Starbucks entered the Chinese market in the late 1990s by partnering with mainland and Taiwanese food and beverage companies. The US company currently has 165 stores across 18 mainland Chinese cities, about 120 of which lie in the capital or around Shanghai. And now they are embarking on an expansion into the second-tier markets the medium sized cities offer.
Starbucks Chairman, Howard Schultz's ambitions for China -- which he labeled the single most important market outside North America -- suggest many lesser known cities in the country are quickly developing considerable spending power as well as Western drinking habits. "China has emerged as the strategic priority within the company today and in the long term," he said. "The opportunity we have in China is like no other."
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Mr. Schultz went on to say that, just as US fast food chains have done, Starbucks is looking at new ways to tailor the menu to local tastes. Additionally, it is Starbucks' goal to consolidate ownership of their stores rather than continuing to partnership with other companies.
The northeast cities of Dalian, Qingdao, and Shenyang, as well as the southwest cities of Chengdu and Chongqing are the first recipients have newly opened stores in a process Mr. Schultz described as “Embryonic.” So lookout citizens, Starbucks may be coming to a city near you!
