With Starbucks China has made the expected recovery from the pandemic, it's uncertain whether the momentum will carry it through the cutthroat local competition.
and recent news coming from within the industry seems to point into this direction, as recent articles within the Chinese coffee industry are mentioning that, it seems, Chinese customers think that innovation of Starbucks drinks is somewhat conservative... its products in China are either "intact" or when new products are launched, Chinese consumers feel the taste is "much the same" and doesn't "hit" most consumers' expectations; this is an issue Starbucks needs to work on, as Chinese coffee drinkers (and Chinese consumers in general) like new things, all the time.
What I think would be really useful is an explanation Why Starbucks unlike many other Western businesses succeeded in China. It's not like we can imagine China luring in Starbucks to trap them in the market and strip them of intellectual property. Or that top starbucks leadership is literally married to Chinese people. I don't think it can be explained ideologically as 社会主席。 So Why did Starbucks succeed?
May 8, 2023·edited May 8, 2023Liked by Yaling Jiang
Thank you for answering my ill formed question. I was just asking a question, not making any statements. Any speculations in the question are just hypotheses.
Alas, though, I seem to have mixed up my 社会 (social) and my 主席 (chair). Of course, I was trying to say something like "social production", again just me grasping at straws trying to understand something far from me.
I think I want to reiterate the timing because if it entered today, it may be a different story. Over 20 years ago, Starbucks was THE ONE in China. When I first went In early 2000s in a higher tier city, I took pictures!
You're getting at something I am imagining; which is the idea that Xi Jinping is concerned about reigning in too-powerful capitalists (Jack Ma) and stars (even Li Ziqi!?) and wishes to build national companies rather than host international ones; apparently, he sees that as the logical move to make, having eradicated extreme poverty. Maybe my views are wrong, they are certainly incomplete.
You're getting at something I am imagining; which is the idea that Xi Jinping is concerned about reigning in too-powerful capitalists (Jack Ma) and stars (even Li Ziqi!?) and wishes to build national companies rather than host international ones; apparently, he sees that as the logical move to make, having eradicated extreme poverty. Maybe my views are wrong, they are certainly incomplete.
Not sure if I understand you correctly, but I don’t think coffee has IP built in it? If it did then the independent Italian cafes can sue the hell out of Starbucks in a class action.
Re: success, it entered China over 2 decades ago was the country became open to foreign business and the demographic dividend was untapped. It doesn’t touch on sensitive subjects or data; and in the business context, it’s established itself as the market leader.
very good piece about Starbucks in China!
and recent news coming from within the industry seems to point into this direction, as recent articles within the Chinese coffee industry are mentioning that, it seems, Chinese customers think that innovation of Starbucks drinks is somewhat conservative... its products in China are either "intact" or when new products are launched, Chinese consumers feel the taste is "much the same" and doesn't "hit" most consumers' expectations; this is an issue Starbucks needs to work on, as Chinese coffee drinkers (and Chinese consumers in general) like new things, all the time.
For sure! As we can see across various consumer brands, Chinese consumers are quite spoiled 😆
What I think would be really useful is an explanation Why Starbucks unlike many other Western businesses succeeded in China. It's not like we can imagine China luring in Starbucks to trap them in the market and strip them of intellectual property. Or that top starbucks leadership is literally married to Chinese people. I don't think it can be explained ideologically as 社会主席。 So Why did Starbucks succeed?
Thank you for answering my ill formed question. I was just asking a question, not making any statements. Any speculations in the question are just hypotheses.
Alas, though, I seem to have mixed up my 社会 (social) and my 主席 (chair). Of course, I was trying to say something like "social production", again just me grasping at straws trying to understand something far from me.
No worries!
I think I want to reiterate the timing because if it entered today, it may be a different story. Over 20 years ago, Starbucks was THE ONE in China. When I first went In early 2000s in a higher tier city, I took pictures!
You're getting at something I am imagining; which is the idea that Xi Jinping is concerned about reigning in too-powerful capitalists (Jack Ma) and stars (even Li Ziqi!?) and wishes to build national companies rather than host international ones; apparently, he sees that as the logical move to make, having eradicated extreme poverty. Maybe my views are wrong, they are certainly incomplete.
You're getting at something I am imagining; which is the idea that Xi Jinping is concerned about reigning in too-powerful capitalists (Jack Ma) and stars (even Li Ziqi!?) and wishes to build national companies rather than host international ones; apparently, he sees that as the logical move to make, having eradicated extreme poverty. Maybe my views are wrong, they are certainly incomplete.
Not sure if I understand you correctly, but I don’t think coffee has IP built in it? If it did then the independent Italian cafes can sue the hell out of Starbucks in a class action.
Re: success, it entered China over 2 decades ago was the country became open to foreign business and the demographic dividend was untapped. It doesn’t touch on sensitive subjects or data; and in the business context, it’s established itself as the market leader.
P.S. What does 社会主席 mean?