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tv   World Business  PBS  April 17, 2011 11:30am-12:00pm PDT

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>>this week on world business... it's now the world's second largest economy, but is home to few well known brands. so why do chinesecompanies still lack international recognition >>as competition increases in china, it's more and more important for products and services to be able to differentiate themselves. >>we meet the new director general of the un office at geneva... >>tokayev:... the first asian to hold the post. >>it is a huge honour but at the same time a huge responsibility taking into account very serious developments in the world >>the innovative projects helping to raise living standards across bangladesh. >>at this moment, seven villages within a range of 15
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kilometres, approximately 15-thousand, 15-thousand people are enjoying this great quality electricity. >>de jong: hello and welcome. i'm alex de jong and this is world business, your weekly insight into the global business trends shaping our lives. china may now be the world's second largest economy and is still growing at a blistering rate, but few chinese brands are well known internationally and domestic consumers aspire to foreign products. however that could be starting to change... >>reporter:: the factory floor at one of china's best known
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clothing companies that few abroad have ever heard of. >>reporter:: inner mongolia's erdos (pronounced ar-doss) cashmere is 30 years old. powered by a huge ad spend over the years, it commands 40 percent of the domestic soft woollens market. >>reporter: but this sector, with its safe and comfortable image, is under pressure from the influx of aspirational, edgy, foreign fashion brands. so erdos is on a mission - not just to create new lines, but to revamp its entire corporate image. >>zhang: vice president, erdos cashmere group (in english): we can make the change to our products but now our biggest, hard hurdle is to make sure this productnow is able to be sold at the right place where you can meet the right kind of consumer - so i think this project is probably the biggest hurdle we are overcoming. >>reporter: the project is branding - creating a clear, credible, emotional and motivational personality that differentiates a company from its competitors. the erdos overhaul -
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from visual identity, to store image and product range - is a huge undertaking as the company seeks international-style street-cred as a fashion house. >>mackie: in china, this is blue-sky thinking. for years, companies had a command economy mindset: produce big slogans, spend huge sums on tv advertising and expect consumers to believe them. but dogged with quality and copycat problems, few firms have succeeded in developing that all-important intangible, emotional attachment to their products and services - at home and especially abroad. >>reporter: consumer research firm millwardbrown, however, says corporate attitudes are now clearly changing - that pressure from abroad is forcing boardroomso be more sophisticated. >>spencer: in the last few years especially, in the internal and domestic marketplace, i think competition has grown - a lot of multinational brands are starting to exploit distribution channels and moving into lower tier
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cities. so as competition increases in china, it's more and more important for products and services to be able to differentiate themselves. >>reporter: that said, the chinese government still fails to adequately protect firms from well connected counterfeiters - and this seriously undermines a good brand. and even the more progressive chinese companies are burdened with the "made in china" stereotype: low paid factory workers, shoddy goods and poor environmental standards. an accusation that for many simply isn't fair. but it is a market reality - especially abroad, notably in countries with a critical, unforgiving press. >>spencer: some countries, this hurdle might be more difficult to overcome than others. so, there might be a case in the us where the pet food scandals and the melamine scandals certainly generated very, very high attention in the press and in the media. >>reporter: the reality of the "made in china" curse isn't lost on aigo (pronounced eye-go) - a popular maker ofusb memory sticks, mp6 players and digital cameras. as an olympics and formula one
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sponsor, aigo enjoys a high profile in mainland china. but its chairman accepts that to be credible, globally, the bar for chinese companies is high - and so, until aigo has a strong overseas service network, he's holding-off on expanding abroad. >>jun: you know many, many companies want to sell products fast - but no service! it's a disaster for brands. because only if you have good service, you can give the satisfaction to the consumer. so we need a partner. >>reporter: chinese exporters like white goods maker haier and beer maker tsingtao are strongly focused on service and brand awareness. that's why they're on the short list of chinese companies that foreigners might recognise. other players have raised their profiles by making big ticket acquisitions - like lenovo which bought ibm's think pad and now geely which recently purchased volvo.
