First of all, Starbucks choose a good local partner to form a joint venture which can help it better understand the local laws and negotiate better with the authorities. Also, Starbucks Soong Ching-Ling Foundation received $5 million donations from Starbucks to support education in the countrys poorest regions. To promote themselves in China the company chose a different way. Thus, Starbucks has established itself as an aspiration brand and is able to charge premium prices. They had successfully expanded its business in over 20 large or medium-sized cities of China and opened about 560 storefronts in these cities by 2012. Accordingly, the company tailors its products to the specific needs of the local customers. Rajasekaran, R. (2015). Value-based pricing is the value perceived by the customer rather than its actual costs. The company has continued to build on this. Its localization strategy is a mix of local products with innovative store designs, so they are able to fully adapt to the culture of the location. An important strategy is to invest in employees. In north China, it partnered with Beijing Mei Da, a regional coffee company while in the east it teamed up with Uni-President, a Taiwan-based company. Zara's business model relies on its strategies and approaches to market trends. The reveal of the new mugs for China is always a huge deal. Northern China - a joint venture with Beijing Mei Da coffee company. They also changed their marketing and pricing strategies based on the needs of the Chinese market. And since foreign brands, particularly in food and beverage, are viewed as premium, Starbucks often labels its products with the country from which its products are imported. Chinese consumers quickly developed a taste for Starbucks coffee, which was essential to Starbucks success in China. Starbucks moved too quickly, and grew faster than its popularity. Starbucks was to determine the financial and economic conditions of China. Moreover, the localization effort is sufficiently flexible to permit each store to have the flexibility to choose from a wide beverage portfolio. Four years after opening its first caf in China in 1999, Starbucks had registered all its major trademarks in China. The demand is perhaps not so much for the taste of coffee but instead a real appreciation of the socialenvironment it is consumed in. China contains a number of distinct regionally-based markets, a factor that makes market research crucial to launching new stores and franchises in China. Consequently, Starbucks customers not only enjoy the coffee (in all its Chinese variations), they feel fulfilled going to a Starbucks with their friends or families. Why are you here? The increasingly affluent middle and upper classes in China have not only more disposable income but also seek a higher quality of life and a more cosmopolitan, global lifestyle. Their knowledge, organized way of business left a good impression on customers mind. As Quartz's Gwynn Guilfordput it:In China, Starbucks doesnt sell coffee to make its millions -- it rents couches. Instead of taking the conventional approach to advertising and promotionswhich could have been seen by potential Chinese consumers as attacking their culture of drinking teathey positioned stores in high-traffic and high visibility locations. "When they launched, they launched too rapidly and . Two years later, under Schultz, Starbucks was operating 46 stores around the Midwest and the Northwest. For example, the store in Fukuoka used 2,000 wood blocks that interlock to give a forest-like feel to the place and honor nature, in reference to the religion. So it was easy to obtain the permissions and sanctions required to start and operate the business in a bureaucratic country like China. The company adopted a strategy of having three different partners to enter different regions in Chinese market. In addition, all baristas in the host country have to undertake the same training as those in the US. The company conducts extensive studies to understand the consumer profile to create unique beverages that are western but still matches Chinese culture. This strategy has effectively turned potential obstacles into Starbucks favor. In January 1999, Starbucks opened its first store in mainland China at the China World Trade Building located in Beijing. Essay Sample. "+e);if(n[0].getAttribute("href").indexOf("refurl")<0)for(var r=0;r