Starbucks Sales Soar in China
It looks like no one in the world is safe from Starbucks fever.
Starbucks has seen a 30 percent year-over-year revenue jump in Asia and particularly good sales in China, according to the International Business Times. The chain’s growth in China may be because of the 500 new stores that opened in the past year across the Asia-Pacific region.
And while Starbucks’ main competition in the States and other countries may be the local coffee shop, in Asia, they have an entire tea culture to work against.“The very strong sales volumes prove that the coffee concept can succeed in traditional tea-drinking countries,” RJ Hottovy, the director of consumer equity research at Morningstar, Inc. told CNN Money. “It’s resonating very well with [inland] cities.”
But, Starbucks said that it still has tailored marketing in countries with high tea consumption, launching a line of tea in China in 2010 and creating green tea Frappuccinos using locally sourced beans. “The demographics they are targeting are younger and more affluent groups,” Hottovy told CNN Money.