Biggest Ever Properties Bubbles in China Fueled By Insecurities

chongqing-women-apartment

Fear of collective losing out are inflating the biggest ever property bubbles across all major cities in China and it had begun spilling over to the neighbouring countries in an unprecedented manner

The common do or die imperative are inculcated in hundreds of millions of modern Chinese where narrowing of opinions had established the ultimate new guaranteed path to happiness; Properties; either in tier 1 or now increasingly tier 2 or 3  cities. Unlike other peers, China had been deploying a planned economic strategy where GDP was predetermined, planned and executed for the past few decades ever since she opened her gigantic doors to international trade and commerce. Properties being one of the key driving force for economic growth play an indispensable force behind the 40 years of significant growth.

However, there are already probably more than enough apartments for every single Chinese families for their accommodating needs. The accelerating pace of urbanisation helps worsening the speculation as proper planning wasn’t in placed to cater for the new demographic profile and younger families are increasingly being priced out. Moreover, in an effort to leverage on strong domestic demands in the backdrop of dwindling international trade;  hundred of thousands if not million of farming families from rural region were relocated into the newly built high rise apartments in town area therefore severing them from their legacy strong hold of dependencies on lands, mother earth which had been nourishing million of Chinese with her abundant life giving resources in agriculture and other means; all one need is an access to a plot of land for sustenance for his whole family.

Oprah Winfrey: “You can have it all. Just not all at once.”

Despite having a respectable portion of newer generation in the newly settled living quarters having the suitable opportunities and exposure to connect with the new society making a decent living in employments, many were left out and majority still feel insecure and hallow within not having their feet touching the soils being housed  in their multi-story apartments and these uneasiness had reinforced in the irrational buying up as many properties as one can through saving and credits further inflating the prices despite multiple round of cooling measures Government had deployed.

Of course, there are couple of others factors detailed below collectively explains the obsession Chinese had over on properties; its had gone way beyond the fundamental sheltering needs; filling the big black holes of insecurities, anxiety, life purpose, mistrusts, peer pressure and so on and these phenomena had spilled over to oversea where local developers and land owners benefited enormously more often than not on the expenses of local domestic residents on their fundamental housing needs:

Whatever money you might have, self-worth really lies in finding out what you do best. J. K. Rowling

Lack of mainstream faith: The values Chinese held are the determining factors on all matters; worries, agonies, happiness and suffering itself are simply neutral events depending how one perceive them. Without faith and religion, we tend to establish our self-worth on possession of external things. Decade of cultural revolution in the 60s had essentially dismantled ancient faith and belief systems and many simply follow the contemporary dynamic definition of success and happiness mostly led by Government propaganda and mass public media which was solely commercially influenced. eg. TV drama over promoting on consumerism and relentless pursuit of wealth

Bench marking with others: Chinese are obsessed with ranking and comparison. All the way from children’s grade, talents and choice of school to salaries and welfare benefits in the work place. Many grew up with their parent’s competitive nature and became envious about other’s establishments and throw in our own beliefs to make one feel inferior and unworthy and making a habit out of it. Instead of pursuing true happiness, most are blinded by comparative happiness; one must be better of than neighbors, peers, colleagues and even the distant cousins. Most overlooked the ultimate level of the quest for the realizations of personal potential and self fulfilment, its all personal and had nothing to do with others.

Mistrust on the Authority: Chinese is susceptible to some of their worst instinct when one begin to lose faith in the system in safe guarding their accumulated wealth, the same regime which had allowed individuals to own private wealth and brought in huge amount of trades and employments opportunities since the 70s. No check and balance can redeem what private Chinese citizen have unleashed on the pursuit of prosperity and happiness, its inevitable one wanted to have more autonomy and control moving up the Abraham Maslow hierarchy of needs; started off with biological toward physiological imperatives. The regime had to accommodate the up and rising inspiration of the hundred of millions of the  middle income group although the aspiring need of more autonomy might never have been as important politically as the current administrator believed.

