KFC faces regulatory heat after scalpers drive up price of limited-edition collectibles – SupChina

2022-05-21 01:17:41 By : Mr. Jake Gu

You have no saved articles. Why don't you add some?

Fried chicken and collectible mystery dolls — what could go wrong with a collaboration between KFC and Pop Mart? A lot, as it turns out.

Something went wrong. Error code 1.

This feature is only available for paying subscribers. You can continue reading without saving your preference, or you can subscribe now.

Already a subscriber? Log in here.

This feature is for paid subscribers only.

A collaboration between the Chinese unit of fast-food chain KFC and trendy Chinese toy maker Pop Mart, which involves a set of collectible figurines that come with meal purchases, has come under scrutiny as scalpers jumped on the opportunity to rip off real fans, prompting concerns from Chinese regulators about irrational buying and food waste.

The promotion was launched by the restaurant last week as part of its celebration of the 35th anniversary of its first store in China. In partnership with Pop Mart, a multibillion-dollar company known for selling collectible toys packaged in mystery “blind boxes,” KFC introduced seven special editions of Pop Mart’s popular Dimoo dolls. Dressed up as various items from KFC’s menu, the plastic dolls are bundled randomly with its family bundle meals, which are priced at 99 yuan ($15.6) and can feed two to four people.

As one of Pop Mart’s signature products, Dimoo dolls are a hot commodity among avid collectors. Controversies have emerged in the past when zealous fans complained about scalping and the gambling nature of the toy manufacturer’s business model. 

So naturally, it didn’t take long for the excitement surrounding the collaboration to turn into a frenzy. Collectors and scalpers bought the meals in large quantities in the hopes of getting all the dolls. The scalpers purchased the meals in bulk just to resell the dolls on third-party ecommerce platforms, wasting the food in the process. 

Meanwhile, casual collectors complained on social media that the meals were sold out everywhere and their orders online were mysteriously canceled when they arrived at restaurants to pick up the food. Others suspected that some scalpers bought the toys behind the scenes from KFC employees before they hit the market. 

According to the Beijing Youth Daily (in Chinese), on Xianyu, ​​Alibaba’s used-goods online marketplace, there were hundreds of vendors selling the dolls. Full sets were priced between 600 yuan ($94) and 800 yuan ($126), with some of the rarest items being sold at 800 yuan ($126) individually — roughly eight times the price of a single “family bundle” meal. 

Subscribe to The China Vibe, our society and culture newsletter, to get a free weekly roundup of the most interesting stories from China.

On Wednesday, the craze became so intense that Chinese authorities felt the need to weigh in. In an article (in Chinese) published today on its official website, the Chinese Consumers Association (CCA) called for a boycott of KFC, saying that the promotion was an affront to “public order and good customs” because it “seduced consumers into irrational and excessive buying.” In one example, the associations said, a consumer spent 10,494 yuan ($1,650) to buy 106 family meals at one go to collect the toys. 

Citing China’s anti-food-waste law, which went into effect in April 2021 following a nationwide campaign encouraging people to waste less food and embrace a frugal lifestyle, the association also criticized KFC for violating “the spirit of the law,” urging it to fulfill its social responsibility as a food operator. 

However, CCA’s tirade didn’t seem to slow the promotion down. As The Paper noted today (in Chinese), customer service at KFC confirmed that there were no internal orders to halt the campaign, which is scheduled to conclude at the end of this week.

Founded in 2010 by then 23-year-old CEO Wáng Níng 王宁, Pop Mart started as a retailer of lifestyle commodities, including toys, home goods, and beauty products. In 2014, the company overhauled its offering of products and pivoted to a niche business: selling “mystery boxes”: collectible figurines in packaging that doesn’t allow buyers to see what’s inside, a concept similar to gashapon vending machines in Japan.

Pop Mart’s products quickly took off among young Chinese people looking for cheap, novel forms of entertainment and online shopping. In its initial public offering in 2020, Pop Mart raised $676 million on the Hong Kong Stock Exchange, which gave the firm a valuation of $7 billion ahead of the trading debut.

