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A plan by Starbucks (SBUX +0.6%) to successfully grow from 600 stores to 1.5K stores in China by...

A plan by Starbucks (SBUX +0.6%) to successfully grow from 600 stores to 1.5K stores in China by 2016 hinges on its ability to adapt the tastes of consumers to "bitter" coffee and come up with fruitier varieties. Other major challenges the company is taking on in the nation is how to appeal to the middle class with its restaurants considered expensive as well as creating a takeout business from ground zero.
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Comments (3)
  • David Neubert
    , contributor
    Comments (41) | Send Message
     
    "hinges on"
    Really? Those frappuccinos, chais and vanilla/chocolate syrup infused lattes sure are bitter. $SBUX
    5 Nov 2012, 01:50 PM Reply Like
  • mwillems1
    , contributor
    Comments (14) | Send Message
     
    The challenges for SBUX going forward will be:
    -the profitability of the stores being opened in the second and third tier cities
    -the expansion of boutique coffee shops (Lavazza, Illy) and the more premium international coffee chains like Costa Coffee
    7 Nov 2012, 10:52 PM Reply Like
  • RBH
    , contributor
    Comments (10) | Send Message
     
    SBUX stores, overseas, in Asia specifically, are considered by growing middle classes in Indonesia, Thailand, the Philipines, and China, as a sign of afluence and upward economic class arrival. The company's strong brand recognition will help fight off lesser known brands as it expands. Plus the sweeter (higher margin) drinks are more popular than the traditional American drip coffee, with Asian consumers.
    8 Nov 2012, 04:24 PM Reply Like
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