The article “China Millennials Switch to Coffee as Starbucks Pushes East” by Isis Ameida, Craig Giammona, Jiefei Liu, and Corinne Gretler analyses the demand growth of coffee and expansion of China’s coffee shop hence paving way for premium sales. Analysis of Coffee Market in China The increased demand of coffee in China has attracted major brands such as Starbucks which extended its reach in the market with $1.2 billion deal to control over one thousand coffee shops (Ameida, Giammona, Liu and Gretler 2017). This article indicates that despite that the China’s coffee consumption volumes is low according to the global standards, there could have high impact over time as coffee consumption has shifted to more populous and tea drinking nations. Traditionally, China is a tea drinking nation, however, customers especially the millennials are increasingly taking up what has been believed to be Western culture of taking coffee at coffee shops.
Qian, Yang. and Xing, Tu. 2016. ‘Starbucks vs Chinese tea: Starbucks brand management strategy analysis in China.’ International Business and Management Journal 12(2): 29-32. DOI: http://dx.doi.org/10.3968/%25x
Yang, Shang-Ho., Hu, Wuyang., Mupandawana, Malvern. and Liu, Yun. 2012 ‘Consumer willingness to pay for fair trade coffee: A Chinese case study.’ Journal of Agricultural and Applied Economics 44(2): 21-34. DOI: http://ageconsearch.umn.edu/bitstream/120449/2/jaae419.pdf