Wednesday, December 2, 2009

The Business Lesson Of Ice

Earlier this year I was in the airport in Guangzhou, one of the manufacturing hubs of China. I met in Irish businessman who was in town setting up a business deal for a factory to produce purified ice machines, then place the machines at markets throughout China. This sounds like a great idea, right? Go to the market, buy a bag of drinkable ice on the way out. We do it in North America all the time.

But...this is China. Problems I foresee with this business:

1. People here don't like icy drinks.

2. Not only do they not like them, they think they are harmful to the stomach and spleen. I had a cold, bought some chilled (not cold!) bottled water, and a student was so adamant I should not be drinking cool water if I'm sick, I had to put it in my bag and drink it after she left.

3. Cold water here is generally full of bacteria and metals. There's a reason why boiled water is served everywhere: it's clean. According to custom, you don't take cold water from people you don't know, but boiling hot water is universally accepted. Hot drinks are a deeply engrained status quo. Young people drink soft drinks, and everyone drinks beer, but not cold ones.

4. When water IS drunk somewhat chilled, 99% of the time, it's bottled. That way you know it's clean. (Although, not always; there have been cases of water companies filling up bottles with dirty water, so I only buy a nationally-recognized brand. And always check the cap.) It's not very convenient to add ice to bottled water, or to transfer it to a cup. Big American-style cups aren't common here. Most cups I see are 6 oz; not a lot of room for liquid after ice is added. (The only exception to this I've seen is an advertisement for an apartment building for expats in Shanghai that had purified tap water in the kitchen only.)

I have wondered since then how long this man spent in China to think this is a good business idea.  Although it is always possible for a culture to start embracing something new, in this case, it's not just a matter of taste, it's a matter of overhauling the entire water supply and container system to make the use of ice practical. And, you know, centuries-old beliefs about Traditional Chinese Medicine. (But I could be wrong and this is a brilliant business idea! If I start seeing ice machines everywhere, I'll let you know.) For the record, I now prefer hot to cold water, although I still like chilled sodas. I chill them at home, because you can't really find them cold enough on the street.

Maybe someday, American businesses who want to do business in China will pay me to tell them stuff like this.

5 comments:

  1. If this guy only knew what YOU know. I think you could be a great asset to anyone thinking of doing anything in China!

    ps. We just bought an icemaker. My kids and husband are crazy for ice!!!

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  2. While I agree that you would be a great asset to any company desiring to enter the market in China... after all, I support my family :o)

    I'm wondering if this could be an attempt to bring even more of the "West" into China? I work with people that have traveled to China fairly often and have complained about the warm drinks, especially at the bars.

    As China becomes more a part of the global economy it will see more travelers with specific tastes and it may be wise to provide options to these people, especially if these travelers are company big wigs looking to bring in business. As you said, apartments for expats are installing clean water capabilities. This isn't cheap but apparently necessary enough to warrant the expense.

    I'll be curious to hear what you see in the next eight or nine months. Let us know if you see those ice machines.

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  3. They just might, my dear, they just might! Hmmm maybe a job opportunity for you just there? :-D

    Wooo!

    Me and cold drinks do so well in summer... what's a coke without lots of ice and a slice of lemon? booo!

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  4. Just for giggles you should have discussed your idea of selling cold beer in Ireland with the Irishman.

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  5. I totally understand not drinking cold drinks. Italians think the same way about icey drinks---they ruin your liver, spleen, stomach, etc, etc. I still prefer to drink my water without ice. Now, a diet coke on the other hand---I've adjusted back to the American way and enjoy the tasty goodness of crushed ice

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