468 Retail and Channel Management Blog

Tuesday, February 7, 2017

Starbucks: From coffee store to living style

  Yesterday I walked out of the door of a Starbucks with a cup of latte, tried to catch my next train to school, and getting used to "buy a coffee and leave" style life. Just like all of Canadians do in this normal coffee store. I believe that you may not know that Starbucks is doing totally different business across the Pacific Ocean. When Starbucks open the first store in Asia, especially in China, they have been forced change their position and strategy for better fit in the Chinese market.

  Chinese beverage market is huge and full of competitions. As a traditional tea-drinking culture there is almost no room for coffee to get in. Many other coffee company has tried but failed immediately. In China people like to chat, play chess, and even gamble in the traditional tea store (Bar).

By the time passing, new generation has been tired of this old stuff and looking for new stimulation. Starbucks come in and use its way to take over the market.

Starbucks’ strategy in China is different compare to western countries. They build a fancy and complex store to attract people, using the best interior design and furniture to create a wonderful atmosphere to make people desire to stay there. To better attract people to drink coffee instead of tea. Every Starbucks will have a mini fake coffee factory. To present the process of making coffee. And also using the real baked coffee beans to dress it. A lot of people who are already addicted to Stay in Starbucks, they think they can stay here study or work more efficient than other places, it brings relaxation to them. The response to this new product is positive, the flavor is connect to Starbucks tide and people were impressed. Its goal is no longer to sell people cups of coffee but also want it them to like Starbucks’ culture. Its effect is huge. It now has over 2000 Starbucks in China.

Starbucks set its stores carefully in China. It is almost focusing on the center of a city, surrounded by outlets stores and luxury stores. It create an impressions to potential customers that Starbucks is the signature of high classes. The unique Starbucks’ atmosphere is also changing by various location. If it is near a library or Concert Hall, it will has some activities such as: a book for a free coffee.

 If it is near to entertainment places, it will furniture like this:
 If it is located in a thousands years old town for tourist, it will look like this.

   Apparently Starbucks is way more different in China, Even though the taste of coffee is the same.




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