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October 29, 2004

China

I have been in Beijing and Shanghai for the past few days. I have several insights gleaned from conversations with business people, reporters, my colleagues and government officials.

First, China is more like the constituent parts of Europe than the single market of the US in the diversity of economic status and level of development. There are regions of China such as Beijing, Guangzhou and Shanghai where average income continues to rise and key concerns are environment, education and wellness. In other areas, the transition to a modern economy is only beginning and the emphasis is on attracting foreign investment and jobs. There is no such thing as a pan-China marketing strategy—companies need to consider a customized approach to each of the 36 provinces.

Second, China's manufacturing prowess is now being driven forward by mom and pop entrepreneurs outside of the large cities mentioned above, not just the State Owned Enterprises that partner with giant foreign companies. These small businesses are often receiving business advice or financing from Western companies eager to sell them components such as semiconductors and engines.

Third, China still lacks a service culture. When I arrived at the US Consulate in Shanghai for a meeting, a uniformed soldier asked, "What's bothering you?" You could starve to death before a waiter comes by to take your order at a restaurant. Part of this is a function of excess demand and insufficient supply in a period of increasing affluence.

Fourth, there is considerable improvement in the transparency demonstrated by Government. The Chinese Government learned from the SARS outbreak in March, 2003, specifically that immediate and continuous release of information is required to achieve the desired level of credibility. Wen Jiabao, the Premier, made a very public visit to HIV/AIDS patients in a local hospital two months ago to demonstrate that the disease is not transferred by hand shakes. The media's criticism tends to focus on the commercial sector.

Fifth, environment is a serious and growing challenge for this country. The smog in Hong Kong, floating in from manufacturing facilities and power plants in Southern China, was the subject of a three part series in the South China Morning Post last week. Five million new cars and trucks are being sold in 2004, while the infrastructure strains to keep up.

I have great affection for this country. I spent my honeymoon here in 1986, just after the Cultural Revolution and just before the economic boom. I am certain that I would live here if I were an ambitious, single guy. It is a window into the future with a strong sense of its past.

Richard

Posted by Edelman at 9:22 AM | Bookmark and Share

Comments

What is the role of the universities in the current chinese development? Is politics also playing a role? Do you people feel a need for democracy or are they focusing on opportunities?

China seems to be in an amazing place now, as I haven't read or seen any other country who had or is having a transition like the Chinese... In a way, communists are vindicating their principles. Or is it?

Posted by: Ram at November 3, 2004 1:23 PM


Hi Richard, You will have great experience as working in China, such a country with great opportunities and huge market. It provides a stage which you can play the business role you want the most. However, risk and chance exist at the same time. Social network is very important for starting and developing business in China. Good Luck and have fun in China.

Posted by: Sharon Liang at November 4, 2004 4:03 AM


Richard,
This is a great way to communicate with all of us. Thank you for your take, I really enjoy it. On a personal note, I want to know how i can get hired at the Melbourne, Florida office. My number one goal is to join your amazing team and I not only have PR experience and education, but also have a career of technology expertise - just what you are aimed at in Melbourne. Any information you can give me would be greatly appreciated. By the way, sorry about posting this on here but I figured the best way to get to the top is to go where the top people are. Please feel free to email me at any time.

Thank you again,
Seth Oyer

Posted by: Seth Oyer at November 4, 2004 4:46 PM


Dear Richard,

Hear is my thought to your comments.

1.The role of the universities is assistants of Chinese enterprises. Politics may be very important in some field , but it can't be seen in normal economic activities. As you know, people heare focus more in economic than in democracy. Because life is better day by day for many people.

2. China is really an amazing place in the world. As a normal Chinese man , I am glad to talk with you.

Best Regards,
Jackie Lu

Posted by: Jackie Lu at November 10, 2004 10:33 PM


Interesting... that's good info to know.

Posted by: Baxter at November 24, 2004 12:45 PM


Richard,
I've worked with your company on business deals (I'm in financial services), and am impressed at your personally starting a blog and covering such diverse topics.
It was interesting to see your note that you don't think China has a service culture. I suppose it depends on the interactions you have. I spent 10 days in Shanghai and Beijing a couple months ago and came away (as did my trip-mates) profoundly impressed with their service culture. It's far superior to ours at the retail levels. The friendly counter clerk at McDonald's, the waitress in the tiny un-touristy restaurant who didn't speak English but generously interpreted our hand signals, the concierge at our hotel, the people who let us stop them on the street when we were lost....time and again we came across people who were willing to help, and even had a smile on their face when they did.
Go into any fast food restaurant in America and you'll find a discouraged, disgruntled workforce. That hasn't yet happened to China. From what we saw, there's a strong service culture, an energy, a belief that this is their time.
Thanks again for your thoughts. Look forward to reading more.
Andrea
New York City

Posted by: Andrea at December 3, 2004 4:18 PM


Hi Richard,

Just came across your site and found most of your comments about China were accurate. But I found it interesting that you used the uniformed soldier as a sample of lacking of service in China.

