A Study of Starbucks (China) Cross-Cultural Marketing Strategy

Abstract

Starbucks, a multinational coffee chain, has been the head of China’s coffee industry since it entered the Chinese market in 1998 with its high-quality coffee and people-oriented business service concept. Moreover, as China’s economy continues to grow and its level of consumption rises year by year, the Starbucks China market has become the second largest overseas market besides the U.S. domestic market. The author hopes to draw lessons from the analysis of Starbucks’ marketing strategy in China and give certain implications for restaurant chains in the context of new retail. In today’s Chinese society, Starbucks sells not only coffee but also services and the “third space” provided to consumers. People generally consider Starbucks as a petty and fashionable lifestyle. This paper analyzes the macro environment and industry environment of Starbucks in China by using PEST and the five forces model to point out the problems that still exist for a multinational coffee chain in the Chinese market.