Global Marketing

Starbucks in China (1/2)

The latest Starbucks Reserve Roastery in Shanghai




Starbucks, founded in 1971, is the world's largest coffee chain, whose headquarters is located in Seattle, Washington, USA. Starbucks has 30 retail products, including a variety of the world's top coffee beans, handmade espresso and some kinds of hot and cold coffee drinks, a couple of fresh and delicious food, coffee machine, coffee cup and other goods. Starbucks has nearly 21300 stores all over the world, located in North America, South America, Europe, the Middle East and the Pacific.

Starbucks considers that China market has great consumption potential in the coffee market, then determines to implement the long-term development in China. Since 1998, Starbucks has opened more than 430 stores in China, including HongKong, Taiwan and Macao, in which over 200 in mainland China. Starbucks opened its first store in Beijing International Trade Center of mainland China in January 1999, then rapidly expanding. China has become Starbucks's second home market. In 2014, there were 823 company-operated Starbucks stores in China.

China is a member of the WTO. There are two advantages of Starbucks: On the one hand, the opening trade reduced the cost of Starbucks in China. At the same time, taking participation in WTO develops the overall economy and improves people's living standards, and then let more people be able to consume coffee in Starbucks. On the other hand, the West and China have more cooperation and communication through the coffee, which makes communication of culture deeply, have live style similarly and change consciousness simply. And the spirit of coffee in the Western life is romance and taste, which be gradually affecting the Chinese people. In addition, with the development of multinational enterprises, many office workers have pressures need to be released all over the world, there is a common need of coffee to stay awake. So Chinese has a very potential market.

The population of China is mainly distributed in the eastern coastal areas where have developed the economy and convenient transportation. Today, you can find a Starbucks store on almost every major street. And most importantly, Starbucks design their every store to match the local surroundings, before opening one store, the staff always research the native culture, lifestyle, the purchasing power and some other details, and then think how to put Starbucks into. For example, located in Town God's Temple, Starbucks looks like a modern temple; and the Binjiang branch of the Starbucks, nearby the Huangpu River, is designed the garden glass curtain and the gorgeous palace. When night falls, customers could taste the coffee leisurely and enjoy the scenery of bund.

According to the Chinese people's tastes are different from the European and American. Starbucks launched a series of products to meet the tastes of the Chinese people. For example, Starbucks has not forced Chinese customers to accept the same products as the United States, such as cream Iced Coffee drinks, but launched green tea flavor coffee beverage. In addition, the standard high tea—Teavada —has used in the Chinese market to satisfy the need for Chinese buyers.

Starbucks is a company that not only creates a new experience for customers but also pays high attention to emotional and value of the staff. Howard Schultz, the founder of Starbucks, realized the importance of staff in brand communications, he looked for a new management way—makes the expenditure of advertisements transfer to employees’ benefits and training—to reduce the mobility of staff and enhance employee loyalty to their company. In this way, loyalty employee can increase in productivity, long-term steady workers can get high-level working skills and broaden their business knowledge, and then improve service quality.