Wednesday, March 25, 2009

KFC China succes might not last - Warren Liu


Our celebrity author Warren Liu, writer of a book about the success of KFC in China, made it today into the INSEAD Knowledge. In the article Warren Liu explains why that KFC success in China may not last.

Yet for all its hits, there are already rising brands that are not the KFCs or the Burger Kings or the McDonald’s. Liu says that Wei Qian La Mian, also known as Ajisen Ramen, is a Japanese product that has been doing very well in various cities throughout China. So is Zhen Gongfu or Real Kung-fu, a Chinese fast food chain which is showing a lot of promise. The competition has even gone hi-tech.
“I recently heard about a robot developed with subsidy from the Chinese government which is capable of preparing dozens of popular Chinese dishes at high speed, and with excellent taste, based on expert knowledge.”

Flavor, quality and pricing are now the points to look at, stresses Liu, not the introduction of more and more new products, since that only detracts the customer.
“While the ‘Taiwan Gang’ - the original leaders of the KFC team - played its historical

KFCImage via Wikipedia

mission exceptionally well during the first two decades, it’s time for the baton to be passed on to the local Chinese – not for any altruistic reasons, but simply because the locals understand this market even better than the ‘Taiwan Gang’”, he says in his book.
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Warren Liu is a speaker at the China Speakers Bureau. When you need him as a speaker, not only about KFC but about a wide range of China related subjects, do get in touch.
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