Is The Success of KFC in China Replicable?

(A KFC restaurant in China)

On February 16, 2018, KFC temporarily closed hundreds of locations in the UK and Ireland because they ran out of chicken. Many consumers who drove all the way to the KFC and find it had been shut down were angry at this situation, and some even called the police. One week later, a plucky advertisement (or an apology) appeared in the Sun newspaper, showing an empty bargain bucket with the usual "KFC" logo replaced by "FCK".

(KFC published a very cheeky apology ad in the Sun newspaper)

It was a huge success. Moreover, it was not the first time that KFC wins its fast-food fans outside of North America. In fact, KFC has already been the NO.1 fast food chains in China, which outperforms all competitors in the number of outlets, revenue and market share. By 2017, the average daily turnover of a KFC outlet in China is around 50,000 yuan (more than 8,000 dollars). What factors contribute to its success in China? Below are four tips that can help you to replicate the success of KFC.

• Be The First One

(First KFC in Beijing in1987)

KFC opened its first outlet in Beijing, in November 1987. It is the first ever western fast-food outlet that provided not only fast food but also “western flavor.” By 2017, KFC has opened 5,138 outlets in China, and the number is still increasing. But as KFC’s biggest competitor, McDonald’s, which started its fast-food business in China only three years later than KFC, has owned only 2,500 stores by 2017. What causes such a huge difference? One of the most important reasons is the first impression. It is the first impression that decides what consumers believe in. When most Chineses saw and tried KFC, they left the impression that KFC is the most traditional and authentic western fast-food restaurant, so when facing both KFC and McDonald’s, they automatically tended to choose the one they knew and believed in. Although being the first one is always great, it’s never easy to make the first step. So if you have already lost the opportunity to be the first, what else can you do to catch up?

• Attract Target Audience in A Certain Culture

For whatever company you own and whatever product you try to promote, it is always essential to find the perfect way to attract the target audience, especially under a certain culture. KFC targeted kids during the first few years after they entered China by using many cartoon mascots. For many who grew up in 1990s China, having a meal at KFC was considered the highlight of the month. Many parents used KFC as an incentive to get their kids to behave well and score good grades in school. But after redefining its customer portfolio ranging from three to 80 years old, KFC, considered China as a collectivist country, abandoned cartoon mascots and produced series of advertisements that portrayed itself as the perfect and the most thoughtful food that can be shared with the whole family and all your friends. Many people were touched by these advertisements deeply and therefore became KFC’s huge fans.

（One of the advertisements KFC produced in 2011)

• Reinvent The Brand As “Younger And Buzz-Worthy”

As technology and society develop, brands not only tell stories, but want to engage with their audience. In order to stand out in the crowded market and be attractive and active, KFC launched many diversified and innovative campaigns to promote its products. The campaign of Mojito Girl, a non-alcoholic cocktail, was launched during the summer of 2017.

(Advertisement of Mojito Girl, produced by KFC)

Mojito Girl was specifically marketed to China’s young women who want to have fun, without drinking alcohol. By showing that every cocktail has its own flavor, KFC encouraged every woman to represent their own personalities. The launch of Mojito Girl generated huge social buzz, with the launch day attracting 120bn social mentions of the campaign, brand packaging, video and product. Besides Mojito Girl, KFC also organized many other successful campaigns by using celebrity influence effectively (e.g., a contest between Chen Kun, who represented original recipe, and Ko Chen-tung, who represented extra crispy chicken; a competition among four celebrities and their favorite items from KFC; and so on).

• Eat Their Food & Live Their Lives

(Food pictures from KFC China)

The most difficult part, while is also the most important part, for international companies, is to adapt to new markets. KFC did a good job on that by abandoning the American market model of a limited and cheap menu emphasizing takeout and instead reflecting China's strong restaurant dining culture. KFC not only enlarge eating areas to accommodate large families and groups, but add more localized food, such as rice dishes, soups and egg tarts. In addition, KFC is also sensitive to regional differences in taste. For example, KFC spicy chicken is much hotter in Sichuan, where people love spicy food, than in Shanghai. It is indispensable to insist what you start with, but it is also necessary to understand what your audience wants and figure out the way to balance these two factors. KFC does so by offering both chicken and Chinese-style items, which, from the perspective of consumers, is original and thoughtful.

(Matthew Tye and his friend tried KFC in China)

Above are the four ways that contribute to the success of KFC in China, which are also helpful and considered as great examples for other companies that want to succeed whether inside or outside China. “The biggest challenge today is keeping up with the ever-changing demands of consumers,” said Ms. Wat, who is president and chief operating officer of Yum China, the parent company of KFC. “To be old is an honor. But to be outdated is dangerous.