Page 136 - The Starbucks Experience

Embrace Resistance

“Corporate America rolling its tanks into town” aptly cap-
tures the perception that led to difficulty for Starbucks in its
first effort in China. Starbucks entered the Chinese market in
a respectfully small way, with a two-table cafe in Beijing’s
Forbidden City, but its mere presence was met with strong
opposition in the press. These were the same media that for
decades supported isolationism and anti-American political
rhetoric. They promoted the words of Chairman Mao Tse-
tung in the 1950s when he described the United States as the
“leader of the forces of global imperialism . . . the most dan-
gerous enemy of the people of the world.” As a result, it was
no surprise when one newspaper likened Starbucks presence
in China to a slap in the face of 1.2 billion Chinese citizens.
Just two months into its operation in Beijing, local officials
considered revoking Starbucks one-year business license.
Rather than panicking, Starbucks leadership listened to 121
local officials and continued to adjust to the needs of Chinese
consumers and their communities. Starbucks management,
for example, expanded the size of the stores in China to pro-
vide the space that customers desired and increasingly
addressed other unique marketplace challenges, such as
reconceptualizing the “to go” versus “to stay” service ratio.
In the United States, approximately 80 percent of Starbucks
drinks are ordered “to go,” while in China the ratio is
inverted, with 80 percent of drinks ordered to be consumed
in the store. By better understanding the market and respond-
ing to the unique needs of the region, Starbucks is emerging
in the minds of Chinese patrons as a destination restaurant
and not just an American beverage provider.
According to Seattle Times reporter Monica Soto Ouchi,
Starbucks apparently has turned the corner of acceptability
in China and is now considered a prestigious brand. “With