Cross-Border Co-Branding: KFC China's Game Strategy

Fan Hong

Department of Economics, Shanghai Business School, No. 78 Renmin North Road, Taihe Street, Dali, China

Keywords: KFC, Game Collaboration, Digital Marketing.

Abstract: Traditional catering brands struggle to attract young consumers and stay modern. KFC China found success

through video game partnerships. This study examines KFC's collaborations with games like Genshin Impact

and Eggy Party. It shows four key steps, choosing suitable game partners, creating themed dining experiences,

expanding online visibility, using data to keep customers engaged. These strategies help solve common

problems like outdated branding and limited innovation. KFC's approach offers practical tips for traditional

businesses going digital.

1 INTRODUCTION

Traditional food brands face challenges and

opportunities in the digital age, especially in

attracting young consumers. Existing studies focus on

traditional marketing methods like ads and packaging.

They overlook how cultural crossover elements

renew brands. Research, such as Aaker’s 1991 Brand-

Equity theory and Keller's 1993 CBBE model. They

also misses how gaming experiences drive real-world

purchases. KFC China partners with games to blend

digital culture with physical business.

This paper explores KFC's four-phase strategy

involving IP selection, immersive experience design

and so on. By aligning gaming culture with dining

scenarios, KFC transitions from short-term gains to

sustained brand ecosystem development. The case

study provides actionable insights for traditional

brands seeking to bridge physical and virtual

economies. It also highlights methods to convert

temporary marketing buzz into lasting brand value.

KFC's success illustrates collaboration can

effectively reconnect aging brands with younger

generations.

The primary objective of this study is to analyze

collaborative strategies that help traditional food

brands overcome digital age challenges, rejuvenate

brand image, and establish meaningful connections

with younger consumers. These insights are

particularly relevant in the Chinese market, given its

large consumer base, rapid digital transformation, and

youth-driven cultural trends, making it a pivotal

setting for studying IP marketing strategies.

2 THEORY & MECHANICS

Crossover collaboration enables brands from diverse

industries to leverage shared resources and strengths,

generating new consumer experiences and enhancing

brand value. A growing body of academic research

provides key insights into this phenomenon.

According to Pan et al. (2024), cultural marketing

strategies that integrate cultural elements into

products enhance brand revitalization by

transforming purchases into culturally immersive

experiences. This approach fosters brand engagement

by offering consumers a sense of cultural

participation and identity during transactions.

Technological integration is another essential factor

in the success of crossover collaborations. Fan and

Cheng (2024) emphasize that metaverse-related tools,

such as intelligent networks, facilitate the seamless

integration of digital IP elements into real-world

consumer experiences. A relevant example is the

virtual adaptation of Zhu Xi's cultural heritage, which

merges historical content with online interactive

experiences. Such integrations enhance consumer

engagement and contribute to brand modernization.

A study (Shang and Zhang, 2023) shows how

Wuhan’s heritage brand Wang Yuxia combined

online and offline strategies to target younger

audiences. KFC and Genshin Impact's partnership is

a successful case. It boosted youth engagement and

social media buzz. The essay (Xiang and Bai, 2023)

explains by using Bourdieu's field theory. Cross-field

IP flows unlock cultural value and turn creative assets

into economic gains while sustaining cultural-

214

Hong, F.

Cross-Border Co-Branding: KFC China’s Game Strategy.

DOI: 10.5220/0013841800004719

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics (ICEML 2025), pages 214-218

ISBN: 978-989-758-775-7

industry growth. Cross-promotion is a powerful

marketing tool. Meme theory explains its spread.

Brands need to connect with youth cultures for

renewal (Chen, 2023). KFC's Psyduck partnership

proves this works. There are three key elements:

cultural integration, tech integration, and precise

youth targeting. These strategies help brands talk to

young buyers and stay relevant. The KFC example

gives other companies useful ideas for youth-focused

marketing.

3 KFC'S BRAND CHALLENGES

This study adopts a qualitative research approach

through comparative analysis of multiple case studies.

It focuses on KFC's collaborations with gaming IPs

such as Genshin Impact and Eggy Party. Integrating

corporate annual reports and social media data. A

scenario analysis framework is applied to deconstruct

brand rejuvenation strategies. Case selection criteria

include the target market penetration of partnered IPs,

the level of digital innovation in marketing

campaigns, and the accessibility of user behavior

data. To ensure objectivity, findings are cross-

verified against brand-disclosed metrics and

references. Thereby establishing a analytical

foundation for interpreting KFC's youth-oriented

transformation.