Being a Chinese who lived, worked and travelled extensively in North America, I found the service section is much better in China than US or Canada. The sales person or waiter/waitress are so willing to do almost everything for a guest not because they are trying to get an raise from the boss but do it naturally.

In terms of the soldier, who in fact, must be an armed police. And he was assigned there to protect the US Consultate. I don't if a non-American wondering outside of whitehouse what would the police/secret service do to me.

Anyways, it is nice to know that you are willing to learn more about the country. People kept saying that China is a place full of opportunities, but I would remind them that it is also a very dangerous place if they don't know the culture and the rules.

Take care,

Ursula

Posted by: Ursula Chen at June 17, 2005 1:56 AM


Richard,
Hope not too late to re-cap on this. I am interested because I am a Chinese.

*Third, China still lacks a service culture.

- I agree with you. My American friends also had bad experiences in US consulate in China... As Chinese we tend to ignore the unhappiness.

*** Disagree with Andrea.
- McDonald's to Americans is not what McDonald's to Chinese. From an perspective man in 4A agency, many Chinese still take western food as fancy and real western food not being aware of French/Italian/Greek dishes.

To finish, Richard,I am sure you can have happier experience since China is on the pace to improve. Your desire to stay in China is same as an American boy in Ogi*** PR Beijing I know. You are not alone.

Best wishes,
JohnsonZC

Posted by: JohnsonZC at June 17, 2005 2:21 PM


Did you like it?I went to China 3 times already!

Posted by: sophie at June 25, 2005 4:01 PM


Sophie,

I loved it--I have been going since my honeymoon in 1986.

Richard

Posted by: Richard Edelman at July 6, 2005 1:24 PM


I've never been there, but after reading your post I'm really going to do it!

Posted by: Samanta at August 1, 2005 4:00 AM


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October 26, 2004

India

I have just landed in Hong Kong after spending a week in India and Singapore. It was utterly surreal to be dropped into India straight from the Upper West Side of New York City. I feel slightly strange even now about the experience, sitting high atop the Hyatt overlooking Hong Kong's Victoria Harbor, wondering why I am so optimistic about India's prospects despite the grinding poverty I witnessed.

One's initial impression of India is shaped by the bump and grind ride in from the airport in Mumbai. On the hour and a half journey, you ride past a slum that contains over two million people who are living without running water and often without walls, a ramshackle tent and iron siding sub-city. In the central city are architectural wonders such as the Central Train Station and High Court, reminders of the colonial period, part of the so-called Golden Mile financial district, now a bit down at the heels, looking their age. Mothers walk up to your car holding new borns, asking for money. Even so, perhaps because I have seen the change in China, from the time I went as a newlywed to Shanghai in 1986, where one could see the same kind of decay, I am now a believer in India.

This week I met aggressive entrepreneurs who head vibrant local companies in package goods, pharmaceuticals, auto/tires, and textiles, with their local entries often beating global brands on the basis of lower price and better value. I also met the chairman of Bombay First, which has been organized as a lobbying organization for business on the model of the New York City Partnership, to push for Bombay's fair share of federal spending (like NY City, Bombay gives much more than it gets back from the central government). There is no shortage of talent--seven business schools on the model of Harvard or Insead, hundreds of thousands of engineers expert in information technology. No wonder Microsoft and Veritas among others are moving R&D centers to Bangalore and Pune. This is much more than an outsourcing haven, it is a serious opportunity for low-cost clinical trials in pharmaceuticals or world-class clothing/fashion business.

The great unknown for me is whether a democracy like India can create the conditions in which business can flourish. The infrastructure problem cannot be magically solved--the road system for Mumbai was built in the 50s and is outmoded today, with 90 minute commutes from homes in the suburbs a regular feature of life. Global hotel chains like Hyatt have built their new properties near the airport, not in the central city, so that clients can avoid the hassle. The choices are difficult--disrupt existing neighborhoods by building modern highways from the airport to the center city, or accept the reality of eventual decay of the core.

India should also find a way to cooperate with, not compete against China, for foreign direct investment. Global companies need to be in both of these markets. It is a false choice for India to position itself as the service center and China as the manufacturing center. The entrepreneurs I met this week are ready to compete with anybody. I am convinced it will happen.

