Dim Sum Dialogues: Family Business

by Stephen Greenwood on

I arrive at the Houston Center of East Tsim Sha Tsui dripping in sweat – a product of the battle between Hong Kong’s unforgiving humidity and my mild-weather Californian blood. I’m here to meet with 23-year-old Ray Lok, a mutual friend and aspiring businessman in Hong Kong. I hope that a quick breather in the air-conditioned lobby will help dry out my shirt, but within minutes I see him step out of the elevator – dressed in a sharp striped shirt – no tie, chequered trousers, and fashionable black shoes. He approaches me with a slight grin and says “Why are you sweating? Did you run here?”

In the elevator up to his waterfront office, we exchange business cards. His reads “Ray Lok, Director – Yulok Company Limited”. He comments on the thickness of my business card, “Where did you get these made? I think this is now the thickest business card in my collection”. We laugh and walk through a series of rooms strung with countless plastic & woven bags hanging from metal racks. Next to the bags are an array of textiles and various clothing fabrics.

He explains that the Yulok Company specializes in manufacturing carrier bags for retail stores around the world – South Africa, Israel, Australia, and throughout Europe. They range from simple bags with printed logos to custom designed bags for carrying bottles of wine. The Yulok Company also mass-produces simple plastic bags found in supermarkets, plastic trash bags, and more obscure products like billions of stirrers for coffee cups – it’s a diverse inventory.

Ray’s parents started the company in 1979, when his mother was employed by a trading company and approached by a client to help start a new venture. The success of the business took off despite the economic downturn in the 90’s – and at one point the Yulok Company maintained three factories in Hong Kong. Because of rising costs and regulations, they’ve since moved their factory to Vietnam – a complicated process that involved completely disassembling the factory machinery, relocating and then reassembling it.

Like many other young people in Hong Kong, Ray went abroad for his education – graduating in 2008 from USC’s International Relations & Global Business program. He remarks that he was impressed by students that were able to work jobs and study full time – and enjoyed his professors in the program. But he argues that the course itself wasn’t interesting and often inapplicable to business in Hong Kong. His real education came from sitting in on meetings as a child and watching his parents run the company.

For lunch, Ray leads me to a fancy Chinese restaurant a few floors below the office. The hostesses immediately recognize him, which is no surprise – he says he’s been coming here for 23 years. I ask whether or not he felt pressured to come take over the family business after school, and he shrugs saying that there was never any family conversation about it – as a male in a Chinese family it was expected of him. I ask him if this bothers him, if he’d rather be doing anything else, and he replies “It’s better than working at a bank” – referring to the large majority of the young, educated Hong Kong workforce.

We discuss the new plastic bag tax that hit Hong Kong’s consumers on July 1st of this year. There’s a 50¢ fee for every plastic bag used at supermarkets and convenience stores. It doesn’t concern him because he’s seen it implemented in other countries only to fail shortly after. He says that consumers often blame manufacturers for the environmental damage caused by plastic bags, but in reality it’s not the manufacturer’s fault – it’s how the consumers use and dispose of them.

Ray wants to expand into larger production of biodegradable bags, but adds that the government isn’t funding R&D enough to make them truly efficient…claiming that biodegradables can be just as bad for the environment as plastic bags are.

It seems that he’s genuinely concerned about environmental issues, but effectively dismisses any claim directed against the plastic bag industry. My ignorance on the subject forces me to return to my crispy noodles, hot tea, and sweet egg tarts. I ask him about his hobbies and aspirations, and he mentions that he’d like to explore an internet startup if he can find the time. His ideal dream would be to own a boat and escape Hong Kong on the weekends, but for now he spends his free time shooting photographs & toying around with fast cars.

It’s hard to pry deep into his personal aspirations – so I revert back to business.

We finish our lunch, and I ask him if he’s happy working so much at his age. He replies that his parents always told him “When you’re young, you sacrifice your health in exchange for money, and when you’re old you use your money in exchange for health.” I laugh to myself, and consider the truth in that statement. Wise words for a young professional in Hong Kong.

