How Starbucks Was Able To Win Over China

A Starbucks opens every nine hours in China. Since the coffee giant opened its first store in China in 1999, it has launched 6,000 stores around the mainly tea-drinking nation and plans to increase its number of stores to 9,000 by 2025. Competitors such as Luckin Coffee and Hey Tea have attempted to outpace Starbucks’ success, however they’ve come up short. Although sales took a hit due to zero-Covid lockdowns, analysts are confident the chain will bounce back with the strong fourth-quarter sales in 2022. How did the Seattle-based coffee giant find such massive success in a country known for its love of tea?
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How Starbucks Was Able To Win Over China

[@rameshwaranjana9658]

KEY TAKEAWAYS- 1. POPULAR LOCATIONS FOR THE STORES 2. ALIGNING WITH THE GOVERNMENT AND ITS AGENDA 3. COLLABORATION WITH LOCAL VENDORS. 4. EMBRACING LOCAL CULTURE & VALUES 5. DON'T LOWER THE PRICE INSTEAD BUILD SUCH A BRAND VALUE THAT PEOPLE WOULD LOVE TO FLAUNT YOUR PRODUCT. 6. TAKING CARE OF THE EMPLOYEES AND THEIR FAMILIES. 7. TECHNOLOGY 🥳

[@davidlin89]

Thanks listening in a library just wanted the cliff notes 📝📋🙂

[@asimpleguy2730]

Point 5 is exactly why Starbucks failed in Italy

[@robyhjean1128]

Number 2 hits it hard for me tbh

[@syue8901]

A+

[@theolich4384]

@@robyhjean1128 Kinda taken out from No.4 huh.

[@Rommie26]

In a lot of countries Starbucks is actually a “luxury” drink. I think they did a piece on why Starbucks was so successful in Italy and it was because they decked out their stores to look super fancy

[@mikekujawagvsu]

I've only seen a Starbucks in Milan. Not at Rome termini. Not in Gaeta. And I don't remember seeing one in Naples or the Almafi coast. I thought I read they were expanding here, but I don't see their presence in most places.

[@af5377]

It's probably that you're not their target thus, that's the reason you don't see them.

[@whatusay4980]

@@mikekujawagvsu that's because Milan was their trail region of Italy to see if Starbucks could be successful. Now that they know they can they are expanding in Italy. It was an interesting piece showing the pros and cons. I was fascinated that Starbucks and American products are seen as some kind of status symbol on the international market.

[@CTOInformation]

in the US too, not every American can afford starbucks everyday.

[@slamdunk118]

True, especially in Asia. Young people in China and South East Asia love Starbucks because it's like the Gucci of coffee in their countries.

[@JasonB808]

Starbucks in Asia maybe far better than what we have in the west. I have been to many Starbucks in US but none of them could possibly hold a candle to a Starbucks I went to in Kobe Japan. Not only was the store far fancier, the Coffee was actually very good. The barista I saw there was a pro beyond anything I would see here in the States. And I didn’t even need to tip. 🤯

[@zeothorn]

Starbucks in Thailand you have to pay for wifi if you want to have your coffee there and use wifi.

[@cathie3874]

Americans don’t drink coffee. They drink caffeine. They need the chemical to survive every workday😢 they don’t care about the env of the cafe store.

[@TaoDeChing-ls5gz]

Asians in general have higher standards when it comes to food.

[@ChickensAndGardening]

I mean, technically you don't have to tip in a U.S. Starbucks, either. Last time I went to a Starbucks, they left my drink sitting on the counter for like 10 minutes while I waited at a table for a client. Finally I went up and asked where my drink was. The barista pointed at a drink. "It's been there for a while." I must hae missed them calling my name but why couldn't they repeat it a couple of times. Needless to say, no tip. And no go back. That's not "service" that I believe in.

[@romanvssvmromania]

Here in Romania they train people for 2-3 days and they suddenly become baristas :)) Also the coffee is garbage.

[@FinancialShinanigan]

New store opening every 9 hours?? That's insane!

[@didyoumissedmegobareatersk2204]

China bad

[@PWingert1966]

They closed a store every 19 hours in Canada due to deficient performance last year. The three closest ones to where I live closed in August, September, and October in 2022!

[@SpiritsBB]

Imagine if you change the word from Canada to China. What do you think people are programmed to think in the west?

[@PWingert1966]

@@SpiritsBB Perhaps Starbuck's should be trying to figure out why their domestic brand is failing, and their international brand is expanding. I had a latte at Starbucks, and it cost me nearly $CAD7.00. That is for a coffee with foamed cream in it!

[@SpiritsBB]

@@PWingert1966 In Canada (also where I live), I'd say it's because all the businesses here are going downhill. It's not as though alternative coffee shops are thriving over here.

[@PWingert1966]

@@SpiritsBB When a pack of chicken breasts is $37 and a head of lettuce is $6 maybe a fancy coffee is not something you have money left over for?

[@SpiritsBB]

Previous secret will expire and self-destruct in 5...4...3...2... 🤣

[@schao2156]

The customer service and bathrooms at a Chinese Starbucks must be so much nicer than the ones we have in NYC 🤢

[@norwegianblue2017]

So are the Starbucks in most of the US.

[@samsonsoturian6013]

Name brand US and European goods are treated like luxuries in China. I.E. McDonald's is a sonewhat fancy restaurant. Also, there are few public bathrooms in China and those which exist are mostly holes in the ground.

