Question

assess the Chinese market; you must refer to Chinese lifestyle trend choices and how these choices will positively impact Starbucks. The lifestyle of Chinese youth and affluent professionals should be seriously considered while conducting your analysis. Statements made must be fully documented.

Answer 1

Some of the recent trends in chinese markets that are postively impacting the expansion of starbucks in China is as follows:

a. Growing consumer demand by middle and higher income groups in chinese population has positively affected the growth of Starbucks in China. The middle and high income population is seen with better purchasing power and a strong bend towards exploring new experiences.

b. High tourist attraction in belts like Shanghai, Beijing, Hongkong, Shenzhen has been a favorable trend for the coffee giant. Starbucks attracts international tourists since they consider it as a trusted brand for good quality food and beverages.

c. Growing demand from tier three and tier four cities due to heavy trade flow from the globe is another factor. Starbucks is utilized as an important meeting place for business meetings

d. The diet of chinese population in the age group of 25-35 has been significantly influenced by western culture and the shift to burgers, salads, high intake of coffee is evident.

e. The services industry in China has been known to grown at the highest over the past three years. This has been supported by increased consumer spending on high quality services and hospitality. This is a favorable input to Starbucks growth in China