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.

Photos:

• 1) Students at outside tables, studying. 1) Students at outside tables, studying.
• 2) Lots of talking, lots of smoking, but only one drink. 2) Lots of talking, lots of smoking, but only one drink.
• 3) Sleeping is common in McDonald's (normal behavior in Chinese culture). 3) Sleeping is common in McDonald's (normal behavior in Chinese culture).
• 4) Computers are often out, and power meetings are a normal sight. 4) Computers are often out, and power meetings are a normal sight.
• 5) Rice dishes previously offered in Taiwan McDonald's. 5) Rice dishes previously offered in Taiwan McDonald's.
• 6) An online advert for the localized meals. 6) An online advert for the localized meals.
• 7) Current offers include a ricer burger to fight off Mos Burger. 7) Current offers include a ricer burger to fight off Mos Burger.
• 8) Kids parties and outdoor promotions were implemented early on. 8) Kids parties and outdoor promotions were implemented early on.
• 9) Birthday parties, and calling parents to invite their kids was the norm in the 1990s. 9) Birthday parties, and calling parents to invite their kids was the norm in the 1990s.
• 10) Today, these have been replaced mostly with larger group events. 10) Today, these have been replaced mostly with larger group events.
• 11) Employees put on a show at a Tainan McDonald's. 11) Employees put on a show at a Tainan McDonald's.
• 12) The education for washing hands especially during the SARS or bird flu breakouts. 12) The education for washing hands especially during the SARS or bird flu breakouts.
• 13) TV news broadcasting for Taiwanese's news, amania (not news time though). 13) TV news broadcasting for Taiwanese's news, amania (not news time though).
• 14) Local copycat of McDonald's. 14) Local copycat of McDonald's.
• 15) Selling Chinese food entrees with hambergers. 15) Selling Chinese food entrees with hambergers.
• 16) Eating area for family, couples and single customers. 16) Eating area for family, couples and single customers.
• 17) Combo of burger, coke, and chicken with noodle soup. 17) Combo of burger, coke, and chicken with noodle soup.
• 18) Local store offers not only newspapers but also comics books to make customers stay longer. 18) Local store offers not only newspapers but also comics books to make customers stay longer.
• 19) McDonald's new venture is McCafe, catching up with the cafe rush in Taiwan (local competitor). 19) McDonald's new venture is McCafe, catching up with the cafe rush in Taiwan (local competitor).
• 20) McDonald's in Asia is trying innovative ways to compete, including delivery. 20) McDonald's in Asia is trying innovative ways to compete, including delivery.
• 21) The delivery scooter includes a large styrofoam backpack for the meals. 21) The delivery scooter includes a large styrofoam backpack for the meals.
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ConsumerCam:

Show Links:

• Golden Arches East: McDonalds in East Asia
• Map to all McDonald's in Taiwan. Note, they have 24H stores, McCafe, McCookies, and home/office delivery services as well.

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.