Starbucks in China: The Bare Facts
Basic Facts about Starbucks in China
How about some basic facts about Starbucks in China? Straight from its latest press release,
Starbucks has been a part of the communities where it operates in China since the opening of the Beijing location in 1999. As of October 1, 2006, approximately 10,000 partners were delivering the Starbucks Experience to over 430 stores in Greater China, which includes more than 190 stores in 19 cities on Mainland China.
So Starbucks has expanded from one store in mainland China to more than 190 stores in a mere seven years. Pretty impressive, isn’t it? What does Starbucks have to say about their expansion in China? This excerpt is taken from Starbucks’ 2005 Annual Report:
We feel very fortunate that the Starbucks Experience resonates around the world, as we have increased customer depth and awareness in existing markets. We have also been warmly accepted in new countries, including Jordan, the Bahamas and the Republic of Ireland. We are especially excited by our progress in China, and we believe this will ultimately represent one of our largest markets outside the United States. We now have more than 200 locations in mainland China and Hong Kong, with more than 150 additional locations in Taiwan. These include our first Company-operated stores in Qingdao, Dalian and Chengdu, and we are very optimistic about our continued expansion into the broader Chinese market. While we plan to focus our attention on the abundant opportunities in China, we will continue to explore new countries for future growth of our international business, including Brazil, India and Russia. We should also note that our existing market portfolio represents substantial growth potential.
At the rate Starbucks has been expanding in China, someday China may end up becoming Starbucks’ largest market! Unlikely considering America’s penchant for being spendthrifts and addiction to Starbucks coffee, but possible.
My Starbucks Experience in China
Since coming to Shenzhen at the end of 2004, Starbucks has expanded to over 10 locations in the highest per-capita income city in mainland China. There is no doubt that this is just the beginning. Although recently Starbucks rate of expansion in Shenzhen, China has slowed down a bit, it has by no means stopped. Starbucks is already in most of the “hot commercial spots” of Shenzhen.
Now the question is whether Starbucks can transform itself from being a necessary “third space” for a handful of people in China and novel meeting place to the rest to being a necessary part of the daily lives of massive numbers of Chinese people. That depends on many uncontrollable factors, but is certainly a possibility for Starbucks in China. What do you think about Starbucks’ future prospects in China?
