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Coffee In China

Starbucks Vs. Xingbake

  • Tea drinking tradition
  • Coffee a fad
  • Coffee consumers: young, affluent professionals, returnees & foreign expatriates
  • Chinese are not familiar with coffee consumption and culture
  • Starbucks had two names: American Starbucks & Xingbake
  • Xingbake stole the name & logo, opened a store in Shanghai
  • Starbucks sued Xingbake
  • Starbucks won the case, got an apology & $62,500

Starbucks

  • Established in 1971, in Seattle, WA
  • Hospitality, Production & Education
  • 11,000 locations in US, 4,500 international locations
  • Three largest international markets: Canada, Japan & Britain

Starbucks in the Forbidden City

  • Starbucks opened a shop in 2000
  • Did Starbucks belong in the forbidden city?
  • Removed their sign but stayed open in 2005
  • After various debates, starbucks closed in 2007
  • Since 2008, Starbucks has 448 shops in China

Beijing's Forbidden City

  • China's top tourist attraction
  • Built in 1420
  • 6-8 million visitors a year
  • UNESCO World Heritage site status

Starbucks: Forbidden in the Forbidden City

Case 3-1

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