Dell Store (and Uniforms) in Yinchuan, China

Yesterday, I shared some examples of unauthorized Apple resellers in Yinchuan, Ningxia. Although I have posted several times about Apple, it is not my intent to express any particular favoritism for the brand.

Partly in that spirit, I will share a few photos of a store selling Dell products that I also saw in Yinchuan:

Although it is very common to see Dell computers for sale in China, this store caught my eye because it is not so common to see an independent store dedicated to only Dell products. In my experience, Dell resellers in China are typically located in computer shopping centers with numerous other resellers nearby.

The store also caught my attention because of its outdoor display where two employees were showcasing computers:

I spoke to the owner and she told me the store has been open for 8 years. Furthermore, it had recently undergone renovations, and they had just reopened.

Similar to Apple, Dell provides an online list of authorized retailers in China. However, Dell has many more stores listed. For example, Apple currently lists 1 reseller in Yinchuan. Dell lists 30. At first glance, the above store does not appear to be on the list. But several of the provided addresses are vague, so I am not entirely sure whether it is not included. And I am not familiar with Dell's policies regarding how stores can use the Dell symbols and name, so I have no comment as to whether anything may be amiss.

Finally, I must say there was another detail in the store that caught my attention -- the uniforms for some of the female employees:

I have no idea if those uniforms are Dell standard issue inside or outside of China. If not, do you think they could someday become an example of creative design in China influencing global practices?

More "Fake" Apple Stores In China: Does Apple Care?

[UPDATE at end]

According to recent reports, new genuine Apple Stores will open in the Chinese cities of Shenzhen and Chengdu. These will be the first Apple Stores outside of Beijing and Shanghai in mainland China. Shenzhen is an intriguing location for a new store since its border has been a significant entry point for Apple products smuggled into mainland China from Hong Kong due to differences in prices and availability.

In addition to several Apple Stores in China, there are numerous authorized resellers of Apple products. But there are many more unauthorized resellers, examples of which I shared here and here. I also shared an example here of an unauthorized reseller with a website nearly identical to Apple's. All of those examples came from Southeast China, so I will now share examples of unauthorized stores in the northwestern city of Yinchuan in Ningxia Hui Autonomous Region (Ningxia is similar in stature to a Chinese province). In addition to serving as evidence that unauthorized resellers are not limited to a specific region of China, they provide an opportunity to discuss some of the concerns Apple may have about such stores.

Like before, I did not deliberately seek out any of these stores. I opportunistically took the photographs on several occasions while I walked around Yinchuan's central Xingqing District. Here are just a few of the stores I saw selling Apple products:

In all of the examples above an Apple logo is prominently displayed in the location above the main entrance where one could expect a store's name, even in China.

Apple's online list of authorized resellers as of today shows only one authorized reseller in all of Yinchuan or anywhere else in Ningxia (note: an employee at the Apple Store in Hong Kong insisted to me that this list is regularly refreshed and reliable). Based on the store's address it is not any of the stores displayed above or later in this post. However, these stores not being listed as authorized is in itself not a problem since it is reportedly not illegal to resell genuine Apple merchandise in China.

Regardless, in a country with so many fake products some consumers may be especially motivated to buy Apple products from stores reviewed and authorized by Apple. That is what makes these other unauthorized stores in Yinchuan even more intriguing:

Although Apple likely does not want stores stating they are authorized resellers when they are not, Apple is likely more concerned about protecting the Apple Store identity. The famous fake Apple Store store in Kunming received attention from Apple not because it was unauthorized, but because of the extreme measures it took to appear as a genuine Apple Store. In short, whether Apple pursues any action against a store in China is probably related to the likelihood a consumer will incorrectly believe they are shopping at a store operated by Apple. A quick estimation based on what I have seen suggests there are thousands of unauthorized Apple resellers in China, many of which may be misusing Apple's trademarks to a variety of degrees. If Apple wished to pursue every potential case it could have a huge challenge ahead of itself. But at the moment I see no indications that Apple will take any significant action unless a store goes to more extreme lengths to imitate a real Apple Store. In that case, Apple has taken a more pragmatic approach and the situation is far more manageable.

