Starbucks has succeeded in cementing a leading position in China's coffee market in a way that might hard to replicate for other foreign companies.
Starbucks has increased its footprint in China from around 400 stores since 2010 to more than 3,100. It plans to expand its scale to 5,000 by the end of 2021.
The ROI Starbucks received from new stores has increased from 66% to 73%. By comparison, KFC’s new locations in China have an ROI of around 50%.
Moreover, there has been a significant increase in the profitability of individual stores in China, which has risen by 9% from 2013 to around US$0.8 million per location in 2016 compared with US$1.6 million in the United States.
Despite the recent rise of local competitors, Starbucks holds an extremely competitive ...
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