Western food and beverage companies in the Chinese market: challenges and strategies

This thesis explores the challenges Western food and beverage companies face in entering and adapting to the Chinese market, highlighting the relevance of linguistic, cultural, and regulatory factors in shaping effective business strategies. After providing a comprehensive overview of the global food and beverage industry, with its unique features and recent trends, this dissertation examines how cross-cultural differences influence the sector and suggests possible strategies to overcome them. Our focus then shifts to the Chinese food and beverage industry, examining some major challenges for Western companies entering the Chinese market. In particular, the discussed aspects concern choosing an effective Chinese brand name, considering consumers’ perceptions of taste and purchasing behavior, complying with Chinese labeling and packaging standards, safeguarding the brand’s intellectual property, and designing culturally relevant marketing campaigns. To provide a deeper understanding, this thesis analyses case studies of six representative Western food and beverage companies: McDonald’s and KFC for fast food, Coca-Cola and Pepsi for soft drinks, and Starbucks and Lavazza for coffee. Their common and distinct adaptation strategies illustrate how they navigate local challenges and dynamics to achieve long-term success in the Chinese food and beverage industry.