This was an interview I did with CEO of Focus Media, Jiang Nanchun, for our first edition of Enterprise. Each month, I’ll conduct an interview with a Chinese business leader. I did this interview in Chinese and then translated it into English. Below, find both versions.
Q&A with Megan Shank
Bring the Noise, Bring the AD
According to Jiang Nanchun, CEO and founder of Focus Media, the only things his company lacks are flaws and competitors. Since its founding in 2003, Focus Media, an audiovisual advertisement network that installs LCD screens with targeted ads in office buildings and shopping centers, has bought out a host of worthy opponents and won a slew of accolades — most recently at the 2007 China Business Journal Entrepreneurial Competitiveness Awards where Focus Media was named “Most Competitive Chinese Company to List on the Foreign Stock Market” (it listed on the U.S. NASDAQ in 2005). Jiang, a 35-year-old Shanghai native, tells Newsweek Select’s Megan Shank his company maintains leadership in the industry by taking trends seriously and investing in research and education for its staff. Here he speaks about why his company thrives, the challenges it faces and the people he admires. Excerpts:
MS: Why can digital media succeed in China?
JNC: There are a lot of Chinese, offices are cramped, and office buildings are tall. The hospital, the office building–it’s normal to wait five minutes for an elevator. In the U.S., there are more elevators than people. You don’t have to wait for the elevator. So there’s no way to do that kind of business there. At the same time, Chinese are lustful consumers and fervent and diligent workers, so they need this kind of information.
MS: Do you enjoy living in such an ad-infested world?
JNC: The Chinese have always grown up in a noisy environment. If you give me a quiet environment, I’m not accustomed to it. Moreover, people will feel disengaged and bored while they wait for the elevator. Idleness is idleness–why not check out the newest mobile phone or car? So, if you ask me if having so many ads in our lives is good or bad, I believe there are too many ads, but, in fact, there were many ads before Focus Media existed. What we want to do is find suitable times and spaces to place ads and create a good communicative relationship with consumers. We want to increase advertisements’ effectiveness.
MS: After merging so many companies, what new challenges do you face?
JNC: We wanted to bring all of the excellence of the acquired company into our own, let the team continue and become one entity. The greatest challenge lies with (our) people. As soon as many in our staff make money, they lose their hunger, they lose their passionate initiative. This has become a problem. So we have to be clear why we do this. I also do not do this for money. I start working at 8 a.m. every morning and conclude at 2 a.m. in the morning — that’s more intense working than many other workers. I want influence. To change something in this industry with something we do gives me a feeling of merit. We want to develop this. When employees say we’ve made enough money and have no will to fight, it’s time for them to retire and allow another person with fight still in them to continue the work.
MS: Do you think you have monopolized the digital media market in China?
JNC: It’s a big domain. We can only say that in the digital advertising industry, we are leaders. For example, in regards to elevator televisions, we stand at 98% of the market, as to free media, we are at above 90%, Internet at 20% and phone advertisements at 50%.
MS: Which competitor is your greatest threat?
JNC: We’ve already bought out our greatest competitors and merged them into our company. We have no direct competitors now. What we want to do is research new digital media services. For example, in ten years, no one will watch elevator televisions–everyone will watch mobile phones. We want to do what’s going to replace what we do now. We want to replace ourselves instead of being replaced by someone else.
MS: What’s your competitive strategy?
JNC: We’re not undertaking any competitive strategy. We want to enter a whole new market, for example, in regards to the Internet, do we want to do it ourselves or to buy a company that does it? We’ve realized that purchasing companies that do something is faster than learning to do something ourselves. For example, no one had done digital television (in China) before. We always do what’s done first–never second. We want to be the leader by a long stretch–in a way that no one could catch up to us in five years. That’s our style.
MS: How did the U.S. subprime debt crisis affect your company?
JNC: We don’t do business in the U.S., so we don’t have any relation to the subprime debt crisis. Well, can it affect the entire world’s markets, or maybe possibly affect export businesses? But it can’t affect advertising, so it’s of no relation to us. Maybe companies will consider the domestic market, in which case, doing advertisements, we profit.
MS: Any plans to expand overseas?
JNC: At the current moment, we don’t have any plans to expand abroad. We don’t have the conditions to become an international company, so generally we adopt a league model with international companies. They pay us, and we teach them how to do it in their own country. Afterwards, they give us 1% of their business’s income. After they do very well, we won’t rule out the possibility of a M&A. But currently the Chinese market is already big enough. Within five years we don’t need to even consider operating outside of the country.
MS: How can you adapt to the market’s development?
