KFC in Beijing

Transnationalism/Transnational Corporations The flow of ideas, products, people, capital, and technologies across national boundaries The flow of ideas, products, people, capital, and technologies across national boundaries “increasingly wearing the same kinds of clothes, eating the same kinds of food, reading the same kinds of newspapers, watching the same kinds of television programs, and so on” -due to a more integrated global system of production and consumption -expansion in particularism

KFC-catering to Beijing children in the 1990s Fast food restaurants like KFC have been especially successful among children in large Chinese urban centers Fast food restaurants like KFC have been especially successful among children in large Chinese urban centers Children are often the deciding factor in a family visiting a fast food industry Children are often the deciding factor in a family visiting a fast food industry Giving clues to their socialization, changes in children's dietary patterns are indicative of changes in their larger social environment Giving clues to their socialization, changes in children's dietary patterns are indicative of changes in their larger social environment

Social analyses of transnationalism Two perspectives Two perspectives 1. “concrete models of globalization” -cultural homogeny has been studied from the perspective of the passivity in the adaptation by the host cultures 2. Cultural implications of transnational processes -underestimate the political asymmetries between nation- states and their ability to define and shape transnational issues Author tries to avoid these problems by combining the strengths of both perspectives and focusing on a single transnational organization Authors approach KFC in a single city Beijing, understanding how the local society operates

KFC operations have become gradually domesticated from exotic imported food to familiar type of cuisine KFC operations have become gradually domesticated from exotic imported food to familiar type of cuisine This domestication process effects “localization” and how KFC makes innovations and modifications to react to local competition and to understand the importance of children in Urban China This domestication process effects “localization” and how KFC makes innovations and modifications to react to local competition and to understand the importance of children in Urban China

Chicky or Colonel Sanders? -the first KFC in China opened in 1987 near Tiananmen Square, quickly became the world’s largest fast-food restaurant, seating 500, by 1994 KFC had seven restaurants in Beijing and 21 other restaurants in cities throughout the country -in 1994 KFC announced that it was investing an additional $200 million over the next four years to expand the number of KFC restaurants in China to 200 -KFC, also realized like other fast food restaurants that children love eating at its restaurants and are its regular customers, adult customers often visit KFC because their children like it -when Chinese children rejected the white-bearded, elderly-looking Colonel Sanders they adopted a new mascot “Chicky” specifically developed for the Chinese market and introduced there in the chicken encourages children with the motto “renzhen xuexi, kaixin youxi”

KFC vs. Glorious China Chicken Ronghuaji Ronghuaji - A standard meal is considerably cheaper and the customers get more food, there are also alternatives fried chicken - Both food and service seem more “Chinese” there were fewer families with children and more groups of young adults eating at the Ronghuaji than at the KFC - Ronghuaji a Chinese company tried to emulate the American KFC and KFC in China had been introducing changes to adapt to local consumer demands with the success of the Beijing KFC restaurants, Chinese companies in other major cities such as Shanghai sought to form joint-venture operations with KFC restaurants Shanghai entrepreneurs went to Beijing to see what was behind the “KFC Fever” They concluded that the reasons for KFC’s success in Beijing were tied to the region itself Northerners were used to eating foods similar to the standard KFC fare, such as potatoes and bread

They decided to emulate the social and technical practices of KFC, but for Shanghai they would offer fried chicken that was more appealing to the southern Chinese palate They decided to emulate the social and technical practices of KFC, but for Shanghai they would offer fried chicken that was more appealing to the southern Chinese palate Ronghuaji’s success in competing with KFC demonstrated that Chinese entrepreneurs could employ Western technology and create an industry with “Chinese characteristics” Ronghuaji’s success in competing with KFC demonstrated that Chinese entrepreneurs could employ Western technology and create an industry with “Chinese characteristics” Origins of fast foods in China, does it date back to thousands of years ago in such foods as stuffed buns (baozi) and glutinous-rice rolls (zongzi) Origins of fast foods in China, does it date back to thousands of years ago in such foods as stuffed buns (baozi) and glutinous-rice rolls (zongzi) Others argue that fast food is an idea wholly imported from the U.S. and is something unique to American culture that has spread through out the world Others argue that fast food is an idea wholly imported from the U.S. and is something unique to American culture that has spread through out the world Stress hygiene and cleanliness in these new fast food industries

Working with schools and finding young consumers KFC worked to develop partnerships with schools, teachers, and parents, KFC sponsors numerous children’s sporting events, essay competitions, and other contests KFC worked to develop partnerships with schools, teachers, and parents, KFC sponsors numerous children’s sporting events, essay competitions, and other contests KFC set a one-day sale record on June 1, 1993, International Children's Day KFC set a one-day sale record on June 1, 1993, International Children's Day John Cranor the president and chief executive officer of KFC was welcomed by 110 Shanghai schoolchildren John Cranor the president and chief executive officer of KFC was welcomed by 110 Shanghai schoolchildren KFC plays an important role in this stratification of Chinese childhood, meals at fast-food restaurants are considered expensive by average consumers KFC plays an important role in this stratification of Chinese childhood, meals at fast-food restaurants are considered expensive by average consumers With the enforcement of the one child policy, Chinese parents are willing to spend more money on their “little emperors” (xiao huangdi) for fast-food meals, snacks, and toys With the enforcement of the one child policy, Chinese parents are willing to spend more money on their “little emperors” (xiao huangdi) for fast-food meals, snacks, and toys