Starbucks are everywhere. There are 80+ shops around Hong Kong. It's quite a large distribution network given that Hong Kong is such a small place. Are there that many coffee drinkers in Hong Kong ? I wonder. In fact coffee consumption is not really a mainstream culture like other western countries. With high rental and staff costs, how do they create demand to support such a large distribution network ? Seems that its strategy is to maintain a continuous flow of new drinks appealing to young consumers. This Azuki (means red beans) Frappuccino® is one example. Is this the right strategy ? Time will tell.
Starbucks are everywhere. There are 80+ shops around Hong Kong. It's quite a large distribution network given that Hong Kong is such a small place. Are there that many coffee drinkers in Hong Kong ? I wonder. In fact coffee consumption is not really a mainstream culture like other western countries. With high rental and staff costs, how do they create demand to support such a large distribution network ? Seems that its strategy is to maintain a continuous flow of new drinks appealing to young consumers. This Azuki (means red beans) Frappuccino® is one example. Is this the right strategy ? Time will tell.
Comments
Starbucks is coming out with new drinks on a very frequent basis to create noise (or attract more customers). But if they can't get their receipe right, I'm not too sure whether they can maintain the momentum.