Why is China, traditionally a non-coffee drinking Culture, an important market f

Question

Why is China, traditionally a non-coffee drinking Culture, an important market for Starbucks? Identify three main factors/reasons that make china an attractive market for Starbucks.

Explain why it is important for Starbucks to expand from North American market to China. Finally assess the Chinese market; you must refer to Chinese lifestyle trend choices and how these choices will positively impact Starbucks. The lifestyle of Chinese youth and affluent professionals should be seriously considered while conducting your analysis.

Explanation / Answer

Q!. China is an important and an attractive market for Starbuck's in following ways:

1. China is the second largest growing country, which emerge as an strong economy. the middle class people of china in these last 5 years have changed their lifestyle and may afford plush dine in.

2. Starbuck's attract the Young generateration or crowds in all its Asian markets, as young people especially in southe east asian markets were eager to follow the western culture. By opening the store with chic interior, plush launge, chairs, music etc.

3. Starbucks adapted itself to the local culture of china to gain market acceptance. By offering china's local flavor in coffee such as Teavana, Green tea coffee which are at high demand in china. Also offered curry puf or buns , something to eat with while having coffee.

Q2. It is important to expand from north american market because:

Starbucks has already at saturation point in north American market . China is tea market , the people in china not even taste or took the experience of the coffee. so it is new product in the new emerging market.

China is fast growing economy in the world, where people are ready to expand for the new products and to partner with the local dealer to understand the Culture and choise of China. China had partnered with local coffee distributors in Beizing, vietanam etc.

Q3. Chinese Market: (a) Adopted the chinese local culure like their food, taste, ingredients and offered the tea flavor coffee such as teavana or gree tea coffee.

(b)Attaction towards Western country: many young generation of asian countries tries to imitate the western culture because they think the western country has high quality standard product , which is again the plus point for starbucks.

(c). Starbucks make an opportunity to enhanse the business for the local Coffe producer in vietnam which ecport to china.

(d) Starbucks maintains the brand integriety for Example No smoking Allowed in the store, Giving job opportunity to the students( part time), locals, Student loan, Good, flexible working condition, Giving training to the local baristas like cheerful greeting, different flavoured coffee making proces from the starbucks American Expert beristas etc.

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