Korean coffee shops moving into China challenge Starbucks
Michael Chen
Senior Web Developer
The growing consumption of coffee in China has prompted a significant rise in the number of new coffee shops in the country, including some opened by South Korean operators, according to Shanghai's China Business News.
As of the end of 2013, about 28,000 coffee shops had been set up, including more than 8,400 chain stores. The number of coffee houses has nearly doubled over the past five years, while the franchise industry has reported a 25% growth rate, the report said, citing an industry report on business website www.sqw.cn.
The market is mainly dominated by three factions. The first are European-styled coffee shops represented by French and Italian brands which tout high quality and good flavor in the coffee beans they offer.
American coffee shops led by Starbucks which boast quick, professional service and a business-friendly environment, fall into the second category.
Third are traditional Taiwanese coffee shop operators such as Ueshima Coffee Lounge, Old Tree Coffee and Manabe Cafe.
Given this backdrop, Korean-style coffee shops are trying to push their own features to distinguish themselves, including unique interior design and celebrity endorsements.
Generally speaking, Korean coffee shops are largely more spacious than Starbucks and Costa Coffee outlets and mainly cater to young women, according to the report.
In addition, the product lines Korean shops offer are usually simpler than those provided by their Taiwanese counterparts. They don't serve pizza, porridge, rice or steak.
Despite Korean coffee shops having received a favorable response from some young women in China, most of these shops are located in areas where Koreans living in China converge.
Source: wantchinatimes.com/news-subclass-cnt.aspx?id=20140830000102&cid=1202
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