China's Service Sector Will Reign, Part X -- China Is Going To The Dogs

I am convinced 2007 will be the year foreign service businesses really take off in China. The Chinese are beginning to recognize the value of such things as advertising, marketing, environmental cleanups, accounting, and haircuts.

This recent China Daily article, entitled, "Obedient Pooches -- For A Price" is nearly concrete proof that service businesses have arrived in China:

Business is booming at a recently opened, 3,000 yuan ($375) per month obedience school in this city in East China's Jiangsu Province. Since it accepted its first student in October, the Happy Dog obedience school has trained 17 canines, eight of which have already graduated. Zhu Min, the school's president, said local demand for dog obedience training had exceeded his expectations. "Many people have come to my school to make reservations for their dogs. But we have only been able to help a few dogs because we only have a few trainers," said Zhu.

Dog obedience schools are the latest thing for China's "well-heeled dogs" and several such schools have recently opened their doors in big cities like Beijing and Shanghai." The school offers $375 to $625 courses training dogs to stop attacking people and a $250 course to prevent "pooches from relieving themselves on the floor costs."

I know paying large amounts for services is relatively new to China and it has certainly not been embraced by many there yet, but if people are paying hundreds of dollars for their dogs in Wuxi, can we not assume a similar willingness to pay for services for themselves and for their businesses?

Comments

China is the next great super power and will need to turn to nuclear power to satisfy its energy needs. So the need to secure a supply of uranium must be high on China's list of priorities.

Posted by: Bob | January 7, 2007 8:18 AM

next superpower blah blah blah...

Anyway, CLB its odd you mention haircuts as something that foreign companies could provide as a service in China. I've never had a haircut in the US that could compare to the service in China.
I picked out a place near my apartment at the time and always had great haircuts (with shampoo), and got tension massages on my head, jaw, hands and forearms for an extra fee (more than worth the extra fee). I think I paid around 40 RMB for the first year, then due to being a regular (and a foreigner to boot) I was paying around 20 RMB for the same set of services. Of course I'd get offered "handis" but never took them up on it. But that set of services for the price was unbeatable.

Posted by: nanheyangrouchuan | January 7, 2007 9:20 AM

Bob --

Thanks for checking in. What about the service market in the nuclear industry. That is obviously already huge in China. Is there any room in it for SMEs, as opposed to the GEs and the Westinghouses of the world?

Posted by: China Law Blog | January 7, 2007 11:03 AM

nanheyangrouchuan --

Let the record reflect that I have NEVER referred to China as the next superpower.

I mentioned haircuts because I can see high end foreign salons going into China to cater to its wealthy. I would expect these foreign salons to be less likely to provide the extras.

Posted by: China Law Blog | January 7, 2007 11:06 AM

CLB, there are a few already in SH and BJ but i can't remember the names, as well as Paul Mitchell academies. But a decent man's haircut can be done at local shops and the pressure point massages are a big bonus.

Posted by: nanheyangrouchuan | January 7, 2007 2:48 PM

Where there are a few of just about anything in China, it is logical to expect more.

Posted by: China Law Blog | January 7, 2007 4:00 PM

There's a wonderful self-sustaining momentum to these things. Tony and Guy sets up its salon branches, but in order to maintain its franchise reputation it also has to establish training facilities, which make it easier to open more branches...

Posted by: Duncan | January 8, 2007 5:05 AM

Duncan --

Thanks for checking in.

I checked out Tony & Guy's site and I am quite impressed. There are so many people in China looking for training and the beauty sector is just going crazy. I will just say that there is no way there will not be countless others following in Tony & Guy's footsteps.

Posted by: China Law Blog | January 8, 2007 6:18 PM

Just popping by from the Bestest Blog Carnival. Interesting and informative post. I'll have to come back and read more. So many posts. So little time.

Posted by: Another Desert Rat | January 13, 2007 1:20 PM

Hi...I am walking down the midway at THE BESTEST BLOG CARNIVAL and enjoyed your attraction...

Posted by: Bond | January 14, 2007 6:26 AM

Another Desert Rat --

Thanks for checking in and thanks for the kudos. Always appreciated. I suggest you just read CLB and nothing else.

Posted by: China Law Blog | January 14, 2007 11:53 AM

Bond --

Thanks for stopping by and thanks for the kudos, fellow baseball (in my case the Cubs) fan.

Posted by: China Law Blog | January 14, 2007 11:55 AM