3.1 Brand Aging

KFC’s existing packaging strategies fail to establish

a strong connection with younger audiences. In

contrast, competitors such as Heytea frequently

introduce culturally rich and seasonally themed

packaging, exemplified by the Palace Museum

collaboration’s ink-wash design cups. The lack of

innovative packaging limits KFC’s ability to engage

with trend-conscious youth markets. Additionally,

KFC’s delivery service performance highlights

deficiencies in digital engagement. Despite delivery

contributing to 40% of the company’s total revenue,

KFC lags behind McDonald’s in integrating gamified

digital experiences into its platform. The absence of

interactive engagement features within KFC’s

delivery system further diminishes its appeal among

younger consumers. Without addressing these gaps,

KFC risks losing market share to competitors with

more digitally immersive offerings.

3.2 Consumer Group Solidification

KFC's current strategies face multiple gaps in youth

engagement.KFC focuses more on family meals than

small options for young singles. In 2024, Chinese

youth (18-25) spent less per visit at KFC compared to

McDonald’s. Marketing heavily relies on discounts

("Crazy Thursday") without deeper collaborations

with gaming or social platforms. KFC’s Ticktock

orders stayed below 10%. However McDonald’s

boosted conversions by 18% via gaming partnerships.

These issues highlight KFC’s struggle to adapt to

youth preferences for flexible, interactive

experiences.

3.3 Lagging Product Innovation

KFC’s early game collaborations used basic "slap-

on" packaging instead of custom designs. In contrast,

Pizza Hut and Genshin Impact's collaboration

featured a foldable 3D packaging. It boosted social

media buzz. Meanwhile, KFC lags in healthy

offerings. McDonald’s China has over 3,400 green

restaurants and added items like salads, fruits, and oat

milk. For example, McDonald's 2024 spicy chicken

burger with oat milk combo balanced taste and

nutrition. The group meets modern demands.

4 KFC'S GAME TIE-UP PATH

This study applies the 4P marketing theory,

developed by Jerome McCarthy, to examine KFC’s

collaborative strategies with gaming IPs. The 4P

framework—Product, Price, Place, and Promotion—

serves as the foundation for analyzing how KFC

redefines these elements through digital innovation

and gamification to achieve brand revitalization.

From a product strategy perspective, KFC transcends

its traditional role as a fast-food provider by

embedding gaming IPs’ cultural value into product

design, effectively transforming its offerings into

extensions of the gaming universe. By incorporating

content-driven upgrades, KFC lowers cognitive

barriers for young consumers, enhancing brand

affinity. In terms of place strategy, KFC reconfigures

its spatial environment by integrating AR gaming

interactions, themed music, and carton themed

seating arrangements. These immersive

enhancements significantly increase daily foot traffic

and user dwell time, surpassing industry benchmarks.

By merging consumption with interactive gaming

experiences, KFC fosters social media-driven

engagement among young consumers. KFC’s

Cross-Border Co-Branding: KFC China’s Game Strategy

215

promotional strategy leverages cross-platform

synergy by distributing incentives across gaming

platforms, live-streaming services, and food delivery

applications. This multi-channel approach stimulates

active player participation, reinforcing brand

visibility across digital ecosystems. The 4P

framework remains structurally intact, yet its

application is adapted to gamification-driven brand

transformation. KFC’s case exemplifies how classic

marketing theories evolve in the digital era. The four

core strategic pillars of product contextualization,

channel scenarization, promotion gamification, and

price emotionalization provide a comprehensive

framework for effective cross-industry

collaborations. These tactics successfully reestablish

KFC’s connection with younger demographics.

4.1 IP Matching: Cultural Synergy

Cultural marketing helps brands break consumer

stereotypes and stay vibrant (Pan, Jiang and Cang,

2024). KFC partners with game IPs sharing its

cultural values, such as adventure and joy. When

KFC chooses IPs, it uses data to target overlapping

fan bases and avoid fading trends. For example, its

Genshin Impact collab blended online and offline

experiences. Players unlocked meals via in-game

tasks. Stores became card-battle zones offering

character-themed packaging and limited badges. This

strategy improved cultural resonance and youth

engagement. The Weibo topic "Genshin Impact and

KFC" surpassed 1 billion views. The activity attracted

30% first-time buyers. KFC transformed its image

from old-fashioned to youth-savvy. It proves cultural

marketing revitalizes brands.

4.2 Scene Immersion Mechanism

KFC creates youth-centric consumption settings

through immersive experiences and social sharing. It

can attract casual players and female users. In its

collaboration with Eggy Party, it launched a "Rolling

Delights" themed store. It was designed as the game's

elements. Consumers could play the AR game to win

dessert coupons, and purchase meals to randomly

receive six different milkshake cup lids. If people

collected all cup lids, they could get a limited - edition

plush toys. The gamified consumption transforms the

snack bars for only eating to one for socializing and

entertainment. During the collaboration, KFC saw a

surge in female consumers. There are many

collaborative topics on REDnote. One of them

trended top three. Customer loyalty, average

spending per customer, and in - store dwell time all

increased. KFC shed its family - restaurant image to

become a trendy hangout for the youth.