In summary, overheated properties market in China reflects a increasing level of collective anxiety and insecurities, from middle age generation of Chinese in their 40s and 50s who is going through the uphill tasks of taking care of his or her aging parents with no other sibling to shoulder the burdens, a consequences of “One Child Policy” to older generation in their 70s and 80s who had missed out in maximising their God given potentials due to the decade long “Cultural Revolution. Many newly minted middle income families with significant disposable income subconsciously had this unspeakable fears of having their bright and rewarding destiny taken away from them overnight had chosen to “Properties” to either leverage on the “risk” or simply wanted to secure a delusive peace of mind.

There is another important factor in play. “Internet”. Instead of true liberation, social media networking had effectively transform into  the modern day witch hunting machine, consolidating data trends from massive number of online citizens where convenient of anonymity had distorted their genuine perspective and opinions, their avatars had taken a new identify of their own and sometimes eye catching and sensational news dwelling on sensitive topics on democratic, religions, raising silver population, stagnant economy and shrinking job openings raise pressure on the authority to act as to justify their fundamental rationale of being in power, one of the key social contract is to provide all Chinese a  good life in terms of healthy trade and commerce, reasonable access to healthcare and abundant of decent of jobs opportunities for the younger generation in return of legitimacy in continuing ruling the country.

 “I think everybody should get rich and famous and do everything they ever dreamed of so they can see that it’s not the answer.”
― Jim Carrey

p/s: The American psychologist Abraham Maslow identified a hierarchy of needs beginning with the biological and physiological imperatives of air, food, drink, shelter, warmth and rest. These proceed to the desire for protection from the elements and fear, and revolve around security, order, law and stability. A higher level involves friendship, intimacy, trust and acceptance. Then, there is the need for achievement, independence and status. Finally, the quest for the realizations of personal potential and fulfillments represents the pinnacle of the pyramid of needs.

Afford More Time for Yourself with the Right Tempo and Energy in Asia

Time as a finite resource could had multiple dimensions; it can actually be slowed, hurried up, focused on or simply wasted away deliberately. As all of us wanted to “Upsize” our life with more time, we ought to figure out what we actually wanted in the first place and prepare ourselves with a clearer understandings on how to deploy time to our maximum advantages.

“Time you enjoy wasting is not wasted”– Marthe Troly

First of all, time management was introduced in 13th century primary to facilitate religious ritual arrangement in Europe and had subsequently became the ultimate driving force in the industrialization era for general measurement of output per man hour, nevertheless, it’s increasingly becoming an irrelevant measurement tool in this contemporary information era with result driven emphasis where creativity and innovative play a much greater roles.

In fact, it usually take a lots longer to accomplish something of significant values; your typical new year resolutions, a marketing campaign, a cost reduction project, bringing up respectable children, novel writing, creating a painting, art pieces or poems and so on sometimes take one’s life time commitment and we were often disappointed on failures of getting a particular task done as we had allocated way too little time in underestimating the scope and being too optimistic.

On the other hand, have you ever wonder are we being short changed from maximizing our life’s potential with the increasing proliferation of social media platform not unlike being conditioned with consumerism with insatiable desires of wanting more; having more is sometimes less as we do need to exchange them with our precious and diminishing resources; “Time”.  As a matter of fact, we are not addicted to our smartphone as much as we are obsessed with its contents; the stickiness and unprecedented appeal of social media networking platform feeds on our primitive craving of attention seeking, feeling of being important, instantaneous gratification and so on and we become pretty helpless as corporation and Institution deploy behavioral science on us for manipulation ultimately to their benefits.

No matter how busy you are, you must take time to make the other person feel important. –Mary Kay Ash

Nevertheless, handheld internet enabled Gadget is becoming our secondary functional organ and the needs to “share” and “record” is greater than simply absorbing and experiencing the moments; letting our other senses soak up the precious moment, e.g.. Appreciating beautiful scenery spot, paying attention to details, enjoying mouth-watering and appealing meals and socializing with others conventionally.  15 mins of idle time admiring something wholeheartedly is a smarter way to spend your time as it’s advance engagement as compare to 15 mins of passive social media interaction, one can actually get more bang out of the same buck.