[@sloppynyuszi]

@@samsonsoturian6013 which 1997 Pamflet did you get your China info from? It’s a huge vast country. I lived there between 2008 and 2018. Started in Suzhou and moved to Shanghai. But traveled around in Changchun, Guangzhou, Wuhan, Beijing, Yiwu, Nanjing, Hangzhou, Shenzhen and plenty more. The country is super vast and varied and it’s way too ignorant to think what you said applies to the whole country. And also ignores the massive change it has made. Public toilets aren’t hard to find at all in a tier 1 or 2 city. Every second block has a shiny mall, and they have dozens of clean toilets you can use, and it’s a normal bowl you used to. Unless you some factory worker which is a shrinking segment. No one thinks McDonald’s is luxury in China. It’s true some western restaurants are of higher perception. Pizza Hut is a more upper middle class treat, but no one eats there to show off. The mindset of Chinese making purchasing habits based on an outwardly appearance has really dropped off since 2010s. They have westernised a lot, and you’ll see plenty of well to do Chinese dress down.

[@doujinflip]

Huh, in Beijing Dongcheng and Chaoyang the Starbucks locations that even had their own restrooms were closed to customers.

[@julioduan7130]

Most Starbucks in China doesn’t have its own bathroom, but you can easily find one in the facility where Starbucks is located.

[@AwokenEntertainment]

lesson learned.. adapt to your desired market..

[@ByWayOfDeception]

It sounded outrageous for people to pay $4- for cup of coffee in the U.S. too. But it worked. And it worked for the same reasons. Karen likes to feel special wasting money on something you can brew at home for pennies.

[@romanvssvmromania]

Yep, wasty middle class people and upper middle class hypocrites are the main client base for this kind of coffee shop.

[@tonoshiki2527]

yes. also many chinese karen like it.

[@DwightSchrood]

this is such a reductive and mean spirited comment lol. no critical thought here. i dont drink starbucks but let people enjoy small luxuries if they want. you must be fun at parties

[@ByWayOfDeception]

@@DwightSchrood white girl much?

[@DwightSchrood]

@@ByWayOfDeception nah, but even if I was my statement about your comment is true

[@pjacobsen1000]

I remember when Starbuck's opened their first store in Shanghai in 1999. Lippo Plaza on HuaiHai Rd., facing the busy shopping street. It immediately became a popular spot for the up and coming young professionals. Before that, there weren't more than 2 or 3 places in town where you could buy a cafe latte (one of them being Park 97, long since closed).

[@jkjkjk100]

Wow in lippo building.

[@pepey1253]

@@yijiequ662 Tim Hortons tasted too bad compared with Starbucks. Also the environment is not good.

[@pjacobsen1000]

@@yijiequ662 There's a Tim Horton's near my house, but I haven't been. They only sell coffee, and right next door is a Lawson, a KFC and a Luckin' Coffee. I'm skeptical of Tim Horton's long-term success in Shanghai. At least sell some cake or donuts.

[@pjacobsen1000]

@@yijiequ662 It's possible. For reference, a Big Mac meal costs CNY 35.- (CAD 7.00) here.

[@pjacobsen1000]

@@yijiequ662 Well, it has certainly gotten a lot more expensive over the 20+ years I've been here. We used to be able to get a nice bowl of noodle soup for CNY 5.- (CAD 1.-) and I still remember I once got a delicious bowl of rice noodle soup in Yunnan for CNY 0.8 (CAD 16 cents), but that was in the early 90s. Those days are long gone.

[@nihaokellar180]

I used to live in China. You could sit in one starbucks and see 3 others out the window, there's so many. And yes, it's definitely considered a status symbol there. If you can buy starbucks every day, people will see you as rich, so many office workers will stroll in daily with their starbucks.

[@CrypticSnow]

I wonder how many of them just kept the cup and made coffee or hot tea at home and brought the same cup in everyday in.

[@TomNook.]

its so funny, drinking starbucks daily is seen as rich, but someone saving up and buying a house isn't LOL

[@TomNook.]

@@CrypticSnow Or just bought the reusable cups and made their own (or just used it as a water bottle). All the status, none of the ongoing costs!

[@sloppynyuszi]

@@CrypticSnow probably not. When I lived in Shanghai the locals didn’t skimp on luxuries. All the fake markets was mostly filled with foreigners. The locals were in the real LV and Rolex stores dropping their cash. These Starbucks where you can see 3 other Starbucks out the window is usually in a tier 1 city like Shanghai, Beijing Shenzhen and Tier 2 cities would also have plenty. In these cities the average salary isn’t too far off regular western salaries. Especially people in office jobs. 😅 When I first moved to Shanghai, my fancy expat salary (I work in animation) was 5x what the equivalent local made. Eventually was 1 to 1.

[@179561520]

I live in China but this is the first time I’ve heard it. Haha that’s funny

[@Dfgbuiiyyyybb]

McDonald’s also does a really good job internationally. They adapt their menu to the local tastes. McDonald’s in the US is actually pretty crappy compared to the overseas one like in Asia.

[@baronvonjo1929]

KFC needs to be added to that list. Why do they love screwing over their home markets?

[@ChickensAndGardening]

I'm dying to try the Japanese McDonalds. Chocolate coated fries!

[@bh4462]

McDonalds in the US is in the McDonalds tier of fast food but for beverages. I don't care how much Howard Schultz gushes about "3rd places" or whatever. They have a friggin drive through.

[@jgao]

But McDonald's in China is run and owned by Chinese instead of Americans

[@XOPOIIIO]

Because fastfood is cheap in US.

[@musaadaljarbou8765]

Plz do more vids about the airline industry and vids like this. I can’t ever get enough

[@LebronCCP]

I’m watching this while drinking instant coffee

[@thedatroxde]

Awesome 😎

[@ChickensAndGardening]

LOL

[@al28854]

And i use starbucks K-cups

[@ChickensAndGardening]

@@al28854 The best (or worst?) of both worlds!

[@shawnxl2419]

They tapped into the right consumer groups in that huge market at the right time. And they struck gold. If you are serious about your business and don't throw around your money blindly, you have a fair chance to succeed there. Leave you ego and prejudice at home of course.

[@1995yuda]

Well said, on point.

[@binhe6500]

The world should share more coffee and tea instead of weapons and wars.

