Media – Page 35

McKinsey explains how to win in massive, high-growth emerging markets

I found myself geeking out reading this McKinsey Quarterly article and wanted to share its insights and conclusions with y’all.

Full article here. Nothing ground-breaking, but great anecdotes, mini-case studies, and big-picture thinking. Particularly like Coca-Cola’s “picture of success”.

I’ve also clipped to my public Evernote notebook (where I share every online article that I read and highlight).

Here are the 10 main points with supporting excerpts. Enjoy!

#1. Target urban growth clusters

Walmart opened first store in Rogers, Kansas and actively avoided highly competitive metropolitan markets

#2. Anticipate moments of explosive growth

While refrigerators and washing machines are often lumped together as white goods, consumption data show that in Beijing, purchases of the former start to take off at annual incomes of $2,500 a year and slow above $6,000, while the take-up for the latter doesn’t begin until incomes approach $10,000 a year

#3. Devise segmentation strategies for local relevance and global scale

A careful segmentation strategy helped Frito-Lay capture more than 40 percent of the Indian branded-snacks market. The company tailored global products, such as Lays and Cheetos, to local tastes. Frito-Lay also created Kurkure, a cross between traditional Indian-style street food and Western-style potato chips that represented a new category in India and is now being sold in other countries. Critical to Kurkure’s success: attractive pricing and combining local feel with scalable international packaging.

#4. Radically redeploy resources for the long term

Emerging-market companies are built for speed. They are designed to serve the rapidly changing needs of middle-class consumers in their home markets and other emerging societies. They know that they must innovate or die. It helps too that these upstarts aren’t burdened by legacy issues

#5. Innovate to deliver value across the price spectrum

For rural customers, China’s Haier makes extra-durable washing machines that can wash vegetables as well as clothes, and refrigerators with protective metal plates and bite-proof wiring to ward off mice. The company is no less ingenious in developing products for urban users, such as smaller washing machines and refrigerators designed for tiny, cramped apartments

#6. Build brands that resonate and inspire trust

emerging consumers are novice shoppers for whom buying a car, a television, or even a box of diapers may be a first-time experience

Our research indicates that Chinese consumers, for example, consider an average of three brands and end up purchasing one of them about 60 percent of the time. In the United States and Europe, by contrast, consumers consider at least four brands and end up selecting one from their initial consideration sets only 30 to 40 percent of the time

#7. Control the route to market

Coca-Cola, long active throughout the developing world, goes to great lengths in those markets to analyze the range of retail outlets, identify the highest-priority stores, and understand differences in service requirements by outlet type. For each category of outlet, Coca-Cola generates a “picture of success”—a detailed description of what the outlet should look like and how Coke products should be placed, displayed, promoted, and priced

#8. Organize today for the markets of tomorrow

IBM, for instance, radically revamped its functions in Asia, moving human resources to Manila, accounts receivable to Shanghai, accounting to Kuala Lumpur, procurement to Shenzhen, and customer service to Brisbane

#9. Turbocharge the drive for emerging-market talent

In China, barely two million local managers have the managerial and English-language capabilities multinationals need. A recent McKinsey survey found that senior managers working for the China divisions of multinational firms switch companies at a rate of 30 to 40 percent a year—five times the global average. Increasingly, local stars prefer working for local employers that can offer them more senior roles. In 2006, the top-ten ideal employers in China included only two locals— China Mobile and Bank of China—among the well-known global names. By 2010, seven of the top ten were Chinese firms.

#10. Lock in the support of key stakeholders

Amway’s success in China illustrates the benefits of effective stakeholder management. In the early 2000s, the US-based direct-sales giant was almost declared an illegal business in China for violating a 1998 ban on direct selling. Amway’s senior executives made numerous visits to Beijing to get to know senior leaders and explain the company’s business model. The company also demonstrated its commitment to China by opening stores countrywide, while investing more than $200 million in China-based manufacturing and R&D centers. In 2006, the Chinese government reshaped the regulation of direct sales. Today Amway is China’s second-largest consumer product business

March: Amazing books and articles that I recommend

Each month, I’ll post the best stuff I read in the prior month. So this is for February.

Books

February was a bit slower than January, primarily because I was focused on getting things done for Hyperink and prepping for the Shanghai move. Even though I finished 4 books, the bulk of the reading was done in January.