JNC: We’ve researched consumers and clearly see the market. We will broaden technology and master the future. We’ve communicated with and understand what the advertisers want. We’ve brought together the best research team–technological developers and advertisement development researchers–to create our own team.
MS: Who do you look up to or admire?
JNC: I adore a lot of people, including the CEOs with who were my classmates. There’s a lot of things to study. These people include CEOs of the companies I merged into Focus Media and include my competitors. As a leader, it’s imperative to understand new things and to immediately copy them so that others cannot surpass you. If you don’t appreciate and study (what others have done) then you will fall behind. Ma Yun (CEO of Yahoo’s Alibaba), Niu Gensheng (Mengniu Company–ed.note: China’s biggest domestic milk company) and several others and I often meet up and share viewpoints. Our generation of CEOs really knows how to study.
很喧闹,很广告
åˆ†ä¼—ä¼ åª’çš„åˆ›åŠžäººå…¼CEOæ±Ÿå—æ˜¥è¯´ï¼Œä»–çš„å…¬å¸æƒŸä¸€ç¼ºçš„å°±åªæ˜¯ç‘•疵和竞争对手。分众在办公大楼和商场安装LCD显示å±ï¼Œå‘ç›®æ ‡å—ä¼—æ’æ”¾å£°åƒå¹¿å‘Šã€‚自从2003å¹´æˆç«‹ä»¥æ¥ï¼Œåˆ†ä¼—å¹¶è´äº†å¤šå®¶ç«žäº‰å¯¹æ‰‹ï¼Œä¹Ÿèµ¢æ¥äº†ä¸šå†…的嘉èµâ”€â”€åœ¨ä¸å›½ç»è¥æŠ¥ä¸»åŠžçš„”2007ä¸å›½ä¼ä¸šç«žäº‰åŠ›å¹´ä¼š”ä¸Šï¼Œåˆ†ä¼—ä¼ åª’è¢«é€‰ä¸º”2007ä¸å›½æœ€å…·ç«žäº‰åŠ›çš„æµ·å¤–ä¸Šå¸‚å…¬å¸”ã€‚35å²çš„æ±Ÿå—春ä¸ä¹…剿ޥå—《新闻周刊 䏿–‡æœˆåˆŠã€‹çš„啿¢…å…°é‡‡è®¿ï¼Œä»–è¡¨ç¤ºï¼Œåˆ†ä¼—ä¼ åª’ä¹‹æ‰€ä»¥åœ¨ä¸šå†…é¥é¥é¢†å…ˆï¼Œæ˜¯å› 为公å¸ç´§ç´§è·Ÿä¸Šæ—¶ä»£æ½®æµå¹¶ä¸”注é‡è°ƒç ”和对员工的培è®ï¼Œä»–也谈到公å¸ä¸ºä»€ä¹ˆå¯ä»¥åœ¨ä¸å›½å¸‚åœºå¦‚æ¤æˆåŠŸï¼Œä¸€è·¯é‡åˆ°çš„æŒ‘战和他崇敬的人。摘录如下:
æ•°å—化媒体为什么会在ä¸å›½æˆåŠŸ?
å› ä¸ºä¸å›½äººå¤šï¼ŒåŠžå…¬å®¤å¾ˆæŒ¤ï¼ŒåŠžå…¬æ¥¼ä¹Ÿé«˜ï¼ŒåŽ»åŒ»é™¢ã€åŠžå…¬æ¥¼ï¼Œä¹˜ç”µæ¢¯éƒ½è¦ç‰ï¼Œç‰äº”分钟很æ£å¸¸ã€‚在美国,电梯比人多,乘电梯ä¸ç”¨ç‰ï¼Œç”Ÿæ„就没法åšã€‚åŒæ—¶ï¼Œä¸å›½äººçš„æ¶ˆè´¹æ¬²æœ›ä¹Ÿå¾ˆå¼ºçƒˆï¼ŒåŠªåŠ›å·¥ä½œï¼ŒåŠªåŠ›æ¶ˆè´¹ï¼Œæ‰€ä»¥å°±æ˜¯éœ€è¦å¾—到这类信æ¯ã€‚
ä½ æ˜¯å¦å–œæ¬¢åœ¨è¿™æ ·å……斥了广告的世界下生活?
