When Starbucks 1999 entered China, many people doubted that Starbucks could not succeed. Traditionally, people in China like to drink tea, so it seems impossible for Starbucks to enter this market.
However, Starbucks did not let this suspicion become an obstacle. A thorough market survey shows that the rise of the middle class in China provides Starbucks with an opportunity to introduce the western coffee experience to China, where people can chat with friends and drink their favorite drinks.
Starbucks did create this demand. Nowadays, Starbucks coffee shops can be found on almost every main street in the coastal cities of China. My father lives in China. Although he is 90 years old, he even told me that he drinks coffee instead of tea after meals to help digestion. Starbucks completely changed the concept of China people and made them drink coffee.
After accurately positioning and deciding to enter China, Starbucks adopted a shrewd market entry strategy. Its advertisements did not make China people feel that their tea drinking culture was threatened. Instead, we are committed to choosing a place with high popularity and large traffic to establish a brand image.
Next, Starbucks made full use of China consumers' tea drinking culture, and introduced drinks made of local popular ingredients such as green tea. This strategy effectively turns potential obstacles into advantages. Consumers in China like Starbucks coffee quickly, which is the basic reason for Starbucks' success in China.
One of Starbucks' important marketing strategies is to provide customers with a unique experience. Elegant interior decoration, comfortable reclining chairs and pleasant music not only distinguish Starbucks from other competitors, but also strongly attract the younger generation, who regard western coffee culture as a symbol of modern lifestyle. Many people go to Starbucks not only to have a frappuccino, but also to feel the "Starbucks experience" that makes them feel cool and trendy.
Generally speaking, western brands have a good reputation for high-quality products and services, and they have more competitive advantages than China companies in building themselves into high-end brands. However, Shaun Rein, founder and managing director of China Market Research Group, pointed out that it is a failed strategy for too many western brands to cut prices for market share, because they can never "crowd out" local competitors in China through price wars.
International brand does not mean "international product" or "international platform". EBay made this mistake. Starbucks highly localized its drinks to cater to the tastes of consumers in China. Starbucks has done a lot of analysis on the tastes of consumers in China, and creatively blended the eastern and western tastes. Starbucks even allows each branch to flexibly choose a variety of beverage combinations to meet the tastes of local consumers.
For international brands, if they want to succeed in China, they must adapt their business to the local market, which is what Starbucks has done.
Cooperative Localization China is not a homogeneous market, but there are many "China". The culture in the north of China is quite different from that in the east. The consumption capacity of the inland is incomparable with that of coastal cities. In order to solve the complexity of China market, Starbucks chose three regional partners as part of its expansion plan.
In the north, Starbucks has established a joint venture with Beijing Meida Coffee Company. In the east, Starbucks cooperates with Uni-President Enterprises in Taiwan Province Province. In the south, Starbucks' partner is Hong Kong Maxim Food Co., Ltd. Each partner has different advantages and local knowledge, which helps Starbucks to understand the tastes and preferences of local consumers in China.
Working with the right partners can effectively understand local consumers and achieve rapid development without going through a long and tortuous learning curve.
Long-term efforts China is not an easy market to open, it needs long-term efforts. An important strategy is to invest in employees. In 2007, I came to a Starbucks in Shanghai, and I was deeply impressed by the warm greetings from China barista, which made Starbucks different from imitators. The recruitment and training of Starbucks employees are excellent. This is a win-win strategy, because employees are the core of providing customers with the "Starbucks experience". They are the best corporate marketing ambassadors.
Long-term efforts also mean patience. It takes time to cultivate city punishment and win customer loyalty. Companies that make long-term investments are sure to get a lot of returns.
If Starbucks can succeed in the most unlikely market, there is no reason why other companies, big or small, can't succeed in China. It is an important step to make full preparations, adopt correct strategies and make long-term efforts to meet the punishment of local cities.
As a result, Starbucks has made itself a desirable brand that can sell at a high price.
Brand Internationalization Starbucks is well aware of the value of its international brand and has taken many measures to maintain the integrity of the brand. One of the best ways is to send their best barista in the existing market to a new market to train new employees. (Forbes Chinese website)