In Focus
MARKETING | Staff Reporter, China

Here’s how Starbucks is dominating the China coffee market

It’s debuting its maiden international roastery in Shanghai.

Seemingly unfazed by the lowing retail spending in China, Starbucks has revealed that it will open its first roastery outside of the US to Shanghai in 2017.

According to Starbuck’s announcement, located along Nanjing Road, the Starbucks Roastery and Reserve Tasting Room will be part of the HKRI Taikoo Hui Project—Shanghai’s latest luxury retail, office, and hotel area. It will be developed jointly between HKR International Limited and Swire Properties Limited.

Currently, China is Starbucks’ largest international market with more than 2,100 stores across more than 102 cities, including 55 Starbucks Reserve sites. Starbucks intends for the Shanghai site to stand out, however, by offering Shanghainese and visitors from China and around the world.

“China represents the most important and exciting opportunity ahead of us. As our first international Roastery, we will take even bolder steps to make this Shanghai location our most stunning store, while making it completely unique and relevant to the Chinese customer,” said Howard Schultz, chairman and chief executive officer of Starbucks.

To date, Starbucks operates only one such roastery in Seattle, though it has already inked leases for another facility in New York.

Exclusively at the 2,700 sqm facility, customers can interact with Starbucks coffee specialists and master roasters, enjoy a specialised menu, as well as see freshly-roasted beans arrive to the site.

Further, Starbucks asserts that the Shanghai Jing’an Government has given Starbucks their full support to the Shanghai facility.

“The new Jing’an is focused on developing high-end commercial sectors, establish new developmental goals for a modern cosmopolitan city, and encourage new retail innovations within our district. The government fully supports this pioneering retail experience and initiative from Starbucks,” commented Shanghai Jing’an Party Secretary, An Lusheng, and Shanghai Jing’an Mayor Lu Xiaodong.

Meanwhile, Starbucks also recently broke news of opening a site in Shanghai Disney Resort, its first flagship store in any Disney resort in the continent. This makes China the only nation in the Asia Pacific region to operate four flagship stores.

The flagship store in the resort will also be the first Starbucks site in China to feature a digital menu. Customers will be able to order through a mobile handheld device available at the store, or use their personal mobile device.  

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