I finished:

mastery-by-robert-greene Mastery by Robert Greene [Amazon]. Came highly recommended by Tim Ferriss, and I’m a big fan of Greene’s 48 laws of power. While I don’t find Greene to be the most entertaining or efficient writer, he makes a strong case for the importance of becoming “the best” at something, and the steps necessary to get there (including picking the right field, tons of hard work over a long period of time, finding the right mentor(s) to guide your development). Examples range from Mozart to Darwin to Paul Graham.

talent-code-by-daniel-coyle The Talent Code by Daniel Coyle [Amazon]. Of the 4 books that I finished this month, I read through this one the fastest and its lessons will probably stick with me the longest. Coyle examines places that have generated a disproportionate number of world-class performers, ranging from Brazilian favelas to Korean female golf players, and deconstructs the 3 elements that they all require (ignition, motivation, and mentorship). Some overlapping themes with Mastery. It’s a bit handwave-y at times, and not without its share of “hindsight is 20/20”, but Coyle is a great writer and his research is both thorough and accessible.

the-big-miss-by-hank-haney The Big Miss: My Years Coaching Tiger Woods by Hank Haney [Amazon]. While in some ways, I’m disappointed that someone whom Tiger trusted so closely was willing to write an expose of sorts, I’m fascinated by elite performers and this is the closest anyone has come to understanding and then sharing insights about one of the world’s most private athletes (minus that one bizarre scandal, of course). The book contains much more golf jargon and Hank-giving-a-written-golf-lesson than I expected, so I skipped over those parts, but the few insights that Hank does share about Tiger’s personality, his approach to the game, and his behavior quirks are more than worth the price and time. For example, did you know that Tiger loves having a popsicle after dinner, but does not proactively offer them to his guests?

name-of-the-wind-by-patrick-rothfuss The Name of the Wind by Patrick Rothfuss [Amazon]. I generally don’t read fiction, because I like to think that reading nonfiction kills two birds with one stone (ie, entertainment AND education), but that’s probably wrong. However, I still don’t read much fiction. I used to love sci-fi, and this came highly recommended, and I found myself having a hard time sleeping soundly when I ended the night reading deep-educational/political-shit. So this book accomplished its goal (of helping me sleep soundly), and was very entertaining, and I will *most likely* read book 2. Rothfuss is a strong writer, and while there’s nothing groundbreaking in the story and I find his usage of written accents tew bee vairy bahhhhd.

Articles

Here’s the best stuff this month. Note that not all of it is “fresh”: I emphasize quality, not what just hit the wire (because most of the time that’s crap).

DEEP INSIDE: The Story of 10,000 Porn Stars and Their Careers (Jon Millward, his own site). Data-driven approach to shit guys talk about all the time.

We now have our average porn stars: Nikki and David. They’re of normal height, but both weigh less than the national average. Nikki has smaller breasts than you might expect and she’s a brunette. She got into the business aged 22 and is originally from California—or at least, that’s where she now lives. David got into the industry aged 24.
Five important lessons from the dustup over the NYT’s Tesla test drive (Katie Fehrenbacher, GigaOm). Not the most comprehensive write-up but a good one on a fascinating story.

Don’t f*ck with Elon Musk: A friend who’s spent a decade in the legal industry told me once that you shouldn’t start a fight unless you’re ready to take it to the mat; i.e. take it all the way. Elon Musk will always take it to the mat.
Deng Xiaoping and the Transformation of China (Bill Gates, his own site). Bill Gates writes book reviews. That’s right, Bill Gates WRITES BOOK REVIEWS. HOW AWESOME IS THAT?? PS I have yet to read this book but I will.

If you’re going to read one book about modern China in the period after Mao, then this is the book you should read.
What tips and tricks have you learned that have made it easier to live in China? (Kaiser Kuo, Quora). Most of you know I’ve moved to Shanghai to experience China first-hand, and the advice here is very applicable and original.

Chant the mantra, “Don’t be a whiny little bitch.” Don’t surround yourself with complainers. Steel yourself to the fact that people will crowd you, will spit, will cut queues, will stare at you at least outside of first-tier cities if you look foreign, will ask you direct questions that in your home country might seem wildly inappropriate.
Michael Jordan Has Not Left The Building (Wright Thompson, ESPN). Great article on the greatest retired athlete ever. Keyword: retired.