Richard

Posted by Edelman at 9:30 AM | Bookmark and Share

Comments

I recommend you visit Delhi on your next trip. It has changed dramatically in the last 10 years - and the infrastructure is far better than any other Indian city. I think this is the way most Indian cities will go over time. If Bombay reminded you of Shanghai 1986, then Delhi is certainly Shanghai 1991.

Posted by: Pranay Manocha at October 27, 2004 7:48 AM


Richard,

We sent a delegation to India a few weeks ago and came away with similar impressions. Bottom line is, all of our multintional clients are interested and so we are too.

Saw your mom and dad last night at a fete for Maurice held by the French American Cultural Foundation. Tough topic in NYC these days. Your mom is walking great.

Lou

Posted by: Lou Capozzi at October 27, 2004 8:51 AM


I believe that the infrastructure solution will fall into place as economic prosperity increases. Bangalore, for instance has made tremendous headway in this area. When I was in bangalore earlier this year, "fly-overs" were the concept of the day to bypass busy congested intersections and somewhat mimick the highways of the west. The enthusiasm and the talent inherent in the country will be able to overcome other obstacles.

Posted by: justme at October 27, 2004 9:03 AM


I have to read The New York Times to find a friend has started a blog?! I'm delighted you've joined us.

I enjoyed your reflections on India, but you don't really explain why there might be a potential conflict between democracy and flourishing business conditions. Surely you believe democracy is good for people and hence for business.

It might not offer the most direct route to decisions, but I don't think there's much evidence to suggest the performance of democracies is worse than dictatorships. In fact many economists would argue the contrary.

Posted by: Lance Knobel at October 27, 2004 9:49 AM


You think India is still bad now, you should have seen Mumbai (Bambay) back in the late 80's when I traveled extensively there to manufacture clothing. India has always been a manufacturing haven and does compete directly with China. It's wonderful that India has gained so much with its open market. Will China ever open up?

Posted by: Heywood at October 27, 2004 1:46 PM


I fear the opposite is going to happen. As China democratizes it will overtake India even more and perhaps even the USA. The reason India is not able to rise above the abysmal poverty has much to do with the desire to spread the wealth. India pays lip service to socialism but most Indians have no charity in their hearts for the poor. If India is to pprosper it mus spend more heavily on primary education. Also spraeding employment by having job sharing will help spread the wealth. vist any Chines restuarant and then an Indian. the levels of energy are so diferent.

Posted by: Jayant at October 27, 2004 1:51 PM


I have to agree that there is an aggressiveness to the entrepreneurial spirit happening in India, particularly among the younger generation. They recognize the global shift, feel its potential and are acting upon it. India is different from China in that they want to be a part of their own market development, as opposed to singularly handing the keys to foreign investment. That balance will hopefully allow India's culture to not be compromised along the way.

Posted by: j. patel at October 27, 2004 1:56 PM


This was a very interesting observation, as I myself had a similar experience as you had, but going from Upper West Side to Madras. My feeling was that education has flourished in South India, where economic conditions were a little better. In India, the poverty of slippers has not become a staple for a poverty of education.
I am very hopeful for the country, as it has been able to develop, being a democracy (which is hard for a country with 1 billion pop.). I also feel that India's cultural life and habits pose an altenrative to pure assimiliation of our western cultural and thought patterns. In fact, the whole of Asia is now turning this way, with people in Japan and China, slowly but surely demanding for a more culturally balanced life style.

Our core american values are beyond a belief in corporation, but a belief in assenting the rights of men and women, and giving everyone an opportunity to express themselves and attain a comfortable life.

Historically, China and India have collaborated, as a lot of chinese culture influenced india and vice-versa (sino-indian philosophy and culture). So I agree with you that once a democratic government is again in China, it will only benefit all asian countries to collaborate. Without a democracy, it can be harder, as cultural beliefs and political barricades (as currently imposed by the government of China) impose a distance between people.
Thanks for the very thoughtful comments! I enjoy reading your ideas.

Posted by: Ram at October 27, 2004 3:43 PM


Nice, up-close look. My view, though, is that we should pay attention to the American economy. The middle class needs serious attention: note all the social problems (teen pregnancy, drugs, divorce, financial dissolution, etc.) which bespeak the problem. If I were the CEO of a large corporation, I would fight to make America competitive. . . or I would figure the game was lost. The interesting challenge (to me) ain't globalization but revitalizing America.

