Slowdown in China’s economy no concern for Starbucks expansion
China may be a nation of tea drinkers, but this looks set to change as the coffee shop market continues to expand, with the equivalent of four new branded coffee shops opening each day.
Despite the slowing growth of China’s economy, the branded coffee shop market is thriving, with more than 5,390 outlets and a percentage growth of 37% in 2015.
Starbucks is one coffee company with plans for rapid Chinese expansion, with CEO Howard Schultz announcing that he expects China to become Starbucks’ largest market. Currently Starbucks has more than 1,700 outlets in China and the company plans to reach 3,000 by 2020.
The rise of café culture popularity is not just down to a newfound taste for coffee. China’s younger generation is heavily influenced by international branded chains and these consumers are seeking the Western experience.
UK based Costa Coffee is another western chain seeking to make an impact in China. Although Costa has a presence in four countries in South East Asia, the vast majority of these outlets are in China, which has 344 stores.
Evidently the slowing economy is not hindering western coffee companies seeking further expansion opportunities in the Chinese market.