Globalized Childhood? KFC in Beijing Eriberto P. Lozada, Jr.

Main ideas TNC’s cause cultural disruption through homogenization, “mutating local traditions” due to increase in global consumption and production. While this is true, particularism causes competition. People want to create “cultural identity and authenticity”, and so they create a demand for modifications of the TNC goods.

TNC have existed since the emergence of nations, but used to be second to the government, only part of the economy, not part of the social fabric. They have become integral parts in connections between “local communities” and “global forces” (i.e. social and economic relations).

2 views of TNCs 1. “Structural implications arising from the world capitalist system” : Studies problematic because ignore cultural differences in organizations being studied and cultures that are absorbing them. Also do not “account for influences of informal networks within institutional frameworks”. 2. Focuses on cultural implications of transnational process Underestimate political asymmetries between nation-states” and effects on international issues. Ignore international institutions (world religious orgs, and international business comps).

A deeper look into KFC Author avoids by focusing on KFC only; showing the effects of transnationalism in one city, Beijing. Localization- how KFC changed and adapted to fit the market of children in urban China. Socially constructed places of consumption, success depends on how local society works. KFC has been domesticated, what was once alien is now familiar.

Why Beijing? Look specifically at Beijing kids in 1990’s, because A. Kids are reasons behind fast food success in urban cities B. Childhood eating habits indicative of societal norms, social environment.

Background First KFC opened in Nov. 1987, 1994- KFC announced $200 million over next 4 years to expand the number of restaurants to 200. Author studied from 1995-1998 in southern China.

Who was the market? Children are the main customers, marketing aimed at them. Parents did not care where they went, kids preferred KFC KFC became desirable

They eat your souls… Introduction of cartoon chicken “Chicky”, for child market. Different than Colonel Sanders. Kids could not relate to him, seen as grandfather figure. Qiqi, (chicky) in music videos on TV. Fun, also on school supplies, “work hard, play hard”. Buildings designed with kids in mind (low sinks for hand washing, play areas, low seats, places for birthday parties). (Found that desired for birthdays, people trained for birthdays). Kids received toys as they entered. Special hostess for kids.

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Other attractions Windows allow people to see kitchen, watch the food preparation. Take out window for busy culture. Cheaper: Kids meal 8.80 Yuan, ($1.10); 2 piece 17.10 Yuan ($2.14). Workers clean the restaurant in front of patrons. Sinks in back for hand washing. Tourist attraction, exotic.

In contrast to… Across street is “Glorious China Chicken” Ronghuanji . Not as popular, night club décor. More food, cheaper, draft beer, alternatives to fried chicken average 8.8 Yuan, ($1.1). Absence of bathrooms, Bad service, unpleasant to costumer complaints. More adults there, less families with kids.

Why did KFC do so well? Ronghuanjo tries to emulate American, while KFC changing to be more local. Local managers given control by American companies that own KFC, (KFC and Pepsi Co). Allows quick responses to local demands, may be why have such international success.

Decentralized (local franchises, joint-venture, company owned stores). Marketing by local decisions, based on local interests and demands. Understood that KFC succeeded where it considered local society. Support services from Pepsi Co., but local decides what services are needed.

Popularity rises Many companies wanted to go into joint venture with KFC due to massive popularity with children, hygiene standards, and mechanized production. Success also due to regional food interests. Northern China liked foods similar to standard KFC Ronghuanji opened to compete, by offering more fried foods to appeal to local tastes in Southern China. Fight between local Chinese foods and American fast food.

What has Fast Food done What are costs of fast food culture? Chinese can use Western technology with Chinese culture. Non-Chinese goods consumption shows consumer power in world market. KFC did not block out heritage and “culinary traditions, stimulated a discourse on national heritage”. Showed the rise of consumption, rise of free market trade.

Child consumers KFC present on TV, in schools, and providing local activity for children. Competition with other franchises, clothes, TV characters and associated merchandise, and other products.

Part of the neighborhood Full localization of KFC was seen when it lost it’s novelty. Done largely by children. However, the children did not do it on their own. With the localization of KFC, it became part of the social fabric of the society. Transnationalism is localized, and is specialized by the local demands. KFC is not left as a separate, foreign TNC, but becomes part of the society through involvement in school, media and childhood activities.