1) Let's talk about Pinduoduo and the backlash of China's 996 work culture today.
An employee's death (apparently due to overwork) and PDD's apparent flippant response has riled up the Chinese internet. Who are all asking the question: Is money the be all and end all to life?
2) 996 culture is a sad fact of Chinese tech firms and means that a employee works from 9am to 9pm for 6 days a week. Some have even semi-joked their working hours are 007.
This is pretty true to life. On most weekends you can find engineers grinding away in the offices
3) Since Wechat rather than email is the default mode of communication, workers are always all. As Andrew Ng once said, if he sent his chinese colleagues a work text at 7pm and didn't get a response by 8pm, he's start thinking there was something wrong.
4) Backlashes against this has already been happening, with engineers using Github since 2019 to complain about the lack of choice in such a brutal working environment.
But the recent case has taken on new casualities
5) A 22 year old employee of PDD collapsed after leaving work at 1.30am in the morning on Dec 29. This has sparked outrage on Weibo (Chinese Twitter) esp after PDD's apparent flippant response scmp.com/tech/big-tech/…
6) PDD's official account posted this on Chinese Quora, then swiftly deleted. It translates roughly to "Everyone's working to the bone for money...This is an era where you have to push with your life. You can choose the easy path but there's consequences"
7) As you can imagine, the phase 'This is an era where you have to push with your life' is pissing a lot of netizens off. PDD's swiftly announced the statement was made by a rogue PR manager rather than their official view.
8) Netizens are aghast at how young the employee was, they are aghast that Colin Huang was named the second richest person in China just days ago, they are aghast at the callousness of the response.
9) I think Western media paints Chinese tech workers as these relentless machines who will work hard to crush their competitors and western counterparts at all costs. This picture is quite flawed. There's increasing frustration at the lack of choices people have in jobs and life.
10) The key words involution and labourers both represent this growing realisation that the life the white collar workers live do not lead to greater freedom. Often the opposite.
11) Meantime the playbook for the tech giants haven't changed. Whenever there's a new opportunity (like that of community group buying) they through money and people at it and fight until there's a winner.
12) The rise of the backlash against tech is alive and well in the China internet discussions. People wonder about the true cost of their cheap deliveries and groceries on society.
They broadly support the incoming government regulations that curtails the giant's reach.
13) (IMO) Chinese society after 1997 largely used how much money someone earned as a measure of their success (and worth). This has fed into a mass scarcity mindset where if you're not making money, you're losing out.
14) But as society become richer and a middle class with only one child has emerged, there's an increasing level of soul searching happening. Is money all there is? Does earning that money justify the cost of losing loved ones?
15) For the chinese millennials who are working today, the payoff calculus are also dramatically different. It used to be that after working hard for one of these tech companies for 3-4 years they can get a house in a first tier city.
16) But housing prices have increased such this is now a pipe dream. They increasingly feel they can never earn enough money, no matter how hard they work.
So why try?
Many of them dream of leaving the big city and choosing a quieter life, and in fact, many do.
17) I think these calls against 996 work culture will be the beginning of something else for Chinese working population. Everyone knows this is unsustainable, something's got to give sooner or later. The image of dying at work like Japan or Korea looms over people's imagination
18) I want to predict that more regulation for worker's rights come in, but also know the government doesn't want to stifle a good thing when they see it. So I only put this at medium confidence level.
I'll be doing threads like this for the rest of Jan so follow if you like these to spam your TL.
Also curious about your take here as well- thoughts?
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1) Let's talk about how Alibaba has achieved the holy grail of big data - a holistic view of the consumer - through a plethora of product offerings and investment.
This is their overarching moat. And Amazon's got nothing on them.
2) To the outsider, Alibaba's product range is confusing af. It's all over the place and there seems to be no core competency they are focusing on.
A few divisions - Taobao (B2C marketplace), Tmall (High-end B2C marketplace), Alibaba (B2B marketplace, Cainiu(logistics)..
1) Let's talk about a key part of the Chinese creator economy. The creator management and incubator agencies known as Multi-Channel Networks (MCN). We''ll summerise key lessons for the western creator economy.
And know how Li Ziqi got her 12m YouTube subscribers
2) MCNs are modern-day talent agencies (but more) who target influencers and creators as their clients. It originated in the US but has proliferated in China, with industry estimates of 5k-7k Chinese MCN operating as of 2020.
3) Typically, as creators gain enough following, they find it difficult to be an-all-in-one content creator, editor, customer support rep, accountant, lawyer, and marketing guru that the job demands.
Enter the MCNs who offers the creator the following:
1) Let's talk about Meituan and its founder Wang Xing. The poster child of the Copy-to-China model. They beat out 5000+ other companies to win the group buying wars and catapulted Neil Shen of Sequoia China to the front of the Midas list.
Also pissed off Jack Ma on the way
2) Our story starts in 2004 when Wang Xing dropped out of his PhD program in University of Delaware to come back to China. Wang was the embodiment of Softbank's Time Machine theory, creating one US clone after the other
3) First it was Duoduoyou (Friendster) which died a quick death, then Xiaonei (Facebook) which fared better. The story goes that when Wang and his co-founders went to pitch Sequoia on this, they lost their prepared business plan in the taxi over.
1) A highly popular 2020 chinese meme highlights anti-capitalist sentiment among Chinese white-collar workers (And enables support for anti-monopolist tech policies).
Let's talk about 打工人 aka "Labourers"
2) It all starts with a viral video in Oct on Bili Bili (read my article if you don't know what Bili bili is).
Two cartoon characters have an exchange where one bemoans the pointlessness of working hard, only for the other to rebuff his complaints with absurd zingers such as:
3) "Is it tiring to work so hard? Of course it should be tiring! Comfort is only for the rich. Go labourers!"
"Yes, working can't earn that much money but if you work a few more jobs you wouldn't have any time left to spend that money"
1) My take on the big driver for Salesforce + Slack acquisition deal is that:
Salesforce appreciates that people are loyal to their workflow interface.
🧵
2) This is a very under appreciated aspect of software.
Why can’t business analyst let go of excel?
Why do VP of sales by Salesforce over and over again?
3) Plenty of reasons but underneath is the fact that they know how to use the software since they were trained on the software. The switching cost to other systems once you’re comfortable and confident in one is really high.