Marketing in China – How Should Foreign Brands Enter China Markets

Recently updated on April 15th, 2021 at 03:00 am

If you are an American in China, just take a stroll down to McDonald, KFC or Starbucks, you would certainly notice some items on the menu that you never saw before in the west. Familiar items such as fried chicken, Big Macs and Caffe Mochas are mixed with Asia flavors like green tea lattes, red bean scones, rice burgers as well as seaweed fries.

The items on the menu reflect the successful localization strategy for American fast food chains to enter Chinese markets. The following is a brief look on how they manage to enter China markets.

Localization

Foreign brands that want to successfully approach China market really need to be smart about the strategies. Localization is a key factor to success, which KFC has understood much better than any other brands.

KFC Entering China Market
KFC Entering China Market

KFC is not only the most successful fast food chains in China, it ranks top at the list of the most powerful foreign brands in different parts of the country. It has achieved such dominance that the image of its funder Colonel Sanders is a common sight.

From rice porridge to egg custard tarts to shrimp patties, KFC has never failed to meet Chinese tastes since its first entering China market in 1987. A great assortment of rice dishes is available on the menu to cater the needs of Chinese whom eat rice as a major staple.

Drinking Coffee in a World of Tea

If there should be a brand failed in entering China market, it should be Starbucks. How could a brand survive and prospect in a world where almost all the people have been drinking tea for centuries.

Starbucks is really smart in approaching the tea-drinking culture by developing beverages like green tea lattes and frappuccinos. Many other popular teas in China such as Oolong tea and Mudan are also added into their fresh-brewed coffee.

No sooner Chinese customers are quickly drawn for coffee and Starbucks gained rocked popularity.

A Recipe for Success

With busy lifestyles and rising incomes, fast food is in boosting demand in China, which accelerates stores opening across the board. The success in entering China market comes from being culturally relevant. By adapting to local culture and tastes while stilling upholding most of their brand identity, these brands have successfully dominated the Chinese fast food industry.

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