(9) The Forbidden City and Starbucks?!
by Noelle ~ March 31st, 2011. Filed under: Marketing.In response to Janice’s blog post about Starbucks in the Beijing’s Forbidden City, I agree with her that opening up one of its store in this historical location is not a wise move.
http://captainstlucifer.files.wordpress.com
Distribution is all about getting the right product to the right place at the right time. Beijing’s Forbidden City was built in 1420, and it has a lot of historical value as it was home to 24 emperors until the end of imperial rule in 1911. On the other hand, many people see Starbucks as a modern international coffeehouse company.
Due to the differences in their images and culture of the Forbidden City and Starbucks, this Starbucks branch was forced to close down after huge protests.
http://www.flickr.com
Two months after this Starbucks branch’s closure, the Forbidden City opened its own café. This “Forbidden City Cafe” contains a lot of traditional Chinese elements, such as wooden tables, wooden chairs and pictures featuring Chinese culture. In addition, this new café does not only serve coffee, it also has some traditional Chinese beverage such as tea.
From this example, we can see that PLACE is a very important factor as it affects the success of a company. Companies should definitely think carefully before opening up a new retail store, especially at a historical site.