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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