Executive MBA programme
Develop your capabilities to manage strategic and operational realities.
Starbucks Coffee is present everywhere in the major coastal cities of China. In spite of high prices (30 RMB (3.70 EUR) for a grande caffè latte), the outlets are often crowded by both Chinese and westerners. City people tend to like the lifestyle of coffee. Now, Starbucks intends to open more outlets in cities away from the coast. The chain has plans to have 1,500 outlets in China by 2015. Apart from Starbucks, there are many me-too coffee chains like Costa Coffee (British) and Wagas (Danish/Chinese). All players want to grow the market. The world average coffee consumption is 240 cups/year. In China, the average is just 3-4 cups/year and many Chinese have never tasted coffee. Thus the market potential is enormous. The suppliers of coffee try to educate people to drink coffee and combine it with marketing. Currently, the market for coffee grows by 20% annually.