[@jkjkjk100]

Not as much money as weapons. Capitalism isn’t about making money. It’s about making moreee money

[@becsterbrisbane6275]

I still remember walking into he very first Starbucks not long after it opened in Xi'an, across the road from the Bell Tower in 2006 after travelling for hours from the village I lived, teaching in Gansu. It was an oasis, I tell you! Now it's just exploded everywhere, pretty much 1 on every corner now in Guangzhou, along with plenty of other chains & even smaller shops. Not counting Starbucks (because, blugh!), China really now is a coffee culture, even the baristas are actually trained really well.

[@NazriB]

Lies again? Sunday Bell + Spotify Barcelona + Spank Bang + Sell Backside + Small Boy

[@JosiasLJ1991]

After having lived in Australia and worked as a barista there it is so interesting to me that to many people around the world, Starbucks is a premium brand. In Australia the competition is fierce, and their espresso coffee is some of the best in the world. Most Aussies will agree that in comparison to the average Australian cafe, Starbucks is completely subpar, kinda like comparing McDonalds to a gourmet restaurant.

[@kurthalbauer7676]

Which is exactly why Starbucks failed in Australia. We want good coffee, not overpriced and bitter garbage water.

[@fredysetiawan6228]

Same australia neighborhood In indonesia starbucks in the second place must popular coffee in indonesia after janji jiwa 😅

[@larrybuchannan186]

australia has been a gigantic failure at exporting its coffee to even country outside australia while us exported its coffee to half the world Australia is nomatch to usa at cultural influence australia is an embarasng failure

[@dreamer6737]

Same for us in Scandinavian countries. Starbucks equals less quality.

[@NazriB]

Lies again? Grab Drinks Google Drive

[@jkjkjk100]

Kudos. A good description on how to succeed in local market during expansion. Definitely a good case study for mba candidates out there to study.

[@ETOP]

Yep,, they even introduced spicy chilly oil Mcflurry in China. I bet you don't want to try that, neither does we Chinese

[@CTOInformation]

because the country has successfully developed and becomes the biggest market for most of the brands in the world. this also includes some coffee shops of course.

[@aamirecan]

Yep. China has been doing great business.

[@samsonsoturian6013]

China was never developed

[@CTOInformation]

@@samsonsoturian6013 yeh Starbucks are stupid

[@ielee1765]

The people in China should boycott US companies and support local companies & economy as US are sanctioning, banning Chinese companies.

[@zhanwenchen9238]

What’s not talked about is that Chinese Starbucks actually taste good, unlike the American ones where beans are almost always burnt

[@8luvbug]

Not my experience

[@666peacelove3]

"you don't see for rent signs so you really have to know the officials" yeah that says it all

[@hws7075]

This is funny facts. The East Asian countries (e.g., China, South Korea, etc.) have utilized IT for payment and customer management. For example, some Korean Starbucks is Cashless stores (e.g., you cannot pay money: the stores accept credit and debit cards, mobile payment, and so on)...The US Starbucks store manager who I knew was surprised at this concept (Cashless stores) because he ever never heard this concept in US and Canada. As well, most stores suffer from cash payment (e.g., storing, counting, and sending etc.)...

[@dragonskunkstudio7582]

Every Starbucks in my neighborhood shut down, and it wasn't for lack of customers as the building they vacated soon reopened with small brands and mom and pop coffee stores that sold the same damn thing.

[@samsonsoturian6013]

That's probably due to the franchize owner being stupid

[@user-xz7hx2yc1m]

We Chinese should legalize marijuana

[@bmanpura]

Dang. I thought they were 100% company owned? How can they close? Why are they closing?

[@dt8101]

Precisely. If the producer of this video lives in China, he will notice Starbucks is failing in China. It is very noticeable that fewer people sit in Starbucks nowadays. People who order coffee from delivery app usually buy from Starbucks' many Chinese rivals. It is bizarre to see CNBC making a video calling it success.

[@clarebearr5357]

I have 3 Starbucks in walking distance, but I see Hortons and Luckin with more people sat inside. Dunkin arrived and failed.

[@janechoy2073]

I'm from vancouver but originally from Hong Kong. I drink Starbucks (and use the app) in Vancouver almost every day but I *never* go to Starbucks when I visit Hong Kong because it is SO g.d. expensive over there, even for a simple drip coffee.

[@maxdc988]

Rental for high street shops in Hong Kong can exceed HKD100,000 per month, not to mention other costs, so business operating costs between HK and other cities around the world are way different. 😂

[@dt8101]

Is this a sponsored ad by Starbucks? Because if you live in China, you will know that Starbucks is LOSING in China BIG TIME. The work space Starbucks offers are being replaced by tea drink competitors such as Hey Tea and Naixue. Meanwhile, many coffee chains with smaller floorspace are expanding rapidly, such as Luckin Coffee and Manner Coffee. There are so many to choose from.

[@vanesslifeygo]

it's funny how after they delisted luckin for fraud it started booming

[@sellers737]

not sure if you watched the video but Luckin had to fake their financials to appear successful. seems like Starbucks in comparison is doing just fine. far from losing "big time"

[@treeinafield5022]

didn't you watch the second bal of the video? Hey Tea and Luckin Coffee were mentioned.

[@EricaGamet]

Uh, you might want to watch the rest of the video... or any of it.

[@attsealevel]

Unlike other countries, however, Starbucks-China is majority owned by Chinese. China has always required majority ownership of all foreign investments (unlike the US and Europe). In fact, foreigners can't own land in China, whereas China owns many of iconic skyscraper office buildings in major US cities. China also invested heavily in the US housing market and is now the 4th biggest US landlord. And even worse, China can purchase property in the US cheaper than US citizens due to special foreign tax breaks.