Yesterday’s the past, tomorrow’s the future, but today is a gift. That’s why it’s called the present.– Bil Keane


Also, recalling those best life changing moments you ever had? Details were long gone but the sensation you had always strike an inner chord; the magnificent mountain View; nice people you ever associated with; the freshness in the air; the elation of feeling of simply great to be alive…. Or the thriller you been reading, the twist and turn of the story keeping you awake at night; they all had one thing in common; “100% undivided attention, engagement of full sensory perception where one is in the state of “flow” with time where time actually slow down for you. These are the deep moments of time well spent as they add true values to our life;

‘I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.‘– Maya Angelou

However, although we had unprecedented amount of free time on hand as compared to 50 years ago but why most of us actually felt otherwise? Striving a balance here is the key with awareness and self-initiated tempo and focus levels, shallower time deployment such as watching movies or a game of sport isn’t as rewarding as actually taking parts of them as primary players. Time had different dimension of pace and depth, activities with full senses such as writing, sketching, painting, reading, exercising miraculously place us into ultimate “Liquid” and “Flow” state of mind with maximum level of satisfaction.

Time is what we want most, but what we use worst. –William Penn

For example, most European strive to bargain for more “free time” from employment as they appreciate the true values of “time” as a precious resources with the right value system whereas majority of Asian keep dragging their feet in work thinking of vacation and still fully engage in works while having vacation through the almighty 3C products. One either feel insecure or overlook to appreciate the concept of valuable free time for wholehearted involvement.

My favorite things in life don’t cost any money. It’s really clear that the most precious resource we all have is time. –Steve Jobs
One also needs to slow down for some personal reflective time and avoid blindly following the crowds from time to time; After all, everyone is given 24 hours and we already started toward mortality at the moment we were born, the meaningfulness of one isn’t the length one manage to hang around but the significant and legacy one leaves behind, how we use our times play a key part in our formative, productive and slowing down years.

The energy of the mind is the essence of life. –Aristotle

In addition, many Asian tends to engross themselves with multiple tasks primary due to time mismanagement and we ended up not paying undivided attentions to tasks on hand and had often unintended consequences down the road short changing our optimal capabilities.

 

artcile_table

Fig 1. Maximizing your time with the right dynamic 

In summary, time management of which was key in industrialization era probably play an equal if not greater driving factors as combustible engine where our values are often associated with output per man hour instead of creativity and productivity in the current knowledge economy; the deployment of fossil fuels, engine and automation had transformed our lifestyle and a brand new perspective on time management is needed, like an orchestra with different degree of dynamic and balance for a fine piece, slow and relaxing followed by high intensity closed paced rhythm and a nice finishing gentle touch for closing, not unlike a fruitful and rewarding life well lived with the right tempo and intensity across different time of the days, varying stages of our life across our pursuit of excellent in family, health, community, work and so on.

Everything is Energy and That’s all there is to it. Match the frequency of the reality you want– Albert Einstein

In other words, keeping a long term hobby can add extra time in your life; live every moments of our life seriously with the right mindset; connecting the dot from the past and future, draw a line between work and private time, be confidence in your self-worth; apply different tempo on the tasks on hand, exercise regularly, insisting to have sufficient rest and give your day 100% effort and you can add extra time and values in your life for yourself and others.

 

It Is Not Just About Connecting the Dots, It’s About Making Them

It Is Not Just About Connecting the Dots, It’s About  Making Them

Majority of the well-educated adult Chinese workers are hanging on to their day job and had not possessed 2nd marketable skillets, some didn’t even know what are their own passions and hobbies of which some degree of grooming and investment are needed and many didn’t even bother to start as they were unknowingly engrossed with the almighty self-glorifying and instant gratifying social media platforms draining off whatever precious limited stamina and mental capacity that left over after work.

“It’s what you do in your free time that will set you free—or enslave you.”  ― Jarod Kintz,

As a results, many didn’t live up to their full potential, one also observes the self-worth has been in free fall in China, signaling concerns about meaningful personal growth for many especially since China opened up to the World in 70s, decades of robust continuous economic growth is nothing short of spectacular. However, many had also unilaterally moved away from the socialist regime that had underpinned the post Chairman Mao society, leading to a turbulent breakdown in Chinese legacy of mainstream beliefs; relentless accumulation of monetary wealth become the only obsession. Naturally, this was a pronounced shift toward a different life goal approach that was better suited to an era of fast-paced lifestyle but had unknowingly shut us out of many potential future opportunities.

