Hong Kong is one of the largest dynamic financial centers globally, with correspondingly high food and lodging prices. McDonald’s in the region is often open 24/7, which is why some residents use the restaurant as a home to sleep. In 2018, a study was conducted that showed that 72% of people who sleep at McDonald’s are not homeless: they complain about high house prices (Scott). Hong Kong is the largest provider of public housing in Asia: the government provides subsidized housing to 30 percent of its residents; in Taiwan, by comparison, only 1%, but the housing problem is not so acute (Scott). People who slept in this way received the general name “McRefugees” (Scott). Thus, McDonald’s reflects the difference in housing issues between the two regions.
The difference is also felt during various marketing moves by McDonald’s. In Hong Kong, an advertisement showed a “lost” boat with chicken wings missing due to the interruption of water supplies (Caiyu and Qingqing). The ad was accompanied by a soundtrack stating that “it’s okay to lose something” (Caiyu and Qingqing, para. 2). During the ad release period, Hong Kong honored a police officer who went missing and was later found dead after sacrificing himself in an anti-smuggler operation (Caiyu and Qingqing). Quite a large part of the population took up arms against the fast-food chain, calling this advertising move cold-blooded, as some politicians spoke about (Caiyu and Qingqing). However, the company apologized for the inappropriate coincidence, but its reputation was tarnished. In general, the population was united by shared national mourning and did not recognize any marketing campaigns during this time, which was an oversight of the local restaurant management.
At the same time, in Taiwan, the advertisement caused displeasure among some Chinese residents, who saw the declaration of Taiwan’s independence in a short commercial. The TV spot listed Taiwan as a separate country, sparking outrage among opponents of independence (Chen). There is an opinion that this event was not accidental, but traditionally the company apologized for such marketing and removed the video. Whereas in the case of Hong Kong, the marketing department made a grave mistake by not paying due attention to local events, in Taiwan, such a “gesture” from McDonald’s was appreciated, and their sales likely increased.
Historically, Taiwan and the United States have been tacit allies, especially in defense cooperation. American warships regularly pass through the Taiwan Strait, and Taiwan itself is a buyer of American weapons (Tsai 2). Even though formal relations were interrupted in 1979, the population of the fast-growing region was sympathetic to American culture, in connection with which restaurants were more likely than not welcomed. There is even an American community in Hong Kong, and the cultural connection was also quite close until 2020 when the region came under US sanctions (Tsai 8). Taiwan is unlikely to turn to Eastern culture amid independence feuds, while in Hong Kong, attitudes towards McDonald’s are likely to deteriorate gradually.
However, there are similarities between these countries that are displayed by this network. For example, Hong Kong was one of the first to introduce rice dishes in the McDonald’s fast-food chain, and Taiwan followed suit, and the event was a success in both countries (Sak and Shaw John 305). In general, the restaurant service is high; the menu is in line with consumer needs: papaya salad, coconut milk menu, and karaoke as entertainment (Sak and Shaw John 305). Thus, the difference manifests itself in non-obvious aspects of the housing issue and attitudes towards marketing more than in the service and menu of the restaurant.
Works Cited
Caiyu, Liu and Chen Qingqing. “McDonald’s in Hong Kong apologizes after chicken wings ad draws ire for disrespecting police officer who sacrificed her life in operation.” Global Times, 2021. Web.
Chen, Laurie. “McDonald’s apologises after advertisement showing Taiwan as a country draws criticism.” South China Morning Post, Web.
Sak, Onkvisti, and J. Shaw John. International Marketing Analysis and Strategy. Prentice Hall of India, 2017.
Scott, Morgan. “McRefugees on the rise in Hong Kong.” Taiwan News, 2018, Web.
Tsai, Ming-Chang. “The global, the local, and the Chinese: vying cultures in Taiwan.” Chinese Sociological Review, 2021, pp. 1-23.