Attitude towards adversity

Corbett | November 8, 2008 8:36 AM

I thought this headline today said a lot about the past and the future...of the US.

LA-Z-BOY TO CUT 850 JOBS, CLOSE UP TO 20 STORES

"Furniture maker La-Z-Boy Inc. said Thursday it will cut jobs and close stores as orders plunge in response to the economic turmoil."

There's lots of ways to read meaning into that statement. I guess it comes down to less plush seating for plush butts. Think what that will do for TV sales.

And on the other side of the world: I was in a development meeting with a client yesterday (they are the largest at what they do with 1300 stores) and they are in emergency change mode in response to the current domestic consumption drop which they say is about 10-15% across the board for all of their stores.

What struck me the most was their attitude to adversity. They are seeing this as a huge opportunity to grab market share and grow, not reduce workforce and shrink. They estimate that China is in a three year U-shaped down cycle, and that we are not yet to the first corner of the U. Given that their Chairman is one of the richest men in China, they can probably afford to be bold. Besides a complete rebranding, store redistribution, product mix revamp, and operational changes, they want even bigger stores "because when things get bad, people will trust large stores, not small ones."

I think this also says a lot about the past and future...of China.

Category: Mr. Asia

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