Schultz recalls Starbucks' first store in China: Americans say that selling coffee in China is bound to fail.
Starbucks has been a success in the Chinese market, which is used to drinking tea. Howard Schultz, founder and executive chairman of Starbucks, returned to China in mid-April 2017. he has just stepped down as CEO to focus on the company's long-term plans to develop the high-end coffee shop market.
As in 2016, Schultz personally announced a new partner welfare plan during his stay in 2016, a sign that the coffee chain giant attaches importance to the Chinese market. He also recalled the story of his early decision to enter the Chinese market.
"many times, people say that Starbucks will not succeed," Schultz said. Take our development in China as an example: after opening our first store in 1999, we lost money for several years. At that time, many Americans said that Starbucks was bound to fail in China, and they couldn't make it. Wherever we go, we can not achieve success overnight, but through the core goals and enthusiasm to adhere to, people-oriented, beyond the expectations of employees, can finally achieve beyond customer expectations. "
In 1987, Starbucks had 11 stores in the United States with 100 employees; 30 years later, Starbucks has more than 25000 stores and more than 330,000 employees in 75 countries around the world. Starbucks plans to operate more than 5000 stores in mainland China by 2021. Starbucks' third-quarter 2016 results show that revenue contribution from the Asia-Pacific region is 13%, with growth in China particularly prominent. Starbucks management has publicly mentioned more than once that it wants China to develop into one of Starbucks' largest markets in the world.
Schultz pointed out that whether it is the persistence of the Chinese market or the newly announced partner welfare, these strategies are based not only on business factors, "in many cases, the understanding and recognition of culture, values and guiding principles. Will be more important than the business strategy itself. Or to put it this way, even the greatest strategy in the world cannot last long without confidence in the company, distrust of the leadership, mission and goals of the company. "
In addition to the Chinese market, another important business Schultz focuses on is high-end brand baking plants. It will also be a stepping stone to Starbucks' entry into Italy, the home of espresso, where they plan to open an upscale coffee shop in Milan. The first Starbucks roaster opened in Seattle in December 2014, and it is reported that the company spent $20 million to create 15000 square feet of space.
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