The famous store in Kunming crossed several significant lines which made it worthy of Apple's attention. For example, the staff believed they worked for Apple and wore shirts identical to those worn by Apple Store employees. The second factor is why these two stores in Yinchuan particularly caught my attention:

In both stores, employees were wearing shirts that appeared to be similar, if not identical, to the Apple Store shirts.

When I spoke with two of the employees in the second store, I asked them if the store was an "Apple Store". One quickly said it was. Then the second jumped in and said it was not. She explained that their products were genuine and from an official Apple Store in Beijing. She did not believe she worked for Apple. At no point did the employee appear to evade any of my questions, and I never had the impression she was concerned anything might be amiss.

So, are any of the above stores enough to get Apple's attention? All I can say is that in most ways they are not highly unusual in comparison to many other unauthorized stores I have seen. They also did not go to the same extremes as the store in Kunming. Nonetheless, I suspect those Apple Store shirts could cause some feathers to be ruffled at Apple.

I could now go on and on and share examples of stores in other cities in China that to varying degrees may be infringing on the identity of genuine Apple Stores.

Unauthorized store in Lanzhou, Gansu province

Unauthorized store in Xining, Qinghai province

But I shall refrain. I think I have already sufficiently made my point. Again, there are many unauthorized stores across China and it does not appear that Kunming or Southeast China is special in this regards. But based on my experiences, the famous store in Kunming remains a special example.

Finally, I want to give credit where credit is due in Yinchuan, namely this business:

Despite the English mispelling, this Apple Authorized Service Provider is indeed listed in Apple's online locator. Consistent with my observations of what was for sale in Yinchuan's unauthorized stores, it only offers services for iPads, iPhones, and iPods -- no service for Macs. So, Yichuanese can rest assured they have a convenient and authorized option for servicing some of the Apple products they may buy, whether at Yinchuan's single authorized reseller, Yichuan's unauthorized resellers, or elsewhere.


UPDATE: Now tired of seeing "fake" stores? Then maybe the Chinese mobile phone with an apple logo in this post will interest you: "Insights and Headaches for Apple: The iPncne in China".

A Man Wearing a Hat in Xining, Qinghai

I am in the middle of writing three different posts but none are yet ready. So I will try something I had been pondering for such days and share a single photo that caught my eye.

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The above scene is from an area in Xining with a set of immense shopping centers that I hope to describe in a later post. On the side, I have recently noticed a number of places selling hats similar to what the man is wearing. In several cases, I noticed that the black band has "I Love Italy" printed on it.

I have no explanation, but maybe it can bring some joy to any Italian readers.

That is all. More soon.

The Thirty-fifth Day of May in Xining, China

As I walked around Xining, Qinghai province, on this thirty-fifth day of May, I noticed that at these various shopping areas:

Vegetable market

Street market

Underground shopping center

Life seemed to be going on as usual. But when I looked upon Xining's peaceful Central Square:

And later in one of Xining's major shopping districts saw police, one openly holding a large gun:

I thought of some recently shared photos from 23 years ago of soldiers in Beijing. Later, I pondered China's curious stock market numbers and the various extensions of censorship in China on this day.

For now, I will simply share a photo of these candles I saw several months ago at a temple in Zhuhai's Bailian Dong Park:

Regardless of who is to blame and why such a terrible event occurred, they remind me of the lights that went out 23 years ago.

Scenes from Qinghai Lake and Environs

Previously I shared some photos of road scenes from my trip on Friday. Now I will share some of what I saw off the road that day. Early in the morning I met 5 Chinese college students who would be joining me and our driver. Our trip lasted until the evening and we explored Qinghai Lake, China's largest lake, and some of the areas around it. The driver chose the route, and I am happy to say he made some excellent choices. I am not sure I have ever seen such diverse scenery in a single day.

As seen in the photos, much Tibetan culture can be found in Qinghai. Although foreigners require a special permit and must be part of a tour group to even have a chance of entering Tibet (which is not always possible), no such restrictions exist in Qinghai -- at least for the regions I have visited so far.

In the order I experienced them, here are some scenes I will not soon forget:

Since yaks apparently prefer to avoid humans, this was as close as I could get.

