Starbucks Success in Shanghai

I make it a rule to visit Starbucks everywhere in the world (for cultural anthropology reasons) and of course Shanghai is fertile ground, now with 57 stores. In fact, Starbucks is a great window into China's rapidly changing culture, on many levels. A great report on their market entry is available here.

First, "experts" predicted that Starbucks would fail in China - it's too expensive for local incomes, no one drinks coffee, and everyone smokes (Starbucks is smoke-free). And other said they'd have to modify their menus (as they have in Japan & Beijing) for more tea, etc.

In the end, they did none of the above in Shanghai, which after all is an international city that really wants to be global in all aspects. As a result, Starbucks has boomed, flooded with locals, who may always drink coffee, but are laying out $3-4 for the beverage of their choice.

And culturally, it provides a place for teens and women to sit and hang out, smoke-free, with friends and on dates. I see this as the biggest cultural change Starbucks brings, for most parts of the world don't have a cafe culture, especially for women (i.e. men can always hang out in bars). Especially in cultures where young women live at home, venues for dates, friends, and just getting out of the house are limited - this is just such a place.

And Starbucks has by far the best service in Shanghai - smiling faces, good English, and just a service-oriented attitude still found wanting in much of the city.

Some images - the very popular Starbucks at XinTianDi, a store next to the museum, and finally, some women actually in a Starbucks writing a song / jingle for Starbucks !