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Experience with Chinese service industry

There is something fascinating for anyone that shipped parcels from Greater China, it’s to watch the development of the homegrown carrier SF Express over the last decade. Unlike its competitors (DHL, UPS, Fedex) SF didn’t develop a powerful back end to handles the parcels, but relied a lot on manual labour, a lot of parcels are still sorted manually by the last mile delivery men. 

This reliance on manual work is pretty common for Chinese company. They also often pay employees on a commission basis (Uber before Uber), while it’s far from being ideal on the side of the employees the unexpected side effect has been an incredible service. The delivery man has to be efficient and has to know internal processes, if he wants to be well paid. In return the customer gets a very good service, especially compared with traditional career where one has to deal with multiple layers of admin to get things done. This pretty unique mix of manual labour reliance and commission-based income put the Chinese service industry on steroids. 

Unfortunately, this time is coming to an ends quickly with the development of the recent Hey Tea and Luckin Coffee, where WeChat mini programs replace the efficiency and warmth of the faces of those companies.

Author:

Vincent Geoffray is a co-founder of the product development studio pinn.hk based in Hong Kong. Bridging good design and honest production, we create great products with like-minded partners through a hands-on approach.

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