One Billion Customers
James McGregor’s One Billion Customers: Lessons from the Front Lines of Doing Business in China makes for an informative read and good reference source for those looking to gain an understanding of conducting business in China and those actually looking to do it.
As a book, with no specific relevance to the content, there are four aspects of the book that I am especially fond of. First off (having read the hardcover version of the book), upon opening the cover of the book the reader is immediately exposed to a map of China. This map is duplicated on both the front and back covers and illustrates China’s provinces and major cities, along with showing all of its borders, and even gives a rough feel for the mountain ranges that crisscross the country. As a reader, and a China novice, I referenced those maps countless times throughout the book and was able to get a much better feel for the country that I would have without it. The second thing that impressed me was the table of contents which provided a short description of each chapter in addition to the chapter title. While I can’t fully appreciate this little detail now, I have learned the value of it from past readings. Six months or six years from now I will be able to look back at this book as a reference and navigate to the information I am looking for. In addition to the descriptions found there, the chapters finish with a set of bullet points to serve as takeaways from that chapter. The author dubs them “The Little Red Book of Business” and they provide an excellent summation of the concepts he tries to get across. And finally, I thought the look and feel of the book was comfortable. The chapters are all broken down into subsections with headings and the font, spacing, and paper texture are all quite pleasing.
The structure that McGregor chooses to illustrate his points makes the book easy to read and understand. He starts off with a bit of modern history, taking the reader swiftly from the late 18th century into modern day. I was pleased to see the book start off by touching on China’s history because I believe it to be one of, if not the most important thing a foreigner should acquaint himself with before experiencing their culture. References to China’s history and recent modernization are speckled throughout the book. After ramping up to modern times, the author begins relating his themes to the reader through the use of numerous case studies. The author’s candid storytelling makes the various cases entertaining as well as educational. While imparting the facts of the case, he also does a good job at describing the players and giving them personality. It reads a bit more like a novel than I would have expected for a book that comes from Wall Street Journal Books, and there are areas that are suspenseful, sad, and triumphant.
From a business perspective I found the book had a number of strengths, but also a few distinct weaknesses. One of the major themes focused on throughout the book was the fact that doing business in China means doing business with the Chinese government on some level. McGregor makes it clear to the reader that it goes beyond some minor bureaucratic red tape and paperwork; that it is not the same as going to Germany to business. If a company is looking to expand its operations to China for a chance at some of those one billion customers, they need to plan on working with the government and be willing to change their original plans to adapt to what the Chinese are looking for. Along those same lines, another key point was the value of building strong relationships with Chinese government personnel and business leaders. He makes it clear that it is not possible to go into to China as a foreigner and succeed without local support. There is a lot of relationship building that needs to take place and it is wise to keep an eye on the local social and political climate. A final idea that seems basic, but was still helpful to see on paper, was the myth of one billion customers. It is all too easy to view China as a giant marketplace with boundless potential, but the author’s cases and arguments emphasize the fact that China is no more one marketplace than the U.S. is. The manager looking to do business in China can’t get caught up in the mystique; rather they must analyze the market and find their targets, then pursue them with focus.
My only real gripe with the book was its lack of historical perspective. There is so much insight to be gained by understanding the relationships that the “middle kingdom” has had with foreigners in the past. McGregor could have gone much more into depth on these topics and provided additional insight into the core of the Chinese persona. Perhaps it would have taken away from the flow of the storytelling, but it would have added value to the book.
All things considered, One Billion Customers gets my recommendation for those who have not yet read it. It doesn’t sugarcoat the reality of what is a very difficult task that takes immense planning and commitment. There is a lot of good advice for anyone headed to China to conduct business, both in the form of what to do and what not to do. The layout of the book truly allows for you to learn from the mistakes that others have made and illustrates some of the keys to being successful as an outside entity moving into the Chinese marketplace. That’s my two cents, but you’ll have to read it yourself to know for sure.
As a book, with no specific relevance to the content, there are four aspects of the book that I am especially fond of. First off (having read the hardcover version of the book), upon opening the cover of the book the reader is immediately exposed to a map of China. This map is duplicated on both the front and back covers and illustrates China’s provinces and major cities, along with showing all of its borders, and even gives a rough feel for the mountain ranges that crisscross the country. As a reader, and a China novice, I referenced those maps countless times throughout the book and was able to get a much better feel for the country that I would have without it. The second thing that impressed me was the table of contents which provided a short description of each chapter in addition to the chapter title. While I can’t fully appreciate this little detail now, I have learned the value of it from past readings. Six months or six years from now I will be able to look back at this book as a reference and navigate to the information I am looking for. In addition to the descriptions found there, the chapters finish with a set of bullet points to serve as takeaways from that chapter. The author dubs them “The Little Red Book of Business” and they provide an excellent summation of the concepts he tries to get across. And finally, I thought the look and feel of the book was comfortable. The chapters are all broken down into subsections with headings and the font, spacing, and paper texture are all quite pleasing.
The structure that McGregor chooses to illustrate his points makes the book easy to read and understand. He starts off with a bit of modern history, taking the reader swiftly from the late 18th century into modern day. I was pleased to see the book start off by touching on China’s history because I believe it to be one of, if not the most important thing a foreigner should acquaint himself with before experiencing their culture. References to China’s history and recent modernization are speckled throughout the book. After ramping up to modern times, the author begins relating his themes to the reader through the use of numerous case studies. The author’s candid storytelling makes the various cases entertaining as well as educational. While imparting the facts of the case, he also does a good job at describing the players and giving them personality. It reads a bit more like a novel than I would have expected for a book that comes from Wall Street Journal Books, and there are areas that are suspenseful, sad, and triumphant.
From a business perspective I found the book had a number of strengths, but also a few distinct weaknesses. One of the major themes focused on throughout the book was the fact that doing business in China means doing business with the Chinese government on some level. McGregor makes it clear to the reader that it goes beyond some minor bureaucratic red tape and paperwork; that it is not the same as going to Germany to business. If a company is looking to expand its operations to China for a chance at some of those one billion customers, they need to plan on working with the government and be willing to change their original plans to adapt to what the Chinese are looking for. Along those same lines, another key point was the value of building strong relationships with Chinese government personnel and business leaders. He makes it clear that it is not possible to go into to China as a foreigner and succeed without local support. There is a lot of relationship building that needs to take place and it is wise to keep an eye on the local social and political climate. A final idea that seems basic, but was still helpful to see on paper, was the myth of one billion customers. It is all too easy to view China as a giant marketplace with boundless potential, but the author’s cases and arguments emphasize the fact that China is no more one marketplace than the U.S. is. The manager looking to do business in China can’t get caught up in the mystique; rather they must analyze the market and find their targets, then pursue them with focus.
My only real gripe with the book was its lack of historical perspective. There is so much insight to be gained by understanding the relationships that the “middle kingdom” has had with foreigners in the past. McGregor could have gone much more into depth on these topics and provided additional insight into the core of the Chinese persona. Perhaps it would have taken away from the flow of the storytelling, but it would have added value to the book.
All things considered, One Billion Customers gets my recommendation for those who have not yet read it. It doesn’t sugarcoat the reality of what is a very difficult task that takes immense planning and commitment. There is a lot of good advice for anyone headed to China to conduct business, both in the form of what to do and what not to do. The layout of the book truly allows for you to learn from the mistakes that others have made and illustrates some of the keys to being successful as an outside entity moving into the Chinese marketplace. That’s my two cents, but you’ll have to read it yourself to know for sure.
posted by Lo-T | 7:55 PM
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