Many Asian countries particular China have embraced and funded the much-needed stimulus and investments that the West required. In fact, academics have put forth the argument that China the manufacturing colossal of the world is funding the continued consumption in the West.

Although observers have noted the increasing influence of China within the global financial and political stage, it is important for us to consider the possible social, political, economical discourses. The Economist reported within its annual publication “The World in 2013” summarized several concerns. It has highlighted several concerns about China; the first is the increase in wage rate, which suggest that China will soon lose its competitive advantage as its real wages rises above other ASEAN countries such as Indonesia, Philippines and Cambodia. China’s new leaders will also face several developmental challenges; One of which is that China will soon loss its population divided a consequence of its ‘One Child Policy” implemented during the 1960s, thus China will likely see a rise in demand for social services.

Despite China’s reputation as the manufacturing hub of the world, there have been numerous successful domestic consumer enterprises such as Haier and Wahaha. Such domestic consumer firms will seek to expand overseas as many industry players acknowledge that China’s economy will likely see a drop from double to single digit growth rates, a trend evident in transitory economies like China. China’s monetary stance will also be of interest; with continued economical growth and expansion the Chinese central bank will likely embrace the continued gradual appreciation of the Yuan. Many see this as a solution to addressing China’s current huge trade surplus, and high inflation. A revaluation of the currency will also benefit China with increasing acquisitions and overseas investment by China’s state-owned enterprises and domestic firms.

Other parts of Asia will also experience tremendous change. Indonesia and Philippines may in the near future replace China as the key manufacturing hubs of the world. However, it should also be noted that both countries will require substantial investment in infrastructure in order to sustain growth. These up and coming economies are socially and politically vulnerable, thus sound monetary and fiscal policies, coupled with effective policy instruments and execution is key to ensuring continued economic growth within the rest of Asia.

China’s Food safety issues: A critical look into the tainted pork industry

Between 1998 and 2007, China acknowledge 18 outbreaks of food related clenbuterol poisoning, and during the milk scandal of 2008, six babies died and 200,000 fell ill after consuming infant formula contaminated with melamine. Many critics of the livestock production industry have also noted the blatant use of antibiotics, growth hormones and low-grade animal feed, some of which were not suitable or even legal to be used as animal feed.

“The Australian” one of Australia’s largest news publishers reported that in early 2011 one hundred people that included a dozen government employees were sentenced to imprisonment due to a food scandal that was related to chemical laced pork product. The scandal involved several producers base in Henan province, numerous government officials and, Shuanghui Group, one of China’s largest food processor firm.  Convicted producers were charge with using the fat burning drug clenbuterol that would make meat leaner but is poisonous for human consumption. Clenbuterol causes nausea, dizziness, headaches and heart palpitations in humans. However, pig farmers were incentivized to use it as it yields leaner meat, which is more expensive than fatty meat.

This scandal also exposed the corruptibility of regulatory bodies within China’s food chain and the demise of business ethics. Xinhua News a Chinese online news agency reiterates that among those convicted were government employees that included animal health inspectors and food safety officials, they were convicted of negligence of duty and abuse of power. The clenbuterol poisoning case has not since been exterminated, instead as of the end of 2011 close to one thousand people from 63 cities nationwide have been convicted for the usage and sale of clenbuterol tainted meat products.

China’s Business ethics

In recent years public discontent has been on the rise supported by the numerous revelation of deadly food scandals. Many including international and domestic media often attributed it to rampant corruption throughout China’s bureaucracy. It is often the case that many will focus on blaming China’s political system, one however have to acknowledge that there is an apparent deterioration of morality in China’s so called market economy.

Two state ideology provided guidance within China’s traditional society – Confucianism and Communism. Confucianism teaches citizens that wealth has to be accumulated through rightful means, the Confucius adage states “A man of noble character acquires his wealth by just and ethical means”. The Maoist regime then emphasizes on “sacrificing the individual self to the collective”, this provided a moral check on people’s behavior.

The Cultural Revolution has since wiped out fundamental core values of Confucianism from modern day China.  While the rapid reform from a centrally planned economy to a market economy suggest that notions of collectivism and selflessness introduced by communism is seen as irrelevant and obsolete. Materialism and Consumerism is now the drivers of decisions within all institutions of China.  China’s currents state of decision drivers is a reflection of the words of the late political and reformist leader of the Communist Party of China, Deng Xiao Ping “To be wealthy is glorious”. Although materialism is also common in the west, religious views, well-enforced rules and regulations help define what is acceptable in business.