ä¸å›½äººä¸€ç›´æ˜¯åœ¨æ¯”较喧闹的环境下æˆé•¿èµ·æ¥çš„ï¼Œä½ ç»™ä»–ä¸€ä¸ªå®‰é™çŽ¯å¢ƒï¼Œå而会ä¸ä¹ æƒ¯ã€‚è€Œä¸”ä»–ä»¬ä¼šè§‰å¾—åœ¨ç”µæ¢¯å£æ— 事å¯åšï¼Œé—²ç€ä¹Ÿæ˜¯é—²ç€ï¼Œå½“ä½ è¿™æ—¶å‘Šè¯‰ä»–æœ€æ–°çš„æ‰‹æœºä»€ä¹ˆæ ·ï¼Œæœ€æ–°çš„æ±½è½¦æ€Žä¹ˆæ ·ï¼Œä»–ä»¬ä¼šè¯´æˆ‘ä¸ºä»€ä¹ˆä¸çœ‹ä¸€ä¸‹å‘¢ï¼Ÿæ‰€ä»¥ï¼Œå¦‚果问我广告那么多好ä¸å¥½ï¼Œæˆ‘认为广告的确是太多了,但其实在分众之å‰å¹¿å‘Šå°±å·²ç»å¾ˆå¤šï¼Œæˆ‘ä»¬å°±æ˜¯è¦æ‰¾åˆ°åˆé€‚çš„æ—¶é—´å’Œç©ºé—´åŽ»æ”¾å¹¿å‘Šï¼Œåˆ›é€ ä¸€ä¸ªå’Œæ¶ˆè´¹è€…æ›´åŠ è‰¯å¥½çš„æ²Ÿé€šå…³ç³»ï¼Œè®©å¹¿å‘Šæ›´åŠ æœ‰æ•ˆã€‚
ä½ ä»¬åœ¨å…¼å¹¶äº†é‚£ä¹ˆå¤šå…¬å¸ä»¥åŽé¢å¯¹ä»€ä¹ˆæ–°çš„æŒ‘战?
æˆ‘ä»¬è¦æŠŠæ”¶è´çš„ä¼ä¸šä¼˜åŠ¿æ•´åˆåœ¨ä¸€èµ·ï¼Œè®©å›¢é˜Ÿç»§ç»ä¸‹åŽ»ï¼Œå’Œæˆ‘ä»¬èžä¸ºä¸€ä½“。最大挑战是æ¥è‡ªäººæ–¹é¢ã€‚很多员工在赚钱的时候,饥饿感就没有了,没有了创业的激情,这就æˆé—®é¢˜ã€‚æ‰€ä»¥è¦æžæ¸…楚为了什么而åšï¼Œæˆ‘ä¹Ÿä¸æ˜¯ä¸ºäº†é’±è€Œåšï¼Œæˆ‘æ¯å¤©æ—©ä¸Šå…«ç‚¹å·¥ä½œåˆ°é›¶æ™¨ä¸¤ç‚¹ï¼Œæ¯”å¾ˆå¤šäººå·¥ä½œå¼ºåº¦éƒ½å¤§ï¼Œæˆ‘è¦æœ‰å½±å“力,通过åšä¸€ä»¶äº‹æƒ…æ¥æ”¹å˜è¿™ä¸ªè¡Œä¸šï¼Œå°±æ˜¯ä¸€ç§è£èª‰æ„Ÿã€‚我们è¦åŸ¹å…»çš„就是这个。当他们说钱赚够了,没有斗志了,那就让他退下去,让有斗志的人上æ¥ç»§ç»ã€‚
分众是å¦å·²åž„æ–了大陆的数å—媒体行业?
这是一个很大的领域,我们åªèƒ½è¯´ï¼Œåœ¨æ•°å—媒体广告行业,我们是领导者。比如在楼宇电视方é¢ï¼Œæˆ‘ä»¬å æ®98%的市场份é¢ï¼Œå…费媒体方é¢å 了90%以上,互è”网å 20%,手机广告å 50%。
哪个竞争对手å¨èƒæœ€å¤§ï¼Ÿ
主è¦çš„竞争对手都被我们收è´äº†ï¼ŒçŽ°åœ¨æ²¡æœ‰ç›´æŽ¥çš„å¯¹æ‰‹ã€‚æˆ‘ä»¬è¦åšçš„æ˜¯ç ”究新的数å—化媒体业务。比如åå¹´åŽï¼Œå¤§å®¶éƒ½ä¸çœ‹ç”µæ¢¯ç”µè§†äº†ï¼Œéƒ½çœ‹æ‰‹æœºäº†ï¼Œæˆ‘们è¦åšçš„就是未æ¥å¯èƒ½æ›¿ä»£æˆ‘çš„äººï¼Œè‡ªå·±æ›¿ä»£è‡ªå·±ï¼Œè€Œä¸æ˜¯æˆ‘被别人替代。
ä½ ä»¬çš„ç«žäº‰ç–略是什么﹖
我ä¸åšä»€ä¹ˆç«žäº‰ç–略。è¦ä¹ˆå°±æ˜¯æˆ‘们è¦è¿›å…¥ä¸€ä¸ªå…¨æ–°çš„市场,比如在互è”网是自己去åšè¿˜æ˜¯åŽ»è´ä¹°ï¼Ÿæˆ‘们å‘çŽ°çš„é€Ÿåº¦æ¯”è‡ªå·±åšæ›´åŠ å¿«ã€‚è¬å¦‚æ•°å—电视,没有人åšè¿‡ï¼Œæˆ‘们就去åšã€‚我们åªåšç¬¬ä¸€ä¸åšç¬¬äºŒï¼Œå¹¶ä¸”是è¦é¥é¥é¢†å…ˆï¼Œäº”å¹´å†…æ— äººèƒ½åŠï¼Œè¿™æ˜¯æˆ‘ä»¬çš„é£Žæ ¼ã€‚
ç¾Žå›½çš„æ¬¡å€ºå±æœºå¯¹ä½ 们有什么影å“?