[@abhisheksinghasia]

Who were with whom? Update VāC & LĀC as where they went and from where they came Mr. GPS....it also cost to be pious & devoted in VPM and NPM at the same time. I am sad Ms. Super Computer. ❤️ I am lonely from past 4 years. Check ✅👍 HK movements & other spiritual activities tools my Virtual Super Computing Tools🎁🍿💖 Take care of your self wherever you live till we start living together with love ! 💖💖💖💖💖❤️❤️

[@ishotapig]

Luckin has now passed Starbucks in stores!! Starbucks lost 40 percent during COVID- while LUCKIN has gained over 40 percent- I see what is really happening!!

[@globalismoblackman]

Luckin Coffee was a fraud lol 🤣😂😂 inflating revenue sales to boost to their IPO a few years ago lol

[@ishotapig]

@@globalismoblackman go educate yourself and look what the stock has done since then- I bought at $1.74 and this stock has beat every American stock this year- amazing what an education can do.

[@globalismoblackman]

@@ishotapig lol I have already educated myself not to invest my hard earned money into a lying fraudulent piece of sh*t company like Luckin Coffee. Just because you took reckless risk with your money and made good returns does not validate the company's unethical business and financial reporting practices. Now you go and educate yourself.

[@ishotapig]

@@globalismoblackman still going up! 🤣

[@unreliablenarrator6649]

90% digital ordering is normal for fast food in China. Most stores are probably closer to 99%, the reason Starbucks is lower is probably due to the number of non-local tourists that don't have Chinese e-payment apps. China leads the world in e-payment, WeChat pay and Alipay are virtually ubiquitous and it would be difficult to live without them.

[@bluemystic5980]

india too

[@jeevan88888]

China doesn't lead the world in ee-payment apps , India does - the number of digital payment transactions in India is way more than in China.

[@AkashRoy-np8id]

India does correct your writing.

[@TheRealIronMan]

According to the IMF In 2022 yhe total amount of digital transaction of India was $142b comparing to China $3.225 TRILLION, the scale of China's digital economy is almost 23x larger than India, it's not even a close competition.

[@parthoomphy7214]

​@@TheRealIronMancheck number of transactions not value. Because big transactions can reduce the numbers, simple maths CCP.. And where did u get the 23x number.. "Trust me bro" source? 😂

[@shortcuttv1320]

One or two sugars, the coffee ☕ King was wise 🦉 to start with Tea. As being kind to the local culture goes far with people's taste buds 🤗

[@Kasey_888]

Not really bc Luckin Coffee is insanely far ahead of sbux there. The growth is impressive, but in China, they fell to last place in the "coffee wars" and dont have the numbers, brand respect, or revenue of Luckin post pandemic.

[@user-ou9bv2jb3p]

As a media, does it need to be more rigorous when using maps? The map of China on the cover of the video is missing Taiwan Province and islands such as Diaoyu Island and Chiwei Yu, and the boundaries of the Aksai Chin area are not drawn correctly. I hope you can correct your mistake immediately!

[@jboy2621]

SBUX is a status symbol. It shows you can afford expensive coffee.

[@b22chris]

In the US or china? I know a lot of poor people drinking Starbucks in the USA

[@thekeith-donovanexperience]

rich

[@samsonsoturian6013]

​@@b22chriscoffee isn't a status symbol in the US.

[@destroyer-fr4dz]

U just repeated the video lol

[@super8mate]

@@destroyer-fr4dz yep J Boy obviously commented without watching the video. That’s the internet for ya. 🙄

[@akui88]

I have family in china. Starbucks is a status symbol, considering most Chinese drink tea.

[@CTOInformation]

in the US too.

[@dnn32]

@@CTOInformation most people in Starbucks have no idea what excellent coffee tastes bc they have been exposed ever since to the crap of Starbucks America.

[@dt8101]

Not any more. It is now considered 智商税

[@user-hr8uw6gk5o]

lol

[@frankcheung99]

Luckin Coffee opens 500 stores in one month, with 10,000 stores by June 5, 2023...Luckin's yearly revenue is only $59 Million behind Starbucks...

[@daweigao5950]

Luckin is actually doing well these days, after the scandal. Customers really don't care about the fabrication of balance sheets as long as their coffees are good and affordable. The investers do care. But Luckin is not even listed in China.

[@t6ra]

i learned how popular starbucks is in china by the fact that the majority of starbuck's success in australia is from chinese residents or tourists

[@freeman10000]

The only reason there a few Starbucks in Australia is to cater to Chinese and American tourists. Australia has an amazing coffee culture and Starbucks can't compete with that.

[@pepey1253]

😂😂😂

[@avt65]

The majority of Starbucks in Australia have gone. You must mean Austria.

[@monyroath]

Adaptation and adjustment to the countries cultures is always the main focus when companies entering new territories. (Good relationship with the government will help a lot especially in Asian countries)

[@cinpeace353]

Good relationship to government even more important in US. Government could ban your business at will anytime.

[@OpEditorial]

If the one every 9 hours estimate is accurate, at the current rate there should be 973 new Starbucks stores (with one almost finished being built) in China every year, basically forever...

[@joicethatsme]

I’d like to know more about other smaller coffee businesses and how they operate. Starbucks is very much in the working class society but their wayyy too pricey.

[@gaoda1581]

In China, it's a status symbol. On my campus, I could get a full nourishing meal for 18 RMB, while my modest drink at Starbucks might cost 45 RMB.

[@SpiritsBB]

It's really just addiction if you think about it.

[@xenxkisu]

Same in India, it's a drink for the wealthy kids.

[@Jason-wp2nq]

It’s nearly the opposite here in NZ, a meal costs 15 to 30 NZD and a Starbucks coffee for me costs on average 8.10 NZD.

[@AbhijitMhasagar]

startbuck is expensive and rich drink to have in many country like india normal coffee cost 20rs in india and starbuck cost around 250rs, that's more than 12x price

[@triceratopsroar8262]

Honestly i think in the states if you get a cup of Starbucks EVERYDAY, you are also considered rich. Making my own cup of latte costs like 60 cents, while the same cup costs $6.5 at Starbucks.

