“McDonald's has to change with the times.” This is what Jim Carras, Senior Vice President of the American fast food giant expressed as the group started renovating its stores worldwide.

The theme, which originated from the redesign of stores in Europe, is LIM (Less is More). Starting in 2008, with the launch of McDonald’s new fast food brand, McCafé, key locations in major cities in China (Shanghai, Beijing, Shenzhen) have undergone major renovation.

Uniqlo, one of Asia’s largest fashion retailers, plans to open 1,000 stores in the China by 2020. According to Hideo Majima, Uniqlo’s director of global marketing, “We say it doesn't matter who you are, or where you come from, Uniqlo makes clothes that transcend all categories and social groups. Our designs are aimed at going beyond age, gender, occupation, or any other way that defines who people are.” Uniqlo appears to be building a valuable brand in Asia and globally, but trying to be everything to everyone is a well known brand strategy mistake. Let’s take a closer look at what this burgeoning brand is up to.

A problem of differentiation and relevance
Best Buy, one of the most popular and widespread electronic retailers in the world, is closing their branded shops in China to cultivate the growth of a Chinese chain they own, Five Star. Best Buy is one of several foreign brands that have recently decided to utilize a local subbrand in China, as was also seen with Levi’s dENiZen and KFC’s East Dawning. Best Buy closing its doors to focus on Five Star reveals the newfound power of local brands and foreshadows challenges that will be faced by many foreign brands in China in the years to come. A brand can no longer rely on its foreignness alone to stand out in China’s competitive marketplace.

The main challenge Chinese brands will face when trying to expand abroad has to do with, well, China. The country’s rise is generating strong reactions that go from irrational Sinophobia to legitimate concern about the products churned out by the Middle Kingdom.

Anticipating the rapid development of the Chinese market, many global luxury brands are trying to regain direct control by buying back their operations from their Chinese business partners.