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Features P.23 Policy P.26 Member News P.32 INSIGHTThe Journal of the American Chamber of Commerce in Shanghai - Insight March/April 2019 www.amcham-shanghai.org Experts from APCO, CEIBS, Prophet, IT Consultis, China Skinny and Daxue Consulting weigh in on China strategy: From consumer marketing and crisis management to digital transformation and localization strategy. P.5-22 POLICY P.26 FEATURES P.23 Cybersecurity expert Samm Sacks MEMBER NEWS P.32 Why getting enough sleep is Q&A with James Chou, chair of the on China’s data policy and business essential to one’s well-being Tech and Innovation Committee implications Join our WeChat: FEATURES INSIGHTThe Journal of the American Chamber of Commerce in Shanghai - March/April 2019 AMCHAM SHANGHAI President KER GIBBS FEATURES VP of Administration & Finance HELEN REN 05 Crisis Management in the New Era of China VP of Operations Strategies businesses can adopt to navigate geo-political and geo-economical complexities SHILPI BISWAS 08 How Do Chinese Consumers Spend? Directors Professor Yi Xiang of CEIBS on spending trends and China market strategy Committees JESSICA WU 12 Content Strategy: A New Type of Advertising or a New “Product” Category? An exploration of what exactly content strategy entails Communications & Publications IAN DRISCOLL 15 How to Deploy an OmniChannel Strategy Government Relations & CSR Steps to take in creating a winning omnichannel strategy VEOMAYOURY "TITI" BACCAM Horizontal Skyscrapers to Consumer Products 18 Trade & Investment Center The need to truly localize in China LEON TUNG 20 Achieving Harmony Localization versus maintaining product and brand consistency 23 The Importance of Sleep INSIGHT A mounting body of evidence points to the importance of sleep to physical and mental health Editor-in-Chief RUOPING CHEN Editor POLICY PERSPECTIVES DOUG STRUB Content Manager 24 A Cautious Reform Diagnosis JULIUSZ MOSONI Reforms are not driving decisive change in China’s economy Design On Data Governance GABRIELE CORDIOLI 26 Samm Sacks, cybersecurity expert and fellow at New America, on China’s policy implications Printing Implications of China’s E-Commerce Law SNAP PRINTING, INC. 29 Expected impact of the new law on various e-commerce players INSIGHT MEMBER NEWS SPONSORSHIP (86-21) 6279-7119 31 Board of Governors Briefing Story ideas, questions or Notes from January board meeting comments on Insight: Please contact Ruoping Chen (86-21) 6279-7119 ext. 4583 32 Committee Chair’s Corner [email protected] With James Chou, chair of the Technology and Innovation Committee Insight is a free monthly publication for the Event Report members of The American Chamber of 34 Commerce in Shanghai. Editorial content and Recap of selected events from the past two months sponsors' announcements are independent and do not necessarily reflect the views of Month in Pictures the governors, officers, members or staff 36 of the Chamber. No part of this publication Selected photos from the past two months’ AmCham events may be reproduced without written consent of the copyright holder. 38 Weekly Briefing Bits & Bobs Irreverent takes on the news Special thanks to the 2018-2019 AmCham Shanghai President’s Circle Sponsors 2019 Shanghai Centre, Suite 568 1376 Nanjing West Road Shanghai, 200040 China tel: (86-21) 6279-7119 fax: (86-21) 6279-7643 www.amcham-shanghai.org March / April March 3 U.S.-China relations stand at a critical the reasons that we know well – maturity President’s juncture. The Chinese press is full of ac- of the market and localization of execu- cusations and skepticism about Ameri- tives. But it’s also true that thousands of LETTER ca’s true intentions. In Washington, the new businesses are formed in China ev- one thing Democrats and Republicans ery day, many of them foreign-invested. seem to agree on is they are angry and High growth businesses in technology frustrated with China. Accusations of operate in different ways from the MNCs, hostage taking have been leveled on which have formed the core of our Cham- both sides. For the first time in decades ber. We may need to adjust in ways that people are using the term “Cold War” and are unfamiliar, but I’m confident the talking about the U.S. and China as if we Chamber is up to the challenge. are enemies instead of nations with a mu- Operationally, members can expect tually beneficial trade relationship. Most the Chamber to evolve in several ways. troubling of all, the term “de-coupling” First, I’d like to nudge us in the direction has entered our vocabulary. toward being more member-driven. With Could the situation get any worse? Yes, a large membership and enormous num- but I don’t believe it will. The two sides are ber of programs, Chamber staff naturally finally talking about the right issues in the play a strong