I continue here on the few posts I made on France…

In France, we are used to say that we are great inventors and engineers, but are unable to market and sell any of the good ideas we have. It is true that historically France has had some compelling inventions that in the end did not spread outside its borders that much: look at the Minitel (predecessor of the Internet) or the Concorde plane. On the other hand Hong Kong people are relentless entrepreneurs and salesmen that may build several businesses at the same time. These businesses often focus on very short term profit and are not meant to last very long.

I would like to use an example to highlight how this simple comparison can translate in the consumer world. It is related to the approach used by one of the most successful store chain in France: FNAC. In Hong Kong, the equivalent of FNAC would be a merger between HMV, the Publishing House and Fortress all under one roof and with a very significant share of each of these markets. Some people in France developed a symbiotic lifestyle in relation to these stores, spending their week-ends reading comic books or listening to music sometimes not to buy anything.

FNAC has developed a very strong trust with its customers that led it to publish selection guides to help customers choose their products. The products are rated and compared by FNAC “labs” and the shop is recommending the best picks. This practice never surprised me before I came to Hong Kong. In Hong Kong it is inconceivable for a shop selling products to review them and recommend “without bias” which one the customer should purchase. Why would a shop recommend a product of better quality to its customers if that product will not bring significant margin to the company? And what would be the reaction of brands that are not well rated?

So on one side, if a French person wants to buy a new camera, this person may check FNAC’s comparison charts, while a Hong Kong person would never consider trusting a shop enough to hear its recommendations and will rather rely on friends or “independent” magazines/forums for the job. This behavior is based on experience and relevant to each environment… but what would happen if a Hong Kong store decided to follow the French way and develop a stronger bond and trust with its customers?