a big issue. 3G is an aspiration for most of the people I heard talking – who ranged from people working in Financial services to Teachers. The service delivery was a constant feature of the conversation and clearly there are issues with local providers. Although I experienced excellent connectivity via my Blackberry for email and picture messaging it seemed that none of the research participants had the capability or if they did, they didn’t use it.

Where Shanghai and London are similar is in the impact the economic slowdown is having on the sector. I heard plenty of stories of budget cuts, projects being delayed and a general concern over the medium term future. However, out to dinner at one of the nicer Chinese restaurants on Monday night I noticed there were more Westerners dining than Asians. Economic slowdown there may be, but Shanghai still offers plenty of opportunity and it isn’t just the local businesses that are making the most of it.