Master Oogway: The more you take the less you have 

So, it is as good a time as any to explore new experiences. Making it voluntary may not be as big of a chance as most of us are conditioned to evaluate immediate pros and cons and helplessly incapable of visualizing the potential long term gains and simply give up avoiding the hassles in the beginning. The broad values underpinning this phenomena ought to be examined closely, prosperity confined merely to monetary possession had often blinded people from seeking the greater significant meaning of wealth which also include overall well-beings; health, belief, family, jobs, network and so on. One needs to take the first step without being too calculative as these could well be one of many dots that’s comes in handy later on. Adopting a mindset of welcoming new experiences in diversity would also help one to overcome the fears of unknown; having a strong faith that things will always work out well eventually so long you believe it will.

There’s always a reason behind everything that has happened… It change you into better a person—unknown

For example, those of your friends who persisted in their hobbies and interest eventually became dedicated swimming coaches, amateur photographer, foreign language tour guide, musician, pedicurist, florist and so on. Some become who they want to be not necessary all had to do with their primary area of disciplines in their professional training but because they are making their own dots believing these will eventually pay off not necessary in monetary perspective but in overall well-being in the long term.

“If you only do what you can do,you‘ll never be more than you are now.” Master Oogway.

All of us, overemphasizing on connecting the dots forward and didn’t create enough dots in the beginning for connecting them backward much later on. E.g. Give up swimming lesson at age 15 and missed the chance when someone you had a crush on asked you out for a swimming date at 18. Belly up in Japanese lesson at 18 and had to pass out a great job opportunity at 28 of which a command of good Japanese is a prerequisite. The more we being calculative at the beginning to learn a trade, pick up a hobby, groom our interests, making new friends, the more likelihood we lose the opportunities for broader meaningful engagement later on.

Success is not final, failure is not fatal: it is the courage to continue that counts.”–Winston Churchill

So, Instead of greeting the toll of missed opportunities due to our short sighted calculative obsession with a collective shrug, we ought to embrace new experiences with a brand new perspective, these are all the doors one is opening for one own growth in wider time horizons of years if not decades down to roads.

“You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future.”― Steve Jobs

 

In summary, from time to time, we give up things we have an interests in just because it’s too much hassles and if this develop to become a habit, we are losing the most previous resources as we after all are not immortal and nothing beats leaving a legacy and being excellent in what we do. Have a ready mindset and altitudes of welcoming new experiences would also help to mitigate the fears of the unknown compelling us to walk out of our comfort zone for new and rewarding experiences, in fact, wealth creation includes all aspects beside monetary possession; friendship, knowledge, network, health, core belief, sense of significant and contributions, are things and experiences that’s will make us live more deeply.

Wealth:  An abundance of valuable material possessions or resources; riches

 

sales@charliebrowncafe.com.sg

https://www.facebook.com/charliebrowncafe

https://www.facebook.com/charliebrowncafeorchardcineleisure

http://www.charliebrowncafe.com.sg/

Wechat: charliebrowncafe

https://twitter.com/CBCafeSingapore

http://instagram.com/charliebrowncafe/

http://www.flickr.com/account/Charlie Brown Cafe

 

 

Don’t Worry, I fell down myself. Give me a hand?

 

The massive Cultural Revolution in the 60s had single handedly wiped out legacy of traditions Chinese had accumulated and established over the centuries on matters of morality, values and so on. it’s the era where everyone is for themselves; Excessive argument is the norm to fight for fair treatments; black and white, good and evil were clearly defined in the propaganda, scholars and landlords were placed in force labor while teenagers cladded with red scarfs were delegated to carry out Chairman Mao’s mission to “cleanse” and “purge” the system of traditional elements and remnants of capitalist while preserving true communist ideology. Those who is loudest and offensive usually wins for the day with Millions of people persecuted in the violent struggles that ensued across the country, and suffered a wide range of abuses including public humiliation, arbitrary imprisonment, torture, sustained harassment, and seizure of property.

https://en.wikipedia.org/wiki/Cultural_Revolution

Cultural_Revolution_poster

Cultural Revolution propaganda poster. It depicts Mao Zedong, above a group of soldiers from the People’s Liberation Army. The caption says, “The Chinese People’s Liberation Army is the great school of Mao Zedong Thought.”

