Hybrids of Trade and Leisure – How China Changes International Chains

Hybrids of Trade and Leisure – How China Changes International Chains
Jul 09, 2012 By Jill Levine , eChinacities.com

Public space in Chinese cities—parks, public squares, etc.—are few and far between. Restricted by small apartments, lack of privacy and few public areas, Chinese people have begun taking to commercial spaces as their new social hubs, transforming many international chains into communal hybrids. Here are four such companies in China where recreation and business have, willingly or not, been merged.

1) KFC
KFC in China is Chinese through and through. The store itself is nicer and cleaner than its Western counterpart, and what it represents differs completely from its American roots. Besides featuring an adapted menu, KFC has become so popular in China because the corporation has fully embraced the Chinese concept of the commercial-public space.

Walk into a Chinese KFC, especially one in a mall, and you'll likely see that over half the customers are eating non-KFC food, or aren't eating at all. I've observed groups playing cards or board-games for hours at a time, taking up tables and not ordering food. Individuals do business, young women and kids hang out (in a nice alcohol-free zone), and students do their homework. Despite their seeming disregard for the way the capital system is supposed to work, these parties are not bothered at all by KFC management, making KFC a true example of the public and commercial space hybrid. KFC is not just known for its food in China, but as an alternative place to come and hang out for a day.

2) McDonald's
In contrast to KFC's more adaptive approach, McDonald's has long sought to change the landscape of Chinese culture into something more resembling the West. An earlier import to China, over time McDonald's has succeeded in making its mark as a representative American institution. But while the restaurants are both clean and modern, the meals are still viewed by most patrons as something akin to basic Western snack food.

Despite this, it remains very popular with China's youth, and it's considered by many to be a classy establishment—for some, it's classy enough to get married in! McDonald's has also had a big hand in publicizing the children's birthday party in China (in public, with friends rather than in private, with family). At the end of the day though, the main reason that McDonald's remains popular is for its unabashed Western-ness rather than because it's a staple in every-day life in China. And while the restaurant has given up on the American notion of rushing patrons though, becoming more accepting of guests loitering, it still has not adopted the identity as a commercial-public space to the same extent as KFC. McDonald's may have a somewhat different face in China than in the West, but it has not become as culturally Chinese as KFC.

3) Starbucks
While holding a Starbucks cup has long been considered a fashion statement in China, these days many come primarily for the atmosphere and to use the Internet, oftentimes bringing their own food with them. The atmosphere seems to lend itself more to businessmen in a formal meeting than to kids getting out of school and grabbing a quick snack (as is often the case with KFC and McDonald's). No doubt, an air-conditioned Starbucks is a much nicer place to hold a small meeting, when a humid, cramped office room is the only other alternative.

Over time, Starbucks has become an accepted and hip place to hang out. The initial steps to breaking into the Chinese market, which the company took in the nineties (a different menu, letting guests linger and just hang out), helped it first gain roots in China. After an initial adaptation period, the Starbucks menu now more closely resembles the traditional Western menu, suggesting that the company may be pushing back. But what this really suggests is that Starbucks used the public-commercial space model to gain footing in China as a way of marketing itself not as a restaurant, but as a destination.

4) IKEA
Last year, a feud erupted between the IKEA management and an elderly single Shanghai community. IKEA, which offers free coffee in the mornings to those with membership, quickly became a hot-spot for the local elderly to go on blind dates. IKEA in the morning turned into a public-commercial space hybrid as the old folk brought their own breakfast to go along with the free coffee, sat for hours together in flirtatious conversation, all while leaving wrappers and food scraps behind on the table. The management, after many ignored warnings, planned a compromise by roping off a corner area for the blind daters. The retired coffee-enthusiasts were extremely offended, as in many Chinese restaurants and fast food restaurants, it is perfectly fine to bring in your own food and linger, as to them the commercial and public spaces overlap.

A recent American IKEA ad features a fitting joke about a family living in an IKEA store. In the commercial, a couple is relaxing on the couch, watching television, talking about their day. The camera then zooms out and you realize that they are actually in an IKEA store. The joke continues as they talk to their “neighbours” in the next show-room over about dinner plans.

While in America, my family often jokes about taking a nap in one of the perfectly set-up IKEA showrooms, Chinese IKEA locations have actually become a popular destination to do just that. IKEA-goers will nap on couches and even in beds, sit on couches for hours and watch movies or call friends and even take pictures of families or boyfriends and girlfriends posing in the show-rooms. It's been suggested that while IKEA furniture is modern and stylish, it's still out of reach for many financially, and so has taken on a more aspirational meaning. Although IKEA has not changed itself for the Chinese market, Chinese customers themselves seem to be attempting to change the culture of IKEA in their own country.

Many international corporations have implemented the same model of adaptation in order to more smoothly blend into the Chinese cultural landscape. The most popular corporations however are the ones that have been able to become a destination, and a public space. Some, it seems, have consciously planned this, while others have been shaped by Chinese consumers and their needs. It says something about the impact of culture when the most successful companies are not known for food or price, but for openness and atmosphere.

Related links
How Foreign Firms Fare in China, Part I: The Good
Mao's Back: Welcome to “Maoist” Corporate Culture
Chinese Business Practices – 3 of the Biggest Cultural Differences

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Keywords: foreign companies China business culture China Ikea Chinese couples foreign chains China adapting to Chinese customers

2 Comments

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Iguodala

Hate it when I go to any of these places at my lunch break and can't find a seat due to all these old people and families eating food from their home and chit chatting all day.

Hate it hate it hate it

Jul 09, 2012 11:31 Report Abuse