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>>spencer: there's a logic to that, that seems to be: can we appropriate marketing sophistication; or can we appropriate an existing relationship with consumers in another market. >>reporter: but as the best connected chinese brands develop and expand internationally they will lose a protective umbrella that has served them well: the power to often stifle online criticism. in china, a whole industry has developed to erase unflattering comments. but the culture is very different on the otherside of the great firewall. the head of branding at one of india's leading corporations, infosys, says scrutiny is now unrelenting. brands that cover-up or don't keep their word, do so at their peril. >>jha, you remember that sting song: every breath you take, every move you make, every smile you fake, i'llbe watching you - every company is being watched by all its stakeholders. and every misstep you make will be caught. it's the end
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of command and control communications. >>reporter: and this is corporate china's achilles heel. for companies must be loyal to the state - or, indeed, they may be state controlled. and among consumers in the wealthier markets, the chinese government is largely unloved - so much so, that a re-branding of the communist party itself, could well be good for business. p the former prime minister of kazakhstan, >>tokayev: was recently appointed to direct the european h-q of the united nations in geneva. the current speaker of the senate is the first person from asia to take up this leadinrole. eckart sager caught up with mr tokayev in the capital, astana and askedhim about his mission in this new job. >>tokayev: it is a huge honour but at the same time a huge responsibility taking into account very serious developments in the world.
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so i take this responsibility very seriously, the strengthening of peace and security.... >>sager: our world is rapidly changing. given the dramatic developments in the middle east and north africa, how do you see the role of the united nations in terms of conflict resolution? >>tokayev: i am confident that the united nations plays a very important role and the resolution which has beenpassed by the united nations from my point of view has to be fully fulfilled and implemented and i think that it was a very good resolution in order to stop the civil war in libya and in this respect, i fully support the statement by the secretary general ban-ki-moon, with regards to this resolution and in general with regard to the developments, which are unfortunately taking place in libya. >>sager: is this region here in central asia in particular,
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kazakhstan immune to the revolutions and political upheaval, is it different here and if so why? >>tokayev: i would say that i don't believe that the upheavals in northern africa will affect my home country because we have a special program cusing on the economic development of the country and on this basis to conduct political reforms. and we have a special program which is called the modernisation of the country, the social modernisation of the country, which means that first of all we must address such very serious, very acute problems like education, healthcare and providing jobs to the people. >>sager: president nazarbayev has just been re-elected to another five year term in office. he is certainly very popular among his citizens here in kazakhstan. but how do you respond to critics who say
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he's been in power for too long and his hold on the country, his grip on the country is too tight? >>tokayev: president nazarbayev made kazakhstan a successful country; it is a very well known country on the international arena. so we value his efforts in this capacity and in the capacity of the president. >>sager: now with the elections over what are your expectations in terms of social, economic, political and democratic reforms? >>tokayev: i think that kazakhstan in this respect has made a lot. so the reforms are inevitable in kazakhstan so the dynamic is very positive. kazakhstan is on the track of promoting reforms, of conducting reforms. and this process will be unstoppable if i may say so. so i think that kazakhstan is a democratic country, kazakhstan is a reformist country on the track of changes. and i think that this tendencywill be continued. >>sager: you are known as a staunch advocate
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of global nuclear disarmament. of course kazakhstan has scrappedits nuclear arsenal shortly after its independence 20 years ago. but what are you planning to do topush this cause further at the united nations? >>tokayev: in my new capacity i am going to be the secretary-general on the conference on disarmament. and i would say it is a very difficult job. it is a very responsible job, because for nine years there was no progress at this conference, on this forum. i am going to make some statements and interventions about how i see the future of this conference and also we must be very serious about the talks withinthis conference on disarmament because it is a single platform on having negotiations on the futurenuclear role. we renounced our nuclear
