China is one of the fastest growing market for Starbucks. The company didn't see any slowdown on its business in China, even if it's closing stores in other markets affected by recession . The company's CEO has high expectation and says that the new market will bring a remarkable profit.
Starbucks adjusted its plans and strategies to the new culture. Chinese people see the Starbucks' locations more like restaurants where they can go after work and relax. If in USA more of Starbucks sales represents "take-away" beverages, in China "take-away" beverages sales represents 5% from the total.
In China, Starbucks makes most of its business in the afternoon and night, when people are done with heir works, unlike the USA where the company sell more during the day.
In order to benefit costumers needs Starbucks locations in China are larger and have a lot of seats because people spend sometimes hours in there. For Chinese people drinking coffee without food is not common. Therefore, the stores sell also food.
Starbucks changed its tactics in doing business in China and that made them gain the customers' confidence. Starbucks is planning to open several hundred of stores in the next years. They believe that the foreign expansion, will help the company to raise its revenue by 20 % every year.
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