Decoding the Mystery Behind the Globalization of Chinese Time-honored Brands -- A Case Analysis of Lao Gan Ma Chili Sauce

Abstract

Globalization creates a complexly interrelated arena where multiple local differences converge and compete against each other. With respect to its consequent potential impact on various local cultures, Western dominant cultures have been believed as the ultimate destiny for the modernizing cultures under this fast-changing global context, as is more often proved in business where countless companies in developing nations have been keen on learning from Western business giants in the names of modern enterprise administration or international conventions. An originally underprivileged Chinese brand, Lao Gan Ma Chili Sauce, however, has established an invaluably different developmental route by branding with strong Chinese flavors and exposing itself as a miniature of indigenous cultures, successfully growing into a worldwide Chinese cooperation in the past decades. Decoding the mystery underlying its success therefore of significance in cross-cultural business studies. Applying such cultural theories as cultural identity, symbolic consumption and instinct theory, the present study analyzes the business strategies Lao Gan Ma conducts. The qualitative study in this essay demonstrates that cultural resources of a firm are potentially convertible into its powerful capital in the fierce competing world market. More specifically, a unique cultural identity and certain perceived symbolic values retained by a business corporation can serve as alternative and desirable resources to make that firm, especially one in less affluent societies, a competitive contender in the globalized market system. Besides, enterprises whose products cater to the human inner instinct can enjoy exceptional advantages in their penetration into the global market.