Din Tai Fung – A Sales Strategy Worthy of Recognition

 For many who have lived in Asia, DIN TAI FUNG is a very familiar Brand.   Founded in 1958 in Taiwan, it was a small “mom and pop” store specializing in “Xiao Long Bao” which has since turned into a global entity.  This is a success story in the world of Food and Beverage and the success is due to what “I think” is a remarkable sales strategy.

When we relocated to Seattle, Washington, we were more than delighted to learn that Din Tai Fung would open several restaurants in the area.   As the company considered their expansion into foreign markets outside of Asia, I am sure that conversations inside the board room went something like this.   “We want to expand into foreign markets but Xiao Long Bao is not known to them.   How  do we get them to try it, enjoy it and then come back for more?”

I have for years marveled at their success especially outside of Asia.   Xiao Long Bao is known in the west as “soupy dumplings” and enjoying this delicacy is an artform.    While eating Xiao Long Bao is very common with Asians, especially Chinese who grew up with it, others may not be familiar with chopsticks, bamboo steamer baskets, dumplings filled with  hot soup, picking up the dumpling using chopsticks without damaging the skin, and the ginger/vinegar dipping sauce.  Give credit where credit is due, and Din Tai Fung is a fabulous example of executing a very successful sales strategy.  On my first visit to the Din Tai Fung in Seattle some years ago, the restaurant was full. 

So, what was their secret in sales which made them so successful in a foreign market?     

In order to gain and sustain patronage, they decided to  “TEACH” this audience how to eat Xiao Long Bao.  Their sales strategy had to be based on  “if they don’t know what it is, they are not going to buy it, so we teach them.”

When you sit down in the restaurant, the server approaches and before anything else asks a simple question.   “Have you been here before, and do you know how to eat Xiao Long Bao?”   This is how the server greets every guest.    If the answer is no, and this is the first time, the server proceeds to “TEACH” the art of eating Xiao Long Bao.  That lesson is short, direct, and easy to understand (See a picture of the tent card also on every table included with this article).      Thereafter, the server takes the order.

Management seems to have hit the nail on the head with this strategy.   Din Tai Fung is today a global Brand with branches in 11 countries around the world and probably more to come.   Imagine that this was a small “mom and pop “ store in Taiwan and they grew because they took the time and made the effort to teach. 

The sales strategy in this story is simple.  “THEY TAUGHT THE CONSUMER  HOW TO EAT XIAO LONG BAO.”   Teaching the consumer how to utilize, enjoy, partake, in their product leads them to buy.   Most of these consumers did not understand nor have a need for Xiao Long Bao but after being taught how to eat and enjoy it, the need was created. 

Think about your product.  Does the consumer know how to use your product? 

If not, will you take the time to teach them so that they will understand and then buy your product?   The question is simple, and the answer is even simpler.