Dim Sum Dialogues: The Chungking Mansions

by Stephen Greenwood on

This is Nadim.

Nadim is originally from Pakistan. He came to Hong Kong seven years ago with his wife and two children to find a better life. He tells me that he never envisioned his better life to be what he has today, but he’s happy, and enjoying moderate success selling mobile phones out of his shop.

The shop is actually a small stall, at most ten feet wide and four feet deep, situated in a maze of hallways perpetually bathed in dim fluorescent light. The stalls next to him sell a variety of cheap suitcases and even cheaper t-shirts and jackets. No one mentions the word ‘fake’, but it’s quite apparent that most of the items have emerged from a mysterious cloning lab in the heart of mainland China. Thirty footsteps down the hall brings you to the counter of a small Indian restaurant with fresh naan, thalis, curries, and samosas. Next to that is a convenience shop, stocked wall to wall with canned goods, bottled liquor, tobacco and candy. Ten more steps and you’ll be surrounded by head-high stacks of bootlegged Bollywood films.

Welcome to the Chungking Mansions.

The mansions are a series of five 17-story high blocks, connected by a two-level foyer with shops, food stalls, and currency exchange bureaus. On any given day an estimated 4,000 people live here, not including the backpackers that take advantage of an array of cheap guesthouses in the building, and the curious shoppers that wander through the halls. On a weekend, the five lines that form for the elevators in each block display Hong Kong’s multiculturalism at its best. Indian hawkers wait with their filipino girlfriends, young dreadlocked australians rub elbows with african women in brightly patterned dresses, and the chinese security guard carefully monitors the live CCTV footage that comes from inside the elevators.

Chungking, which means “great (and returning) prosperity” is just blocks away from the world-famous Peninsula Hotel in the Tsim Sha Tsui, or “TST” district. TST’s waterfront property offers the best panoramic views of Hong Kong’s iconic skyline, making it some of the most prime real estate in the city. Yet the Chungking Mansions have avoided any signs of gentrification, and seem to be proudly surviving as the central hub for minority culture in Hong Kong. Moreover, it’s an important place of business – a living example of how a low-end globalized economy functions.

I stand outside the entrance to the building, chatting with one of the many touts that persistently offers tailoring services and “copy watches”. The favorite line among this crowd is “Hey boss, guess how much for a suit!”, with the occasional peddler that approaches us to offer a slew of drugs. The tout says to me, “See, you can find anything you need in Chungking Mansions. Anything from A to Zed – you tell me, I can find it within twenty minutes.” I consider testing his offer, but decline and watch as two young men struggle to maneuver four grossly overstuffed suitcases down the entrance’s steps.

The young men with the suitcases are most likely carrying mobile phones. Nadim told me that most of the business he sees is from wholesalers that buy these cheap phones in bulk, and take them back to countries like Kenya, Zambia, and Nigeria. Apparently, one fifth of all of the mobile phones in sub Saharan Africa have passed through the Chungking Mansions at some point – and 70 percent of Kenya’s handsets come from here. Serious traders come to the Mansions with money and a destination, and everything else is handled for them.

%Gallery-68351%

The mobile phone trade might be cheaper across the border in Guandong, but the trading laws and security of Hong Kong are more appealing to the Nigerians and Pakistanis that can’t easily obtain Chinese visas.

The Chungking Mansions have even been able to resist interference from the infamous Triad gangs – but still have issues with gangs of different nationalities that spar with one another. One restaurant owner tells me “These guys that deal drugs back here think they are big time dealers, but really they’re nothing – they are very small time in the scheme of things.”

