Josh Gardner, KungFu Data: Learning by doing is the name of the game

Tell us about your career journey and what led you to move to China. 

I’m Josh Gardner, the CEO and co-founder of Kung Fu Data. My journey into the world of business has been anything but conventional. It all began in the mid-nineties when I, initially an aspiring anthropologist, found myself living in China. My grandfather heavily influenced the decision; he believed China would inherit the world. Following his advice, I switched from learning Spanish to studying Chinese law in college. However, my true passion lay in anthropology, and I immersed myself in the lives of minority groups in China.

Eventually, I transitioned into the shipping industry, where, despite the business’s substantial growth and acquiring hundreds of clients, I felt unfulfilled due to management issues. The dissatisfaction led me to quit, prompting a reflection on my next steps, and led me to my first business. Embracing the unpredictability of entrepreneurship, I decided that even if I failed a few times, it would be less stressful than working for someone else.

Fast forward to today; Kung Fu Data started ten years ago and has become a leading force in helping lifestyle, fashion, and performance brands thrive in China. The journey was far from linear. After returning to the U.S., starting a family, and returning to Shanghai in 2013, I teamed up with former colleagues to launch the company. It wasn’t a meticulously planned Elon Musk-style venture but evolved organically. My experiences taught me the importance of progressively non-linear thinking as an entrepreneur. And while the path may be challenging, I’ve learned to build aeroplanes on the way down and embrace the dynamic nature of the business world. Today, with around 100 employees in China, Kung Fu Data is a testament to the idea that success often comes from embracing the unexpected.

What is a day in the life of a CEO for Kung Fu Data?

Diving into the early days of our business is like stepping back in time. Unlike the present scenario with a robust team and resources, our inception was marked by limited staff, zero external investments, and a shoestring budget. It was a classic startup tale – just a group of friends pooling in personal funds. The first few years were a hustle, focusing on discovering a viable model, avoiding significant blunders, and establishing stability in operating brands within China.

Picture this: long hours, insane commutes of around 3 hours daily, and a constant juggling act between work and family. Building a reliable revenue stream and a solid team structure consumed us. It required wearing multiple hats – from reputation building to meticulous execution. Those initial years were about putting in the hard work, keeping our heads down, and cultivating connections.

Fast forward to today, and the landscape has transformed. I lead a competent and independent team, our formidable army, navigating the intricacies of the Chinese market. Leadership and mentorship have become the cornerstones of my daily routine. In a market that constantly throws curveballs, my role as CEO resembles that of a master firefighter – addressing issues, diffusing stress, and strategically navigating challenges. Managing stress levels is crucial.

On the flip side, amidst the chaos, there’s the thrill of business development, marketing, and strategic planning. We align our business units daily, tackle operational concerns, and anticipate future trends. It’s a delicate balance between troubleshooting and proactively steering the ship. My role has evolved from a lone warrior against the world to a leader steering a vessel through the dynamic waters of China’s business landscape.

What advice would you give to entrepreneurs looking to understand the market, and how can they learn more?

Jumping into the Chinese market is like stepping into a whirlwind. So, for anyone eyeing this space, here’s the scoop on navigating it. Forget the typical news outlets—they’re too biased and often way off the mark. My hack? I’m plugged into many groups with insiders living and breathing China. These people share real-time info, which is a great help, and it’s like having a backstage pass to what’s happening.

Now, no sweat if you can’t swing an invite into these exclusive groups. Find the rockstar influencers in your niche based in China. These folks dish out valuable content regularly and trust me, it’s better than your mainstream news. They stake their reputation on it, and their livelihoods depend on being spot on.

Also, learning by doing is the name of the game. And let me tell you, if someone’s peddling a ‘get rich quick’ scheme, especially in China, it’s probably snake oil. The real deal involves getting into the nitty-gritty, joining groups, and subscribing to feeds that live and breathe the Chinese market.

When setting up shop, understanding your risk in the entry structure is mission-critical. With the political and economic rollercoaster in China, you’ve got to ensure you’re rock-solid. It’s about figuring out your category, understanding the market nuances, and being honest. It’s a wild ride, but with the right insights, it’s worth taking!

How did you deal with taking such a significant step in moving abroad and starting your own business? Did you have any fears? How did you deal with them?

Several years into the China business, I’ll shoot straight—I’m still pretty jittery, and de-risking is just wishful thinking unless I sell the whole company. Being an entrepreneur will always have risks. Despite our stability at Kung Fu Data, we’re a small player, susceptible to fate’s wild cards or sudden industry shifts. Resilience is the name of the game, and I confess the nerves and doubts have only grown. Confidence? Sure, it’s there, but so are apprehension, annoyance, and frustration. It’s a constant juggle, catching falling knives and navigating changes each day. Running a business in China is rewarding, but it’s no cakewalk. Yet, I’m all in, all the time. Maybe it’s a bit unbelievable, but for us entrepreneurs, it’s the only way to live in this industry—weird, unique, and a constant balancing act.

