This is, after all, the greatest increase in consumer purchasing-power in history. First movers can hog the best distribution channels and burn their brands into the minds of new consumers. Yum! Brands, the owner of KFC and Pizza Hut, has opened restaurants in 720 Chinese cities. Louis Vuitton, a maker of pricey bags, has opened stores not only in Beijing and Shanghai but also in second-tier Chinese cities.
PepsiCo, mindful that Indians may find its standard crisps rather bland, has
invented a spicy snack called Kurkure for the Indian market. Hermès sells
French-made saris in India. Kraft has re-engineered the Oreo for Chinese taste
buds, using less sugar and more exotic flavours such as green tea. LVMH, Louis
Vuitton’s owner, has entered into a joint venture with Ningxia Nongken, a
Chinese state-owned agribusiness, to produce Chinese sparkling wine.
A typical Tiger Mum spends a lot of time thinking about how to provide a better
future for her only child. So the McDonald’s website in China is hosted by
“Professor Ronald” and offers happy courses in writing and arithmetic. Nestlé, a
Swiss food giant, has encouraged children to “sweeten” their imaginations by
making art with its Smarties chocolates. Disney offers language courses as well
as theme parks.
