Case Study: Starbucks Global Take-Over Of China

“Starbucks Global Take-Over of China”

Starbucks changed the concept of drinking coffee; no longer is coffee just a product it is a lifestyle. Through making coffee drinking an experience Starbucks was able to move a domestic product from a simple coffee shop in Seattle Washington to a renowned product globally. Starbucks has come a long way since its first beginnings in 1971. Today, it’s the world’s largest coffee retailer, with over 19,000 locations in more than 60 countries. What sets Starbucks a part within in the company is that the staff, which are known as partners, are responsible for the sale of over 2 billion cups of coffee every year and create what is known as, “the Starbucks Experience”(Krikorian). This experience was not only

Starbucks is able to give this lifestyle the quality experience that has attracted such a market in the United States, people are able to enjoy a luxury coffee in the store, but also on-the-go. However, Chinese consumers of Starbucks have different tastes, “they value space and couches on which to relax in the afternoons” (Burkitt). So in order to address these desires, Starbucks is adding stores that have 3,800 square feet that can accommodate large groups of friends, family, and businesses employees coming together for the afternoon. The company is also not also relying on income rises in households to attract the Chinese to Starbucks; they are relying on lifestyle in the emergence of a shifting lifestyle. In order to attract the rising Chinese population too openly or subconsciously identify to more “cosmopolitan tastes” they have adjusted the store layouts in accordance to culture and aesthetical appeal of the geographic location. Now the stores in these surrounding areas are geared towards, “laid back, smoke-free coffee shops” (Smith). These shops will now appeal to “people in a land of cramped living quarters and loud, crowded restaurants”. Smith makes great points throughout the article revealing that it may not even be consciously, but people are becoming more inclined to modernization, not just Western ideals. Young generations of educated Chinese youths are “watching, wearing, eating,

In her article, “Taking a Hand-crafted Approach to Globalization”, she gives insight to her personal views on the globalization in China and how Starbucks morally was able to infiltrate such a fast paced country. According to Silloway, “the most powerful and enduring brands are built from the heart”. These companies have an authenticity that promotes the building blocks of success. Silloway goes into detail explaining the three step process of “1.) Developing a strong brand position that transcends boundaries 2.) Celebrate the local culture. 3.) Hire the right people”. Silloway argues that these three steps contribute to the thoughtfulness, respect, and humility required to brand in a country that is geographically and culturally diverse. When going into the market in China, Starbucks could have tried to overly dominate the existing culture with Western ideals, by bringing their own employees and stores. However, China hired those for their stores that were familiarized with Chinese culture and this is why they have had such great