The success of Pop Mart has also inspired a slew of businesses hoping to seize on the mystery box craze, but some of them have exposed the dark side of the trend. In May last year, a group of animal welfare activists in Chengdu discovered hundreds of dogs and cats ready for shipping at a local logistics facility, bringing to light a market for so-called “blind-box pets” (宠物盲盒 chǒngwù mánghé), where vendors sold animals to people who had no idea what they would get when making their purchases. Recently, the concept also saw its application in the dating scene as hundreds of mini-apps emerged on WeChat that allowed strangers to exchange information in digital “blind boxes.” While some users praised the services as a “cheap but fun” way to date, experts warned of various risks involved, such as sexual harassment and financial fraud. 

Pop Mart itself has been the subject of controversy for sexist questions in job interviews . But the latest KFC kerfuffle is unlikely to cause either Pop Mart or KFC any long term damage.  

Former U.S. Ambassador to China

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Performance cookies are key in allowing web site screens and content to load quickly on all types of devices.CookieDescription_gatThis cookies is installed by Google Universal Analytics to throttle the request rate to limit the colllection of data on high traffic sites.YSCThis cookies is set by Youtube and is used to track the views of embedded videos.

Preference cookies are used to store user preferences to provide them with content that is customized accordingly. These cookies also allow for the viewing of embedded content, such as videos.CookieDescriptionbcookieThis cookie is set by linkedIn. The purpose of the cookie is to enable LinkedIn functionalities on the page.langThis cookie is used to store the language preferences of a user to serve up content in that stored language the next time user visit the website.lidcThis cookie is set by LinkedIn and used for routing.PugTThis cookie is set by pubmatic.com. The purpose of the cookie is to check when the cookies were last updated on the browser in order to limit the number of calls to the server-side cookie store.

Analytics cookies help us understand how our visitors interact with the website. It helps us understand the number of visitors, where the visitors are coming from, and the pages they navigate. The cookies collect this data and report it anonymously.CookieDescription__gadsThis cookie is set by Google and stored under the name dounleclick.com. This cookie is used to track how many times users see a particular advert which helps in measuring the success of the campaign and calculate the revenue generated by the campaign. These cookies can only be read from the domain that it is set on so it will not track any data while browsing through another sites._gaThis cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assigns a randomly generated number to identify unique visitors._gidThis cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the wbsite is doing. The data collected including the number visitors, the source where they have come from, and the pages viisted in an anonymous form._omappvpThe cookie is set to identify new vs returning users. The cookie is used in conjunction with _omappvs cookie to determine whether a user is new or returning._omappvsThe cookie is used to in conjunction with the _omappvp cookies. If the cookies are set, the user is a returning user. If neither of the cookies are set, the user is a new user.GPSThis cookie is set by Youtube and registers a unique ID for tracking users based on their geographical location

Advertisement cookies help us provide our visitors with the most relevant ads and marketing campaigns.CookieDescription__qcaThis cookie is associated with Quantcast and is used for collecting anonymized data to analyze log data from different websites to create reports that enables the website owners and advertisers provide ads for the appropriate audience segments._fbpThis cookie is set by Facebook to deliver advertisement when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website.everest_g_v2The cookie is set under eversttech.net domain. The purpose of the cookie is to map clicks to other events on the client's website.frThe cookie is set by Facebook to show relevant advertisments to the users and measure and improve the advertisements. The cookie also tracks the behavior of the user across the web on sites that have Facebook pixel or Facebook social plugin.IDEUsed by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile.mcThis cookie is associated with Quantserve to track anonymously how a user interact with the website.personalization_idThis cookie is set by twitter.com. It is used integrate the sharing features of this social media. It also stores information about how the user uses the website for tracking and targeting.PUBMDCIDThis cookie is set by pubmatic.com. The cookie stores an ID that is used to display ads on the users' browser.TDCPMThe cookie is set by CloudFare service to store a unique ID to identify a returning users device which then is used for targeted advertising.TDIDThe cookie is set by CloudFare service to store a unique ID to identify a returning users device which then is used for targeted advertising.test_cookieThis cookie is set by doubleclick.net. The purpose of the cookie is to determine if the users' browser supports cookies.uidThis cookie is used to measure the number and behavior of the visitors to the website anonymously. The data includes the number of visits, average duration of the visit on the website, pages visited, etc. for the purpose of better understanding user preferences for targeted advertisments.uuidTo optimize ad relevance by collecting visitor data from multiple websites such as what pages have been loaded.uuidcThis cookie is used to stores information about how the user uses the website such as what pages have been loaded and any other advertisement before visiting the website. This data is used to provide users with relevant ads.VISITOR_INFO1_LIVEThis cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website.