This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Starbucks a China Star

BEIJING -- It's not exactly intuitive that a chain of high-end coffeehouses would make inroads among ardent tea drinkers. Yet Starbucks (SBUX - Get Report) already claims over 190 stores on mainland China, just seven years after opening its first outlet in Beijing. The reason may have as much to do with China's emerging class of social climbers as with the coffee itself.

In the U.S., Starbucks does a brisk takeout business, but customers in China spend long hours hanging out in the upscale stores where they can see and be seen. Starbucks is "a symbol of status and success that's become kind of an iconic brand. People use us to highlight their lifestyle," says Jinlong Wang, the Shanghai-based president of Starbucks Greater China. "I don't think anyone can compete with us in that respect."

Company founder and chairman Howard Schultz has frequently said he expects China to become the biggest market outside North America for the Seattle-based coffee chain.

In China's biggest cities, Starbucks stores have become a common fixture in office buildings. But they've also filled a niche as a key meeting place for affluent Chinese (and foreigners) outside work hours. On nights and weekends, outlets in malls or near department stores are often full of the trendy 20- and 30-somethings who can afford to shell out 29 yuan ($3.67) for a tall green tea frappuccino.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
SBUX $51.48 0.00%
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%
TSLA $247.73 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs