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Jun 19, 2007

Starbucks Sales in China

Bill Schiller's June 16, 2007 Toronto Star article Steamed by Starbucks in the Forbidden City spins an international trade horror story.

Last July, we wrote about how an American company no less than WalMart had to exit from Germany because German customers could not adjust to an American-based global brand.

Chinese clients may acquire the taste for Starbucks products. After all,Starbucks has the international reach and marketing muscle to penetrate markets around the world.

Face it. Starbucks global sales continue to improve.

Today, Starbucks has 220 cafes in the People's Republic.

Also, look at how Starbucks continues to take aggressive legal actions to protect its copyrights and trademarks against copycats in foreign markets.

But building a Starbucks shop in the Forbidden City, a virtual Ming museum from the 15th century that was home to 24 Chinese emperors, transcends legal rights and coffee tastes. As CCTV journalist Rui Chenggang's blog declares, installing a Starbucks in the middle of China's historical district is nothing short of a national outrage - in fact, it's trampling on Chinese culture.

Sure international trade comes down to exports, imports, surpluses, deficits and profits. But respect is also a basic currency that Chinese customers expect - and demand - from multinational service providers including Starbucks.




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