The success of KFC is not limited to beating the competition, says retired MBA-lecturer Warren Liu on his promotion tour for his book in an interview with state media, but it is also key for the revenue stream of the holding.
KFC China is not just outperforming the competition. In 2007 it contributed more than 20 percent of global revenue of parent company Yum!, whose brand portfolio includes Taco Bell and Pizza Hut. It is a proportion that is likely to grow up to and beyond 50 percent, according to Taiwan-born Warren Liu, a former member of the company’s Greater China executive committee…
Liu says it was crucial for firms trying to enter the market back then to have an understanding of China and the Chinese cultural context “so deep that it is intuitive,” to understand the Chinese people’s “mixed feelings, of love and hate about the West, to understand Chinese history, language, the influence of Confucianism, Buddhism and Taoism, this is especially important if you are in the consumer goods industry.”
How to make a profit on the challenging domestic Chinese market is still a challenge. KFC has in that way been taking a road that is still far away for a larger number of foreign competitors in this competitive industry.
Warren Liu is a speaker at the China Speakers Bureau. If you are interested in having Warren Liu as a speaker, do get in touch.