The view from Laji Mountain at 3820 meters (12,500 feet) above sea level.

Tibetan prayer flags on Laji Mountain

Horse near Qinghai Lake

Tibetan woman and boy

Tibetan woman and boy walking to some tents.

Tibetan prayer flags and rock piles at Qinghai Lake

Woman making a traditional Tibetan dish made from barley -- tsampa

Two of my co-travelers that day -- one posing for a photo with the flowers and the other taking a short ride

In the distance are snowcapped mountains, but yet again I am surround by sand dunes.
Not too far behind me is Qinghai Lake.

On the Road in Qinghai

I will keep things simple for this post, because I spent a lot of time today on the road in China's Qinghai province. Some evidence:

I have never before gone from snowcapped mountains to sand dunes in a single day. More about related off-the-road sights after I get some sleep.

Imitators Show There is Room to Grow in China for McDonald's and KFC

In an earlier post, I discussed McDonald's localized offerings in China and shared an example of how it was providing a positive impression of the U.S. to some Chinese. Kenneth Chan, McDonald's China CEO, in a recent interview on Fortune pointed out that not only is McDonald's localizing its products and services for China as a whole but also for specific segments of Chinese consumers:

We are reinventing ourselves to adapt to the changing constituency. By the end of 2013, about 80% of our restaurants will undergo reimaging. The design will vary by areas. In business districts with many young professionals, we have kiosks for coffee and pastries. In areas with young families, we reserve places for kids to play or host parties. We also offer customer-friendly amenities like free Wi-Fi and McCafes. We want to stay relevant to the younger population and make them stay longer.

He also discussed his plans for growth:

Opening new restaurants is another top priority. In addition to opening our own restaurants, we have stepped up our franchise programs. After all, McDonald's is a franchise company. At present, 80% of McDonald's worldwide are owned by franchisees; in China, only 36 restaurants were franchised by 2011. We are working hard on this.

In addition to the conventional franchise model in mature markets like the U.S., we also implement what we call a "developmental licensee" model. In certain provinces where we don't have the capacity to reach out for many years, we are looking for licensee partners who have strong financial backgrounds and strong business experience. China had seven conventional licensees and two developmental licensees as of 2011. It's still a very low percentage and over a very short time that will change. The pace of franchising in China depends largely on finding the right partners.

Chan's comments suggest that there remain challenges for McDonald's to grow in China, even if they know of additional markets where their restaurants would be welcomed by Chinese consumers. There are many reasons to believe additional demand exists in China for McDonald's and KFC, who has a larger presence and is also localizing in China. In fact, I believe I have seen relevant evidence during my explorations of China's different regions.

For example, I saw the following restaurant at a pit stop between Guangzhou and Wuzhou, Guangxi:

I am not sure what to call this restaurant since there are both "Wichael Alone" and "Michael Alone" signs. Regardless, I think it is fair to say that McDonald's served as an inspiration.

More often, I have seen stores that are very similar to KFC -- whether in Southeast China in Shanwei, Guangdong province:

Northeast China in Dunhua, Jilin province:

Or Southwest China in Chongzuo, Guangxi:

The KMC is my current favorite. Like the CBCs and other KFC-lookalikes its menu appeared to be nearly identical to a KFC menu. But the KMC went the extra distance to bring a KFC-like experience:

As I pondered KFC's "it's finger lickin' good" slogan on the wall of the restaurant I sipped at a Pepsi. I then began to wonder if the Pepsi was real. The Pepsi sat untouched after that.

Although I cannot say whether such restaurants run afoul of any laws, I find it notable that wherever I see a (what appears to be) genuine KFC or McDonald's I rarely see an obvious imitator nearby. For example, at the time of my visits I did not see a KFC anywhere in Shanwei, Dunhua, or Chongzuo. Given that pattern, I suspect it is only a matter of time before KFC or McDonald's enter such markets and push out any imitators who have kindly shown that a demand exists. Even if legal action is not an option, there is good reason to believe that Chinese consumers will want an authentic experience, especially since there does not appear to be a significant difference in price (if any). Apparently, KFC agrees that authenticity will matter:

Sign inside a real Chinese KFC in Yinchuan, Ningxia