On Tuesday September 18, 2023, Starbucks, the famous coffee giant, opened a massive production and distribution center in Kunshan, Jiangsu Province, about an hour drive from Shanghai. This facility is a 80,000 square-foot (7,400 square-meter) “innovation park,” whose main function is to supply fresh coffee to thousands of Chinese stores. The site is home to a large coffee roasting facility and an area that lets visitors see how drinks are made.

       According to Starbucks’ official statement, Starbucks has poured more than $220 million into this new facility, which shows Chinese consumer remains crucial to the global coffee chain despite a major economic slowdown. The investment is nearly 50% more than the $150 million Starbucks had previously allocated in 2020. Starbucks also announced a new Chinese co-chief executive officer called Molly Liu that will come in October 2nd, 2023. Therefore, Starbucks is really betting big on China. 

       Laxman Narasimhan, CEO of Starbucks, made some positive comments: “As one of the largest consumer markets in the world, China presents tremendous opportunities for Starbucks. I couldn’t be prouder of the China team’s visionary thinking. As Starbucks’ largest and fastest-growing international market, we will continue to deepen our investment and reinforce our unwavering long-term commitment to the Chinese market.” 

      According to Brand Value(China) network, Starbucks currently has about 6,500 stores in China and is planning to have 9,000 stores in China by 2025 because China has long been one of the most important growth drivers for Starbucks, serving as its second-biggest market worldwide and top overseas market. However, Starbucks has some challenges because China is historically a tea-drinking nation. For example, an average person in China drinks about 12 cups of coffee per year, which is far lower than consumption in other markets. In Japan, each person drinks an average of about 200 cups of coffee per year, and in the US that number is 380 cups per year. In addition, China’s economic growth is set to slow in this year as it continues to reel from the effects of a crisis-hit property sector and choppy consumer confidence. 

      Based on Brand Value (China) Network, Starbucks, based on Seattle, was founded in 1971 and it has 32,000 stores in the world. In 1999, Starbucks entered China and as of today, it has about 6,500 stores in more than 230 Chinese cities. Starbucks can successfully attract a large customer base in China, including families, students, and older consumers, due in part to its focus on creating a welcoming and inclusive atmosphere in its stores and offering a range of products and price points to suit different budgets. Based on China Brand Value Evaluation Standard, Starbucks is the leading brand in food and beverage industry. Starbucks is expected to remain on “The World Brand Value Top 900.”

      On the ranking of “The 3rd Daguan·Keweiwei World Brand Value Top 900” released on March 18, 2023, Starbucks’  brand value was 216.185 billion RMB, ranking the 103rd.

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