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Main Topic: McDonald's Chinese Style

Hosts: Stephen Huang , James Stanworth , Clyde Warden

McDonalds are seen all over greater China these days. For instance in Taiwan, McDonalds has been a pioneer in introducing western fast food industry concepts, and in reshaping the local retail landscape. This retail giant has been sucessfully winning Taiwanese childrens' hearts and minds for years. McDonalds transplants its recipes and services from the USA, but also localizes to get closer to its Taiwanese customers by offering new products and services with local tastes. This strategy does not always succeed, but adaptability in other evironmental servicescape aspects have played a major role in their success. Something as simple clean bathrooms open to public use have made McDonalds' a place everyone visits. In this episode, we briefly talk about key success factors and the role of perceived Western lifestyles, localization products and services, and its challenges faced in the Taiwan and greater China markets.

Chinese fast food is found all around Greater China, normally made up of food stands that emphasize take away.

MacDonald’s core value is not the food; it’s the service, space & ambiance.

The Show:

Length: 43 minutes. Download MP3 20.13MB (Right click->Save As).


Consumer Cam ConsumerCam:

Vid. 1) Stalls outside McDondald's, adding a street market feeling.
Vid. 2) Entering a typical McDonalds with lots of people reading, doing work, even business meetings.
Vid. 3) Children's meals often feature toys related to Japanese anime characters.
Vid. 4) A McDonalds during normal weekend operations. Lots of people with little food, and long lines for the bathroom (many of these people stop in from outside--a long standing policy of McDonald's that draws people in).
Vid. 5) A typical McDonald's second floor, with students studying (young and old), meeting over class work, parents taking small children to play in the playground and burn up some energy, and even people sleeping.
Vid. 6) Television spot for McDonald's rice entree, which was withdrawn (released in 2003).

Show Links:

Bottom Line:

  • During the mid 80’s McDonalds opened in Taiwan. It was an attraction for youngsters chasing fashion.
  • When a leading shop opens up, other stores will cluster within the facility.
  • McDonalds brought in the self-service culture into Taiwan. It educated consumers overtime, some local stores followed suit.
  • McDonalds emphasize on educating consumer hygiene. E.g. Right way to wash your hands.
  • Sometimes people hangout and take a nap inside McDonalds, it’s not an uncommon sight.
  • When they sell localized food, they loose competitive advantage in price.
  • Kiddies meal are popular among kids, teenagers and young adults (cute toys are an attraction).
  • The style of the toys has changed from Disney to Japanese.
  • The MacDonald’s clean bathroom is an attraction; some new stores locate bath rooms close to the counter to create guilt of non purchase.
Category: Podcasts

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