Starbucks Faces New Competitor in China
Starbucks, which has more than 50 stores in China, mostly
in Beijing, Shanghai, Guangzhou and Hong Kong, will soon
face a new competitor in Beijing, Shanghai and Guangzhou.
The new competitor is Blenz, which is based in Vancouver.
Over the next week, it will open three retail outlets,
one each in each of the three major cities. Like Starbucks,
it is going to select locations based on heavy foot traffic.
In Beijing, it will open in the Oriental Plaza, the mega
office and shopping center in Wangfujing.
As China's society has developed and urbanized, its young
urban population has gravitated to many Western habits,
including drinking coffee and buying cars. This has accounted
for the fast growth of Starbucks and car dealerships in
China.
Like Starbucks, Blenz will offer coffee and snacks. It
plans to compete on service with Starbucks.
Starbucks has a strong presence throughout Asia, with
many stores in Japan and Taiwan. Most of its Asia growth
has come from China; while it has a presence in Japan,
it faces intense local competition. The Japan market is
frequently used as a test market for new products and
services, which if successful, are later pushed out to
other markets.
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