Posted by: Todd Volker at October 28, 2004 11:04 AM


Interesting that you found India unsettling even after leaving and enjoying ( perhaps ) a rooftop cocktail overlooking Hong Kong's Victoria Harbour The simple answer is,of course, that India is unsettling to us Westerners and it is for that very reason I have a 6-month booking to India leaving next week. I actually want to be unsettled and India is like a giant mirror that reflects the insanity of the West with its culture of consumption, greed, high-level corruption etc.,etc., ( one could go on but it gets a bit boring after a while...you get the picture anyway ).

So India by unsettling also refreshes. The emergent soul sprinkled with India's colour,depth of life,vivid sanctity and realness can then return Westwards to face yet again the onslaught of media,spin,manipulation ( one could go on etc,...).

India lets you know where you are. That impression, with respect, may be what unsettled you.

Posted by: Sudharma at November 4, 2004 7:17 AM


From an Indian -
It (the blog) begs the question if the reader has been to India before (I would expect more in terms of expressions that speak to a more than cursory power of observation) or has any ties with South Asians on a personal level.

I read the presentaion and it seemed quite superficial in terms of showing an understanding of the true underlying dynamic of the Indian economic rennaisance.

Over the long run - it is irrelevant what the West makes of India - for better or worse. More importantly - what does India make of India and what does India make of the rest of Asia.

The first job for India is to establish parity with China economy-wise - and had the elections (the Indian one and not the one that occured here just the other day) gone the other way - the infrastructure challenge would have been addressed faster with the BJP. Second India needs to actively realign with the rest of Asia - as thats where the worlds power of ideas and creativity is bound to flourish in the next decades. Look west no further - having been forced to look West for centuries under the British - that cheek is sore. Third, India should keep on its aggressive education standards and for a change launch satellite institutions (IIT, IIS e.g.)of its own in other countries - Asia first, then perhaps Latin America.

Posted by: murthy at November 4, 2004 4:15 PM


Murthy,
You are right
India must focus on its economy
Government has to support

Posted by: Richard Edelman at November 11, 2004 4:48 PM


Jayant,

I am bullish on China too
Hard not to be
India spends big $ on education in general
And India has new energy

Posted by: Richard Edelman at November 11, 2004 4:59 PM


I missed this post and saw it now, maybe almost a month later!

Your general impressions on India are quite accurate. Oh. anyone can say that hey are superficial, but then in a country like India, one is always a little superficial. Even staying for 6 months in a slum does not save one from being superficial in a different context.

Your impressions of Mumbai (Bombay) are correct. A large chunk of the problems faced by Bombay is because of the political apathy that we have seen here for the last 10 years. The city is in the throes of a cultural dilemma, and old-timers and locals resist the uncomfortable changes that accompany aggressive globalisation. On the other hand, the proponents of modernization in Mumbai are not sensitive enough to the needs of the poor and traditional.

While Mumbai thus grapples with its economic and cultural issues, as another poster here has mentioned, Delhi has made major strides, as have Bangalore and Hyderabad. Bangalore and Hyderabad have turned into centres of education, IT and BPO and same has happened to the satelite towns of Delhi, Gurgaon and Noida. These last two towns were developed from scratch, and you will find almost all of the American and European companies there.

Bombay will always remain important as its still the manufacturing hub of India. Political vision will at some point start changing Bombay too.

You are right when you commented that the government must focus on the economy. But the last government which did the same was thrown out of power. Precisely the reason that I mentioned - balance it carefully in India. Too much focus on globalisation without visibly improving the lot fo the poor will lead to a backlash. The new government seems to be moving slow, but its because of lessons learned. In a country with such a vast gap in living standards between the rich and the poor, it is better to watch out, do things slowly, reform but iprove the lot of the poor, and yes, as you said, invest in education.

I am confident about India - as the changes we have seen happening in this country in the last 20 years - irrespective of the government in power - are breathtaking.

Cheers. Will keep reading your posts.

Matt
Public relations India
"http://pr-india.blogspot.com"

Posted by: Matt at November 15, 2004 11:27 PM


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October 18, 2004

Friends of Gus Weill

I write this on the plane en route to India, which I will report on later in the week. Today's subject is not a happy one. My friend and former colleague, Gus Weill Jr., age 42, passed away three weeks ago in New York City. Gus worked for me at Edelman in the late '80s and early '90s, then went to Burson-Marsteller as head of its corporate practice in NY, moved to PR 21 for a year in 2001 and had been doing freelance work for the past three years. Gus was incredibly precocious. He befriended celebrated figures such as Ted Sorensen and James Carville, who relied on him for honest counsel and strategic advice. Gus could write faster and more clearly than anyone I have ever known. He was obsessed with current events and being on top of the news--having James Carville in the Clinton White House was his version of nirvana. His favorite accounts were foreign governments such as Mexico and Israel, where he could offer policy advice as well as PR counsel on major events such as the devaluation of the Mexican peso. He had certain charming quirks--like refusing to take the elevator up to our 27th floor office (yes, he walked up and down, often many times a day), being such a white knuckle flyer that he brought pencils on board so he could break them to relieve his tension, and never wearing a winter coat no matter what the temperature. He had to be the first one into the office every day--part of his competitive edge--often before 6 am.

