Beyond Origin: Thomas Hoon on Trust and Adaptation in Business Strategy

In a recent LinkedIn post, Thomas Hoon offers a compelling analysis of business strategy, drawing parallels between popular Chinese dishes and market entry tactics. Hoon, who has lived in China for thirteen years, uses culinary examples to illustrate broader points about branding, distribution, and adaptation.

He begins by challenging common assumptions about the origin of well-known foods, stating:

“Lanzhou noodles are not made by people from Lanzhou. Hainan coconut chicken was not born in Hainan.”

Hoon explains that the families operating Lanzhou beef noodle shops, while serving a dish with origins in Gansu province, are often Hui families from Hualong in Qinghai province. Similarly, Hainan coconut chicken, despite its name and ingredients, was reportedly invented in Shenzhen, not Hainan, and tailored for a Cantonese palate.

The Power of Positioning Over Geography

Hoon argues that these culinary examples highlight a crucial business principle: the name on a menu, or a brand’s origin, is less important than its market positioning and the trust it cultivates. He elaborates on this point:

“A place name on a menu is not geography. It is positioning.”

According to Hoon, the success of Lanzhou noodles in various locations, run by families not from Lanzhou, demonstrates that effective distribution and brand recognition can transcend geographical origin. The name itself carried inherent trust, allowing entrepreneurs to leverage it effectively.

Adaptation as a Key to Market Success

Another key theme explored by Hoon is the importance of adaptation over strict authenticity. He uses the example of coconut chicken to show how a dish, when modified to suit local tastes, can achieve greater market penetration.

Rebuilding for a New Palate

Hoon notes that the version of coconut chicken that became popular across China was not the original but an adaptation designed for consumers who prefer lighter flavors and clear soups. This suggests that businesses looking to enter new markets must be willing to adjust their offerings.

“Coconut chicken taught me that adaptation beats authenticity. The version that conquered China was not the original. It was the one rebuilt for a new palate.”

Hoon concludes by relating these insights back to companies seeking to enter the Chinese market. He advises that instead of focusing solely on their country of origin, businesses should prioritize building a trusted narrative and adapting their product to resonate with local tastes.

“The label is the marketing. The localisation is the product,” Hoon summarizes, emphasizing the dual importance of branding and product adaptation for market success.