2 - The Entrepreneurial Decade
Published online by Cambridge University Press: 06 July 2010
Summary
In 1982, there was a commercial sensation in Shanghai – sunflower seeds. Sunflower seeds, stir-fried and salted, are one of the most popular snack foods in China. People munch on them when watching TV or playing cards, not unlike the way potato chips are consumed in the United States. But this sensation in Shanghai had a distinct flavor as well as a distinct brand-name – Idiot's Seeds. Idiot's Seeds was the invention of Nian Guangjiu, a farmer in the agricultural and impoverished province of Anhui. Nian held a rather low opinion of himself. He thought that he was good at nothing but making sunflower seeds, hence the brand-name.
Nian's sunflower seeds caught on, not just in Shanghai but also nationwide. This is a fascinating story about how a humble rural entrepreneur succeeded within a few years of the reforms. First, Mr. Nian came up with a brand-name. Whether conscious or not, he introduced the most rudimentary idea of marketing to China. Until Mr. Nian, sunflower seeds had been viewed as an undifferentiated product. The labeling in Chinese stores was by product – sunflower seeds, peanuts, walnuts, and so forth. There was no recognition that the same products might have been made differently. (Nian's brand-name was not always helpful. In 1987, he was considering setting up a scholarship fund at a local school. The teachers balked at the idea of awarding students with an “Idiot's scholarship.”)
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- Capitalism with Chinese CharacteristicsEntrepreneurship and the State, pp. 50 - 108Publisher: Cambridge University PressPrint publication year: 2008