Download - Starbucks in China
Case Study STARBUCKS IN CHINA
Sabuhi ABDULZADEMatthias CONSTANT
Ubaldo CUSPILICIAngelo Francesco ROSSI
Introduction Starbucks goes to China
Ethical Issues of Starbucks China Starbucks future
Introduction
Founded in 1971 in Seattle1987 : Starbucks is bought by a former employee, Howard SchultzImplemented the Italy coffee culture in North AmericaIntroduced Starbucks as a « Third Place »
Introduction Starbucks goes to China
Ethical Issues of Starbucks China Starbucks future
Starbucks goes global
• 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 countries
Introduction Starbucks goes to China
Ethical Issues of Starbucks China Starbucks future
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
Introduction Starbucks goes to China
Ethical Issues of Starbucks China Starbucks future
Conquering the land of tea
• Introduce the general public to the intricacies of coffee
• Capitalize on the tea-drinking culture of Chinese consumers by introducing beverages using popular local ingredients such as green tea
• Promote only locally and with word-to-mouth
Introduction Starbucks goes to China
Ethical Issues of Starbucks China Starbucks future
Starbucks becoming Chinese
• 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
Introduction Starbucks goes to China
Ethical Issues of Starbucks China Starbucks future
Why did it work?
• 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
Introduction Starbucks goes to China
Ethical Issues of Starbucks China Starbucks future
Starbucks’ ethical issues
• Opening in Forbidden City
• Kids appeals• Overpriced
compared to other countries
Introduction Starbucks goes to China
Ethical Issues of Starbucks China Starbucks future
Starbucks expansion
• 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
0400800
12001600
361 406 496 646
1500
Number of Starbucks in China
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