[@ergatevidina6024]

It's different now.Starbucks has been boycotted recently, and now we mainly drink domestic brands.

[@pengguo559]

Ha? How come I’ve never experienced it recently. Born and raised in Beijing here.

[@7walkingman]

Maybe you drink domestic brands, but Starbucks is still very much here.

[@user-qwertyuiopasdfghj]

Here domestic brands are mostly tea brands like Heytea many young people are more obsessed with tea drinks like milk tea cheese tea fruit tea compared to coffee. In terms of coffee shops Starbucks is still the winner

[@dt8101]

@@pengguo559 How old are you? The new trend is to drink new brands such as Manner Coffee, or even M Stand. Old anties uncles office workers may stick to Starbucks. Young people who want a chat over a drink go to Naixue or Hey Tea.

[@attsealevel]

Unlike other countries, however, Starbucks-China is majority owned by Chinese. China has always required majority ownership of all foreign investments (unlike the US and Europe). In fact, foreigners can't own land in China, whereas China owns many of iconic skyscraper office buildings in major US cities. China also invested heavily in the US housing market and is now the 4th biggest US landlord. And even worse, China can purchase property in the US cheaper than US citizens due to special foreign tax breaks.

[@klarkewang]

Sooner or later, this is going to be an national security issue in its most weirdest way lol

[@maxipadthai]

Like TikTok?

[@seanthe100]

No it's not as long as the billions flow

[@klarkewang]

@@seanthe100 one day some Chinese local coffee will compete with Starbucks heavily and by then, it will be. Typical ideology if you look into history of the hegemony

[@klarkewang]

@@maxipadthai it is more of how to protect its interest and when it is needed, national security is a good weapon.

[@seanthe100]

@@klarkewang keep on wishing!!

[@MBGA123]

Great case study

[@panadeuser]

Hm, I think SB is very much aware for a lot of people their brand is a social status statement, just like owning an iPhone or whatever over-hyped crap you can think of. Thus, their prices are high and very high. The bit where they are smart though is the member rewards platform, where they keep a hook in the occasional visitors, those ppl that frown at their unjustified prices but are willing to visit if a good deal is at hand. For e.g. in Romania you gather points for every amount of money you spend which you can actually transform into purchases - the pay for reward is swift and lots of people are encouraged to return, even if only to get their birthday free drink :)

[@rynev3392]

I see how so many people are addicted to coffee/caffeine. Two weeks ago I had caffeine for the first in about 18 months. I didn’t like the anxiety feeling that it gave me but what I noticed was that the next few days I had the withdrawal symptoms, mainly fatigue. Now I understand why people can’t operate without caffeine. I don’t like being dependent on caffeine for my daily routine. Plus I sleep much better without it

[@seanthe100]

In a couple of days you would've been over these symptoms

[@pdawg216]

I don't drink coffee really, but I do drink home brewed tea blends (primarily chai). Tea has caffeine as well, but I don't get that anxious or fatigue effect. Plus there's more diversity in tea, so that's my preference

[@rynev3392]

@@seanthe100 yes they pass after a few days, but my point is that the fatigue makes it really hard to make it through the day when you feel exhausted. I just don’t want to be dependent on it everyday, it’s an addiction in my eyes

[@seanthe100]

@@rynev3392 coffee is life dude, for me it varies sometimes I have no withdrawals at all and sometime I do but I go days without it frequently. If you're working a job coffee makes it much better

[@em0ville]

i could never be addicted bc drinking caffeine...TMI... makes me poop like crazy 😂 but even beside that, i don't feel energized or anxious after its consumption, i just operate same as normal. although a few months ago i drank a whole refresher from starbucks after having not had any for a long time, and the caffeine made my face tingle 🥲 terrible feeling

In my opinion, it's because China is the country of tea export and tea culture, hence, with the arrival of coffee giants like Starbucks back to 1999, they established a coffee drink behavior since then, so they can easily capture the market. Unlike in Vietnam (my home country) where we are known for the 2nd largest coffee exporter in the world, people have a stronger taste of coffee, the vast majority is considered as coffee gourmet, so Starbucks is not a win in my country. Instead, people come to Starbucks for a lifestyle or atmosphere experience rather than coffee drinking itself.

[@cinpeace353]

I love Vietnamese coffee. ☺️

[@yaweichen9773]

The first time I had Starbucks was in 2012 when I was in the senior year of my college. It costed 69 RMB or $10 at that time. It was very very expensive to me since I only spend 15 RMB per day for my meals. Literally, one cup of coffee covers 5 days of my food😅

[@user-mh2ln8gm1i]

Starbucks violated the one-China principle and suggested that the Chinese government expel the company.

[@slomo4672]

美国人割韭菜忒狠

[@RHS-992]

I remember spending 30rmb for a cup of latte, to be honest for everage income level it doesn’t feel so much different than spending $30 dollars in North America ..

[@codyshi4743]

I hope Starbucks still do well in China. And I hope to try the Chinese Starbucks someday.

[@shanghaidiscovery2664]

This report feels like it is 5 - 10 years behind. Yes, Starbucks is still the market leader but if you look at the number of options today, they are losing ground. I remember the first store at China World in Beijing (and btw, they were always abt coffee only from day one), and this first store is the issue.... I was young then, jst out of college. now my kids go to college and they don't have same preferences. they prefer milk tea stores. and if Heytea has not taken over, I would not say it has failed by any stretch. brand like that one and Lelecha are very popular and eating away at Starbucks. And in the coffe world, ther are now dozens of other chains that are doing OK. Some failed like Zoo coffee, some disappointed investors like Luckin but what about Manner, M Stand and countless others plus all independent stores? they are growing hugely. Plus pastry stores that offer breakfast and afternoon tea. anyway, Starbucks is the biggest but I think their client base in China is aging... which is a problem (or is it?)