我们ä¸åœ¨ç¾Žå›½åšç”Ÿæ„ï¼Œå’Œç¾Žå›½çš„æ¬¡å€ºå±æœºå…³ç³»ä¸å¤§ã€‚那么会ä¸ä¼šå½±å“å…¨çƒå¸‚场呢,å¯èƒ½ä¼šå½±å“出å£ä¼ä¸šï¼Œä½†æ˜¯å®ƒä»¬ä¸åšå¹¿å‘Šï¼Œå’Œæˆ‘们没有关系,å¯èƒ½å®ƒä»¬ä¼šè€ƒè™‘内销,è¦åšå¹¿å‘Šï¼Œé‚£ä¹ˆæˆ‘们å而得利。
ä½ ä»¬æ‰“ç®—æ‹“å±•æµ·å¤–å¸‚åœºä¹ˆï¼Ÿ
ç›®å‰æ²¡æœ‰å¼€æ‹“海外市场的打算。我们还ä¸å…·å¤‡æˆä¸ºå›½é™…å…¬å¸çš„æ¡ä»¶ï¼Œæ‰€ä»¥ä¸€èˆ¬å¯¹å›½é™…å…¬å¸é‡‡å–åŠ ç›Ÿçš„å½¢å¼ã€‚å®ƒä»¬ä»˜æˆ‘ä»¬ä¸€ç¬”é’±ï¼Œæˆ‘ä»¬æ•™å®ƒä»¬æ€Žæ ·åœ¨è‡ªå·±å›½å®¶åšï¼Œç„¶åŽæ¯å¹´ç»™æˆ‘们1%çš„è¥ä¸šæ”¶å…¥ã€‚ç‰å®ƒä»¬åšå¾—éžå¸¸å¥½äº†ï¼Œæˆ‘ä»¬ä¸æŽ’é™¤å…¼å¹¶æ”¶è´ã€‚但是目å‰ä¸å›½çš„市场已够大了,五年之内我们都ä¸è€ƒè™‘出去。
ä½ ä»¬å¦‚ä½•èƒ½å¤Ÿé€‚åº”å¸‚åœºå‘展?
æˆ‘ä»¬ç ”ç©¶æ¶ˆè´¹è€…æ´žå¯Ÿå¸‚åœºï¼Œå¼€æ”¾æŠ€æœ¯æŽŒæ¡æœªæ¥ï¼Œå’Œå¹¿å‘Šä¸»æ²Ÿé€šäº†è§£ä»–们è¦ä»€ä¹ˆã€‚æˆ‘ä»¬æŠŠæœ€å¥½çš„ç ”ç©¶å›¢é˜Ÿã€æŠ€æœ¯å¼€å‘人员和广告商业模å¼ç ”究人员结åˆï¼Œå½¢æˆäº†è‡ªå·±çš„团队。
ä½ å´‡æ‹œä»€ä¹ˆäººï¼Ÿ
我崇拜很多人,包括和我一起在CEOçå¦ä¹ 的人。有很多地方å¯ä»¥å¦ä¹ 。他们包括我收è´çš„å…¬å¸å’Œæˆ‘们的竞争对手。作为一个领导者必须了解新的东西,立刻模仿ä¸è®©åˆ«äººè¶…越,如果ä¸åŽ»æ¬£èµå¦ä¹ çš„è¯å°±ä¼šè½åŽã€‚我和马云(阿里巴巴)ã€ç‰›æ ¹ç”Ÿï¼ˆè’™ç‰›é›†å›¢ï¼‰ç‰ç»å¸¸ä¼šç¢°é¢ï¼Œåˆ†äº«å„自的观点,我们这代CEO都是很会å¦ä¹ 的。