Jordan might have stopped playing basketball, but the rage is still there. The fire remains, which is why he searches for release, on the golf course or at a blackjack table, why he spends so much time and energy on his basketball team and why he dreams of returning to play.
50 Sure Signs That Texas Is Actually Utopia (Summer Anne Burton, Buzzfeed). Just because I’m from Austin, the greatest city in the great state in America, that doesn’t make me biased. Really!

4. Breakfast tacos. An essential part of every Texan’s diet. The New York Times once ran an entire story titled “Tacos In The Morning?” about how Austin loves breakfast tacos and we were all like, “YES, TACOS IN THE MORNING. Tacos all the time.” Get with the program.
The Gates Foundation Annual Letter (Bill Gates, The Gates Foundation). Like all great, long-lasting performers (Jordan, Madonna), Bill Gates has reinvented himself well.

According to a long-held Ethiopian custom, parents wait to name their children because disease is rampant, health care is sparse, and children often die in the first weeks of life.
What Shamu Taught Me About A Happy Marriage (Amy Sutherland, NYT). Not the first time I’ve shared this, but great reads are both re-reading and re-re-reading.

I was using what trainers call “approximations,” rewarding the small steps toward learning a whole new behavior. You can’t expect a baboon to learn to flip on command in one session, just as you can’t expect an American husband to begin regularly picking up his dirty socks by praising him once for picking up a single sock. With the baboon you first reward a hop, then a bigger hop, then an even bigger hop. With Scott the husband, I began to praise every small act every time: if he drove just a mile an hour slower, tossed one pair of shorts into the hamper, or was on time for anything.

For a complete list, check out my Amazing media page. Most of these will be added there.

What did you read and love in February? Please share! Thanks as always for your time.

February: Amazing books and articles that I read and recommend

Every month, I’ll post the best stuff I read, watched, listened to, etc. in the prior month. So this is from January.

Books

January was a huge month, in part because I was traveling. When traveling, I read a lot in my down time, and I’d just bought an iPad mini (and then promptly left in the seatback pocket of an international flight).

I finished:

Blue Zones by Dan Buettner [Amazon]. Given my interest in living forever, this was high on my list of longevity/health-related books.

Buettner does a great job combining storytelling, health science, and applicable advice into a fast read. Hara hachi bu!

Good without God by Greg Epstein [Amazon]. I created a Good Life Guide for this book, check it out here.

Well-written, thorough in scope, and with real passion/emotion.

SPARK: The revolutionary new science of exercise and the brain by John Ratey [Amazon]. This book immediately changed my behavior. Basically a long, well-constructed argument for why we should all be runners.

Since finishing it, I’ve run on average 30 minutes/day, 5 days/week. Trying to up that to 45 minutes; ultimate target: one hour/day, 6 days/week. Aerobic exercise, to slightly adjust a frequent Ratey saying, is like “miracle-gro for the brain”. Better focus, better memory, better mood, better sleep, better sex, better everything. Read it now!

Articles

I mostly consume RSS feeds (using Netvibes), the occasional article from Facebook/Twitter, and what my friends forward. Here’s the best stuff this month. Note that not all of it is “fresh”: I emphasize quality, not topical-ity.

That which does not kill me makes me stranger (Daniel Coyle, NYT). The best article I’ve read on ultra-endurance athletes. Snippet: Around Day 2 of a typical weeklong race, his speech goes staccato. By Day 3, he is belligerent and sometimes paranoid. His short-term memory vanishes, and he weeps uncontrollably.
What is your biggest secret desire that you are ashamed of telling anyone? (Reddit). Amazing, the secrets we hold. Snippet: In the middle of the night, I would pack one bag and drive away from my life. Not look back for one second and drive clear across the country. Find a small, rural town and just rebuild where nobody has an idea of who I am.
The distractions of social media, 1673 style (Tom Standage). History repeats itself, which is why its valuable to understand history. Coffeehouses!! Snippet: With the promise of a constant and unpredictable stream of news, messages and gossip, coffeehouses offered an exciting and novel platform for sharing information.
A Pickpocket’s Tale (Adam Green, The New Yorker). Read this, and watch the videos too. Will blow your mind. Snippet: Attention is like water. It flows. It’s liquid. You create channels to divert it, and you hope that it flows the right way.
late bloomer, not a loser. (I hope) (Dave McClure). Another classic from Dave, honest, powerful, irreverent. Snippet: Most folks thought I was a decent fellow, but over the hill with my best days behind me… and I guess I thought so too. I watched as other friends helped make companies like Google and Facebook and Twitter into juggernauts, but mostly I was on the sidelines, only peripherally involved in their big ideas.

