The Challenges Faced By Starbucks In China

When you shop for a coffee table, you will be astounded with the different sizes, shapes and designs available. The most obvious choice for the family room is solid coffee tables because it can withstand rough use. Glass-topped coffee tables are not suggested for family rooms because sharp corners can be dangerous to children and pets.

It is called a coffee table but it has other functions besides providing a place for the cup of coffee. Coffee tables with shelves or compartments can double up as storage option. At local coffee shops, the coffee tables are chosen based on aesthetics so that they can attract more customers. Coffee tables have wider surfaces for coffee, pastries, pies or cakes.

While on the subject of coffee, Starbucks, an American company that is known all over the world for its coffeehouse chain, is dominating China’s coffee market. Because of the growing middle class the number of existing opportunities in China, the market is expected to grow larger. Starbucks is planning on 10,000 outlets in China within the decade.

Unlike the United States, the challenge faced by Starbucks in China is how to win the traditional tea drinkers to become coffee lovers. Starbucks is not worried over the growing competition from local rivals even if the growth rates of small brands and independent rivals have become bigger and more significant.

Based on estimates, Shanghai has 6,500 coffee shops composed of small chains and independent coffee houses competing for a share of the market. There are a lot of new players including international coffee chains that want to get into the act. However, Starbucks has had a good head start. In the last quarter of the year, Starbucks gained an 8% same-store sales growth. It has also opened higher-end coffee shops with improved food offerings. It has also leveraged on the popular mobile payment platforms from Alibaba and Tencent.

These days, coffee shops have a lot of options when it comes to furniture but a better option is solid coffee tables that are highly resistant to coffee stains, scratches and bumps. Since solid oak is available in different colors, it is very easy to find a coffee table that exactly matches with the theme of the room.

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