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Multi-coffee brands compete for the Chinese market to accelerate the fierce competition for investment in China.

Published: 2026-04-04 Author: World Gafei

Last Updated: 2026/04/04, Hu Lu, deputy secretary general of Yunnan Coffee Association, told reporters: Starbucks' high price makes coffee a luxury. The third space it creates gives Starbucks the strength to set higher prices. Wang Zhendong, secretary general of the Shanghai Coffee Association, believes that early entry into the Chinese market has given Starbucks a monopoly position, but Starbucks' advantage lies in quality management, which represents standardization.

Hu Lu, deputy secretary general of Yunnan Coffee Association, told reporters: "Starbucks' high price makes coffee a luxury." The third space it creates gives Starbucks the strength to set higher prices.

Wang Zhendong, secretary general of the Shanghai Coffee Association, believes that early entry into the Chinese market has given Starbucks a monopoly position, but Starbucks' advantage lies in quality management, which represents a standardized fast food culture, which can be called McDonald's in the coffee industry. Just like the rapid rise of McDonald's in the developing world, Starbucks' success has a similar factor. Lack of coffee culture in developing countries, Starbucks enters as a popularizer, occupies the first opportunity, and can rise rapidly.

Accelerate China's investment

The competition is fierce

According to Starbucks' 2015 results, revenue in 2015 was nearly $19.2 billion and net profit was $2.759 billion. Revenue in the Asia-Pacific region, including China, rose from $1.13 billion to $2.396 billion and accounted for 12.5 per cent of Starbucks' total revenue from 6.9 per cent. Apart from the United States, the Asia-Pacific region has become Starbucks' second-largest market, compared with revenue of just $917 million in China and the Asia-Pacific region in 2013.

Gao Xiaonan, head of public relations at Starbucks China, said that from entering China in 1999, there were only 1500 stores in early 2015, and the previous development was relatively cautious. But it will accelerate its development in the future. Over the next five years, Starbucks plans to invest more in China, adding 500 stores a year, with a total of 3400 stores expected by 2020.

According to data provided by Starbucks China, there was a net increase of 444 new stores in fiscal 2015, the highest in nearly three years. In the global market, Starbucks has added only about 1500 stores a year. By the end of January 2016, the number of stores in China had reached 2000. China accounts for about 10 per cent of Starbucks' 23000 stores around the world. Starbucks reported 150 new stores in China in the first quarter of fiscal 2016.

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