Starbucks plans to enhance its investment in the Chinese market and open 500 new stores every year in the country over the next five years.
This move represents the company's confidence in the Chinese coffee-drinking market, disregarding the worries about the economic outlook of China due to the recent stock market turmoil.
Howard Schultz, chief executive officer of Starbucks, said during an interview that China is expected to exceed America to become the largest market for Starbucks. At present, Starbucks has about 2,000 cafes in 100 Chinese cities.
He said they are very confident in the Chinese economy. People are searching for reasons for not believing in the Chinese economy, but Starbucks takes a firm stand because what they continue to see in the market makes them feel optimistic about the Chinese economy.
Though other foreign brands like Yum and Hershey's experienced recent performance declines in the Chinese market, Starbucks continued to grow in this marketplace. In the fourth quarter of 2015, Starbucks' global profit set a new record and its global sales of individual stores saw an increase of 8%; meanwhile, its sales of individual stores increased by 6% in China and Asia Pacific.