Starbucks To Open 500 New Stores In China

Discussion in 'General Trading Discussion' started by Rainman, Jan 12, 2016.

  1. Rainman

    Rainman Senior Investor

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    http://www.cnbc.com/2016/01/12/starbucks-to-open-500-new-stores-in-china-in-2016.html

    Starbucks will open 500 stores in China this year. Despite the economic slowdown in China which should make investors wary, the company's executives say they haven't seen a systematic slow down in China. In addition to that they aim to create 10,000 more jobs in China between now and 2019 as the Company continues to expand in China.

    A good time to buy Starbucks stocks?
     
  2. kgord

    kgord Senior Investor

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    I think the market is going to get over saturated with Starbucks sooner or later. It is a nice place to go for a cup of coffee and a quiet atmosphere, but a 5.00 designer cup of coffee is a bit much. The last 2 times I was there...I thought the drinks were watered down, luckily my drink was free, or I would have really resented paying for it.
     
  3. pwarbi

    pwarbi Senior Investor

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    Well it seems like Starbucks as opened 500+ stores in every other country so it stands to reason that China will get the same treatment aswell.

    In the city I live there's a Starbucks on more or less every corner and I keep thinking surely they can't all be making money. Everytime I walk past though they're always full so I guess that proves me wrong.
     
  4. Alex

    Alex Senior Investor

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    I loathe Starbucks and the globalization of Starbucks just makes me want to boycott it more. If it creates jobs great, but I think the products will be expensive and like other western places like Mcdonalads and Pizza Hut are a novelty.
     
  5. L_B

    L_B Well-Known Member

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    Starbucks has really grown the past number of years. I think it was two years ago that they came to the city that I live in. They opened one store first and within the year they had six other stores. I personally don't go there but they must be doing alright because there are always people there. Here though Tim Horton's is far more popular.
     
  6. Corzhens

    Corzhens Senior Investor

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    It is obvious that big companies are targetting China with its big market. I had read about the hardship of some American movie productions in trying to get inside China. The big market is very attractive and it looks like the Chinese would gobble anything that is new to them. Now with the entry of Starbucks, I'm sure the Chinese would be imitating Americans with their morning routine of having a Starbucks cup on the office table.
     
  7. phoenix2015

    phoenix2015 Well-Known Member

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    Great points! The reason the American Movie Companies have trouble getting into China, that China only allows a very limited number ( I think it is ten) of foreign films to be released each year. As far as Starbucks goes, it has taken off in other Asian countries, especially ones a bit similar in culture like Taiwan, so I'm sure it will do well in China.
     
  8. pwarbi

    pwarbi Senior Investor

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    The big corporations are certainly getting bigger and it's come a time now that I think people have to just accept the fact that traditional independent stores and businesses simply can't compete.

    That's not to say that people should admit defeat and go and have a McDonald's on their way home from having a coffee in Starbucks, if you don't like them then simply don't go in, but I do think a time will come soon when people may not have a choice.
     
  9. gracer

    gracer Senior Investor

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    This is why I think Starbucks is lucky to have penetrated the Chinese market. Basing on what I know, it has been indeed very hard for the West to enter the Chinese market because of the limitations involved. We are now seeing China opening up to Western companies for the past few years and I think this will continue on as time goes by.
     
  10. ScooterBrandon

    ScooterBrandon Senior Investor

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    China is the worlds next great consumer market, EVERYONE wants a slice.
    Chinese tend to really like luxury brands too, so I think they will do very well over there.
     

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