The R.O.C.

From cloner haven to global heavyweight, Taiwan continues to reinvent itself

by Jonathan Gardner, Taiwan

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In China who trusts?

Jun 20, 2007 16:15

I was hoping it wouldn't come to this. The blog is meant to be about happenings in Taiwan. But events outside my jurisdiction now demand my attention. "Brand China " seems to be in serious trouble, folks. Is there a doctor in the house 'cause this patient is ILL.

I am a fearless marketer, having led the communications and crisis and issues management industries in the US and worldwide for nearly a decade-and-a-half. My help is needed, and I hope that the advice is heeded.

This week comes news of yet more toxic, dangerous, shoddy, fake, lethal products being found in the US. Where were they made? Of course, "China" popped into your mind. By now we'd be SHOCKED to find that hazardous products were made anywhere else.

This week it's 24 kinds of toys being recalled in the US for safety reasons. Thomas & Friends train sets were produced with lead paint, another toy was filled with kerosene. Add that to the recent pet food, pharmaceutical and toothpaste recalls, and you find that China is now responsible for 60 percent of these issues in the US.

As one of the best minds in the branding, positioning and communications business, what do I think are the issues and what should be done? I'm glad you asked.

The issues
-Global (not just American, remember all those Panamanians who died from medicine tainted with Chinese poison?) confidence in China's products and therefore Brand China is plummeting by the nanosecond.

-Any Chinese company or any company even thought of as being Chinese (for example, Taiwan companies. Lots of people think the two places are the same.) has serious corporate reputation issues now. Even the good companies are paddling upriver, trying to establish trust and sell in to a public that's wary of anything from Chinese producers.

-Chinese companies are scaring off ANY corporate customers. You think any Western toothpaste companies will buy ingredients from China now? Do ya?

-Potential investors in any Chinese company, especially those selling consumables (or even toys for that matter) are gonna be wary as heck about trusting the company seeking investment. Even if they feel they can trust them now, how can anyone be assured some product flaw or tainting won't be discovered a year from now?

-Business insurance? Insuring a Chinese maker of consumer products? Ha ha... good luck with that!

What can be done?
-The Chinese Government has to get hardcore and quick like. Beijing has shown it can act like the hammer of God when it comes to, say, cracking down on student protests. Please apply the same swift, serious action and can-do attitude to building a model system of product safety and regulation.

-To help with the above, get some serious outside assistance. Call in the overseas experts you love to host with fat steaks and karaoke ladies. Make it a top priority, much like SARS... you remember that, right (deny, deny, deny. Oh, OK, we have a problem... help, please!)?

-Be HONEST. The Government has to stop denying product safety problems everytime one appears in the news (which as we know is like everyday now). Say that you're looking into the matter and take the above prescribed steps to show you are serious. This will help keep the overseas partners and consumers from freaking out too much. Get the companies to be honest, too.

-A lot of these incidents are caused by simple greed and a lack of ethics. In tandem with a serious government product safety initiative, the public and private sectors (some kind of business association?) need to lead a proactive image campaign. Confidence needs to be restored. The world needs to know that the issues have been addressed which caused the manufacture of products that led to people's deaths.

-This program of honesty, integrity and oversight needs to be branded. Plan big. Don't be cheap on the marketing bucks. Think "in China we trust".

Just my thoughts. Discuss.

More to come.
-jag

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RickM

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RickM says...
Well said.

There's a great New York Times articles on this as well that I'm sure you'd find interesting: tinyurl.com... (thx to pekingduck)

Jun 21, 2007 21:13

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About Jonathan Gardner

Jonathan Gardner is a highly seasoned tech marketing, media and communications professional and a mildly spicy journalist. He worked from the Alley to the Valley in the freewheeling, fast-spending dotcom days and has counseled tech companies large and small across the globe. Escaping New York just as the bubble burst, he has been based in Hong Kong, Thailand, and is currently ensconced in the techno-fortress that is Taiwan. When not writing this blog, Jonathan is an independent marketing and technology consultant/analyst.