Multinationals and their sins in China

From Sexy Beijing: “It’s important to get kids into McDonald’s early”

Last month the bilingual environment website China Dialogue published an article by Paul French called Why is China different for Western brands?.

The article did not get much attention when it was published, partly because the Sichuan earthquake was still occupying the news agenda, but it’s worth drawing attention to it again. French poses some uncomfortable questions for certain Western companies operating in China. Excerpt:

For western companies, the need for an environmental strategy in China is essential. Yet those companies working at the interface between Chinese consumers and western brands appear to be the most lax. This is perplexing to those of us working in the Chinese retail and consumer market, where doing the right thing ultimately means gaining consumer loyalty and a competitive advantage…

French provides some examples of how some multinationals treat the mainland China market differently:

• In Hong Kong, McDonald’s has two “no straw days” every month, but it does not have them on the Chinese mainland. The company does not substitute super-size options for a “Gofit” adult happy meal in China, as it does in the United States. McDonald’s Happy Meals targeted at children in the US come with “better-for-you” substitutes, such as milk and apple dippers, but not in China;

• Burger King, which has just announced a major expansion of outlets in China, in many countries offers chilled apple slices as an alternative to french fries, with no-fat apple sauce dips. They already offer milk as an alternative to cola in many markets, but they do not offer any of these items in China;

• Sandwich-chain Subway is expanding quickly in China. In the US, the chain has launched a “Fresh Fit for Kids” menu, with apples or raisins as a replacement for potato crisps; but not in China;

• Starbucks now offers low-calorie drinks and better food options for kids in the west; but, again, not in China;

• In Singapore, Minute Maid orange juice comes with a series of “Lifewise” tips from the National Healthcare Group, stressing the importance of exercise and vitamin intake. No such advice is dispensed on Minute Maid’s packaging in China.

And it is not just the fast-food giants:

• Banking chain HSBC sends its mail in Hong Kong on recyclable paper, in envelopes that note the bank is committed to protecting the environment. None of this is mentioned on envelopes sent to Chinese mainland addresses;

• Luxury retailer LVMH’s new Catherine Deneuve-led advertising campaign features a tag line that supports the Climate Project. It appears everywhere from London to Hong Kong, but not on their ads in the Chinese mainland;

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