[@romanvssvmromania]

So they first took coffee from a local supplier (most probably way better than the mediocre coffee they sell here in Europe). That coffee and quality were a big plus. Then they statrted with large varieties of tea. Hmm, that will work almost anywhere: well designed place, good quality, local taste. But no, here in Europe, apart from its design, Starbucks coffee is literallie "shytt".

[@F-UTube]

I've noticed places like Starbucks and McDonalds make themselves nice, luxury, and someplace that serves great products. USA they throw you slop and expect the customer to appreciate it

[@sethaaron510]

Starbucks is in a big mess right now. Its high-pirce strategy doens't seem to work anymore. People start to realize the price difference between countries. Some of these customers go further and call it an IQ leviy. CNBC is lagging on this story.

[@1995yuda]

Interesting

[@Gudha_Ismintis]

2020-2022 - The world hates China 2023 - We all like China now

[@ChickensAndGardening]

no one hates China as in the Chinese people. Almost everyone hates the Chinese government. Having said that, everyone also hates the U.S. government, and for similar reasons...

[@almdrs]

Money...

[@SpiritsBB]

"World" doesn't mean western countries - just so you're aware.

[@d.b.cooper1]

Remeber going to a store in Thailand on holiday & it honestly looked like a 5* star top of the line posh restaurant with loads of fancy paintings & all sorts. I shudder at folk who spend £10 a day at Starbucks in developed countries let alone those in developing countries spending £5 daily whilst having maybe 1/5 of the income.

[@set_mi_freewang68]

The sales per store is dropping sharply 😅

[@set_mi_freewang68]

And Starbucks is no longer popular among the youngsters

[@toy315]

其实大部分人并不是真正喜欢喝咖啡，而真正让星巴克能在中国获得成功的原因是中国的社交文化，中国人有许多社交活动，大部分是为了拓展人脉，需要邀请别人见面谈话的总得有个好地方，星巴克的豪华风格无疑是最佳场所之一！

[@user-xd5mw3xf7y]

Zhinaren

[@bulthaosen1169]

The coffee that you buy to throw away money.

[@Aviator526]

I love SBUX coffee and their stock!

[@1995yuda]

What's SBUX? Is it like the Parent company behind Starbucks?

[@robertlyu]

Trust me, Starbucks has faced its biggest challenge in China mainland because of the rise of Luckin Coffee (瑞幸咖啡). The latter has fully devoted its power of neomedias like Douyin (TikTok For China mainland version) Live and allow users to buy bulk merchandise with a WAY LOWER price compared to Luckin Coffee app. For example, taking Coconut Latte (生椰拿铁), which is an original coffee with coconut milk instead of regular milk, sells at the price at CNY 29 (~USD 4.33) per jar. Usually, Luckin Coffee app will provide free coupons with 51 percent off. So the checkout price would be USD 15.68 (~USD 2.34) per each. However, the price on Douyin Live provides CNY 29 (~ USD 4.33) for 2 jars. That means if a Luckin user purchased in advance, he/she could get coffee at a even lower price.

[@RichardHorpe]

imagine blue bottle expanding to China, that'd be wild.

[@thewanderingrey8830]

they already did since last year?

[@surajitmondal823]

What's that?

[@RichardHorpe]

@@surajitmondal823 a more elite coffee chain

[@berliozz85]

"In its balance sheet, the company (Luckin) fabricated more than $300m in Sales"??? I take that the person who wrote the script has little accounting knowledge. 😂 Good video overall though!

[@phoenix5054]

I had to reread that sentence 3x to figure out what was wrong. Shame on me. 🤣

[@guozhuchen5511]

No, right now the Luckin coffee is widespread all over the China. It’s cheaper than Starbucks and taste is better. We will see in the next few years

[@raybertocki1374]

So this is just a thought experiment, I like to watch markets (But I don't day trade) Just Curious on peoples thoughts on shorting Starbucks? This looks like a good story, but what I see is risk. China is going through its own recession, as well as unrest and lockdowns. Also as this video shows they own 100% of all the stores in china. This means they have full exposure, without any franchisee's to soften the blow. Also with rising tensions between the US and China, I can see a boycott coming if the wrong thing goes viral or something these days. Or a Policy change happens in either land. Disclaimer: I am not, nor have any interest, in shorting Starbucks. Shorting is a risky strategy that I'm not comfortable with.

[@baronvonjo1929]

Why do American companies try so hard and look so much better in so many areas around the world and not try at all here in their home market? Starbucks and KFC immediately come to mind.

[@rs-dp6pr]

Because they gave up on their home market consumers already

[@markclark3747]

You can't go from a cheap low status business model to an expensive high status model. That would be like Wal Mart deciding they're going to be a high end retailer out of the blue.

[@Ryanyan26]

@@markclark3747Not many people in China or Singapore thinks KFC is high end, but the menu are still much better compare to US KFC, not to mention the customer service…

[@Melanatedminimalist]

Howard Schultz is absolutely brilliant-he didn’t try to change the culture he became a part of the culture …. Respect ✊🏾 to you sir

[@SavageBunny1]

In Mexico a cup of Starbucks is 1/4 of your days wage, that's just for a cup of coffee, a frap is atleast 1/2.

[@4SuGloria]

It’s so hard to get a HeyTea drink. The wait time can be hours long at times.

[@garrettreynolds9145]

😂 Chinese have stopped drinking overpriced coffee now🤣

[@samsonsoturian6013]

The menu on Chinese branches is very different from the ones in America

[@InquisitorBoomBoom]

Perhaps Starbucks is used as a means of flexing your status there. Chinese love to flex things in front of others and Starbucks fulfills that specific mentality of the Chinese.

[@samsonsoturian6013]

Premium American brands are treated as luxuries in China regardless if it makes sense. China is the biggest consumer of luxury items with some people going into debt to show off.