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arsenals. kazakhstan was an initiator, kazakhstan initiated an establishment of non-nuclear zone in central asia and in the year of 2005, while foreign minister of this country i put my signature on the treaty in semapolensk, which is a city where all nuclear tests are conducted during the soviet times. >>sager: kazakhstan is the world's largest producer and largest exporter of uranium. following the nuclear crisis in japan are you becoming more sceptical about nuclear power? >>tokayev: my personal view that we shouldn't be so much sceptical after the disaster, which unfortunately happened in japan, and by the way the people of kazakhstan feel sympathy toward the people of japan and we admire how they are trying to cope with the consequences of this
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disaster in fukushima and in general. we shouldn't just rely on the oil and gas, but also we should develop nuclear energy here. >>sager: what are the key challenges facing the united nations, as the world's body? >>tokayev: i think that there is no alternative to the united nations. yes i know that there are some people who are very much sceptical about the role and, capacity of the united nations. but there is no alternative. there is a single platform, a universal platform in the world and people, delegations and politicians, or ngos could come and discuss all the acute and pressing issues that are present the world. >>still to come on world business... smart solutions for a better future in bangladesh. and the computer system making
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life a little easier for football scouts from the internet to the back of the net.... and the rest in just a moment on world business... >>bangladesh is home to some of the most innovative development techniques, most notably the grameenbank created by the father of micro-finance, muhammad yunus. he was recently dismissed in an apparently politically motivated dispute, but his work helped lift millions out of poverty and is just oneof many imaginative projects in the country, helping people establish and grow small businesses. >>reporter: working conditions are harsh at these brick plants outside dhaka. but in some ways they are sign
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ofprogress, as well as the challenges that progress brings. it's the demand for new homes and shops, and the building of new roads and bridges that has fuelled the creation of around 5000 of these factories. >>reporter: the problem is that most of them have been built illegally right on top of fertile rice fields. >>hariri: "you have to meet the demand of the population and at the same time you have to raise productivity of the land through r and d, through improved seeds. so i know there is pressure on the soil but this is the situation there, and you just have to cope up with this increasing population pressure." >>reporter: the islamic development bank is working with the bangladesh government to do just that...educating farmers to help improve their yields, funding mechanized farm equipment, building cement irrigation
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channels. >>paul: if we increase the irrigation channel, then the command area will be increased, irrigation costs will be reduced and the production will be increased so the farmers will be benefited and the farmers will be economically enhanced. >>reporter: projects like these are helping farmers move from mere subsistence, to reaping surpluses they can sell. >>reporter: another, more high-tech initiative, is similarly aiming to increase farmers' incomes. the telecentre network was established with funding from the canadian and swiss governments. there are more than 3000 of these profitable, self- sustaining centres across the country. >>akbar: this centre is run by an entrepreneur, owned and run by an entrepreneur. but there are some different kinds of models. those are run by ngos, civil society, even the government is now also owning some. >>reporter: for a modest fee, rural people can get digital photos taken and photocopies made, helping them to apply for government services and subsidies without having to journey into the towns.
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and thanks to a partnership with the international rice research institute, they are also boosting farmers' productivity. >>akbar: when a farmer is having a problem, like he needs any information on input like seed, or fertilizer of pesticide he goes to this centre now. >>reporter: computers require a steady power supply, and that's far from a given in bangladesh where only about 40 per cent of people have access to electricity. one man has found an ingenious solution. with seed funding from the world bank and baladesh government, asuuzzaman sheikh established the country's first biomass power plant. it uses a waste product the country has in abundance - rice husks. >>sheikh: the people of here, they are thinking me, that i am mad because i will produce the electricity from the rice husk. they are
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asking me: are you mad? you are producing the power from the rice husks. >>reporter: no one doubts his wisdom, let alone his sanity, any more. >>sheikh: at this moment, seven villages within the range of 15 kilometres, approximately 15 thousand, 15 thousand people are enjoying this great quality electricity. >>reporter: economic activity in those villages has boomed since sheikh brought them power. >>sheikh: managing director dream's power "we can implement such a kind of more and more projects in the villages of bangladesh, i think the problem of electricity will be solved." >>reporter: the fact that demand for power is far outripping supply is both a sign of economic growth, and also of the immense pressures from having a vast population of 160 million people. barring the microstates, bangladesh is the world's most densely populated country.
