Starbucks has played its cards right in China, by not only selling coffee in a country of tea drinkers, but also by selling their product for a premium price. Business analyst Shaun Rein explains to AFP why Starbucks is so successful.
“Starbucks has done a great job at catering to the needs of the Chinese consumer, who love the coffee experience. Price is just not an issue,” said Shaun Rein, China Market Research Group managing director.
Coffee culture is relatively new to China and though the market is growing rapidly it remains small compared to the United States or Europe…
Starbucks has previously estimated that China has a massive potential market of 200-250 million coffee drinkers.
“I am very bullish for the firm in China. Their future is bright but challenges remain, including surging real estate prices, higher wages, lack of qualified staff and growing competition”, said Rein.