Gus suffered from depression, which he hid from me and others. He coped with this disease by putting on a brave front. He called me earlier this year and told me that he wanted to come back to Edelman. We did not have a position at the time but I arranged interviews for him at NY City-based companies. I feel somehow now that I could have done more to help him. I am reminded of words spoken by Senator Edward Kennedy at the eulogy for his brother, Robert F. Kennedy, in June, 1968. "My brother need not be idealized or enlarged in death beyond what he was in life, to be remembered simply as a good and decent man...Those of us who loved him and who take him to his rest today pray that what he was to us and what he wished for others will some day come to pass for the world. As he said many times in many parts of this nation, to those he touched and who sought to touch him: Some men see things as they are and say why. I dream things that never were and say why not."

Chris Komisarjevsky, CEO of Burson-Marsteller, and I are organizing a college fund for Gus' six year old son, Gus III, called "Friends of Gus Weill." We are also compiling a memoir for his son, our favorite memories of Gus Weill, which will be given to his son on his bar mitzvah seven years hence. My assistant, Robert Ambrose, can be reached at robert.ambrose@edelman.com or 1-212-704-8121 for further information.

Richard

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October 14, 2004

Addressing Obesity

I am writing from Atlanta, where I am attending the annual board meeting of the CDC Foundation, the non-profit organization that helps the Centers for Disease Control and Prevention partner with the private sector.

Last night at dinner I sat next to Mary Lewis, who has a radio show on National Public Radio. Her program is aimed at the African American community and focuses on health issues. She told me that African Americans are four times more likely to be obese than other Americans, a result of poor diet, lack of exercise options and stress caused by economic pressures. I was fascinated to learn about the emergence of health ministers at African American churches, who are appointed by the ministers of the congregations. They are health professionals, often nurses. They organize cooking classes, health walks, diabetes control seminars, prostate cancer screenings and mammography sessions. The health minister's goal is to increase attendance at church. Simply stated, too many congregants were unable to attend because of obesity related illnesses. It occurred to me that the health minister is adding the personal touch to the science of weight reduction, bringing solutions and camaraderie, working together for mutual benefit.

I also heard Dr. Julie Gerberding, director of the CDC, speak about the mission of the organization. She believes that CDC must now be a global force in protecting Americans and other nations from emerging health threats. She talked about partnership with the private sector in disease detection. She noted a recent discussion with Michael Dell, chairman of the large IT company DELL, when he offered to inform CDC of any major incidence of absenteeism among his 25,000 workers outside of the US, perhaps providing CDC with advance notice of an outbreak of influenza. Dr. Gerberding added that CDC is open to accepting extramural research on issues like obesity because the CDC cannot scale its own operations quickly enough to provide the evidence-based solutions necessary to fight this disease. She has initiated a National Center for Health Marketing to emphasize customer service to the state and local health offices that deliver the care, particularly to those at greatest risk of health disparities.

My conclusion from the dinner is that business has a responsibility to look again at its relationships with government and the non-profit sector. The CDC is the most trusted unit in the American Government, according to a recent Harris Poll. Churches play a vital role in the daily lives of many of their constituents. By partnering with these institutions to fight a global epidemic like obesity, business can have greater credibility in bringing forward programs that will have a serious benefit for employees and consumers alike.

Richard

Posted by Edelman at 11:02 AM | Bookmark and Share

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Mr. Edelman, I totall agree w/you in regard to the health issues affecting not only the African-American community but the world as well. I currently attend a very large church in the Washington DC area and I must say in the African American community we are on the brink of a epidemic when it comes to obesity. I agree that private sector along w/the non-profit sector have a vital role to play in the changing of attitudes when it comes to health in our country.All companies who have a work force will be effected by this surging epidemic. Thank you for caring enough to even discuss it.

Sincerely,
Concerned

Posted by: Concerned at October 14, 2004 5:04 PM


On a similar topic, it is interesting to note that the National Cancer Institute has for the past 2 years (mis)spent millions of dollars by paying Urban AC morning show host Tom Joyner to be the face of their 5 a day program aimed at heart health/curbing obesity in African Americans M 35+.

