Replies to post #6504 on The Rising Influence of Rising Affluence

[DewDiligence]

YUM tries to reignite China growth with discounting:

http://online.wsj.com/news/articles/SB10001424052702304451904579238073910948350

The company on Monday reported that same-store sales in its China division rose an estimated 1% in November thanks to discounted products at KFC and growth at Pizza Hut. Yum in October reversed its previously stated goal of achieving same-store sales growth in China for the fourth quarter.

Moral: It can take a long time to recover from a hit to a company’s reputation for quality, even if it was unwarranted.