Us media say Starbucks planted the seed of self-destruction in China: rotten street

The article on the Forbes bi-weekly website on February 16, the original question: is Starbucks planting the seed of self-destruction in China? "people come here," a Starbucks employee in Jiangsu stammered to me, "because it's expensive and extravagant." "luxury?" I asked. "Yes, luxury."

Her words sum up a basic component of Starbucks' success in China. When Starbucks entered China at the end of the last century, it coincided with the rise of new urban white-collar workers. They like to go to coffee chains, in addition to practical meetings, rest and other purposes, but also to show off their upper-middle-class identity.

Starbucks was once seen as a gathering place for the international elite in China, and its stores tend to be in high-end neighborhoods with dense crowds, with fully open windows that allow passers-by to see the rich sitting inside.

But can the brand's advanced identity continue as Starbucks plans to increase its stores in China from 1900 to 4400 over the next five years?

"in the past, one of the reasons (it was successful) was that Starbucks drinks were more expensive than other cafes and had a better environment," said Ye Qiu, a resident in Ordos. "if you had a cup of coffee or a piece of cake in the store, you could take a picture and post it on social media. Your friends will think that'he is rich'or'he likes to drink coffee and has good taste'. It's like people who used to have iPhone can show off to their friends. But now people are rich and there are Starbucks and iPhone everywhere. "

As China's white-collar class continues to rise rapidly, being able to spend money at Starbucks can no longer reflect its identity. "there is a word in Chinese called 'Bad Street', which means that if everyone has it, it will be nothing special," Ye Qiu said. "so if someone still posts a picture of drinking coffee at Starbucks online, people will not think he has money or taste, but will think he is low."

When Starbucks entered the Chinese market, there were few competitors. But things are different now. A number of coffee chains have entered China, such as Costa in the UK, Pacific in Hong Kong, Man Coffee in South Korea and Shangdao in Taiwan. And boutique cafes, which are blooming and bearing fruit all over China, are perhaps the biggest threat to Starbucks' rule.

The article comes from the Global Times

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