China's Shaxian Snacks: A national brand's globalization challenge

Abstract

AbstractThis case study examines the growth of Shaxian Snacks, which became a nationally known fast food brand in China within the span of 20 years. Shaxian Snacks restaurants are found not only in all areas of China, but also in other countries such as the United States, Australia, and Portugal. Shaxian Snacks is unique since, unlike franchises such as McDonald's and Kentucky Fried Chicken (KFC), it is a collective brand, under which thousands of small fast food restaurants operate independently but offer similar menus, service, and price range. The case traces the development of Shaxian Snacks, analyzing the role of the local government, competitiveness dynamics, and challenges of this collective brand. A collective brand is not owned by a specific company or individual but is associated with a common product, originating in one location that can be used by any enterprise or individual as long as they follow common practices related to the brand. The case explores the inter‐relationships of Shaxian Snacks and local economic development, and projects the Shaxian Snacks brand's future. The case reveals how a local government can promote local economic development, and may inspire local governments of other developing regions and countries to pursue similar strategies in developing their economies.