Have you seen Tom? Not only is he markedly overweight with health issues, but he is also the pitchman for McDonalds and Ben Jerry's! Which message should I believe Mr. E? Eat McD's and chase it with a chunky monkey shake? or eat 5 servings of veggies per day? I can't take these messages seriously!

While I believe that Network Radio in the Urban format is a wonderful place for these messages since African Americans tend to be among the heaviest users of radio, until their is some consistency between the message and the pitchman, it's just another case of Taxpayers money being wasted (corrupted?) probably by cronism.

Posted by: Bob at October 15, 2004 9:30 AM


Very useful comments - good to read

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Posted by: Lily at October 18, 2004 5:44 PM


You are doing a good job with your blog here. I particularly enjoyed your post on India. This said, I must address your recent obesity remarks.

Obesity is not the issue here. Shame is the issue. Shame people into feeling badly about themselves and they will move their bodies less freely, especially in public.

Shame people into feeling badly about themselves and they will begin to lack the necessary courage to rise to the challenge of fighting fat prejudice on the job, at school and in their communities. Their lives will shrink, along with their options.

You would, apparently, be surprised to discover that the world is full of healthy, accomplished, fat people, Mr. Edelman. Unfortunately, you’re too busy wagging your finger and going with the flow to take notice.

Obesity is not the epidemic. Demoralizing Fat bashing is.

Viva La Vida!


Posted by: Marsha Coupé at October 27, 2004 10:32 AM


There are many facets contributing to the problem, but surely the "time-constricted" American family situation counts for a lot: with two parents working, children stay indoors with electronics, weekends become work-weekends filled with errands previously done during the week. And of course, meals are cooked on the run, not necessarily given much dietary thought. AND of course, we're all supposed to only use cars to get places and our urban environment discourages walking. In Illinois, I'm pursuing the possibility of putting together an advocacy group to promote pedestrian improvements, simply because transportation funding procedures let sidewalks fall by the wayside in development.

Posted by: Todd Volker at October 30, 2004 2:32 PM


Obesity has unfortunately become a global pandemic affecting the existence of millions of people, according to the World Health Organization. It is an accelerating social problem in many countries of the world, especially those more affluent.
Obesity is very often defined as an eating disorder. However, it is not just a case of eating too much. Health experts report that obesity is a potentially fatal disease prevalent in our society.

As this “obesity epidemic” gains momentum, so does the number of individuals who suffer from it. Approximately 300,000 adult deaths in the USA alone each year can be directly linked to unhealthy dietary habits and physical inactivity or obesity. In the USA alone, almost a third of the adult population suffers from obesity. In Europe, the figures are much the same. However, an astonishing 58 per cent of the United Kingdom's adult population is considered to be obese or chronically over weight according to a recently published report.

Posted by: Ken Nickless at March 20, 2008 3:08 AM


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October 6, 2004

Teens

Thanks for your comments. A couple of the thoughts raised were actually part of two interesting meetings this week.

I heard Andre Harrell and Damon Dash (of Rocawear) speak about Hip Hop Marketing. I also had a breakfast with Steve Knox of Tremor, CEO of a word-of-mouth marketing consultancy. Put this together with a Sunday night broadcast on 60 Minutes focused on Echo Boomers and you have three quite interesting and different views of today's teen market.

Hip Hop has followed Rock and Roll as a lifestyle choice, beyond the music into fashion and movies. Hip Hop, according to Damon Dash, reflects the reality of life in the ghetto, with kids raised by a single parent, running with gangs, confronting the daily risk of guns and drugs, struggling to survive. It is answering teens' demand for individual expression and recognizes the limited economic opportunity of this generation. Hip Hop is in every teen's head--if you see a picture of JZ or Snoop Dog, you know about his music, his lifestyle, and his problems. Hip Hop has moved beyond the negative images of a decade ago, of violence and misogyny, to be cool and smart, from hot to sexy. To communicate to this demographic, companies must be truthful and genuine. "It is not enough to put African American people in an ad with rap music to market fast food--it is not how we live--just too formalistic-- avoid exploitation and artificial scenes, which are offensive, and be natural about it," Dash said.

Word-of-Mouth advocacy by teens depends on finding the right consumers and feeding them information in advance that can be passed along to peers. They are passionate communicators, trend spreaders, not trend setters or early adopters. They will talk about products or ideas in their social networks if the concept is simple to communicate and worth his/her advocacy. They have 15-17 people on their email buddy lists, compared to 8-9 for the average teen. Tremor has recruited 280,000 teens in the US to be in a personal relationship based on hearing cool new ideas before others and promising that their voices will be heard at corporations to improve the product or service. The key point again is credibility, because the teen connector feels his/her social currency is on the line.