For a complete list, check out my Amazing media page. All of these will be added there.

In a followup post, I’ll talk about movies and podcasts.

What did you read/watch in January that blew your mind? Share away! Thanks as always for your time.

Amazing Media – 10 recommended readings

Recently I’ve begun saving and annotating my favorite blog posts, articles, videos, etc. Here’s the page where I’ll add new stuff (and old stuff, re-discovered).

I’ve learned that the value of great media is not the first time you consume it, but re-absorbing and re-experiencing it over time (and doing so mindfully).

98% of what we consume is crap – shouldn’t we treasure the 2%? You don’t see tennis players practice a new forehand once and just walk away. And there’s a reason why organized religions have ONE TEXT that they read, re-read, and re-re-read.

Here are 10 of my favorites:

It’s Not About You: The Truth About Social Media Marketing by Tim O’Reilly (LinkedIn) – the most effective social media marketing is creating tools and content to help communities achieve their goals. Snippet: Your job, in short, is to uncover and activate latent social networks and interest groups by helping them to reach their own goals.
The Dividing Line (Max Cho) – simple yet profound. If anyone is curious what Jeff Bezos is thinking…
10 Charts About Sex (OkCupid blog) – people are fascinating. Sex is fascinating. People’s sex habits, man! Snippet: Curvy women pass skinny ones in self-confidence at age 29 and never look back. They also consistently have the highest sex drive among the groups. Curvy, as a word, has the strongest sensual overtones of all our self-descriptions. So we’re getting a little insight into the real-world implications of a label.
Applied Philosophy, a.k.a. “Hacking” by Paul Buchheit (Blogspot) – great and simple explanation of a valuable outlook on life and work. Although as important is WHAT you work on – problem choice is as important as the HOW. Snippet: Sometimes we catch a glimpse of the truth, and discover the actual rules of a system. Once the actual rules are known, it may be possible to perform “miracles” — things which violate the perceived rules.
The Puzzle by Christopher Michel (Explorers.com) – beautiful and profound piece by Chris Michel on travel and by extension, life. Snippet: But the answers can’t be found in accumulating more. You knew that already. Well, so did I, but I’m not sure I really believed it. I do now. Happiness is reality minus expectations. And Americans, in particular, have some pretty high expectations. You do the math.
That Which Does Not Kill Me Makes Me Stranger (NYT.com) – fascinating reporting on Jure Robic, one of the world’s greatest ultra-endurance athletes. Snippet: The craziness is methodical, however, and Robic and his crew know its pattern by heart. Around Day 2 of a typical weeklong race, his speech goes staccato. By Day 3, he is belligerent and sometimes paranoid. His short-term memory vanishes, and he weeps uncontrollably. The last days are marked by hallucinations: bears, wolves and aliens prowl the roadside; asphalt cracks rearrange themselves into coded messages. Occasionally, Robic leaps from his bike to square off with shadowy figures that turn out to be mailboxes. In a 2004 race, he turned to see himself pursued by a howling band of black-bearded men on horseback.
33 Animals Who Are Extremely Disappointed In You (Buzzfeed) – hilarious photos
What Is Your Biggest Secret Desire That You Are Ashamed Of Telling Anyone? Reddit – love reddit for precisely these sorts of half-crazy, half-brutally honest windows into human psychology. The top vote-getter: In the middle of the night, I would pack one bag and drive away from my life. Not look back for one second and drive clear across the country. Find a small, rural town and just rebuild where nobody has an idea of who I am.
Cities and Ambition by Paul Graham (PaulGraham.com) – a personal favorite among PG’s non-startup essays. Snippet: How much does it matter what message a city sends? Empirically, the answer seems to be: a lot. […] Most people who did great things were clumped together in a few places where that sort of thing was done at the time.
George Orwell: Why I Write (Orwell.ru) – Snippet: And looking back through my work, I see that it is invariably where I lacked a political purpose that I wrote lifeless books and was betrayed into purple passages, sentences without meaning, decorative adjectives and humbug generally.