Consumers, Coffees, Teas & Fast Food Strategies

Related entries: Consumer Market, Corporate News, General, Strategy

Everyone wants a piece of the famous “Chinese consumer”, whatever, and wherever that may be. Some are doing a pretty good job, and they are taking different routes – big city, second tier, or even beyond the tiers…

Starbucks, which is so well established that at least one tweep uses as a city-centre marker in China, is also localising its offering:

• RT @stinson: This sounds stupid, but when planning trips to other Chinese cities, I search for Starbucks on the map to find the city center. 8:11 AM Mar 12th

• Tea time RT @raykwong: Starbucks discovers that Chinese people like tea. 11:34 PM Mar 11th

CNNGo Reports: “ChinaRetailNews reports that Starbucks will launch nine new tea drinks in China including “three original-leaf Chinese-style tea drinks, four original-leaf foreign tea drinks, and two handmade special tea drinks.”

“The launch of tea drinks is in response to the demands of local consumers,” says Huang Limin, the vice president for market, product, and communications in Starbucks Greater China. “After a long period of market investigation, Starbucks decided to first launch the nine kinds of tea products and it expects to expand its tea drinks product line in the future.”

But for those with bigger appetites, how about KFC and McDonald’s?

• KFC & McD RT @ChinaPrime: …US-based fast food giants are taking different approaches to the Chinese market… 7:43 PM Mar 11th

Global Times reports: “Two US-based fast food giants are taking different approaches to the Chinese market, with KFC targeting more third and fourth-tier cities while McDonald’s looks to strengthen its grip in developed cities.

Last year, 500 new KFCs opened in China, with 140 opening in central and western China. More than half the new restaurants are located in third- to sixth-tier cities, Century Weekly reported Monday, quoting a third-party commercial report…

Yum! Brands, the parent company of KFC, saw its operating profit in China last year grow by 9 percent. The Yum! China division, which includes the Chinese mainland, Thailand and KFC Taiwan, saw a sales income of $3.68 billion in 2009, accounting for 34 percent of global income.

McDonald’s is taking a different path.

The chain will continue targeting developed cities, and hopes to quadruple its 2009 turnover by 2015, Zeng Qishan, CEO of McDonald’s (China) Co Ltd, said at a brand promotion meeting held in Shenzhen at the end of January.

Zeng added the company plans to open 150-175 more restaurants in China with an added investment of 25 percent…”

We have highlighted the opportunities in second-tier cities (and beyond) before. But there is (commercial) life beyond the cities too…China Daily reported that GE has linked with Chinese white goods firm Haier to access the rural market (where stimulus subsidies have helped demand rise quickly):

• Haier goes further: To 70,000 villages (Tier #?) RT @China_Daily: Haier selling GE appliances in rural China 10:40 AM Mar 12th

The key, as we pointed out in an old post on retail strategies, is to be able to adapt (and keep adapting) to market conditions, and not to assume that what works at home will work as well in China.

2 Responses to “Consumers, Coffees, Teas & Fast Food Strategies”

  1. Archive » Briefly…Top Ten Tweets (From RMB, WTO & Google Angst, To Expo, Fast Food & T2 Opportunities)| China Business Blog Says:

    […] Consumers, Coffees, Teas & Fast Food Strategies March 18, […]

  2. Administrator Says:

    McDonald’s to Double Restaurants in China
    Wall Street Journal
    McDonald’s outlined its ambitious China plans at a time when relations between foreign businesses and Beijing are souring, with a growing number of Western …

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