The 60 Minutes segment took an entirely different view of teens, as a generation aiming to please, with rules replacing rebellion, convention over individualism, and acceptance of traditional values. Mel Levine, a professor at the University of North Carolina, described a heavily programmed upbringing, with soccer on Monday, kung fu on Tuesday, religious school on Wednesday and clarinet lessons on Thursday--a whole life of structure. Levine is concerned that the overmanaged, overachieving teens protected by parents and with inflated egos will quickly be disappointed by the reality of the workplace. Another expert, Neil Howe, painted a more optimistic scenario, contrasting this generation of teens quite favorably with their self-absorbed, egocentric Baby Boomer parents. He described current teens as good team players, collectively special, more like their grandparents, the World War II generation.

How to harmonize these rather disparate views of teens? I have three of them at home. Some part of all of this is consistent with my experience. A discussion this summer with my 17 year-old daughter, about our firm's plans to find catalyts within chat rooms to provide them information on new products, reflected significant suspicion about business' motives and a strong desire to protect individual privacy (“Dad, what the hell are you doing checking on my conversations”). Whatever we do to reach these teens must be based on permission, complete transparency on identity and motive, and having a relationship with both sides listening. Hope this is useful.

Richard

Posted by Edelman at 5:46 PM | Bookmark and Share

Comments

First, kudos re: this CEO blog. This will have a big impact -- both with internal and external stakeholders. One tip: use more hyperlinks. This will help your readership dive deeper as appropriate against some of your provocative thoughts...of which there are many. Second, re: teens, I think one of the most insightful venues for understanding teen behavior is the blog medium itself. Teens dramatically overindex on blog usage relative to other demo/cohort segments. If fact, although political bloggers have owned the spotlight of late, teens have played perhaps the biggest role in shaping this medium -- not unlike what we're seeing in other CGM (consumer-generated media) vehicles like chat, instant message, mobile phones, etc. Key drivers behind this behavior include a strong, emotional desire to be heard, and to "know first" -- similar drivers to what Steve Knox of P&G's Tremor probably discussed. Few marketers have figure out how to capitalize on this insight, evident, for example, in how very few teen marketers invite or encourage ANY form of feedback about their products or services. What's making this audience especially tough to figure out is that they are exhibiting high levels of distrust of advertising, and they over-index relative to general-population on ad-filtering, use of pop-up blockers, etc.

Posted by: Pete Blackshaw at October 7, 2004 3:42 AM


I found this information to be interesting for what it didn't say as much as for what it did.

It seems to me that the conventional model of slapping a label on a generation is becoming less and less practical. I've put some thoughts down in my blog: Brand Central Station - I'd be interested in your thoughts.

Here's the link: http://brandcentralstation.blogspot.com/2004/10/maybe-its-time-we-look-at-demographic.html

Regards,

Mike Bawden
President
Brand Central Station

Posted by: Mike Bawden at October 7, 2004 1:47 PM


One day, we'll have to compare old skool record collections. I still have my Grandmaster Flash tapes - slightly warped - and Detroit mixes from the 70's and 80's of the Zulu Nation.

I disagree somewhat with what you have written. Rap is still misogynistic - just watch the videos on BET and MTV2 - but it's hot. The influencers are rappers, promoting such a wide-range of products as the Sidekick, Chrysler 300C, Volvos ... it just depends on the video you're watching. Plus, the following that rappers have in mainstream culture - despite the lyrics - is what is a great draw for advertisers and marketers. Look at what Toyota is doing for the Scion: hooking up with a local promoters, having the Scion as a sponsor for lesser-known DJ parties, but understated marketing, not in your face promotions.

As for Tremor, they are an interesting company, but the NYT had an article a few months back that brought up some concerns and issues - how far do we want to push our kids into becoming brand monsters? Would you want your to be P&G tools, passing out products and coupons at school?

PR does need to reach the influencers, and chat rooms, blogs, and others are great venues. Is there a need for transparency? Tremor doesn't have complete transparency on identity with the kids they are using, and I'm not sure if it's that necessary for PR either. But, it will be obvious to a tween that you are not a tween if you try to sell something in IM or a chat room - you won't know the lingo, you won't know the terms.

Posted by: Jeremy at October 8, 2004 1:32 PM


"Transparency" "Authenticity"
If advertisers understand how important this is to us, why can't they bring themselves to put their money where there mouth is?

It's very simple. Their are thousands of communities of influential consumers that companies can partner with - no subterfuge necessary.