4.3 Traffic Expansion Strategy

Social and short-video platforms effectively attract

young audiences. They can effectively deliver brand

messages to young audiences (Shang and Zhang,

2023). They can make the participation of young

consumers be ideal. There are three kinds of

platforms in the strategy: game, social media and

delivery applications during its collaboration with

Game for Peace. In the game, players earned food

delivery discounts by completing challenges. The

way turns virtual achievements into real purchases.

Simultaneously, Snack Video hosted live streams.

Top creators showcased collaboration meals,

allowing viewers to unlock exclusive game skins

through interactions. On delivery apps, KFC designed

a game-themed page featuring items, encouraging

bulk orders for an immersive experience. This cross-

platform loop connected gaming wins, live-stream

excitement, and unboxing moments. It fosters

emotional connections with young users. The

campaign drove a sharp rise in online orders and

achieved the year’s highest trial rate for new products.

4.4 Retained User Data

Intelligent operations optimize platform efficienc and

enhance customer retention (Pan, 2025). KFC

employs data analytics, behavioral tracking, and

precision marketing to convert short-term

engagement into long-term consumer loyalty. During

its collaboration with Naraka: Bladepoint, KFC

linked game accounts with its membership system,

allowing players to convert in-game match durations

into redeemable discounts. Data analysis revealed

that male gamers preferred high-calorie, spicy food

options, prompting KFC to introduce the "War God

Frenzy Bucket", featuring a spicy chicken burger and

cola. To reactivate dormant users, KFC sent

personalized wake-up messages voiced by in-game

characters, successfully increasing campaign

engagement and recall rates. By integrating data-

driven insights with gaming culture, KFC

significantly enhanced member engagement and

repurchase rates. By 2024, KFC’s membership base

exceeded 395 million, with an expanding user-tag

library enabling customized marketing campaigns.

The shift from passive consumer engagement to

active digital interaction solidifies KFC’s competitive

advantage in the evolving digital landscape.

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5 CONCLUSIONS

5.1 Collaborative Value

Crossover collaborations help brands build deeper

connections. KFC partnered with Genshin Impact to

prove this. They did more than just give stickers and

meal discounts. Using the "Inter-World Encounter"

theme, KFC became a part of the game's story.

Players felt emotionally tied to KFC while playing.

This strategy mixes virtual and real-world

experiences. By teaming up with popular IPs, brands

can create cultural systems that resonate with young

people long-term.

5.2 Data-Driven Precision

KFC's collaboration with Naraka:Bladepoint shows

how data technology boosts marketing. KFC used a

central data platform to connect gaming activity with

customer behavior. For example, the platform tracked

what players did in the game. It also studied their real-

life purchases at KFC. By combining these two types

of data, KFC could understand players' preferences

clearly. This helped them create targeted promotions.

If players often bought virtual weapons in the game,

KFC might offer them spicy chicken burger discounts.

If players stayed up late gaming, KFC sent them

midnight snack coupons. These actions turned

gaming enthusiasm into actual store visits.Traditional

marketing often guesses what customers want. But

this data-driven method removes the guesswork.

Brands can now design campaigns based on real user

habits. In today's crowded, fast-changing markets,

such precision helps brands stand out and build

stronger customer loyalty.

5.3 Function to Meaning

The Eggy Party collaboration reflects a broader shift

in consumer behavior. Today's young consumers

prioritize emotional connections and social

experiences over purely functional product attributes.

By incorporating blind-box collectibles and AR-

based interactions, KFC successfully transformed its

membership program into social currency, driving

both repeat purchases and social media engagement.

5.4 Industry Implications

Brands should choose IPs that match their culture.

This has many benefits. It can deepen the co-creation

of content between the brand and the IP. It also lowers

the cognitive barriers for young audiences. This helps

spread the brand culture effectively. Brands can use

sensory design and gamified interaction. It turns

stores into cultural experience spots. It also shatters

the fixed brand image and offers a fresh experience.

Brands are supposed to combine gaming, social, and

local-life platforms. This builds a full traffic

ecosystem. It creates a closed loop about trending

topics, offline consumption and social sharing. This

breaks through traffic barriers and boosts brand

influence. A data mid-platform is quite useful. It links

users' virtual and real actions. This changes user

preferences into the brand's core competitiveness.

Data gives the brand a data-driven edge in the market.

5.5 Future Direction

KFC's gaming partnerships illustrate how legacy

brands can remain relevant by shifting from logo

placement to experience creation. Future strategies

may involve earning in-game rewards through meal

purchases, VR-based customer interactions, and AI-

driven personalized menu recommendations based on

gaming history. Future research should explore how

gaming loyalty influences purchasing behavior and

how smaller businesses can implement similar

digital-physical integration models.

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