The building has a bad history of electrical fires and suspicious activity. Signs can be seen at bars around Hong Kong advertising the disappearance of a female backpacker in March, last seen at an apartment in the Chungking Mansions. In 1988, a fire broke out and killed a Danish tourist. A series of arrests in the 90’s spurred the management to install 208 CCTV cameras throughout the building. Of course, it’s really not an extremeley dangerous place, but travelers that stay here should be aware of their surroundings, and shouldn’t entertain invitations into private rooms within the building.

A group of retired Americans in full tourist garb passes by Nadim’s stand, the fluorescent lighting only making their pale skin stand out more against the rest of their surroundings. I ask him what he thinks about tourists here, and he responds “I think it’s good – I don’t think you can come to Hong Kong and not see the Chungking Mansions. If you come to this city, and you don’t see this place, then you haven’t really seen Hong Kong.” Nadim has a valid point, and for a place that’s been dubbed “Asia’s World City”, you’d be hard pressed to find a better example of globalization in action.

Dim Sum Dialogues : Getting down to business

by Stephen Greenwood on

Let’s face it – if you’re an aspiring businessperson or entrepreneur, there’s an excellent chance that you’ll be doing business in China within the next decade. Whether it’s manufacturing, finance, or trading – China has the second largest economy in the world and isn’t showing any signs of slowing down.

One of the best things about Hong Kong is the speed with which people network. A night out at the hot spots on Wyndham Street could yield a small collection of new business cards – so make sure that you bring plenty of your own. Business cards are usually handed out rapidly and immediately in social situations, and if you’re really serious about making connections here, make sure your cards have English on one side and traditional Chinese (for Hong Kong) or simplified Chinese (for the mainland) on the other side.

A few weeks after I arrived, I became friends with another American that came to Hong Kong to import fresh, wholesome (and melamine free) milk directly from the United States. As a part of his training, he received a document outlining how business with Chinese partners should be conducted, so I took the opportunity to outline the highlights for your reading pleasure here. I can’t verify the absolute truth of these statements or stand by them, so please, take it with a grain of salt.

  • Present your business card with two hands, and ensure that the Chinese side is facing the recipient. Never write on a business card or put it in your wallet or pocket. Carry a small card case.
  • When receiving a business card, make a show of examining it carefully for a few moments, then carefully place it in your cards case or on the table, if you are seated. Not reading a business card that has been presented to you then stuffing it directly into your back pocket will be a breach of protocol.
  • If your company is the oldest or largest in your country, or has another prestigious distinction, ensure that this is stated on your card. It’s an asset to have your business cards printed in gold ink. In Chinese business culture, gold is the color of prestige, prosperity
  • Do not use large hand movements. Chinese people do not speak with their hands. Your movements may be distracting to your host. Do not point when speaking. If one must point do not use your index finger, use an open palm. It is considered improper to put your hand in your mouth. Avoid acts that involve the mouth.
  • Personal contact must be avoided at all cost. It is also highly inappropriate for a man to touch a woman in public.
  • Chinese people don’t like doing business with companies they don’t know, so working through an intermediary is crucial. This could be an individual or an organization that can make a formal introduction and vouch for the reliability of your company.
  • Bowing or nodding is the common greeting; however, you may be offered a handshake. Wait for the Chinese to offer their hand first. Handshakes are typically limp and brief.
  • Greetings are formal and the oldest person is always greeted first.
  • The most important member of your company or group should lead important meetings. Chinese value rank and status. Introductions are formal. Use formal titles.
  • It is considered disrespectful to stare into another person’s eyes.
  • Under no circumstances should you lose your temper or you will lose face and irrevocably damage your relationship.
  • The decision making process is slow. You should not expect to conclude your business swiftly. Negative replies are considered impolite. Instead of saying ‘no’, answer ‘maybe’. ‘I’ll think about it’ or ‘We’ll see’ and get into specifics later. You’ll find that many Chinese partners will do the same.

    • So there you have it. May these tips bring you good health & good fortune…and keep an eye out this week for more on Hong Kong weddings, how to navigate a wet market, and the infamous Chungking Mansions.