Food Safety: Changes, Suggestions, and Recommendations

The China Food Safety Law was introduced in June of 2009; this regulation was aimed at addressing the use of unauthorized food additives within the entire food chain and to raise the general safety level from ‘farm to fork’. But implementation of this law has been hindered by inefficiency and corruption. China’s recent administrative overhaul and one party system suggest that  ‘check and balance’ mechanisms were absent. The deficiency is even more apparent for provinces that were far away from Beijing, the center of the Chinese political power.

Today’s Chinese consumers live in a state of fear and distrust with the domestic food system. Despite the introduction of more stringent food safety polices and reassurances from the Chinese government, many would rather pay more for organic food products or imported foods. However, such products are often unaffordable for the average Chinese family. Even governmental bodies have a huge distrust with its own food systems. The China Posts reported in 2010 that all elites within the Chinese bureaucracy were known to consume mostly organic food produces and products. Chinese Olympic athletes were also advised by the National Sports committee to consume only organic sources of food.

Although addressing China’s qualitative challenges within China’ food system is not an easy task, a slew of structural changes could lead to much-needed change within China’s food system.   Below are some recommendations that could be considered by the Chinese government:

1. Ensure that regulatory agency such as the Provincial Food Inspection Agency have proper “Check and Balance” Mechanisms that could detect corruption

2. Set up ethical review panels throughout all provinces evaluating business and governmental practicing. Ensure ethical legislations are in place for all business and that they are enforce properly.

3. Introduce better food safety regulations and inspection practices by learning from food safety practices of the developed world that have a high track record of food safety. Eg Canada, Singapore, Europe

China’s organic food retail industry is miniscule compared to the western developed countries, however one would say that in recent years the organic food retail landscape in China is rapidly establishing itself fueled by numerous food scandals, diminishing consumer trust towards consuming non organic food products and rising consumer sophistication demanding high quality, ‘safer’, and natural food products.

China’s organic food consumers

Organic food consumers in China are likely to be based upon a variety of psychographics and demographics factors. Similar to most organic consumers in developed economies, these consumers normally hail from well off families, and usually possess high education levels.  Core consumers highlighted by the international trade center report published in 2011 comprise of people working for large or foreign companies, managerial staff, expatriate families and high-ranking government officials.

White collar families is one of major group of organic consumers in China. With high education levels and disposable incomes, these consumers are increasingly concerned about their own health and some are also interested in environmental protection and conservation.

The “One Child One Family Policy” has created millions of single child families, especially in cities. This policy has given rise to the ‘one child, six adults phenomenon’– mother, father, two grandfathers and two grandmothers – look after one child. This societal phenomenon thus acts as a catalyst for parents to select the best food possible for this child.  It was observed that in many such families, parents are young, highly educated, and knowledgeable about the health benefits of organic foods. They thus choose organic foods for themselves and their children. One characteristic unique to this consumer group is that within this consumer profile, some of which are indefinite consumers of organic food products, while others are only temporary organic consumers who stop buying products, such as baby food, as their children grow up.

China’s aging demographics due to its “one child policy” implemented in the late 1970s, and increase consumption of meat and high processed products have given rise to various health problems particularly the elderly. Common health problems are high blood pressure, cholesterol or blood sugar, or heart disease. These people are under medical treatment or in recovery and need to have healthy meals. Many of such consumers are also consumers of nutritional supplements. Such consumers belong to the middle or high-income demographics, of which they are also regular purchasers of various kinds of organic food products.

Overseas returnees who have studied abroad, totaling close to 500,000 young people according to governmental statistics are current and future potential consumers. (Euromonitor International, 2011) These young consumers have been exposed to high quality organic products within the areas they have resided overseas usually from areas with a well-developed organic food industry. These young consumers are quick to adapt to such lifestyle in the west, demanding high quality food products. Although individuals within this industry might have limited disposable income, they are likely to be willing to pay more for organic foods.

Foreign expatriates residing and working in China are consumers that possess a high disposable income and are consumers who are used to the availability and accessibility of organic food products. Interviews conducted in Beijing China, reveled that some of which are individuals who consume organic food products as part of their lifestyle while others choose organic food products due to the concerns of potential health hazards related to the over usage of fertilizers and pesticides on non-organic food products in China.