Just sponsor their efforts, their events, and their websites. They will appreciate your companies financial commitment to their community and their interests. If you help us acheive our dreams, you'll be a lot more relevant to our lives than if you waste your money hiring the latest rap or movie star to flog your product.

http://www.urbanpioneerproject.com

Posted by: andrew van hook at October 8, 2004 4:49 PM


I am glad to see that you have opened up to the power of blogs :-)

Posted by: Internet Law at October 10, 2004 2:00 AM


What an excellent start to embracing the blog. (Exploiting a new medium with a new take on the old standard, in appearance only) Proactive, straight-talk message and enabling feedback couldn't have been shared more effectively. (First blog is a standard unmatched in "new blog-writer" feel, complete with precedent-setting standard of marginal content quality) Your following blog about teens is the blossoming of blog greatness in style, substance and quality. (A common topic, adapted in multiple contexts for endearing to readers demographic diversity. Reader can relate to: 1)Teen, 2) Music Genre(s) 3)relate to PR insiders with industry news 4) 60 Minutes viewer demographic + baby boomer generation 5) Parenting activities with teens from Parent Perspective...

Content and sources of information for these attempts to "connect with audience" is flexible, invent to fill as necessary, and tailor to reach all target groups.

Reinvent or retool when necessary to take full advantage in building and maintaining favorable perception. Information is to be a tool adjusted for the needs of gaining positive perception, and free from the constraints of language usage rules.
Always Remember: Truth does not exist unless you work to create it for yourself. Creation and invention is the making of truth.

Posted by: Ben at October 10, 2004 9:46 AM


Hi Dan,

Some interesting and inciteful comments, I thought I would provide some thoughts from my own perspective as a UK PR consultant:
- It was interesting reading the comments by inference about the baby boomers, my take was the the more existential viewpoint of the boomers brought about amazing entrepreneurship and a huge wealth of culture that marketers like you and I have benefited from for the past 20 years or more. Are we making too many 'company men' for the more dynamic future that lies ahead?

- There was less of a reflection of tribes in your article. Teenagers are not one mass like in the 50's but part of a number of disparate cultures, some more heavily entrenched than others. Beyond the rich culture of hip-hop, there is also skaters, the underground punk scene with its straight-edged lifestyle (no caffiene, no drugs, no alcohol) to name but two

- The use of chat rooms to seed marketing reminded me of the old Bill Hicks skit 'Marketers kill yourselves' where the point he was making was that marketers were putting a price tag on everything, yet seldom understood its value. We need to know where to draw the line and show restraint. If we push too hard into word of mouth will we devalue it as a 'media channel' like has happened with editorial?

- Finally over managed and over achieving kids, there is no right or wrong answer because children are different. Some may thrive in the hot house, others may come apart (think of young sports stars or film actors). There should enough support to allow them to be everything they can be and are comfortable with. A message that as a parent I am sure you can relate to

Posted by: Ged Carroll at October 12, 2004 5:07 PM


It is fascinating how fast things are progressing through technology such as ipods, internet, computers etc.

But one has to keep in mind that a lot of the trend setters don't have access to a computer, have money for the newest and greatest ipods or even use e-mail that often. This is the true urban hip hop kid.

I spent 3 solid years on the streets of New York, Chicago, Los Angeles and Miami doing street marketing with some of the brightest and most agressive hip hop street teams. These are the kids who can keep you in touch with what's going on, the best parties, what people are wearing and what is happening in the underground hip hop/music scene.

In the past, what you listened to defined what group you "belonged" to, including how you dressed. But with the advent of ipods and mp3s, the more priviledged teens have a wide variety of consumer preferences and indifference. A fusion you could say.

In conclusion, find the kids who are passing out the flyers in all the hot spots of each major city. The seasoned veterans are not just good at passing flyers, they are the eyes and ears of what's going on, and may even be the kid who is pushing new trends.

Posted by: Bruce at October 28, 2004 4:47 AM


Ben,

I would appreciate your continued comments. You don?t pull punches. I agree on the truth point. You cannot let others create a parallel reality. You must tell your own story and crowd out misinformation.

Posted by: Richard Edelman at October 28, 2004 12:13 PM


Ged,

You certainly made important points. More to me as a parent than as a blogger. My tendency is to over manage whether in correcting an essay or in technique in tennis. I read something very powerful in the FT about six months ago. It was a poem by a father watching his son play his first soccer match. The hardest thing is letting go ? but that is the true test of love. Thanks again.

Posted by: Richard Edelman at October 28, 2004 12:14 PM


Mike,

Truthfully I have not had time to check your site. Will do so in the next few weeks. You are right about labels. I can even see the differences among my own kids.

Posted by: Richard Edelman at October 28, 2004 12:14 PM


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