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that means that even its economic progress of recent years is inadequate. >>goldstein bangladesh has had some success in accelerating its growth rates over the past two to three decades to a point where the country is now growing at quite a healthy 5-6 per cent per year even during theglobal economic and financial crisis of the past couple of years. >>reporter: it needs growth of closer to 9 per cent if it's to continue to substantially reduce the number of people living in poverty, which still stands at close to 40 per cent. >>goldstein: it has been the garment industry and labour-intensive manufacturing on the one hand which has been behind much of the growth of bangladesh in recent years. the other aspect has been labour migration out of bangladesh to many countries in the middle east and neighbouring countries. >>reporter: those migrant workers now send home close to 10 billion dollars
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of remittances a year, an important driver of local investment and economic growth. still, the country remains heavily reliant on foreign assistance. >>hariri: the successes in the various models, from grameen to microfinance and islamic microfinance, the ngos, many, many organizations are really playing their part in helping bangladesh get out of poverty but really the challenges are tremendous. you know, the climate change, the overpopulation, pressure on infrastructure on the various projects. so it's really quite a challenge to get it to work in that country and make it sustainable. >>reporter: sustainability that must be built on seeing demand for bricks for new construction continue to grow,but without the factories that make them, eating up limited and vital arable land. across the globe, football is
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a multimillion dollar business but as pressure grows on clubs to both trim their squads and balance their books, unearthing quality players has never been more important.which is why more and more clubs' scouting departments are turning to technology to help them trackdown the game's top talent. >>reporter: thursday morning training for league english league one team brighton and hove albion....a side led by a man who firmly believes in the importance of having a solid scouting programme... >>poyet: i'm convinced. i'm 100% sure that nowadays, you know, the most important thing for a manager is to get the right players. and that is through scouting. >>reporter: 250 miles, and two divisions away...the millionaires of manchester city limber up. the squad's valued at around $450m, but with a full time scouting department of 20...the club is
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constantly on the lookout for fresh talent... >>fallows: we look at everything from senior football right the way down to local scouting of 7, 8, 9 year olds. >>reporter: backed by a multibillionaire, and given that in the last transfer window, the club spent around $200m, the temptation is to think that city's scouting programme largely revolves around waving a fat chequebook. but here they still regard good scouting as being crucial to the clubs financial health... >>fallows: if we find the right players at an earlier age they are going to cost the club a lot less money. also what we aim to do is save the club money in every single transfer window by keeping away the 20, 25, 30 million players that might be wrong for the club. >>reporter: according to uefa, 50% of europe's clubs are now losing money every year, and spending through the last transfer window in the big 5 leagues was down 30%. in short, discovering cheap talent is becoming increasingly important, as are the tools to do so which is where the scout7 system comes into play.
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>>lee jamison: we monitor 165 leagues. we've got over 120 000 players within the system, at all levels... >>reporter: so whether you're a 15 year old in a belgium junior league ...or a paraguayan international playing in the bundesliga...you...and a bunch of your statistics will probably be on it... >>jamison: he comes out of south america, we have got his complete history here and we've got a list of the coaches we have worked with over the years. >>reporter: in the simplest terms, scout7 brings together vast amounts of standardized information, into one easily accessible, online location... >>aranalde: someone recommends you a player. you go to the system, put in his name...and if he's not in the system you better forget about him. >>ansell: what we have now...is a very scientific approach. all the records for the players over the last 10 years. every game they've played, how many minutes they were on the pitch... ...whether they got booked...whether they were sent off, whether they scored,
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whether there was a clean sheet. >>fallows: you know, it's 24/7. it's the only member of our department that doesn't sleep. it's absolutely vital for us. >>reporter: with the premier league now limiting squads to 25, and uefa demanding that all clubs basically stop losing money by 2015...teams now want as much information as possible before shelling out on transfer targets... >>reporter: scout7 now even incorporates wikipedia to delve into a players past. sometimes wiki-accuracy is dubious but more traditional sources of player information, such as football agents hardly have stellar reputations either... >>poyet: i never see an agent who says to me...my player...he's not very good. >>jamison: you've got agents knocking on the door all the time and they've all got the best player... >>reporter: at 9 years old...the programme now also includes video...and offers over 300 games a week from around the world... >>reporter: scout7 has 85% market share of the top leagues of germany, holland, france and the uk, where 75%
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of the premiership's clubs now use the software. but of course discovering less tangible aspects of a players makeup, such as his attitude, remains something of a dark art...which is why scouts will still always try to watch a player in a variety of different situations... >>fallows: how does he perform after an international game, when he's had to travel a long distance? >>poyet: different games. home and away. >>fallows: when he comes back from injury? >>poyet: easy games and a very difficult one. >>fallows: how does he perform maybe when his team's just been defeated... >>poyet: you know, to see the reaction. >>reporter: today you can gather all manner of player statistics...on everything from passing success to tacklesmade. rating players on their stats is of course commonplace in sports like baseball, cricket and gridiron...but football is a more fluid game, so just how big a role could statistics ultimately playin the buying decisions of europe's clubs..? >>ansell: it's a bit like a car. you can look at all the statistics but you wouldn't buy it unless you drove it.
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>>fallows: i don't think it's ever going to be something which would replace the actual nature of going to matches to see players perform and to make judgments based on instinct. >>reporter: although instinct alone has hardly proved infallible...and while scouts picture of past performance is becoming ever clearer...one thing that is 100% certain...predicting whether you've found a phenomenon, or a fraud...will remain very difficult...indeed... >>that's it for this week's world business. thanks for watching. we'll see you again at the same time next week.
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