As a result, decade of pitching against one another even among married couples on their royalty and dedication to party’s principles simply for survivor had led to a habits in over simplifying manner of character judging streamlining people into either good or bad and unfortunately the same phenomena had continued into modern China although the revolution only lasted ten years (1966 to 1976). As a matter of facts, not unique to Chinese, humanity is a rather complicated issue with no straightforward definition, most of us actually carry both elements of light and darkness depending on circumstances, system and common practice to bring up the best in us or likewise the worst. This had pretty much encapsulates the current stand on majority Chinese’s state of mind on all range of matters; distrusts, anxiety and paranoid toward one another as hundreds of millions of them moving along the social mobility all within a short period of time frame of 20 to 30 years ever since Deng Xiaopeng took over after Mao’s death and started liberalizing the economy since 1978

The Chinese government took notice of this and had rolled out countless of campaigns usually with non-nonsense eye catching slogans and education to rectify the phenomena and although Education is of paramount important but it had failed to turn all mankind into good Samaritans but it remains effective enough to restraint negative desires from dwelling within us; affirmation and encouragement of good and despise the bad behaviors.  Likewise, Chinese well known harsh Law and order had successfully established a base line one shouldn’t cross but simply incapable of bringing out our highest level of desirable code of conducts. Robbery, stealing and killing are prohibited and comes with serious repercussions of forced corrective behavioral confinement and death penalties.

In fact, what proven working in other countries is an environment of peacefulness and kindness to induce the best version of us as our “good” elements are being harnessed and encouraged. After all, a community with strong cohesiveness, unconditional love and inherently considerate and courteous for others doesn’t means we screen out the best “candidates” of model citizens and put them together but rather establishing a grand scheme of things to bring out the best in each of us.

For example, strict rules effectively enforced will ensure Chinese parents take regulations seriously safe guarding their minors minimizing rampant cases of children’s abductions and negligence, same goes for the Chinese truck drivers being  accused of knocking down an old ladies when in fact they were merely helping out the self-fallen seniors; rare incidents  but were dis-proportionally reported over the internet virally and had caused serious unintended consequences where many were now  hesitant to extend much needed helping hands anymore when they came across someone in dire situations, unlike their peers in western society where “Good Samaritan law” was legislated to minimize the potential legal consequences one might face while providing urgent helps and assistance. Many has ramped up self-protectionism and interest as social tension flared following massive detailed coverage of sizable incidents of one being accused as the perpetrator or being victimized when extending a helping hand; either to a tripped over senior in the streets or some random scam. The row within all social events ever spread with massive social media platform has fanned the embers of the many with rather negative sentiments went out of proportions, shaping bias confirmation bringing the worse from each others.

In fact, it’s either the seniors wasn’t of sound mind or they simply couldn’t afford the exorbitant medical fees and didn’t want to add on unnecessary financial burdens on their children and took the extreme measures of clanging on to whoever is helping them like a drowning man holding on to the only life line. None would had happened if they were insured medically either personally or mandatory.

For example, the move of mandatory country wide automobile insurance coverage is laudable and comes close on the heels of another coup for respectful Chinese nation. Gone were the days to fight for compensation in an automobile accident, accusing each other for liability and so on as the only way not to lose out. Now, merely cigarettes and particulars were exchanged for insurance claims instead of punches and shouting not unlike during the ten bizarre years of cultural revolution.

Moreover. the current economic slowdown and an unfolding political crisis in China didn’t improve their sense of security and fairness, in fact, it got worsen; public disclosure of corrupted officers were beyond layman wildest imagination; i.e. Private palace, tons of gold and foreign currencies stashed away in the basement and so on, instead of being obsessed with income equality which in reality is the nature of things; 20% of upper income or interest group always dominate 80% of the overall wealth, Equity should be emphasized and taken priority for the bottom layers of the food chains to have access to basic fundamental resources; medical, education and social mobility. Anxiety grows as economic soar as nobody wanted to be left out as most acknowledging that lavish lifestyle spending is a priority in shift from austerity basic for a respectful living

 “The world has enough for everyone’s need, but not enough for everyone’s greed.”― Mahatma Gandhi

In summary, China success at achieving high civil mindedness appears to be a long shot without corresponding systems and safety nets as there was an unmistakable air of anxiety on daily affairs as the moral compass dell to its weakest level. Measures are needed to be to unveiled to restore confidence and well-being, there are lessons to be drawn from the motor insurance deployment because it fulfills a role of relatively fairer platform for mediation between legitimate individuals with coverage. The good part of the structure cannot shake off the burden of the bad. There are more reasons to induce fair and acceptable behaviors with relevant safety nets such as basic medical accessibility, food banks, unemployment benefits, affordable living quarters and basic public transport infrastructure like their more advance counterparts in western Europe.

