NOT MY CUP OF TEA China is a country famous for tea. Over thousands of years, tea has been the beverage of choice in China. This, however, did not deter Starbucks from entering one of the fastest-growing consumer markets in the world. The first Starbucks opened in Taipei, Taiwan, in 1998 and the first mainland store was opened in Beijing in 1999. In an interview with CNN, Starbucks CEO Howard Schultz discussed the initial road bumps the company encountered in the tea-obsessed country. "We had to educate and teach many Chinese about what coffee was-the coffee ritual, what a latte was So, in the early years, we did not make money." However, by late 2016 there were over 2.300 stores in China, and Starbucks announced a goal of 5,000 by 2021, opening one new store every day for the next five years Starbucks analyzed the Chinese market and found that their brand was valued not only for their food and beverage offerings but also for the atmosphere of Starbucks stores. Chinese consumers enjoyed the opportunity to meet with friends and business partners in a comfortable location and appreciated the upbeat music and chic interiors. While kiosks have become popular in the United States, some Chinese Starbucks locations are as large as 3,800 square feet. Starbucks has customized its product offerings, introducing the Green Tea Frappuccino Blended Crème beverage in 2002 and Starbucks bottled Frappuccino® coffee drinks into Chinese markets in 2007. Not all Chinese consumers are fans of Starbucks coffee. Cheng Xiaochen, an English teacher who likes to meet students at Starbucks, exclaims, "It's a good place to meet people, but the coffee is so bitter it tastes like Chinese medicine." Responding to Mr. Cheng and others like him, the company offers mint hot chocolate and red bean frappuccinos. Food offerings have also been customized to the Chinese market, with Hainanese chicken sandwiches and rice wraps.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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