Starbucks in China

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The penetration of Starbucks in China with a focus on the inter cultural dimension

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Starbucks in China

  1. 1. Case Study STARBUCKS IN CHINA Sabuhi ABDULZADE Matthias CONSTANT Ubaldo CUSPILICI Angelo Francesco ROSSI
  2. 2. Introduction Introduction Starbucks goes to China Ethical Issues of Starbucks China Starbucks future Founded in 1971 in Seattle 1987 : Starbucks is bought by a former employee, Howard Schultz Implemented the Italy coffee culture in North America Introduced Starbucks as a « Third Place »
  3. 3. Starbucks goes global Introduction Starbucks goes to China Ethical Issues of Starbucks China Starbucks future • First store outside US: Tokyo Japan in 1996 • Two main methods : licensing and franchising • Find the right local partner • Focus on Asia: 850 stores in 14 Asian
  4. 4. Starbucks goes to China Introduction Starbucks goes to China • First in Chinese hotel to test the market • 1999: opened first store in Beijing World Trade Center Joint venture for each part of China: • Northern China - joint venture with Beijing Mei Da coffee company • Eastern China - partnered with Taiwan-based Uni-President • Southern China - worked with Maxim's Caterers in Hong Kong Ethical Issues of Starbucks China Starbucks future
  5. 5. Conquering the land of tea Introduction Starbucks goes to China Ethical Issues of Starbucks China Starbucks future • Introduce the general public to the intricacies of coffee • Capitalize on the teadrinking culture of Chinese consumers by introducing beverages using popular local ingredients such as green
  6. 6. Starbucks becoming Chinese Introduction Starbucks goes to China • Traditional Chinese items, such as festival moon cakes, curry puffs, and sausage rolls • Cibled young people opened to Western culture • Used Chinese calendar to promote their coffee Ethical Issues of Starbucks China Starbucks future
  7. 7. Why did it work? Introduction Starbucks goes to China Ethical Issues of Starbucks China Starbucks future • Manage to become the « Third Place » and create « The Starbucks Experience » • Going in joint venture and adapting to Chinese market • Manage to position as an aspirational purchase and status symbol • Good brand recognition and image • Good employer
  8. 8. Starbucks’ ethical issues Introduction Starbucks goes to China • Opening in Forbidden City • Kids appeals • Overpriced compared to other countries Ethical Issues of Starbucks China Starbucks future
  9. 9. Starbucks expansion Introduction Starbucks goes to China Number of Starbucks in China 2000 1500 1500 1000 500 0 361 406 496 646 Ethical Issues of Starbucks China Starbucks future • Hear Music with Concord Music Group • Sell Starbucks products inside the store • Xi’An Women & Children Activity Center through Starbucks fundation • Increasing number of stores in the next years
  10. 10. THANK YOU FOR YOUR ATTENTION ANY QUESTIONS??
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