 

Good Samaritan laws offer legal protection to people who give reasonable assistance to those who are, or who they believe to be, injured, ill, in peril, or otherwise incapacitated.[1] The protection is intended to reduce bystanders’ hesitation to assist, for fear of being sued or prosecuted for unintentional injury or wrongful death.

David F

sales@charliebrowncafe.com.sg

https://www.facebook.com/charliebrowncafe

https://www.facebook.com/charliebrowncafeorchardcineleisure

http://www.charliebrowncafe.com.sg/

Wechat: charliebrowncafe

https://twitter.com/CBCafeSingapore

http://instagram.com/charliebrowncafe/

http://www.flickr.com/account/Charlie Brown Cafe

 

Slide1

Slide2

Slide3

Slide4

Slide5

Slide6

 

 

 

The End of an Era of Cheap and Good China Lighter?

http://on.ft.com/1P8ScTw

For the past few decades, there is no end in sight to increasing cost down pressure across full ranges of products from high end telecommunication gadgets although of foreign brands all the way to daily necessity like lighters in China. A visit to “WenZhou” city last century in the 90s where thousand of small factories were churning out 1 to 2 billions of “Cheap and Good” lighters annually with retail price as low as RMB$1 as compared to USD$1 of the Japanese equivalent. A local owner demonstrated this by dismantling the lighter down to its respective components; cost price was 5 to 20 times different and labor was 5% of their Japanese counterparts. “we can wipe out the other guys easily”. Said the grinning and confident owner.

https://en.wikipedia.org/wiki/Wenzhou

As a results, the rest of the world watched in awe the unprecedented rise of thousand of small to medium size enterprises which begun to compete with prices and taking tight cost control over raw materials, production process, labor, environmental, taxes, and rental and had swiftly beaten their international competitors and created “Made in China” legends flooding the world with dirt cheap products altering the world’s consuming behaviors; Products there were once considered durable became disposable overnight where quality wasn’t up to the standard were accepted; buy and throw away lighters, screw drivers, shoes and so on become the new norms as the price we paid for these “Made in China” tools was a tiny fractions of what it used to be.

“Never compete with someone who has nothing to lose.” ― Baltasar Gracián

Gaining market share in world economy has been a Chinese obsession for 30 over years ever since it opened her door to the world for business. It is the chief item of current and previous administrator and remains the focus of Chinese economy modernization, the 30% hard bottom line was used by all Chinese consumer electrical appliance manufacturer like TV and refrigerators to remain competitive in the global market; Chinese product had to be 30% or more cheaper that their European and Japanese competitors but current situations demanded a review on whether should the same modus operandi remain relevant going forward.

My favorite things in life don’t cost any money. It’s really clear that the most precious resource we all have is time.—Steve Jobs

After all, the China made brand lighters simply weren’t as durable as the Japanese one, it took more than 3 attempts to ignite and sometimes it just malfunction; There was indeed a hidden cost incurred for the RMB$1.0 lighter; the huge cost advantages means a degradation of the component quality as well as user experience. Imitators merely duplicate the manufacturing process with no incentive for productivity improvement and technical upgrade. There also weren’t significant contribution for the past decades on lighter technology by these “Wenzhou” lighter manufacturers.

“The best way to predict your future is to create it”
Peter F. Drucker

As matter of fact, the rise in material cost and gigantic shifts of demographic portfolio in recent years had reduced the once bustling lighters sweat houses in Wenzhou from 3000s to less than 100 where the profit margins dropped to below 2%, the same phenomena affected other industries in household appliances, zippers, buttons, automobile, textiles and so on of which despite being risen to number 1 in manufacturing capacity the huge cost advantages China had benefited with much lower baseline had all but disappeared. Factories simply couldn’t kept up with the rising inspirations of new Z-generation production operators of whom were raised like a King or Queen in their own one child households, many simply couldn’t bear the the relative low wages and mundane working environment, the massive labor demographic surplus China had enjoyed for decades simply had vanished.

