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
THANK YOU FOR YOUR ATTENTION
ANY QUESTIONS??
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