When in “China” do as the Chinese do: a case study of IHG’s HUALUXE’S localization in China

ABSTRACT

This case study explores the localization strategies that HUALUXE, an InterContinental Hotel Group brand, implemented in China and the reasons behind them. HUALUXE has been designed as a Chinese-featured hotel brand with key Chinese elements and unique Chinese hospitality and culture. HUALUXE’s localized operation and management also helped the company gain a competitive advantage during the COVID-19 pandemic crisis. The operation performance of HUALUXE hotels had excelled in its market segment. This case study introduces the establishment and development of HUALUXE to illustrate how an international hotel group competed in the fierce global market to distinguish and position itself.

KEYWORDS:

• Globalization
• HUALUXE
• localization
• strategic marketing

Disclosure statement

No potential conflict of interest was reported by the authors.

TEACHING ACTIVITIES

The case requires three teaching hours, and the timeframe allows the instructor to introduce the topic, provide industry examples, lead a full class discussion, and conduct an assessment.

Phase One: Introduction (30 min)

The instructor can ask students to read the case study as homework when the case is introduced. Students should write down their thoughts as annotations. As a requirement, each student should bring their notes and annotations to class with their answers to the discussion questions and any questions they may have.

Phase Two: Outline (1 h)

The instructor briefly reviews the topics of strategies, including localization and globalization, and branding theory. Then, the instructor should open the class for discussion on the questions assigned for the pre-work.

After outlining the basic theories and principles, the instructor will introduce the learning objectives, highlight the main points of the case, and show students two videos of HUALUXE.

Phase Three: Implementation (30 min)

The instructor leads the class in case discussion questions. The instructor will ask the class each question and allow five minutes for feedback.

Phase Four: Evaluation of understanding (1 h)

Students will be broken into groups of four to five and tasked with designing a localization strategic plan for a specific market segment utilizing the brand equity model. The groups will then present their plan.

Note: This case study was tested in “Operations Management” and “Hotel Marketing” Classes. A student evaluation regarding this case study activity is provided in Appendix A.

Additional information

Funding

This work was supported by the Not applicable.