Many people's daily routine in the Western world includes a nice hot cup of coffee. Although
we love our cup of java at home, our mornings wouldn’t be complete without the early stop
to grab a venti skinny no-whip caramel latte in our favourite white cup with the green
mermaid logo. The popular coffee chain known as Starbucks has spread like the yellow big capital
M we see all over the world, including China! They have the most Starbucks locations outside
of the United States with 2,500 shops! So why does this tea drinking culture love Starbucks?
Let’s find out and look at the top 10 reasons why China loves Starbucks.
China is becoming more Westernized
With the fast-paced rise of the Chinese middle class, estimated at almost 350 million, Starbucks
has made its way into their hearts. That's more than the entire population of the United
States, and a big portion of this growing middle class in China is considered "Generation
2" which is said to be the most Westernized of the previous generations. The Chinese culture
of this generation is adapting to more Western foods, drinks and even style. They are the
modern Chinese "boss babes" and "hustlers" who have learned from Westerners that a morning
cup of caffeinated coffee is fuel to "get things done". Starbucks swooped in and took
advantage of this by capitalizing on this growing populations’ love for Western experiences
by giving them the "Starbucks experience". Over 30 years ago, China opened its doors
to the outside economy and since then there has been a steadily increasing interest in
the Western world. A city in southern China, called Shenzhen is said to be the most Western
city in China where many of these G2's migrate for a more Western experience. You can find
many popular Western restaurant chains, stores and brands all over the city. The Chinese
are intrigued and open to Western brands which gives shops like Starbucks the chance to rebrand
themselves in China.
Starbucks is Partnered with WeChat
In 2012, Starbucks joined WeChat, an app with various services that now has more than 500
million users. Starbucks has encouraged Chinese customers to socially interact with it and
their friends. WeChat is extremely popular and used by everyone who has a smartphone
and that's, well, just about everyone! WeChat allows you to pay at Starbucks, order your
selected menu items, send a gift to a friend, post in your moments (kind of like Instagram)
and so much more! It seems to be the app of all apps so naturally Starbucks, wanting to
make it big, joined the app. The coffee company also uses it as a marketing technique and
started a campaign where users could scan the QR code on their coffee cup to become
a Starbucks member and get a chance to win coupons. Users can also scan the QR code to
download customized wake-up music from Starbucks for their phones, These freebies appeal to
their younger consumers who are likely to share with their friends. Word travels very
quickly on WeChat and China uses QR codes for everything and anything, so Starbucks
got on this train fast.
Starbucks is a Community Spot
The Chinese culture values socializing and social settings just as much as any other.
Even so, you might be surprised how common it is to go sit at one of these coffee shops.
Starbucks locations in China are up to 40% bigger than even their largest United States
counterparts! You can only imagine how much more room and space there is to sit and unwind
with your laptop, a book, or a friend. If you are in a U.S. or Canadian Starbucks you're
lucky to find a spot to sit when you order your drink and need to write an essay, have
an important business meeting or a sit-down chit chat with an old friend. In most urban
environments in China this is also the case - perhaps this is why Starbucks is increasingly
popular for them and it's a place they can always count on finding a spot to sit and
enjoy their grande Green tea Cream Frappuccino. Many of the Chinese place a greater value on the
experience and environment Starbucks provides rather than on the quality of the coffee.
The Chinese have a real appreciation of the social environment their beverage is consumed
in, over the quality of where the beans come from. They like an environment that resembles
peace and tranquillity and this is what consumers are willing to pay a premium for. Starbucks
is considered as a "third" place outside of work and home where they can come to relax
and lounge. In China many homes are small, commutes to work are fairly long and there
are no typical meeting spots and this coffee shop provides a big space, close to work or
home where they have a sense of community. The Chinese are not ones to rush on the go
with their matcha latte but are more likely to lazily lounge and glue themselves to their
smartphones while sipping.
Starbucks in China Employs 30,000
With such a massive population in China of 1.42 billion, there’s a high demand for jobs
and work. Starbucks has created opportunity and jobs for more than 30,000 people in China,
from a barista to a store manager. Not only that but the way they operate in this culture
is smart as well. The culture has always had a very strong emphasis on the family, so Starbucks
China management has made a conscious effort in getting to know not only their employees
but their families as well. The coffee company once commented, “family forums have been
held for parents of store partners to hear managers discuss gratifying career paths at
Starbucks.” They have also included subsidized housing accommodations for some of their employees
who were eligible in their positions as barista or shift supervisor. This makes Starbucks
a popular place to want to work and spend your time, bring your family and friends and
spread the word of the benefits they provide to the people of their country. Additionally,
Starbucks introduced a China Youth Development Program that helps mold future leaders - over
1,500 college students benefit from this program over three years. They introduced this program
in June 2014 and we can see how since then Starbucks has continued to rise in favor in
China.
The Chinese Trust Starbucks
American chains like Starbucks in China goes far deeper than just a great cup of coffee
or good tasting desserts. Within China, you have to dig a little deeper because there
are trust issues. Over the years, China has become infamous for its many food scandals
like the fake eggs and fake lettuce that came to light. There is a belief amongst the Chinese
that North American companies won't cheat them the way Chinese companies will because
they have higher standards and aren't just trying to make an easy buck. Meanwhile, in
Western culture, we trust our food, water and medicine, even if we sometimes shouldn’t.