What are your passions, and how do they align with your career today? 

I’m a jack-of-all-trades when it comes to interests. Travelling and meeting passionate people is on my list—I’ve explored around 60 to 70 countries. On the sporty side, I’m into tennis and cycling and even dabbled in ultimate frisbee. Here’s the quirky part: I can juggle and jump rope like a pro; these are just some weird skills I picked up along the way.

But beyond personal hobbies, being a father is a game-changer for me. It’s a role I never expected to excel in, given my upbringing, but I find immense joy in mentoring and raising children. This extends to how I lead my team and support my friends—I strive to be a rock-solid figure they can lean on and learn from. Mentoring young entrepreneurs is another passion of mine. I have been active in the Entrepreneurs’ Organization (EO) for 17 years and part of Young Presidents’ Organization (YPO), where peer-to-peer learning excites me.

In my downtime, you’ll catch me enjoying hospitality with my wife, maybe indulging in a few bad habits that come with the late forties territory. Reading, thinking, strategising, constantly pursuing learning and sharing findings are the things that tick my clock. It’s funny how these personal interests seamlessly tie into the strategic and mentoring aspects of running a business—it’s all about balance and bringing diverse experiences to the table.

How do you see China transforming over the next five years, with more global e-commerce brands entering the market?

Global e-commerce brands entering China won’t cause ripples in the market; they’re already digitally present there. If they’re worthwhile, they’re known and accessible globally. My business focuses on identifying brands ready for official launch in China. The impact will be more reverse — Chinese direct-to-consumer brands will significantly influence global markets.

The decades of Western brands in China have peaked; local brands offer better quality, pricing, and services. Notably, Chinese brands are going global, often masking their origin disrupting industries worldwide. The future shift lies in Chinese brands impacting foreign markets, akin to Japan’s influence.

But still, China’s colossal market offers untapped potential for foreign brands despite its apparent saturation. Even securing a small market share is substantial due to China’s size. Each category presents opportunities; the key is understanding what the Chinese consumer seeks. In essence, China’s influence on the global market, especially in e-commerce, will continue to grow, shaping trends that will migrate from east to west.

What advice would you give to people considering becoming an entrepreneur right now?

Launching a business is tough, and my advice comes from lessons learned the hard way. First, read “The 22 Immutable Laws of Marketing” before diving in. Ensure your idea introduces something new or creates a fresh category. Positioning is crucial; my mistake was taking on too much with the Chinese market without correct branding upfront.

Second, you need capital. The notion of starting with zero and making millions is a myth. Capitalise your business for scalability; it’s a resource-intensive journey. Venture capital is optional; building a sustainable million-dollar business is more realistic and rewarding. 

Third, solve a significant problem; ensure it’s a big thing for enough people. Technical skills matter less than timing because your product or service needs to offer something to people that they want or need at that moment. Focus on where and when, not how and what, because timing and location are key. Lastly, surround yourself with peers, not just employees. Join organisations like EO or YPO for crucial support and coaching.

Startup life is painful; you need an obsession for success. It’s all or nothing; you wear many hats initially. “The Dip” by Seth Godin is a must-read, guiding you on whether you’re on the right path. Ensure your position is defendable, and feedback loops are essential. My transformation after receiving constructive feedback has been incredible. Being around the right people changes the game; business schools can’t teach those real-life insights. It’s an exhilarating journey, and the right mindset is everything.

How do you define success?

Success, to me, is a constantly evolving concept. While some might see me as successful, my peer group might view me differently. For some, success is relative to one’s status and scale compared to peers. Currently, within my peer group, I might not be considered highly successful, yet in the context of being a foreigner with a successful company in China, I am. Within my peer group, success isn’t about wanting more out of greed but about continually striving for a more significant impact. 

Personally, I find success in the decisions I’ve made regarding my family and lifestyle. Raising my kids as expats, embracing a life less ordinary, and prioritising travel, even when it’s financially challenging, contribute to my sense of accomplishment.

In essence, success is multi-faceted, comprising both personal and professional aspects. As I get older, I’ve learned not to compare my personal life to others, finding contentment in the unique decisions I’ve made. Professionally, there’s a sense of not being where I want to be yet, but that’s part of the ongoing journey. Success, for me, is a dynamic and nuanced concept, subject to change with circumstances and perspectives.