 

On the other hand, evidence suggested that million of new middle income Chinese may be more predisposed to pursuit of high quality services and products due to their financial autonomy and inspirations for more fulfilling lifestyle. Many welcome the shift in relentless pursuit of low cost to premium products with reasonable quality as it will bolster the nation’s faltering advantages of global factories. Hundred of million of influential Chinese who had ventured out of countries clearing stocks of the foreign well established merchandises like there is no tomorrow from designer bags, luxury watches to Japanese electronic rice cookers many of which was “OEM” back in China but not available through regular retail channels. They had all embraced the new consuming appetites not unlike what other advance countries like European, North American and Japan had experienced before in the past and majority exhibit the following commonalities;

“The Master said, “If your conduct is determined solely by considerations of profit you will arouse great resentment.” ― Confucius

1. Most were obsessed about product differentiation; closets full of summer and winter apparels; both formal and recreational, emphasizing on details, positioning, quality and branding.

2. Many discards crude and misleading advertisements and emphasizing on user experiences; believes on peer’s reviews and words of mouth sharing; despise blindly product endorsement but once conquered become consistent repeat customers and wouldn’t hesitate to share with others.

3. Majority of them would generously open their wallets for higher prices on premium products and services to reward and affirmation of the brands for their designs, quality, fashion and their dedication to pleasant users experiences

4. Actual product cost is less relevant to the retail price tags than to consumer’s value recognition. Eg; Fans who Splurge on a piece of RMB12,000 apple watch had no interest to compare prices and had no interest on the cost prices.

“Quality means doing it right when no one is looking.” Henry Ford

Unfortunately, most of the manufacturers had not taken this new phenomena to their own advantages and continue the cut throat pricing competition even into the e-commerce platform where pricing strategy although remains an important part of the overall marketing plots but had lost it “magic” and had no chance to transform “Made in China” to the another new milestones despite ten of thousand of foreign OEM had been enjoying the lower production cost and efficiency the world factories got to offer but most of the fat margins were remitted to the native home (for design and innovation) with merely less than 3 to 4% of profits (for H/W manufacturing) left behind for local infrastructure development and so on.

With few hundred million of newly minted high value Chinese consumers who willing to fork out more for premium products and services giving a helping hand to their favorite brands, rewarding them with higher profit margins anticipating more dedication and R&D for even better consuming experiences in future, its critical timing now for Chinese companies to turn this into their own competitive edges. That’s not just because Beijing is muscling for higher end territory in home grown automobile and local and acquired semiconductor and so on, the anxiety and uneasiness of Chinese appetite for more of their own premium brands are mounting. From high speed rail infrastructure to financial industries to commercial airplanes manufacturer, the peripheries of Greater China are being quickly taking shape reclaiming the glorious days of being the exclusive producers and exporters of highly sought after fine porcelain China, silks and tea  just couple of centuries ago and this would also signal the end of an era of Cheap and Good China Lighter.

Our greatest glory is not in never falling, but in rising every time we fall. —Confucius

sales@charliebrowncafe.com.sg

https://www.facebook.com/charliebrowncafe

https://www.facebook.com/charliebrowncafeorchardcineleisure

http://www.charliebrowncafe.com.sg/

Wechat: charliebrowncafe

https://twitter.com/CBCafeSingapore

http://instagram.com/charliebrowncafe/

http://www.flickr.com/account/Charlie Brown Cafe

 

 

 

 

The New Chinese Ship Load Line

An audacious pursue for wealth in China is increasingly likely to face macroscopic hurdles and deep skepticism about the level of meaningful fulfillment amid recent major economic restructuring from export led business to driving local domestic consumption as the next new growth engine with many Chinese had inevitably embrace the social contract of guaranteed progressive economic gains forgoing more political autonomy pledged by current Chinese administrator.

