Effect on Starbucks Store Design on Consumer Behavior in China

Topics: Coffee, Starbucks, Coffeehouse Pages: 5 (1645 words) Published: November 22, 2012
How Starbucks store design affect its consumer behavior in China. Starbucks Corporation is an American global coffee company, coffeehouse chain stores that adapt Italian-style coffeehouse. It is the largest multinational chain of coffee shops with 20,366 stores in 61 countries, including 13,123 in the United States and 732 stores in China. The first Starbucks opened in Seattle, Washington, on March 30, 1971 by three partners: English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker. The three were inspired by coffee roasting entrepreneur Alfred Peet, whom they knew personally, to sell high-quality coffee beans and equipment The first Starbucks location outside North America opened in Tokyo in 1996. After that Starbucks entered the U.K market in 1998. And Finally in January 1999, Starbucks opened its first store in Mainland China at the China World Trade Building and continue spread its wing to Hong Kong in May 2000, and Macau in August 2002. Right now there are near 500 stores in China, including Mainland China, Taiwan, Hong Kong and Macau. In the Mainland—the region with the fastest growth, there are over 230 stores in 22 cities including Beijing, Tianjin, Shanghai, Guangzhou and Shenzhen. Within a period of time, Starbucks has successfully established itself as the premium coffee leader in China with great brand recognition and high customer satisfaction. In this paper, our group will focus on how Starbucks store design influence its consumer behaviour in China. In order to achieve our goal, first, we will focus on how Starbucks consumer behaviour in China and compare it with other countries such as U.S.A. And then we will compare Starbucks in China store concept design and how it affect the consumer behaviour in China and then compare it with KFC store design. STARBUCKS IN CHINA

Asia, particularly China, is well known for its love of tea. Yet Starbucks so excited about the market in China. The stores are full of people most of the time. But it is clearly a tea drinking society. It would be a much longer education process. With an overall population of around 1.3 billion, rising incomes, & increasing in global attitude are viewed very promising for companies around the world. However, coffee market in China is still far behind the hype. 90 percent growth in coffee sales for past 5 years, per capita consumption 1kg per person, while 4kg in US. Tea is still number one beverage in China. Comparing China with Japan, Japan also well known for a tea nation, but Japanese also love to drink coffee. Coffee marketers still find difficulties in transforming tea drinking nation to coffee drinking nation, because Chinese people believe that tea have medicinal qualities that coffee doesn’t have. With China growing economy and middle class is increasing in size. Middle & upper class, which are the consumer of Starbucks, tend to be located in major city (GZ, BJ, & SH).Coffee for younger, wealthier, professional Chinese is seen as enjoy eating out, associated with western lifestyles, associate Starbucks with wealth and status, enjoy sweet tasting foods and beverages, particularly desserts. There are some competitors such as McCafe, etc. However, instant coffee is the major player. Because the Chinese not yet appreciate the taste of coffee and also cannot taste the difference between each types. Inexpensive mixes, such as Nescafe holds nearly half the market share.

Basically, America is a coffee drinking nation. They are used to drink coffee in the morning before go to work. Americans always look for coffee during the break time, or in meeting time. Before Starbucks era, coffee used to so cheap and simple, then Starbucks revolutionize it. The Starbucks culture has infiltrated almost every part of American society. They have created a new lifestyle for American people. The Starbucks stores don't just sell coffee, they sell an atmosphere. An example is taken from the Starbucks in Times...
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