Nov. 10 at 11:50 AM
$YUMC Yum China CEO Joey Wat highlighted in an interview with Nikkei Asia how the company is navigating China’s weak consumer spending environment by maintaining a focus on affordability, innovation, and emotional connection. Wat said the company’s strategy is to give products "emotional value" while also keeping prices accessible, which is seen as a strategy that works well with more cautious post-pandemic consumers.
Wat thinks Yum's strength lies in introducing new, locally resonant menu items at good prices. The strategy is being supported by an internal initiative to offer innovation bonuses of up to 1 million yuan for staff who create impactful ideas.
To attract consumers during China’s prolonged property downturn and negative inflation trends, Wat adopted different pricing tactics for each brand. Pizza Hut’s prices have been reduced roughly 30% from a decade ago to reposition it as a more everyday dining option, while KFC’s prices have remained largely stable for seven years.
