Saving face in China

01.05.2006

Not all communication problems in China are cultural.

Lenovo Group Ltd., the computer maker that recently acquired IBM's PC division, had problems getting sales reports from the small stores that sold its computers. It found that while midsize distributors were using a browser-based system and larger distributors filed XML feeds, the mom-and-pop stores weren't hooked up to the Internet.

Still, everybody had a cell phone, says Wu Ying, executive director of business transformation. So a year ago, Lenovo put in place a cell-phone-based sales reporting system, and now mom-and-pop store owners send Short Messaging Service messages on their cell phones. "It's unique," he says.

Today, at least 85 percent to 90 percent of all distributors file sales data, enough to enable accurate forecasting and to help Lenovo know when to offer promotions. "If our eyes are blind, then we will lose the game," says Wu.

Trombly is a freelance writer in Shanghai. Contact her atmaria.trombly@gmail.com.