Home Office and the China Local Office

Dan Harris put up a blog a week or so ago about how Gap stores have had some troubles adapting to China.   It lays out that Gap followed Global policy and the leaders kept their jobs, but their China results were below expectations. See the whole article here.

Often, the China CEO does it so it works in China, or it works for the home office.  It is hard to get both.  The gap in culture, market, and context is so great that the Home office must understand or face loss.

China is a great place to do business, but it is not Kansas by any means.  The home office needs to know more than their methods when they come to China. They need to have a firm grasp on their principles.

Is KFC about chicken in a bucket or about good local food fast at a good price?  You can get chicken in a bucket in China.  However,  you can also get vegetables and soups that you could never get in the States unless they are changing while I am not looking back there.

KFC is still KFC, but they understood clearly what their principles were and got ahead in China. You can do the same.

We can win in the China market pretty consistently if we grasp our principles.  We do even better to consider what it takes to win a new market as opposed to the old market in the States or Europe. Then we are close to what we need.

Any thing to add?

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Posted in: China, Chinese Culture, Market Entry

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