West meets East: why does my Red Bull taste like tea?

Written in 2009. Updated in September 2026 — seventeen years later, the rule held.

Back in 2009, Coca-Cola announced its Chinese ambition: triple annual sales of non-alcoholic drinks in China by 2020, and double global revenues towards a 200 billion dollar dream. The company expected most of its new growth to come from China, India and other emerging markets. Reality came in far below the target — but the ambition tells you how every Western company saw China back then. Seventeen years later, Coca-Cola is still at it, now "doubling down on localisation" as China sales grow.

It comes without surprise that China is an attractive play-field for companies of all shapes and sizes. China's more than 1.3 billion people represent Earth's largest consuming market in one big blow (India has since passed it in population, but not yet in spending). It is very tempting to any businessman or woman to see the potential here. As one walks around the streets of Beijing, it is easy to see the dream of huge profits knocking at the door: teenagers with their eyes glued to their portable video games, hundreds of modern mobile phones being used for all sorts of tasks, famous western brands being dressed from tip to toes, modern and new cars parading on the spotless 6, 7 or even 11-lane roads. All these signs of prosperity and modernity are already in place and are just small examples of a much bigger universe.

Western companies have been trying and experimenting with ways of achieving success in China since its market reforms of the 70s and 80s. For some, it has been a profitable endeavor right up front, but for most, it has been a fiercely hard battle leading to many just dropping out or ramping down their Chinese investments at once.

What is the key to success in China? In one simple word: understanding. Many scholars have tried to explain the differences or similarities of the Chinese culture with the Western culture and, based mainly on its differences, a whole aura of mystery has been established. The truth is that this mist of mystery can be dissipated if business people take a step back and spare some time to really understand China.

Understanding does not come without immersion, without participation and lots of observation. In a business world where some still try to focus on quick wins, this means bad news: you cannot rush to understand the Chinese market. China is a civilization thousands of years old; they are not willing to rush. Accordingly, understanding is not only about spending enough time. It is also about immersing into their culture and, by doing so, also realizing our distinct, western-centric view of it.

Failing to perceive this point can be very embarrassing as has been the case with Nike. Nike is world famous for having aggressive and efficient marketing campaigns and therefore, has a huge budget to hire the most expensive marketing agencies available. Nike's marketers made a genuine effort to understand China's culture but ultimately failed. They combined all elements cherished by their target market: basketball, action, kung fu, ghosts and dragons - all marinated in fantastic visual effects. The ad was the 2004 "Chamber of Fear": LeBron James defeating a kung fu master and slaying dragons, one by one. From a western perspective, the commercial campaign looked amazing: a perfect blend of eastern components with the modernity brought by sports and, of course, Nike as a cornerstone. The problem is that, from a Chinese perspective, the commercial looked as if some obnoxious American had just disrespected Chinese Gods, symbols and values all in one blow. Chinese regulators pulled it from TV.

The epilogue wrote itself, slowly. Nike's China business has shrunk about 30% since 2021, with sales falling eight quarters in a row — while China's sportswear market grew 51% in five years. Young Chinese consumers did not stop buying sneakers; they switched to Anta and Li-Ning, domestic brands riding the guochao wave of national pride. Nike translated its marketing for China. It never localized deeply enough.

Red Bull was a bit more successful during this understanding process and has been enjoying partial success in China. The amazing fact is that this is not coming out of the traditional energy drink popularized by the Austrian company. At least not in the incarnation we are used to drinking it. The company quickly realized that the Chinese had very clear opinions of what an energy drink should taste like: it should taste like tea. The market solution: remove the carbonated mix from the recipe and end up with a beverage that tastes like a blend of Red Bull and tea. Even the can's body art was localized to look closer to an eastern tea brand.

The same logic, replayed at scale. Luckin Coffee, founded in 2017, built its menu around tea-coffee hybrids and local flavors, sold through an app at local prices. It passed Starbucks' China store count in 2023 — 10,829 stores against 6,480 — and in April 2026, Starbucks sold 60% of its China business to a local partner, Boyu Capital. The company that defined coffee in China handed the keys to someone who understands it better. Tesla tells the story in reverse: the ultimate Western status brand holds about 5% of China's new-energy-vehicle market, against BYD's 23%. Red Bull's tea-flavored can, at industrial scale.

What changed since 2009

The bar has moved. Back then, success meant not offending: do not insult the gods, adjust the recipe, translate the campaign carefully. Today, domestic brands win on merit and on pride, so a Western brand must out-localize the locals. That requires more than market research. It requires the same thing it always did: immersion, participation, and lots of observation.

The valuable understanding required here also comes with the full awareness that we are tainted with our western vision and, it is through this stained glass that we perceive the Chinese market. This fact can be either a pain or a blessing. We just have to work hard towards making it a blessing.