[@destroyer-fr4dz]

Watch the video they literally say that

[@179561520]

@@destroyer-fr4dz they said in the beginning. That was 20 years ago

[@doujinflip]

Korea and Philippines are likewise brand-conscious consumers of Starbucks

[@Patterson24]

Oh, specific mentality of the Chinese? So… someone like an American would never want to flex anything in front of others right? Because American culture is humble, right? 😂😂

[@kaydkaydkayd]

not sure why it didnt occur to me that starbucks is considered lux in some places considering that even the ones near i live ( ny ) are all somewhat dressed up LOL

[@edlee8949]

My only go-to coffee place is $0.99 McDonald's Senior Coffe. I am retired and I can not afford Starbucks' price.

[@mohussain1615]

In Pakistan we don't have Starbucks but to fill in the gaps we do have Gloria Jean's Coffees, Coffee Planet, Cinnabon, The Coffee Bean & Tea Leaf, Second Cup. Maybe in the future? Good to see Starbucks doing well in China.

[@jolp9799]

hold on the parents medical insurance for starbucks employees is actually nuts! hope they roll out something like that in the US, instead they're too busy knocking down unions here

[@christian5214]

Lol! My thoughts exactly

[@xinfuxia3809]

American companies had various degrees of successes including but not limited to: Apple, Tesla, Kentucky Chicken, General Motors, even Hooters

[@TrimeshSZ]

General Motors are probably better considered an example of a company that was doing really well in China and got complacent. Around 2000, GM cars (especially Buicks, for some reason) were everywhere - but they were pretty thoroughly outplayed by the Japanese and European vendors (notably Toyota and VW) who entered the market with cars based on newer platforms, better base options and higher trim spec, along with a much higher level of attention to the tastes of Chinese consumers.

[@lanzortiz3199]

If is was the other way around and it's a chinese coffee shop were this successful in America, the US politians would probably ban it due national security concern or hard liners would complain that chinese are stealing there business opportunity.😂

[@incisive2641]

Hard to decouple from a country when your biggest corporations are so invested in their market. Smart move by China.

[@seanthe100]

Do you really think Starbucks is a major corporation for the US government

[@dnn32]

@@seanthe100 In the industry Starbucks is invested, yes!! Now, if want to compare Starbucks to big tech companies, Starbucks doesn't have much weight.

[@yeetian2774]

Decoupling is an economic joke even in current Russia. Both US and some eu countries are still secretly importing Russian energy.

[@sneakymove]

Actually it's a win win that China always wanted. It helps the country a lot in job market, and it certainly benefit Starbuck in terms of market share in coffee business and technology adaption and advancement It's the US goverment who causes havoc in the world market, disrupting supply chain. What Starbucks does....US government will never learn.

[@thomasgrabkowski8283]

Of course they are. It's the second biggest economy and growing rapidly, plus 1.4 billion potential consumers. Who can pass up this opportunity to make profits

[@doujinflip]

I've tried Starbucks, Luckin, and Heytea, and I think Starbucks still tops on taste. Their recent China Blend brew was pretty good too.

[@Western_Decline]

Starbucks coffee is not even good coffee. Manner Coffee is the best "chain" coffee in China.

[@romanvssvmromania]

Maybe in China, here in EU Starbucks stands no chance in front of local freshly roasted coffee shops. Even if the competition is so great, they won't use good quality coffee or train better their baristas like they did in China.

[@pepey1253]

Also the most expensive one😂

[@kenanthonio]

Starbucks in Asia is on a level of its own compared to Starbucks in the USA

[@WalkOverHotCoal]

There is quite a bit of showing off in some of these discretionary purchases. Take fashion for example, some "designer" labels actually purposely stitch the label, and a large one at that, on the outside. The idea was for the wearer to show off his/her wealth. Perfumes are another example. If they are to drop the price, consumers would think it is no good. The simple logic for those people is ..."If A is more expensive than B, then A must be better". That is why Starbuck won't lower the prices. I have an idea. On the assumption that people want to look rich by walking around with a Starbuck in hand, why not just keep the container and walk around with it? It will cost you nothing, and you still look fancy rich.

[@BatCaveOz]

Starbucks failed miserably in Australia, particularly in Melbourne. Their coffee is meh and their brand isn't considered sophisticated. Of the few stores that remain, all cater to tourists... which is fine, because apparently they are happy to overpay for trash coffee.

[@thomasgrabkowski8283]

In Asian countries such as China, and also Japan and Korea, it's due to lack of prior cafe culture thus Starbucks established itself as a major player in the newly developing coffee industry. In Australia, as well as in Europe, there is already a long standing coffee culture that Starbucks failed to crack, thus it wasn't successful

[@goinnovation1011]

In fact, the new generation in China is turning to local tea brands, such as HEYTEA and Naixuecha. The Starbucks brand has aged and its future is uncertain. Those who say that drinking Starbucks is a symbol of wealth or status are really ridiculous, and they don't understand the thinking of contemporary Chinese people at all.

[@dt8101]

Can't agree more. It is so insane to watch this CNBC segment. Anyone who is living in China right now knows that Starbucks brand is aging quickly. It is not trendy at all nowadays. CNBC doesn't even mention Manner Coffee at all. There are so many Manner Coffee in my neighbourhood. Chinese people don't associate Starbucks with social class any more. Young people will happily drink coffee from domestic brands which are cheaper.

[@Hellfr4g]

standing in line to have a hot baverage? rofl.... i walk to the next corner

[@user-hn5vd1es2w]

Starbucks city cup is one of my traveling souvenirs.

