Local coffee brands in China

local coffee brands in China

LOCAL COFFEE BRANDS IN CHINA Overview of the coffee market in China According to data from China Coffee Association Beijing, the coffee consumption growth is increasing at an annual rate of 15 percent. Even if the population individuals drink an average of 5 cups of coffee per year, compared to the world’s average of 240 […]

Coffee shop in China

Starbuck China

China has never been a country with a strong market of drinking coffee. The annual consumption of coffee per capita is as little as 4 cups in China, while the United States is the world’s largest coffee market in terms of total consumption with 441 cups yearly, valuing US$30 billion yearly. However, China’s coffee market […]

Marketing research: Coffee shops and teahouses in China (Focus on Starbucks)

Starbucks’ continuing expansion in China As of July 2013, Starbucks owned 878 company-operated and license stores in China. This US-based coffee chain operator aims open another 700 stores by 2015. Starbucks success in a country with a strong tea culture can mainly be attributed to the company’s effort to remain localized. For example, Starbucks offers its Chinese customers Biluochun green tea and Mudan White Tea. During traditional Chinese festivals, Starbucks will promote special-edition products, such as moon cakes and glutinous rice dumplings. This localization strategy has been working well in China. Potential challenges that might slow growth Although China is a tea-drinking country, tea houses find it difficult to formalize a well-organized chain. In general, tea houses are regarded as places for the elderly to spend time chatting and playing cards. Starbucks’ real competition comes from Costa, a UK-based company, which is expanding rapidly in China. Costa’s strategy is quite aggressive: the company opens new stores close to Starbucks, or occupy the stores where Starbucks just ended the contract. It entered into China’s market in 2006 hoping to open 2500 stores in total in 2015. […]