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How did Starbucks succeed in China?
How did Starbucks succeed in China?

First, the location should be decided by the city, and then by the region.

The development of Starbucks in China is first through layout, and then through site selection. In terms of layout, Starbucks' strategy is to expand from first-tier cities to second-and third-tier cities.

According to the domestic urban geography and economic factors, Starbucks divides the China market into five grades, expanding from big to small. First-tier cities such as Beijing, Guangzhou, Shenzhen and Shenzhen will give priority to settle in and form a certain influence and popularity before expanding to second-and third-tier cities.

The so-called tactics are to determine the city first and then the region. Starbucks will consider the following two aspects when deciding whether to enter a city:

1. Starbucks' target population is all middle-and high-income people with higher education, so it will analyze the urban population before deciding whether to enter.

2. After determining the target city, the whole city should be divided into several areas according to the planning and geographical characteristics of the city, which is the so-called micro-market. In each mini-market, Starbucks will be further subdivided into several business districts and functional areas, and then the location will be selected according to the priority order.

Second, six key points of Starbucks location strategy

1. Pay attention to effective passenger flow and find the right gathering point.

Only when the number reaches a certain level can you be selected. After selecting the business circle, Starbucks will calculate the effective passenger flow, determine the main streamline, select the gathering point, and take the location not far away as the location of the store. Because it is on the mainstream of passenger flow, it means that the passenger flow per unit time is the largest; Being at the gathering point means that people will gather here to stop.

2. Identify the target customers and target the middle and high-income people with higher education.

Starbucks' consumption target in Chinese mainland is middle-and high-income people who pursue taste and fashion. The comprehensive group age is about 16 to 45 years old. Only when the consumption strength and quality of life of the consumer groups in a region meet Starbucks' positioning, Starbucks will conduct further investigation according to the specific requirements of site selection.

Pay attention to visibility, windows are the best signs.

Whether consumers can see Starbucks stores, signs and windows at a glance when they walk down the street is very important for stores to attract customers and increase their income.

Although Starbucks has a high brand awareness, the competition in the coffee industry is fierce. To maintain this advantage, brand display is very important, and good visibility is a favorable display of the brand.

(1) store location advantage

(2) The orientation of store recruitment is clear.

(3) Through the attraction of the window and the scene, the people in the window are the scenery in the eyes of people outside the window; People walking outside the window are the scenery in the eyes of people inside the window.

4. Pay attention to the convenience of transportation. Only with transportation can there be more sales opportunities.

Convenient transportation and accessibility of store location are important conditions for consumers to choose. The number of parking spaces, the radiation area of the business circle and the number of parking spaces in the radiation area are issues that Starbucks seriously considers. The purpose of this consideration is to improve the rate of guests entering the store.

5. Concentrate on opening stores to reduce distribution costs.

When Starbucks was founded, it once opened two stores face to face on the same street, which is a taboo for general chain enterprises. Opening a store may have high sales, but there is no guarantee of making money! The logistics cost of many products is very high, especially Starbucks cakes, which need to be seamlessly docked at MINUS 18 degrees.

Although the sales volume of a single store is high, the operating cost is also high. Therefore, Starbucks opened its first store somewhere and will continue to open stores in the future, reducing logistics costs by increasing the number of stores. So don't expect to monopolize Starbucks. Conversely, whether the city can continue to open stores is also an important basis for Starbucks regional selection.

From the perspective of competition, opening a shop in a high-quality consumer area can monopolize the market and crowd out competitors.

6. A mature environment brings long-term stable income.

Starbucks believes that opening a store requires a mature and stable business environment; A mature and stable business environment can make stores generate stable income and ensure the growth and stability of corporate income.

It is particularly important to choose a store with mature economic development and stable business environment in Starbucks. Starbucks had such a lesson in Chinese mainland: Starbucks opened a store in a city because the government attracted investment, and its revenue was very good after opening the store for two years.

However, since the third year, due to the change of leadership of the local government, the city has been re-planned. Due to the change of planning, a subway will be built near this store and a wall will be built around it. Customers can only enter the store through the tunnel, which makes the store's income plummet.

As the subway construction will take five years to complete, this store has become the only one operated by Starbucks in China that has suffered losses recently. Starbucks headquarters once considered whether to close the store. They thought, "If we enter this business circle in 2-3 years, maybe we can avoid this problem. It doesn't matter if the rent is higher. "

Third, location strategy and store competition.

1, corner choice

"When we first started fighting for Starbucks, we had to compete fiercely with bagels, video stores and especially other coffee shops. In America, everyone likes the location of the street corner, but it is always in our hands in the end. " This is the proud statement of the people in Starbucks' store opening department.

Starbucks will measure the local average education level (well-educated people prefer to patronize Starbucks), the average family size, the average income level, the number of cars passing within 200 meters of the store to be selected, the proportion of people flowing during the day and at night, and many other data.

According to the site selection standard of Starbucks, Starbucks regards itself as an inevitable obstacle in people's daily life, rather than making people change their usual habits.

This strategy makes Starbucks as famous as possible. According to Rubinfeld's explanation that Starbucks plays an important role in the development, it is "impressive" to passers-by, so the ideal location of Starbucks is the corner where two main roads meet.

The shop should be on the right side of the road.

If you drive in the direction of downtown, you will notice that almost all Starbucks shops passing along the road are on the right. Why?

Starbucks has long recognized that it is time-consuming and laborious to turn left and park in front of Starbucks in traffic jams. If you turn left after coming out, this transfer makes people think that you may violate traffic regulations and be discouraged from Starbucks. Opening every store in the driver's right hand direction will make it easier for customers to buy lattes.

3. Be good at choosing nearby shops

In the United States, Starbucks likes to set up coffee shops next to video stores or dry cleaners? Because this will double the contact area of potential customers in Starbucks stores, Starbucks understands that coffee shops can attract a certain proportion of passers-by to shop for consumption.

Customers in video stores and dry cleaners usually go back and forth twice, first putting things down and then picking them up. So every time a potential customer rents a DVD, there may be two opportunities to buy Frappuccino.