The penetration of Starbucks in China with a focus on the inter cultural dimension

1. Case Study
STARBUCKS IN CHINA
Sabuhi ABDULZADE
Matthias CONSTANT
Ubaldo CUSPILICI
Angelo Francesco ROSSI

2. Introduction
Introduction
Starbucks goes to
China
Ethical Issues of
Starbucks China
Starbucks future
Founded in 1971 in Seattle
1987 : Starbucks is bought by
a former employee, Howard
Schultz
Implemented the Italy coffee
culture in North America
Introduced Starbucks as a
« Third Place »

3. Starbucks goes global
Introduction
Starbucks goes to
China
Ethical Issues of
Starbucks China
Starbucks future
• 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

4. Starbucks goes to China
Introduction
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
Ethical Issues of
Starbucks China
Starbucks future

5. Conquering the land of tea
Introduction
Starbucks goes to
China
Ethical Issues of
Starbucks China
Starbucks future
• Introduce the general
public to the intricacies of
coffee
• Capitalize on the teadrinking culture of
Chinese consumers by
introducing beverages
using popular local
ingredients such as green

6. Starbucks becoming Chinese
Introduction
Starbucks goes to
China
• 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
Ethical Issues of
Starbucks China
Starbucks future

7. Why did it work?
Introduction
Starbucks goes to
China
Ethical Issues of
Starbucks China
Starbucks future
• 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

8. Starbucks’ ethical issues
Introduction
Starbucks goes to
China
• Opening in
Forbidden City
• Kids appeals
• Overpriced
compared to other
countries
Ethical Issues of
Starbucks China
Starbucks future

9. Starbucks expansion
Introduction
Starbucks goes to
China
Number of Starbucks in
China
2000
1500
1500
1000
500
0
361 406 496
646
Ethical Issues of
Starbucks China
Starbucks future
• 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

10. THANK YOU FOR YOUR
ATTENTION
ANY QUESTIONS??