[@harrysmith8515]

One party system may not be bad. Take life expectancy of both China and US as example. In 1950 China life expectancy is about 38 vs US 68. After 71 years, in 2021 China life expectancy is 78.2 vs US 76.1( latest figure by CDC , US life expectancy dropped by 3 in 2020-2021 period from 79.1 originally). China expectancy increase by 40 years while US increase by 8 years only. China life expectancy increase 5 time faster than US. Also Look at health care by comparing MMA rate( maternal mortality rate): in 1950 China maternal mortality is 1500 women death per 100,000 birth vs US 100 women death per 100,000 births. In 2021, China MMA is 16.1 vs US 23.8 per 100,000 (the lower the number , the better health care service level) . Infant mortality rate: in 1950 China infant mortality is 195 death per 1000 birth vs US 26.8 death per 1000 births. In 2021, China infant mortality rate drop to 5 per 1000 vs US 5.4 per 1000 birth. In fact among top 10 population countries, China’s life expectancy is longest 78.2 years old vs US 76.1 and India 70, Indonesia 71.7, Pakistan 67.3, Brazil 75.9, Nigeria 54.7, Bangladesh 72.6, Russia 73.1, Mexico 75. And people in China retire at 55 years old on average to access pension. About 12 years earlier than US's 67 years requirement while some countries may not have pension at all. It means an American need work extra 40*52*12=25,000 hrs in his life than an average person in China. It also means an American only has 9 years to enjoy retirement while an average person in China has 22 years to enjoy retirement. Also it is not means or asset tested when access pension in China. It means you get your pension monthly even you stay overseas, are a multi-millionaire or have another job after retirement. Singapore is another example of one party system. Its gdp is highest among Asia.

[@ChickensAndGardening]

For the 500m rural Chinese, what kind of medical care do they get, if they are diagnosed with cancer? Serious question. Because up until a few years ago, for 80-90% of Chinese, if you got cancer, you died. There simply weren't enough modern physicians and treatment centers so only the rich and the ruling elite got modern care. This may have changed somewhat recently.

[@harrysmith8515]

@@ChickensAndGardening your knowledge about China is outdated. For rural Chinese, they also can pay about US$35 per year premium to get medical care which pay 80% medical cost when they see doctor or are hospitalised. That is actually one of major reasons why people life expectancy in China continue to increase 3-6 months per year. You need go to China and stay there 6 to 12 months at least get real picture of China.

[@ChickensAndGardening]

@@harrysmith8515 I agree that my knowledge is outdated, and that medical care is a lot cheaper there... but do people outside of the cities get good cancer treatment, regardless of price? Of course, we know that there are plenty of organ donors, thanks to all those political prisoners.

[@harrysmith8515]

@@ChickensAndGardening Have you been to China? Where you get these ideas about China? I suggest you read some blogs by Americans who live in China now. They are independent, have a job for a living and like to share his or her experience or thoughts online. This guy can be an example. kzbin.info/www/bejne/hZCYqpKKjtqjo68

[@bldomain]

@@ChickensAndGardening Hey debate properly and stop pointing fake overused organs donner BS to try to win a stupid argument. It degrades you.

[@samsonsoturian6013]

The rewards program has a few caveats. First is US brands are a status symbol, no matter how illogical, so people who can't afford it will still buy it. Second is there have been mass bankruns in China and even before that most Chinese citizens don't have debit/credit cards, meaning the rewards program is the only way to pay for things digitally.

[@Derbnage]

Your second point is non-sensical. China is ahead of most countries when it comes to digital payment.

[@coolspot18]

People absolutely have bank accounts - the bank runs we’re with some small rural banks. China’s main banks are some of the largest in the world. Majority of payments in China is digital - China and their tech companies invested heavily in digital payments.

[@rs-dp6pr]

You have been watching too much CNN.. Chinese Middle class certainly is doing better than American middle class.. who doesn't have problems? Too bad, West does like to paint a picture for their people who cannot afford to travel to make them feel better..

[@samsonsoturian6013]

@@keyboardemperor1112 A large portion of said banks are insolvent at the moment and loans with interest exceeding 20% are quite common. Plus you're often required to have provincial residency status to open a bank account and a large portion of China are seasonal migrants.

[@samsonsoturian6013]

@@coolspot18 Not everyone. Especially the seasonal workers who work on farms during planting/harvest and work other temp jobs in the cities at other times.

[@AnarchyEnsues]

does starbucks offer health insurance for its workers in america?

[@STREETFOODJOURNEY5]

every 9 hours??? just wowww

[@haoruchen4216]

Five hundred Starbucks in where I live Hangzhou unheard from the west….to more stores than Seattle USA….simply by population money and trends it’s way beyond…. ok, it's the urban living room which is important for this culture.

[@haoruchen4216]

Starbucks is a luxury brand people can afford everyday....in china.

[@kaydkaydkayd]

that luckin logo is so cute looking omg id walk in the store just for that

[@WangGanChang]

hard to believe the 34% figure when coffee itself is less than 10% of the coffee and tea market, and no one go to starbuks to drink tea. Epseically the latest trend is to put fresh fruit in drinks and you can't do that with coffee. Also while starbuck has 6000 stores into China and looking to expand to 9000, something like mixue (unheard of outside of China) has more then 20k and rapidly expanding.

[@silverchairsg]

Yes. Mixue recently opened in Singapore about 1 year plus ago, and their pricing is absolutely spot on for cheapo consumers. SGD $1 for a big vanilla cone and their sundaes etc are in the $1+/2+ range. It's only a matter of time before they expand.

[@lifeisrealsr.6398]

Thanks

[@timothy1949]

damn i haven't had a starbucks drinks in years, missed the cold sweet stuff, but they are way too overpriced now

[@yamz3713]

Starbucks is huge in Japan but in australia not so popular

[@Propain4eva]

Just get an espresso/latte maker. I don't speak for those who don't go to starbucks for the pastries and cookies, but for those who just drink the coffee there are alot of coffee maker options in the market rn that can make all sorts of caffiene based drinks

[@elmarketprofileclub3141]

Me sorprende que Starbucks mantenga los mismos precios en todos lados, sin importar, si un país es emergente o no

[@freeman10000]

Western Australia, proudly Starbucks free!