For millennia the Chinese have turned to tea as their beverage of choice, typically jasmine or green varietals sipped from small porcelain cups. Then in 1999, Starbucks opened a Beijing beachhead that spawned thousands of other outlets across the country over the next two decades and got locals hooked on US-style coffee concoctions, from nitro cold brew to pumpkin spice latte.
Carving out a slice of the Chinese market won’t be easy for Lavazza, despite its more than a century of experience in coffee culture. It took Starbucks more than a dozen years to open 1,000 coffee shops in the country, and now the company is a dominant force with more than 5,000 outlets. Besides, Starbucks has decades of experience perfecting its network around the globe.
Already, the Lavazza locomotive is picking up speed in China, with more than 20 cafes that have cropped up across Shanghai, Hangzhou, Beijing, and Guangzhou. “Lavazza would have really struggled without a strong partner in China,” says Mark Tanner, MD of Shanghai-based marketing and branding firm China Skinny. “Starbucks has an unusually large market share, which leaves the other competitors to fight for the scraps.
Starbucks has been growing steadily in the country since 1999. The Seattle-based company can take credit for largely introducing the Chinese to specialty java drinks, especially consumers in the so-called tier 1 cities of Beijing, Shanghai, Guangzhou and Shenzhen.
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