A fundamental generational change in attitude is happening: business people in China have started to question lavish banquets with too much bajiu, and new approaches to health and wellness are coming into vogue—particularly among the young, hip and urban. Rising with this trend is a multibillion-dollar fitness and food industry. Fitness apps are being downloaded by the tens of millions, and gyms are popping up almost everywhere you look in major cities. Market researchers predict that the gym, health and fitness clubs industry is to generate $5.81 billion, and that does not include sales of health food, which seems to be a craze all its own.
The opening of the Shanghai Disney Resort in June 2016 was arguably the biggest event in the history of The Walt Disney Company since 1995. Philippe Gas, General Manager of the Resort, who has been working with Disney for 25 years, discusses the challenges of building the park and offers a detailed, inside look at the long process of developing the park with the Chinese government, the unique localization that Disney built into the resort and the overall mission to bring happiness to guests. So far the park has received positive reception from the public, but according to Gas, it’s just the beginning.
China’s large and still growing population, accompanied by rising household wealth and rapid increases in healthcare spending, has transformed China into the world’s second-largest pharmaceutical market. In 2015, overall pharmaceutical sales in mainland China totaled more than $115 billion, placing China behind only the United States ($330 billion). With a population of over 1.3 billion, the sheer size of the market all but guarantees that the Chinese market will continue to grow despite the problems faced by the healthcare system. “Healthcare is the one market where the market size equals the population,” says Kent Kedl.
Unlike its developed counterparts, China is aging before it gets prosperous. Its population structure is like Japan’s of the 1980s, while its per-capita GDP level has only reached that of Japan in the early 1970s. By far the biggest issue is China’s low birth rate, which declined sharply in the 1980s as a result of the one-child policy. In reaction to the problem, China started to relax its family planning policy since 2013, allowing a family to have two, but so far the results have been lukewarm. Is it too late to climb out of the demographic trap?
“As a father, I want our children to know that rhinos are not just pictures in the book,” says Prince Williams, the Duke of Cambridge, in a campaign video on wildlife protection. Behind this campaign is WildAid, an NGO with the catchy slogan: “When the buying stops, the killing can too.” WildAid’s mission is to end illegal wildlife trade and slow down climate change. It focuses on the end consumer hoping that reducing demand would force the supply side to curtail itself. In this interview WildAid’s Chief Representative for China May Mei explains the significance of the emphasis on demand reduction and WildAid’s successes in China so far.
Several Latin American countries suffer from acute income inequalities and extreme poverty. For governments, that poses a tricky question: how to lift hordes of people out of poverty? The Latin American experience shows that well-meaning government initiatives often don’t trickle down all the way to the poorest segments of society. Felipe Perez, professor at INCAE Business School, feels that the best way out of this is to rely on Bottom of the Pyramid initiatives that are seeded by the local population at the grassroots. If this were to happen, people who are part of the problem can also be part of the solution.
Henry Mintzberg was once called the enfant terrible of management thinking. It’s not hard to see why. The author of books like The Rise and Fall of Strategic Planning and Strategy Safari, Mintzberg has always put forth radical ideas that sometimes rub people the wrong way: he wrote Managers Not MBAs, a scathing critique of business schools and MBA programs, while working at a business school. More recently, Mintzberg has trained his guns on an unlikely topic: society and politics. His latest book, Rebalancing Society, talks about how dangerous the lack of balance between the public, private and the plural sector (civil society) really is.
In every country, there are vast populations that need to be educated about something, like say personal health or hygiene, but it’s hard to do that because they are too poor, too busy, too old or just plain shy. The challenge then becomes: how do you reach out to them and achieve the desired outcomes. A concept called ‘embedded education’ can help here. Embedded education, or the practice of educating people through encounters that they already have with existing delivery systems, might just prove to be more effective than traditional mechanisms. So don’t be surprised if your barber starts educating you on hypertension the next time you get a haircut.
When externalities are present, decisions optimal for the person making them are not necessarily optimal for society. So what can be done about them?
As China re-embraces traditional beliefs and religion, just how is this affecting business in the country?