Page 138 - (DK) The Business Book
P. 138
136 YOUR WORKERS ARE YOUR CUSTOMERS
Car sales in China
and India grew steadily
90 18 from 2005 to 2012. The
potential for sales is
80 16 huge—percentage
ownership in both
70 14
countries is tiny
CAR OWNERSHIP (%) 50 10 ANNUAL SALES (MILLION CARS) is high and sales
compared to the US,
12
60
where ownership
remained static.
40
8
China
Car ownership
30
India
20 6 4 Annual sales
Car ownership
Annual sales
10 2
USA
0 0 Car ownership
2005 2006 2007 2008 2009 2010 2011 2012 Annual sales
food, leaving the average family five years, boosts its spending on disguise, to find out what the
with a huge surplus with which toilet paper to China’s per-capita business looks like from that
to buy nonessential items that spending, the market growth in perspective. The show clearly
quickly become “necessities,” such India will be $8.4 billion ($6.72 x illustrates how those in charge of
as cosmetics and gym membership. 1.25 billion population). For China a business are often unaware of the
India is perhaps about to embark to catch up with the US would opinions, insights, and feelings of
on this stage of economic imply market growth of $24.3 billion their customers and staff. Despite
development. If so, this will have ($17.98 x 1.35 billion population). a world of online praise and blame,
an impact on the sales of a huge And that’s just the increase in some companies are able to remain
range of everyday items. market size—not the total market. in a bubble of self-delusion.
The significance of this trend Exactly the same logic applies However, this is unlikely to be
lies in the numbers of people across the market for ordinary true of an organization in which the
involved. If India, over the next household goods throughout the worker is also the customer. These
developing world. Already, China is employees care about the product
the world’s biggest market for luxury or service because they experience
items, such as Swiss watches, it themselves and realize that their
jewelry, and cars. Over the coming job security relies on customer
decades, China is also likely to satisfaction and the company’s
I will build a car for dominate sales of ordinary items commercial success. If a customer
the great multitude … (such as toothpaste), and services waiting room becomes messy and
[that] will be so low in (such as insurance). The potential dirty, for example, staff-customers
sales volumes involved are huge. will quickly draw attention to it.
price that no man making
Today, China is the world’s largest In Europe, fashion retailer
a good salary will be
car market, even though fewer than Primark enjoys huge success
unable to own one.
Henry Ford 10 percent of households own a car. in the mainstream market. The
company turns runway fashion
US industrialist (1863–1947)
In touch with reality speedily into low-priced garments
The television show Undercover with a target market of 15–35-year-
Boss sends senior executives olds. However, its growth was
into low-level jobs in their own instigated by an unusually elderly
companies, under alias and senior management team. By
