January 11, 2008 -- Customer service is one of those elusive concepts that seems to be defined by its absence. You recognize it most when it is missing. It is also an area where many Chinese companies are struggling to reach higher standards.

While a commitment to better service has to start with the top management, what makes it difficult to achieve is that it must reflect the attitudes of the individual employees. These attitudes are not altered by simply publishing a 'customer first' mission statement.

What accounts for the people who will elbow their way to the front of any line and who will treat you with equal disdain if they happen to be working behind the counter? In this column, I will share some factors I have seen during my years in China.

Privation, Humiliation, and the Building of a Nation: History Affecting Service

Privation in Chinese history is a factor. The wars and the Cultural Revolution are over, but their memory lives on directly in the older population, and indirectly in the young, via their parent's teachings. Teachings such as keep your head down, be very guarded with strangers and get as much as possible at every opportunity.

In American terms, think of how the civil war and the great depression shaped people's attitudes. Now, combine them both within one generation. Although there are now enough goods to go around, many must still struggle for daily survival. This is particularly true in the poorer rural areas. Their instinct is not to serve others, but to protect themselves.

Humiliation is also another factor. Surely, the Opium Wars and the treaty ports are ancient history and have no lingering impact today? This is not so.

Mao proclaimed that the People's Republic was "from now on, the Chinese people stand up." The government still promotes this as a tool for forging national unity.

Any situation in which foreigners are perceived as taking advantage of the Chinese is likely to provoke a strong reaction and to result in colder service levels.

Economics is yet another historical factor. China's economy began to reform thirty years ago but Marxist economic theory still flavors both the theory and practice of economics in China.

State-owned enterprises were used to provide secure jobs regardless of the success of the business. This led to notoriously unaccommodating attitudes towards customers. Even though those guaranteed jobs are now gone, the service practices of thirty years ago tend to remain. Furthermore, the lack of these guaranteed jobs today also contributes to "me first" attitudes in employees.

Culture, Confucius and Adversarial Sales: Culture Affecting Service

Clan focus is one element of Chinese culture that has affected service. Chinese culture, particularly Confucian philosophy, is very family-centric.

Respect for family elders, sacrifice to advance family interests, and protection of the family's reputation are just a few values promoted in Chinese culture. Service is expected within the family and with trusted friends but service to strangers is not.

Guanxi or relationships are often taken as a shorthand for wining, dining and bribery. While it is occasionally a blatant quid pro quo, I believe it is usually more subtle. For example, establishing yourself as a trusted friend, who is then entitled to favorable treatment.

Adversarial sales attitudes also affect service quality. Business negotiations in China tend to be focused on price, not service. The hardest bargains are about cost.

This inherently reinforces short-term thinking and a 'take it or leave it' attitude. It also introduces distortions like artificially inflated starting prices so that bigger apparent discounts can be offered.

Great Expectations and Employee Turnovers: Business Environments Affecting Service

The attitude of "great expectations" changes the service industry. Economic reforms launched a race to the top. Many have taken to heart Deng Xiao Ping's saying that "to be rich is glorious."

To be a store clerk or a service person is not the life the Chinese people crave. They take out their frustration on customers by ignoring them or treating them shabbily. The coming generation of "little emperors," the spoiled kids from one-child families, may be even worse!

The environment created by training can also affect the service industry. Better attitudes can be encouraged in staff, but why bother if they will be working for someone else next year?

The frequent turnover in jobs discourages employers from investing in developing service-oriented personnel. This is individually true but collectively self-defeating. If no company ever takes the first step, the entire industry will never improve.

A Good Example of Breaking the Trend

Lest this sound unduly gloomy, there are businesses in China which get customer service right. One that has impressed me is the Best Buy electronics store in Shanghai, the first Chinese branch for this US chain. They have been more successful than most at importing their company culture.

A majority of their staff is attentive, well-trained, and genuinely helpful. I've even returned defective products there with minimal hassle. Other stores in China aren't as open to returns as Best Buy.

Apparently, Chinese customers also like this treatment because the chain has been successful and plans to open another store soon.

How do they do it?

One way is a morning meeting of all employees before the store opens. This gets the employees pumped up with the right attitude for the day ahead.

Another factor is that their sales staff is paid a salary without commissions. This encourages a less aggressive approach. It probably also helps that they are selling attractive products such as computers, cell phones, big screen televisions, and other trendy gadgets So working there may seem less dull or demeaning.

What can you do?

When setting up a retail or service company in China and picking your staff, assess your potential employee's attitudes along with their technical qualifications or skills. Sound them out with test cases about how they would handle common situations with your customers and see if they respond the way you'd prefer.

Stress the difference between being servile and providing service. Servility is abasing oneself before others and is an offense to one's dignity, and is not expected. While service is providing the customer with attentive, helpful assistance and is a way to differentiate your company and make it more successful.

Training will help especially if it is reinforced by recognizing or rewarding desired behaviors. However, if someone proves to be uncoachable, get him into another job before his bad attitude damages the group.

Lastly, remember that your own attitude towards business and life is the example that will be most closely studied. So watch what you do because someone else is doing the same.


Since graduating from Yale in 1974, Dwight Spreng has acquired over 30 years of experience in the electronics industry. He is currently doing sourcing for an American manufacturer of test instruments. He now lives in Shanghai, but has also spent prolonged periods of time in Pakistan, Indonesia, Japan and Germany. He welcomes your comments and suggestions via email: dwight.spreng@tromblyltd.com.