I recently read Rui Wu’s blog starbucks-in-china and she mentioned the reasons of Starbucks’ success in China. I agree with her opinions but there are more factors contributing to the issue.
Nowadays, Starbucks has become the favorite affordable luxury lifestyle brand in China. The reason is because the products of Starbucks are pricier in China than other major branches in the world and the consumer segments concentrate on the middle class. It gradually leads to a prevalent trend among Chinese youth as they want to be closer with the Western culture. Furthermore, Starbucks has developed many new products that appeal to local tastes such as green tea-flavored coffee drinks. This way, many Chinese consumers adapt to coffee drinks instead of traditional tea beverages, as coffee has more adorable flavors. Moreover, the business strength of Starbucks comes from their dedication to recruiting, retaining and training employees. The low rate turnover and high quality of consumer services are facilitated by offering good compensation packages, friendly work environments, and realistic career paths. Thus, Starbucks gains a lot of reputation from their consumers and employees.
However, from my perspective, I still believe that Starbucks would not change the Chinese lifestyle of drinking tea as coffee is expensive, induces healthy problem and is popular for a narrow consumer segment.
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The picture is from:
http://marketingtochina.com/the-coffee-market-in-china/
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