Business travelers: five pre-flight rituals

by Tom Johansmeyer on

When you take that early Monday morning flight, you know you’re kicking off a marathon. If you’re a business traveler, you’ll have five days of meetings, late nights and team dinners that deprive you of sleep, push your personal relationships to the periphery and generally dominate every ounce of your life. This is the path the business traveler has chosen. So, any measures that reduce anxiety and otherwise make life easier are priceless.

For me, this meant developing a pre-flight ritual that brought me a little more sleep-time, helped me remember to pack everything and ensured that I’d have nothing to worry about once I stepped out the door.

1. Pack to run: Don’t put off packing your bags. Get everything ready the night before, and leave your luggage by the door. Put your wallet, keys and cash in a place where you’ll remember them. I used to put them on my laptop keyboard. Since I checked my e-mail before leaving, I knew I’d see these important items.

2. Check in the day before: You’ll probably get a better seat, and you’ll save time at the airport. Print your boarding pass at home, and put it with your keys and wallet.

3. Get your cables together: Laptop power supply, iPod cable, Blackberry or cell phone charger … bundle them all up in advance. Forgetting this stuff isn’t a disaster, but it is a colossal annoyance.

4. Develop a path: Retrace your steps every Monday morning. For example: bed to coffee maker (turn it on) to shower. Grab coffee after shower, and take it to living room. Get dressed, drink coffee, check e-mail. Pack laptop, and pick up bags by the door. Leave.

5. Stick to your usual transportation: Find one town car company and learn to love it. Use it every week. The company will get to know you, leading to the predictability you crave. And, as it develops a track record with you, you’ll trust it more. That’s one less thing to worry about!

Record foreign travel spending in 2008, unlikely to continue

by Tom Johansmeyer on

Records were broken last year. International visitors to the United States spent $142.1 billion on travel and tourism-related activities (including traveling to and within the country), according to preliminary U.S. Department of Commerce statistics. This is up 16 percent from 2007 – which was a record-setting year, as well.

Visitors spent $110.5 billion on travel and tourism-related goods and services in 2008, a 14 percent increase year-over-year. This includes food, lodging, recreation, gifts and entertainment. They spent another $31.6 billion on travel using U.S. carriers and vessel operators, a 24 percent spike from 2007.

Last year’s success was driven largely by spending early in the year, as international visitors to the United States took advantage of a weak U.S. dollar and generally robust financial conditions. Toward the end of 2008, of course, market conditions turned, setting the tone for 2009. In the fourth quarter, travel and tourism spending by international visitors fell 10 percent, and preliminary data for the beginning of this year indicates a tough market to come (which isn’t exactly a secret).

Travel and tourism spending by visitors from outside the country accounted for 8 percent of all U.S. exports last year – not to mention 26 percent of services exports. This makes travel and tourism the country’s top services export. Travel and tourism exports grew faster than imports y a ratio of 2:1 in 2008 and constituted more than 20 percent of the total U.S. services sector trade surplus.

Spending by visitors from the United Kingdom and Canada grew most in hard dollar terms ($2.5 billion each), followed by Germany ($1.3 billion), France ($1.2 billion) and Italy ($1 billion). In percentage terms, Italy and France led the world, with its visitors spending 38 percent more in 2008 than in 2007. Argentina, the Netherlands and China turned in solid increases, as well – 32 percent, 32 percent and 31 percent, respectively. Of all the countries reported, only Argentina, Hong Kong, Japan, South Africa and Taiwan did not set visitor spending records.

The top five international markets for U.S. travel and tourism exports were: Canada at $18.7 billion, United Kingdom at $17.5 billion, Japan at $15.1 billion and Germany at $6.5 billion.

The trend is likely to come to a close this year, given the pressure of a worldwide financial crisis and the resurgence of the U.S. dollar. The travel industry is expected to shed more than 200,000 jobs in the United States this year, and the many travel deals available tell the rest of the story.

Buckle up; it’s going to be a rough year for the travel industry.