This post was inspired by Emily Chen’s post

Out of the many interesting things Prof. Gateman has said this year, “Starbucks is an affordable luxury” would definitely be one of the most thought-provoking.

I’m in love with Starbucks Canada for various reasons, but I’m also in love with Starbucks China for others. Indeed, the multi national enterprise has adjusts its market positioning and branding strategies for the Chinese population.

Three years ago, Starbucks was still only operating in first line cities such as Shanghai and Beijing. Back then, the relatively pricey drink attracted mostly foreigners and white collars. However, when I  went back this summer, Starbucks was everywhere – the great majority of provincial cities had at least two stores. And to my great surprise, my cousin, who is in middle school, would get together with friends and Starbucks. She told me that in her school, “could I buy you a cup of we Starbucks?” would guarantee a date.

There was a new Starbucks vibe in the air that I used to only sniff in North America. Like its counterparts around the world, Starbucks China had successfully captured the values of the Chinese. The Starbucks logo has once again evolved into a symbol of high taste, sophistication, and status.

With China’s great opening act in the economic sector, Chinese are getting richer, and they seek different ways to manifest this. Starbucks has aligned itself with the modern Chinese’ desire to differentiate him or herself through the means of consumption. Yet, unlike other Giffen goods such as Hermes bags and Christian Louboutin shoes, coffee’s relatively affordable pricing helps Starbucks not only appeal to the Chinese nouveau riche, but also the emerging bourgeoisie.