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Minyanville sees the case of Heineken's (HINKY.PK) foray into China as a cautionary tale for...

Minyanville sees the case of Heineken's (HINKY.PK) foray into China as a cautionary tale for firms thinking about betting big in the nation. The brewer entered the beer market 1988 by buying into the dominant player. Trouble is: Chinese consumers don't like bitter beer, so Heineken's market share fell flat. Could the same consumer peaking process happen to MCD, KO, Pizza Hut/KFC, and other U.S. firms as they pour investments into expansion in China?
Comments (3)
  • marc heilweil
    , contributor
    Comments (112) | Send Message
     
    mickey d adjusts to the taste of the country . You can not extrapolate Heineken's experience to it. KFC also seems able to get it right.
    17 Nov 2011, 02:00 PM Reply Like
  • ROI
    , contributor
    Comments (7) | Send Message
     
    Mickey D's fries & burger in China tastes exactly like the U.S.--while authentic Chinese food is good after 2 weeks a McD fry was one of the best tasting foods I've ever had and I'm not a big fan. Chicken sandwhich was spicey and very popular but I can't compare it to here as I never order them here. I was told McD advertises heavy and the kids get teir parents to go and eventually the parents start to like it. Every McD we saw over the 2 weeks we were there last summer was busy no matter what time of day. But McD were not nearly as common as KFC so lots of room for expansion.
    17 Nov 2011, 02:26 PM Reply Like
  • ROI
    , contributor
    Comments (7) | Send Message
     
    After spending a couple weeks in China I'm not too worried about McDonald's being popular there. Our group of 27 stopped at a McDonalds at 10:30 on a Sunday morning. It took them over an hour to get our groups order ready as throughout our trip the Chinese have trouble with things out of the ordinary. But it gave us a chance to watch their business and the counter had 6 or 7 lines 10 deep for the entire hour. China will be good for McDonald's. While there were a lot of KFC's & Starbuck's they always seemed dead (there were Cafe 98 that cost 1/3 as much as Starbcks and had better at least as good of quality). Prices were equivalent to the U.S. while Tsing Tsao beer cost 46 cents a 22 oz bottle--wonder why Heineken problems? Coke & Pepsi were 46 cents per bottle.
    17 Nov 2011, 02:14 PM Reply Like
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