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Starbucks is launched to conquer China

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Starbucks has reached maturity as a company and it's costing accommodate your new status. Gone are the years of economic growth unstoppable. But the giant iconic cafes is not yet willing to give up.

Its main business strategies for the coming years is the potentiation of items of greater value and more dilated margins, as it may be the case cafes cold brew, which they have enjoyed great popularity after appearing lately almost by spontaneous generation in the menus of the most chic cafes. On the other hand, Starbucks focuses its attention to unexplored markets, almost all of them in Asia.

Why the announcement of a new partnership with Alibaba in China no surprises expert analysts, who already expected a movement of the franchise in a market 1400 millions of people, with 200 cities exceeding one million inhabitants, and it is one of the main generators of trends in East.

Starbucks had 2936 establishments in China for 2017, but this number will change radically over the next few years. Provide reach 6000 premises before the end 2022.

But to enjoy a secure income flow, permanent and upward over the coming decades is not enough to have an undeniable presence in the country.

The announced death of takeaways not yet been consummated, but this way of consuming itself It is beginning to be eclipsed by the possibilities of home delivery that arise around the globe. In the end, the consumer finds it much more comfortable and convenient receive your order directly in the workplace or at home, without disturbing displacements by.

For this reason, the home delivery Starbucks is an aspect that can not be put aside.

Home delivery logistics is complex in China. And equally difficult it is to have a market segment. A Uber Eats Y Deliveroo, two delivery companies best known in the Western market, They have recently joined by Alibaba, It is struggling to gain a piece of the pie as part of their diversification strategies.

Mermaid cafe will feature the latest contender. According to the spokesman for Starbucks, Through this collaboration with the company of Jack Ma may triple the income earned in China in the future.

But for now we must go step by step. The collaboration will go through a first stage in which the operation of the service will be evaluated. A total of 150 establishments located in megacities of Beijing and Shanghai have been chosen to be part of the pilot project.

Kevin Johnson, Starbucks CEO, longs that this is enough to reverse the disturbing results they have experienced in China during the last quarter, period in which surprisingly were below expected revenue, more similar to the situation they are living in the US. THE.

If metrics testing stage match predicted, later this year the service could reach two thousand Chinese Starbucks cafes. The ultimate goal is that the Chinese market is larger than the US, in line with the population of China.

Kevin wants to make sure the service is correctly incorporated into the image that distills the company: "One of the important aspects for us before the lanzásemos home delivery It was that experience will be integrated with establishments, and proves an experience premium».

Some loan the efforts of new director, Veteran successor Howard Schultz, but many others see in this late entry to the Chinese market for home delivery food a mistake, even when it is considering the presence of the successful Luckin Coffee, leading competitor entire front in urban areas.

Nevertheless, Kevin he is not exhausted optimism: "This partnership sets the foundation not only in China, but for all that we will see globally, since the pace of innovation is faster here. If we look a decade in the future, This will be our relationship with all developments related to retail '.

Five years is the period have been taken to achieve its goal of tripling revenues. An ambitious goal. It could not be otherwise. The current growth of the company in China, although it declined 2% Recently, It remains explosive. It is logical to take advantage of the inertia.

If Starbucks finally gets part imperative of Chinese daily the company could secure the future, which their Western response is not as rosy statistics.

To succeed in mainland China will not be enough to be quick in delivery. That is something that Chinese citizens take for granted because they are accustomed to buying and distribution of goods within the same business day.

To make a difference we must demonstrate excellence in service. Starbucks already preparing to make his way: with thermal containers capable of maintaining the temperature in the cold Chinese streets, with resistant package and easy to settle that prevent spills and products in line with the preferences of the locals.

The head of the Chinese market, Belinda Wong, He believes that when they finally have managed to be "able to deliver the same quality of coffee that achieved in stores" is when you have "earned the right to make home delivery '.

And if things do not go as planned Kevin and Belinda, initiatives will always remain parallel testing. This is the case of Casting kitchens that have opened in supermarkets Supermarkets Hema and bring Starbucks coffee consumers who do not know the brand.

Starbucks is launched to conquer China
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Article by the editorial team of DiegoCoquillat.com. It has professionals both in the field of hospitality, gastronomy and tourism, and new technologies and innovation.

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