Hello, welcome again to Aim2D for Tuesday November 2nd, 2021. Over the past couple of articles we have looked at the upcoming 11/11 or Double Eleven sales whatever in China. Also called Singles day in some foreign media. Today will will look at singles, from another angle. Also, take a quick look at Yum brands.
Double Eleven in China
or Singles Day is THE once in a year massive sales feeding frenzy that brands, marketers and businesses look forward to. Mostly with excitement, but for some, a sense of dread – usually those providing marketing services etc. However singles is not something that others view with such enthusiasm. We are referring here to those who for choice or other reasons, are preferring to remain unattached and childless. In other words, the declining birth rate.
Whilst the original idea of SINGLES may have no relevance or importance to Double Eleven these days, ironically the impact of singles in Chinese, even Asian society as a whole will have. Gvt social planners and businesses looking at the long term are becoming concerned at the imbalance of young, childless citizens to aged, plus the economic impact of a shrinking population. We published a brief run down on this in conjunction with our friends at 6th Tone;
Our friends at Caixin Global cover this in an indepth article: Weekend Long Read: The Facts and Fables About China’s Singles Economy
Yum Brands in China
Yum brands in China are known as owners of a highly successful chain of fast food restaurants. Perhaps the most famous and successful being KFC and, to a lesser extend maybe Pizza Hut. In the early 2000 it was a sources of astonishment for many westerns visiting Beijing to see scores of customers lining up outside Pizza Hut. Not just out the door, but down the street, around the corner and the block in some cases.
Both brands have been particularly adept and successful in adapting and changing their menus to reflect traditional and changing Chinese dietary tastes and habits. As the clean, green healthy eating and lifestyle swept cosmopolitan China, KFC and Pizza Hut’s menus morphed to reflect the health concerns of it consumers.
Out of the metro and into the hinterland, different stores reflected the niche tastes of that particular region. The “same” spicy chicken burger in Beijing would blow your head off in some of the southern city restaurants.Yum amply demonstrated they were in touch with their customers needs and listening.
Less so some time honoured Chinese brands who appeared to be taking the high road and treating their customers and changing habits with disdain and arrogance. Sadly, for some, this didn’t end as well as the fairy story we reference below.
Yum and chums were doing everything right. Even the full force attack of the 2020 Covid virus struggled to take the edge of their sword. Whist the hospitality and restaurant sector generally in China was hard hit, Yum, it seemed, appeared to bounce back relatively quickly. However, the ongoing, grinding, more gorilla warfare tactic of the Delta Covid variety seems to have now caught up with Yum. It was only a few weeks back we reported on this up-beat Yum press release:
Again background and detail to this story can be read: KFC Operator Yum China’s Third-Quarter Profit Plunges as Outbreak Curbs Hit Sales courtesy of our friends at Caixin Global.
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