Food Safety Scandals in China and its impact on the organic food industry

In an always-connected society, shoppers will be more informed about health and safety issues with regard to both food and other consumer goods, and will become even more determined not to compromise on quality. This is especially true of China, where recent food safety scandals have gained maximum publicity and made consumers more prudent and demanding than ever.  Between 1998 and 2007, China acknowledge 18 outbreaks of food related clenbuteral poisoning, and during the milk scandal of 2008, six babies died and 200,000 were made ill after consuming infant formula contaminated with melamine (Euromonitor International, 2011).

Historically, markets have proved that food scandals and the loss of trust of non-organic food products prove to be a strong causality for the increase sales of organic food products. In 1989, 60 minutes, the popular and respected BCS telejournalism series, featured a segment on the possible health risks of Alar, an agriculture growth regulator used to ripen apples. The Alar scare term during the period had an immediate and profound effect on the organic food industry then in the US. Demand soon outstripped supply, with organic distributors reporting sales volume increases of 100% in the space of several weeks. Similarly, such phenomenon have been observed in recent years within China, with recent food scandals, china on the whole reported 30% year on year growth for organic and green food industry (Euromonitor International, 2011)

References

1. Lagos , Joshua. United States . USDA Foreign Agriculture Service. People’s Republic of China, Organic Report . 2010. Web. <http://gain.fas.usda.gov/Recent GAIN Publications/Organics Annual_Beijing_China – Peoples Republic of_10-14-2010.pdf>.

2. Euromonitor International, “Green Buying Behaviour Global Online Survey Strategic Analysis .” Last Modified 2011.  Accessed March, 2012.

3. International Trade Centre (ITC), “Organic Food Products in China.” Last modified 2011. Accessed June 28, 2012. http://www.standardsmap.org/uploadedFiles/intracenorg/Content/Publications/Organic-food-products-in-China-market-overview.pdf.

Redefining Communication

Social media is redefining the way we communicate and how information is disseminated. For a growing number of people, social media provides an alternative way of keeping in touch with friends, relatives and communities without any physical contact. Social media has enabled companies, organizations, and governments to reach large numbers of people beyond what was achievable using conventional communication mediums. At the same time, social media is changing the ways in which people interact with others, although the full impact of these changes is not yet clear, this medium of communication has facilitated the rise of an era of digital interaction and expression. While others might argue that social media encourages physical isolation, I perceive social media as a means to foster stronger relationships especially for individuals who face barriers of communication; in short, social media is providing ways of encouraging participation with community members and enhancing relationships.

The paradox of social media marketing

Conventional information sources such as the television, radio or the newspaper delivers information through a asymmetrical framework that does not allow direct feedback. Today, advertisements have penetrated a variety of social media platforms such as networking and social sites like Google plus, Facebook and Twitter. However, one unique characteristic of such social media platform is that receivers of this information are no longer passive listeners and observers; these sites provide empowerment.  Consumers now voice their opinions, complains, criticism about an advertisement, issue and product. Yet, the very ability of reacting positively or negatively aids in either enhancing the marketing prowess of a brand or product through word of mouth or rapidly tarnishing the image and reputation of the latter.

Digital Activism

Human expressions of courage, leadership, disappointment, anger and violence transcend the digital landscape effortlessly. Social media websites have shown to be platforms of such human expression. Over the years, celebrities and leaders are born just by an act caught on digital media and posted on the Internet. One would think that the paradigm of attaining fame or respect is through influence; social media reflects what might be an entire level of influence that knows no borders, race, religion nor ethnicity. A single person, art, film, speech could potentially influence millions of people through an online platform. One of such is TED Talks which has recently reached a total of 1 billion viewers to view and listen to inspiring and motivational speakers around the world. This incredible feat could be attributed to the unprecedented access to information that social media has supported.

We have acknowledge that social media is the new social apparatus of communication. Generations of youths and young adults have embraced social media as part of their everyday lives. This new tool has enabled consumer and user empowerment, which suggest that rapport could be build without any physical contact but through digital expressionism. Social discourses and ideas have never been as accessible globally without the existence of social media. Hence, social media will continue to play a pivotal role in catalyzing future ideas and influencing social and political changes throughout the world.