Case Studies

KFC entered China in 1987 and has since developed one of the country's largest restaurant networks. By the end of 2025, KFC operated 12,997 restaurants in more than 2,500 Chinese cities.

Its expansion provides an example of localization that reached into many parts of the business.

KFC hired leaders with experience navigating both Chinese and Western business environments. It developed close relationships with government and other local stakeholders. When existing distribution infrastructure could not support the scale it wanted to achieve, the company developed its own distribution capabilities and worked with Chinese suppliers to strengthen quality and capacity.

The food changed too. KFC's Chinese menu grew to include rice dishes, congee, vegetables, seafood, tea, and other products tailored to local preferences. Many of those offerings bear little resemblance to what a customer would expect in an American KFC.

None of those changes required KFC to give up the brand people recognized. The company adapted the parts of the business that needed to work differently in China while retaining the elements that gave the brand its value.

India offered IKEA an attractive long-term opportunity. Its population, urban growth, and expanding consumer market supported the business case for entering the country. But IKEA still took years to prepare its India entry.

Before opening its first Indian store, the company conducted around 500 home visits to understand how people actually lived. IKEA employees looked at household layouts, storage, humidity, cleaning practices, and how furniture and other products were used. The research helped the company identify conditions that would affect its products and home furnishing solutions in India.

IKEA also had to work through India's regulatory requirements, develop relationships with suppliers and government officials, and consider how its pricing and service model would work for Indian consumers.

Its first Indian store opened in Hyderabad in August 2018 and the company has continued to adjust its approach as it expands. In 2026, IKEA announced plans to invest more than $2.2 billion in India over five years, with plans to expand its retail presence and increase local sourcing. It is also entering some new Indian cities online before opening physical stores, allowing the company to develop its customer base before making larger brick-and-mortar investments.

Japan was Starbucks' first international market outside North America. Rather than entering alone, Starbucks formed a joint venture with Japanese retailer and restaurant operator Sazaby in 1995. The first store opened in Tokyo's Ginza district in 1996.

The partnership gave Starbucks access to local knowledge as it introduced a relatively new coffeehouse concept to Japanese consumers. Some of the changes were small yet revealing. For example, at Sazaby's recommendation, baked goods were made less sweet than those sold in the United States, and decaffeinated coffee was left off the original menu because there was little demand for it in Japan. At the same time, Starbucks kept much of the experience that distinguished the brand in the United States, including its coffee, store atmosphere, employee training, and emphasis on the café as a place to spend time.

The partnership continued for nearly two decades. When Starbucks moved to acquire full ownership of the Japanese business in 2014, the company specifically credited Sazaby's operational leadership with helping establish and grow the business. By that point, Starbucks Japan had more than 1,000 stores and was one of the company's strongest international markets. And the growth has continued. Thirty years after entering Japan, Starbucks has more than 2,100 stores across all 47 prefectures.