Page 137 - The Starbucks Experience

PRINCIPLE 4

increasing exposure to Western brands, the young, trendy,
and affluent began to view Starbucks—or xing bake (shin
bah-KUH) as it’s called here—as a brand that signified suc-
cess, status, and wealth. In China, Starbucks customers tend
to walk down the street with their coffee cups, round green
logo facing out.” By understanding and addressing the con-
cerns of the specific market, Starbucks leadership ultimately
was able to create a brand message that was more meaning-
ful for China’s unique retail culture.
Never settling for past success, Starbucks executives con-
tinue to be vigilant about the needs of the Chinese market,
while remaining responsive to the lessons learned from the
resistance. The leadership, for example, looked for more
ways to encourage community engagement and support, even
when the company was viewed skeptically. Starbucks man-
122 agers quickly identified the importance of education in Chi-
nese culture. Accordingly, Starbucks executives committed $5
million to support educational efforts in China. Starbucks
dedication to helping this market flourish was in turn praised
by actor Ziyi Zhang, a star of the movie Crouching Tiger,
Hidden Dragon, named one of the world’s 100 most influ-
ential people in 2005 by Time magazine.
Instead of being viewed as a slap in the face of her fellow
Chinese countrymen, Ziyi Zhang noted, “Upon learning
about Starbucks decision to support education initiatives in
China, I was moved. As a Chinese national, I am deeply
grateful to global companies such as Starbucks for their phi-
lanthropy. I applaud them and support them and am always
eager to be an advocate for caring that is borderless.”
The lesson of Starbucks success in China is twofold: not
only must businesses make the products and services they
offer more meaningful to new markets, but they must under-