Getting traction among China´s picky consumers is one thing, keeping it up is another. Larger foreign firms like Yum and Starbucks have been slow in picking up consumer trends in China, says business analyst Shaun Rein to Bloomberg, for example in their adoption of fintech developments.
Bloomberg:
In recent years, Yum has ceded market share to local competitors because it was slow to react to market changes, said Rein.
“They didn’t make corporate decisions quickly enough, such as in adopting mobile payments, or adapting to consumers wanting more premium offerings,” said Rein. “Their ability to deal with the more complex environment here was held back by the lack of knowledge, the slowness of the U.S.”…
Starbucks stores in China still do not accept Alipay or Wechat, only Apple Pay, a decision which costs them 5 to 10 percent of sales, estimates China Market Research Group’s Rein.
Starbucks launched its own mobile payment system in China in July, allowing customers to pay with pre-loaded Starbucks Gift Cards via their mobile devices, according to the company.
As China’s consumer market continues to grow, more overseas companies may consider following Yum down the path of segregation.
Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.
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