As a results, significant economic transformation took place for hundred of million of Chinese households since the 1980s; everybody ranging from migrant workers, factory workers to executive and so on enjoyed unprecedented access to decent jobs and plenty of business opportunities had also helped created many new upper income individuals and private entities, however the era of  sailing these ships in these water allowed rather deep “ship load line” limit satisfying all kind of inspiration is over as one begin to observe  increasing number of wages and labor disputes all over China where the Chinese State had since mandated a minimum increment of wages from rather lower baseline in the past few decades until it now becomes unsustainable for majority of the business operations of which had either winded up business or relocated. The transition to lower growth therefore present a challenges to Chinese Government to maintain the integrity of the social contracts.

“You can have it all. Just not all at once.”― Oprah Winfrey

Yet many people continue to rush to get on the bullet trains of prosperity not unlike their predecessors , not recognizing the underlying depression or anxiety driving these phenomena were actually the fear of losing out and lack of self esteem; need for respect from others and manifests itself as the need for self-respect; relies on an inner competence established through experience. The obsession to wealth reflects a widening push to establish more self-esteem climbing along the  Maslow’s hierarchy of needs.

As a matter of fact, Chinese is particularly weak in self esteem, having no right to vote to have  a say on their destiny and often compromising self-interests for the sake of the higher course of Party’s interest; Many houses were demolished or forced relocation making ways for mega infrastructures like the high speed rails and so on despite being well compensated. Farmers were clustered into new satellite multistory townships with slim chances of integration uprooting from their precious plots of soils which provided probably the only dependable sustenance for generations.

Fears of a prospects of inferior life economically further pressuring many irrationally on acquiring wealth as a hedge against uncertainties ahead, as a result, many were cruising with depressed “ship load line” vaingloriously overloaded with far too much desires in the uncharted water either not being able to accept the status quo or refuse to compromise comparing with one another rather than having a solid faith of self-worth and self-respects on one’s need for strength, competence, mastery, self-confidence, independence, and freedom for their higher self-esteem.

Our business in life is not to get ahead of other people, but to get ahead of ourselves.”– Maltbie Babcock, clergyman and writer

On the contrary, worries of a contagion effect from China’s slowdown are overblown. For they assume that the country’s enormous economy plays a proportionate role in driving global growth. In reality, the impact of a dramatic and sustained downturn would likely be more psychological than material and will take a toll on the self-esteem. Not unlike Ship complying to the “ship load line” for stable voyage depending on the specified water types and temperatures in order to safely maintain buoyancy. Individual had to take an assessment of the situation and offload non essential desires like the need to seek fame or glory of which will not help the person to build their self-esteem until they accept who they are internally.

This debacle dramatically underscores a new change of direction in the governance of China under President Xi Jin ping. Decision making has become top down, more rushed and far less predictable probably as to further strengthening the regime as the Country progressing into middle to upper income state where people will inevitably demand for higher autonomy and having a say in how an administration should be managed if decades of years of good times enjoyed beginning to look uncertain ahead. It’s a potent reminder that nothing is so blinding as the illusion of seeing.

In summary, its time to adjust the New ship load line for many Chinese into the Era of slower growth avoiding massive capsize ahead, extraordinary efforts are also needed to continue to maintain high esteem levels through accepting perhaps the current hybrid system of authoritative Communist and planned economics are the only effective way uniquely for China. One cant have the best of both world forever; western style democratic and high degree of materialistic prosperity at least not during the transition period. 

“The world has enough for everyone’s need, but not enough for everyone’s greed.”― Mahatma Gandhi

P/S: The water line also know as “Plimsoll line” establishing a legal limit to which a ship may be loaded for a specified water types and temperature in order to safely maintain buoyancy after countless capsize accident due to overloading in 1800s.

Maslow’s hierarchy of needs, represented as a pyramid with the more basic needs at the bottom[1]

maslow

http://businessesforsale.com/advert1436168.aspx

sales@charliebrowncafe.com.sg

https://www.facebook.com/charliebrowncafe

https://www.facebook.com/charliebrowncafeorchardcineleisure

http://www.charliebrowncafe.com.sg/

Wechat: charliebrowncafe

https://twitter.com/CBCafeSingapore

http://instagram.com/charliebrowncafe/

http://www.flickr.com/account/Charlie Brown Cafe