role. Still, I want us to be in right way. Instead of harping on the trade more of a supporting and guiding role, deficit and manufacturing jobs, the bulk with members taking more of the spot- of which will never return to America, we light. I’ll be discussing this with Commit- are talking about structural changes and tee leaders in the coming weeks. the role American companies will play in Second, I plan to guide the Chamber China’s continued development. in a way that fosters our sense of com- As for AmCham, we are in good shape. munity. Each of us has chosen to live Thanks to our large size and diverse com- and work in China, and the Chamber position we retain a strong voice in the is fundamentally a network for mutual discussion. Chamber operations continue support. We will continue our core mis- to run well and smoothly. Strong leader- sion as a business network, but as long KER GIBBS ship from the Board in recent years and as that’s happening we may as well have President of The American Chamber of the tenacity of my predecessor have put fun along the way! In addition to our tra- Commerce in Shanghai the Chamber in a good position, finan- ditional events informing members about cially and operationally. So where do we new customs clearance procedures and go from here, and what can members ex- tax laws, you can expect to see programs pect during my tenure? on the calendar that are just for fun. For one, we need to be prepared no Members can explore and appreciate the matter which way trade negotiations end great city of Shanghai in the pleasure of up. The situation may appear grim but each other’s company. it’s entirely possible that negotiations While this isn’t the easiest of times will produce a good outcome. We can’t to take over the Chamber, it could be a be caught flat-footed as the relation- time of great opportunity for U.S. busi- ship evolves for better or worse. If China nesses. Many of you have offered words agrees and truly adjusts its approach to of encouragement and excellent ideas intellectual property and opens markets for improving our Chamber, for which I in strategic industries, then our Cham- thank you. We are a self-governing, self- ber could see an influx of members. We financed and independent organization. are already adding programs to address Our community will be whatever we want blockchain and fintech. It’s unlikely we it to be. Despite the difficulties, with your will see internet media businesses like support and active participation AmCham Facebook and Twitter coming to China, will continue to thrive and play a construc- but not impossible to have cloud com- tive role in U.S.-China relations. We have a puting and other new businesses join our chance to make a difference. The world’s community. eyes are on China; political leaders are lis- We need to aggressively pursue new tening. AmCham Shanghai is an important business segments beyond our tradi- part of the conversation. I tional strengths and the large multina- tionals. Membership from our traditional www.amcham-shanghai.org sources has been flat or shrinking, for all 4 FEATURES Crisis Management in the New Era of China The emergence of This article explores various strate- geo-commercial gies businesses can adopt to navigate crises in China geo-political and geo-economical Last November, Dolce & Gab- complexities. It provides real-life case bana (D&G) released a series of pro- studies of foreign multinationals that motional videos titled “Eating with have recently experienced such crises Chopsticks” for a major fashion show in China. The first step is for businesses is Jiayi Lu in Shanghai. While intended as a to understand what a geo-commercial an associate playful look at cultural differences, crisis in China looks like. director at APCO Worldwide. She Chinese netizens viewed the video campaign as a mockery of their cul- Sparked a national boycott Three key has extensive characteristics experience in ture. The controversy escalated after public affairs, a fashion blogger posted screen- crisis was triggered by an upsurge of geo-commercial providing shots of a private chat with one of of nationalism related to the “China crises in China advisory services the company’s founders, Stefano Dream” ideals of President Xi. The emergence of geo-commer- to clients on Gabbana, on Instagram, in which China is not alone in dreaming of cial crises in China is the result of a matters related she confronted him about the vid- national rejuvenation. Nationalism is heightened notion of Chinese nation- to government eos. Gabbana responded by equat- on the rise globally. Over the last few alism that is centered on territorial relations, crisis ing China with a series of excrement years, the popularity of ideas such as integrity and absolute sovereignty.
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