Coffee shops in China: Expansion of Western chains
- Pages: 22
- Published: October 2015
- Report Code: ML00019-033
China is a tea-drinking culture. However, urban consumers are acquiring a taste for coffee and coffee shops have sprung up to serve them. Starbucks and Costa are present and expanding rapidly there. They face price competition from McDonalds and KFC. This report examines the strategies of these companies for entering the market, expanding their business, and dealing with competitive challenges.
Discover the leading Asian and Western players in the Chinese coffee shop market.
Find out how Starbucks and Costa have adjusted their offering to suit Chinese consumers.
Reasons to buyWhy is a nation of tea-drinkers starting to frequent coffee shops?
How many stores do Starbucks and Costa operate in China, and what ownership models are used?
What competitive threats do the Western coffee shop chains face in China?
Table of Contents
COFFEE SHOP CHAINS IN CHINA
China's historic preference is for tea
The coffee consumer demographic is expanding
Local players are well-established
Where is China in the market life cycle?
The Chinese coffee shop market is at the Growth stage
Local players often model themselves on Western coffee shops
STARBUCKS AND COSTA ARE EXPANDING
Starbucks entered the Chinese market in 1999
The company is now expanding aggressively there
Starbucks offers a subtly localized proposition to consumers
Prices are higher than expected
Franchising is a common route to growth in foodservice
Franchising can be difficult in China
Limited local management skills
Starbucks intends to continue its expansion in China
Costa entered China in 2007
It operates via joint ventures in China
Like Starbucks, Costa has localized its offering
FAST FOOD CHAINS ARE COMPETING
McDonalds has opened McCafÃ© outlets in China
China is KFC's largest market
KFC is offering premium coffee
The fast food chains will challenge Starbucks and Costa
The Chinese coffee shop market is a surprising opportunity
Ask the analyst
List of Tables
List of Figures