Tuesday, July 25, 2006

Ch 25: When in China...


July 23

I've had my doubts about how foreign companies would do in China. Those doubts have been shattered by the level of "localization" and "culturization" I've witnessed in companies as American as McDonalds, KFC, and the CocaCola family of products. They've all done a superb job. Lo and behold on my last day in Kunming that I should wander into that all American and world reknown jagurnaut WALMART. My curiosity was really peaked so I went in.

What I saw really surprised me and I would imagine anyone else who wanders into a Chinese Walmart having only known the American flavor of the chain. It's a different world. They've definitly got localization/culturization down. I wasn't allowed to film or take pictures inside so I'll explain what I saw. Theres a massive live produce section filled with Chinese favorites like fat frogs, giant Shanghai crabs, and a plethora of live fish. There's a huge selection of roasted meats like in the states but the birds are all Chinese style with their heads and feet still attached. There's a huge BaoZi (chinese bun) bakering making thousands of products fresh in front of the customers. The selection of Chinese snacks was immense. The electronics selection was very up to date with flat screen LCDs and equipment you could not find in the states.

They even carried pirated software and movies. I was shocked to find this and I wonder if it's a matter of Walmart HQ not knowing about it or just turning a blind eye. I could see either scenario as it was evident by the crowds that Walmart, China is VERY popular and profitable. In essence Walmart Kunming took all of the things you could get within a 20 block radius and placed it all under one massive roof. And it's not like the prices where cheaper then the small stands outside but it sure was convenient to get all that shopping down under one roof.

I think massive superstores like Walmart and their chinese equivalents will actually be great for the Chinese people and the economy. They are great at driving efficiency and eventually keeping prices down (this is China where someone will always be out there to compete with you on price). Best of all they did it the right way by adopting the food and products that Chinese people already know and love.

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