In China, it is very common to hear about a scandal related to a faux medicine gone
wrong or tainted food using fake meat or baby formula being fake. When it comes to food
integrity, consistency is the key, anywhere but especially with Chinese consumers for
these reasons.
Chinese Consumers Are Loving Coffee
In most Chinese homes you probably won't be able
to find a coffee maker or a french press but it is highly likely to find oolong and green
tea. Despite the strong tea drinking culture in this country, many Chinese people are taking
to coffee with enthusiasm. Mostly it’s the ones returning from overseas, the young and
curious, the new generation adapting to the western culture and those following the trends. It
is estimated that in China people consume about 4.5 billion cups of coffee a year and
this number is expected to grow by 18% in 2019. Starbucks, of course, played a part
in creating the demand for coffee in China, by introducing the market to the Western coffee
drinking "Starbucks" experience. What is the "Starbucks" experience exactly? It's a place
where you can meet with friends, family or co-workers to grab your favourite style drink
customized to your choice of liking with your name handwritten on your cup and listen to
some funky jazz music as they top off your drink with whipped cream and a caramel drizzle.
They present a trendy and cool experience to make the consumer feel trendy and cool
by coming there.
Starbucks offers Chinese Tea and Desserts
Starbucks has had success in China because it caters to the Chinese market effectively.
A range of Chinese teas are sold along with coffee and you can also order moon cakes or
other traditional desserts from this region. Additionally, they also cater to the Chinese
market with a variety of speciality drinks specific to China's events and flavors. For
example around the Christmas season you won't be able to find the North American favourite
classic Peppermint Mocha but instead, you can find drinks like a Snowy Cheese latte
and the Christmas Dessert flavored latte. Even though Christmas is not celebrated in
the same way as is it in the Western world they love to be festive during the season
too! Around Chinese New Year you can find fun speciality drinks like the New Year Firework
latte, Peach flavored Green tea latte and Macadamia White Chocolate flavored Macchiato.
Sounds like there are some sweet latte options in China! They also capitalized on China's
love of tea by creating trendy and tasty drinks that include ingredients like green tea. They
do the same thing for the desserts, offering a range of popular Chinese desserts to cater
to the market and their taste buds. You can find moon cake and zongzi (two special and
popular Chinese festival desserts) or red bean scones, the perfect match to a matcha
tea latte.
Starbucks on Weibo
Starbucks has an official Weibo account where they market their green mermaid logo.
Weibo is a social media platform that is very popular in China with over 500 million users!
Why is this important? China doesn't use social media platforms like Instagram, Facebook or
Twitter so the coffee company found the right channel for itself in China. What Starbucks
is promoting online on Weibo is not necessarily the ‘traditional’ coffee products we see
in the West - they cater their products to the Chinese consumer. Not only that but they
also sell their branded water bottles and coffee mugs with bright colours and graphics
with a Chinese aesthetic appealing to this market. They also encourage consumers to share
posts with their drinks or branded products by using the hashtag #starbucks on Weibo.
The Chinese love posting about their social interactions so getting on Weibo is especially
effective for Starbucks because it's users trust their social network on this platform.
The social element of drinking is consistently emphasized on the platform, thanks to the number of posts
and images of users with their friends.
Starbucks is a Luxury Brand
In China, it's all about keeping face and they love their luxurious items. Starbucks branded
itself as a little bit of a luxury coffee shop that almost everyone can afford. With
its warm decor, Italianized cup size names, the ridiculous amount of customization you
can put into your drinks, and somewhat unreasonably high prices, Starbucks feels like an indulging
luxurious reward. The Chinese, just like any, love a good indulgence and the feel of luxury.
Starbucks Chairman and CEO Howard Schultz said to CNBC "We have established Starbucks as,
not only the leading provider in coffee but also a brand of choice and luxury in China".
Those that can afford it are still shopping for their luxury handbags, clothes and watches
but all of the population is getting their hands on the white cup with the green mermaid
logo for the luxury feel even without the handbag!
Starbucks is Convenient with 2,500 Locations
With so many Starbucks locations across China, they do not need to travel very far to get
to their nearest Starbucks. The people love how convenient it is to find a local Starbucks
and how close they can get to a location within walking or biking distance or even by scooter
or metro. They also have made it convenient to order by getting on apps that deliver to
people, whether it's at work, your home or your grandmother's place. You can order from
Starbucks and get your latte delivered hot and fresh from a gentleman dressed in all
yellow on an app called Meituan amongst a few other apps. The convenience factor is
huge especially in a country that has become so reliant on mobile services, technology,
convenience and efficiency. To add to the convenience for consumers, Starbucks China
has also made it easy for consumers to grab their already made drinks at supermarkets
and local stores. They partnered with the Chinese drinks company, Tingyi Holding Corp,
to make and sell their drinks in different stores or shops. Needless to say, its available
at your fingertips and China really loves their Starbucks!
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