The Spin War to Protect China’s Brand

To a casual observer of international news, the Chinese reaction to a public health crisis is to arrest several managers and/or government officials, to quickly and harshly punish someone, and then to declare that the problem has been resolved.

The current toy safety scare only has one suicide to show for itself to date, but you can expect executions or lengthy jail terms in the coming weeks.

The official Chinese reaction stepped up a notch this week, with claims that China’s reputation is being unfairly tarnished. The comments coming directly from Chinese officials come off as inept spin, attempting to minimize consumer concerns instead of deal with them.

A far better tactic is the defense of Chinese businesses by third party commentators. Most of the observers I’ve seen in action are clearly independent, which gives their messages a lot more weight. It’s not clear if China is working behind the scenes to get any of these voices into the media, but the result is much more effective than the predictable guarantees of increased vigilance from official sources.

Official Statements – ‘It’s Only Partly our Fault’

• "This kind of problem exists everywhere in the world. So why just pick out China for a big fuss?" – Lu Shumin, ambassador to Canada
• "Some media and irresponsible people take a small problem and make it into a large one. The Chinese government steadfastly opposes these actions by irresponsible people." – Wang Xinpei, Commerce Ministry spokesman
• "The industry itself did not mean to produce poor-quality goods and paid a heavy price for its mistakes. Most of the employees will have to leave factories they have been serving at for many years and are facing unemployment or reemployment problems. This has had a huge impact on the industry and society. The recent recalls were instigated by foreign brands. Nobody was injured. – China Toy Association

Commentators Defending China – ‘Blame Cost-cutting’

• “Everybody is pushing, pushing, pushing for lower and lower prices. The vendors are squeezed to the point where they aren’t making a profit anymore. So they are looking to cut corners.” – Peter Dean, former U.S. toy company executive

• "The problem is not even China being unable or unwilling to make quality product. Some of the hardest working, most dedicated people I’ve ever met work in Chinese factories. They take their responsibilities very seriously–more so than most Americans.

  The true villain behind the scene here is Walmart and big-box retail. Walmart has incredible influence in toy designs and costing.

  They can literally force Chinese manufacturers to shave pennies off production costs–pennies that can affect quality, not to mention working conditions.

  I do not know if Walmart had anything to do with this latest problem, but this recall is indicative of the kinds of quality problems that aggressive cost cutting demands by such retailers can create.

  Your summation that this is due to "too much ain’t enough" isn’t quite right. It’s more accurate to say "You know, we could get this for a few dollars less at Walmart." – anonymous commenter on a marketing blog

• "Of the approximately 18.6 million toys recalled world-wide, 436,000 are being pulled off shelves for containing impermissible levels of toxic lead paint. According to Mattel, these toys were manufactured by a contract supplier …. The other 18 million toys in the current recall suffer from an unrelated defect, one that has nothing to do with where they were made. They feature small magnets that can detach and, if swallowed, cause serious or even fatal intestinal injuries in children. This is not the fault of the Chinese manufacturers that made the toys. It seems to be the fault of the engineers who designed them and would have been a hazard even if the toys had been manufactured in the U.S." – Wall Street Journal

China has a huge repair job to do on its reputation as a provider of safe products to the world. To repair that reputation will take years of sustained effort.

It’s not a matter of the need for more action, less talk. They will need to do a lot of talking to, with, and about their direct and indirect customers.

iStock photo by George Ihring

Tags: china, damage, toy recall, mattel, chinese manufacturers, safety, retail, walmart, consumers, customers, brands