Comments on: Starbucks Closes In The Forbidden City (and Battling National Brand Boycotts) http://calpolymbatrip.com/2007/china/starbucks-closes-in-the-forbidden-city/ The MBA Graduate Program at Cal Poly Fri, 18 May 2012 17:15:48 +0000 http://wordpress.org/?v=2.6.3 By: Chris Carr http://calpolymbatrip.com/2007/china/starbucks-closes-in-the-forbidden-city/#comment-2546 Chris Carr Tue, 07 Aug 2007 13:47:09 +0000 http://calpolymbatrip.com/2007/china/starbucks-closes-in-the-forbidden-city/#comment-2546 John, Thanks for checking in. I think you have pretty much hit one of the relevant nails on the head ... "Why are MNCs like Starbucks getting hassled over their (now former) store in the Forbidden City (FC) while the dozens of local hawkers right in front and even inside the FC are given a free pass (or much more of a free pass) to sell, let's face it, less than ideal merchandise?" I agree with you that in a perfect world such venues remain unvilified on all fronts. But because that is unrealistic to accomplish 24/7 in China (can you imagine how one goes about shutting down all the hawkers around the Great Walls 24/7?!), I tend to sympathize with Starbucks on this one. I would much rather have the option to buy a decent cup of coffee at the FC rather than having a million of Mao's Little Red Books waved in my face for purchase by a local. That's just my own bias. John,

Thanks for checking in.

I think you have pretty much hit one of the relevant nails on the head …

“Why are MNCs like Starbucks getting hassled over their (now former) store in the Forbidden City (FC) while the dozens of local hawkers right in front and even inside the FC are given a free pass (or much more of a free pass) to sell, let’s face it, less than ideal merchandise?”

I agree with you that in a perfect world such venues remain unvilified on all fronts. But because that is unrealistic to accomplish 24/7 in China (can you imagine how one goes about shutting down all the hawkers around the Great Walls 24/7?!), I tend to sympathize with Starbucks on this one.

I would much rather have the option to buy a decent cup of coffee at the FC rather than having a million of Mao’s Little Red Books waved in my face for purchase by a local.

That’s just my own bias.

]]> By: John http://calpolymbatrip.com/2007/china/starbucks-closes-in-the-forbidden-city/#comment-2544 John Mon, 06 Aug 2007 06:46:49 +0000 http://calpolymbatrip.com/2007/china/starbucks-closes-in-the-forbidden-city/#comment-2544 Generally I don't think its very good for China's main landmarks to become commercialized traps created solely to make a buck. I'm similarly against some of the restaurants in Shanghai's Yuan garden which include: 2 starbucks, 1 kfc, 1 mcdonalds, 1 haagen daaz, and a dairy queen. Then again I'm not sure if these food shops are much worse then the rest of the stores which consist mostly of fake antiques. Generally I don’t think its very good for China’s main landmarks to become commercialized traps created solely to make a buck. I’m similarly against some of the restaurants in Shanghai’s Yuan garden which include: 2 starbucks, 1 kfc, 1 mcdonalds, 1 haagen daaz, and a dairy queen. Then again I’m not sure if these food shops are much worse then the rest of the stores which consist mostly of fake antiques.

]]> By: Chris Carr http://calpolymbatrip.com/2007/china/starbucks-closes-in-the-forbidden-city/#comment-2526 Chris Carr Tue, 17 Jul 2007 19:36:13 +0000 http://calpolymbatrip.com/2007/china/starbucks-closes-in-the-forbidden-city/#comment-2526 Peter, Good comment. Thanks for checking in. A classic American move you saw .... complain and shake their head about the store (or counterfeiting), then proceed to buy for themselves! Peter,

Good comment. Thanks for checking in.

A classic American move you saw …. complain and shake their head about the store (or counterfeiting), then proceed to buy for themselves!

]]> By: Peter Wu http://calpolymbatrip.com/2007/china/starbucks-closes-in-the-forbidden-city/#comment-2524 Peter Wu Tue, 17 Jul 2007 06:42:12 +0000 http://calpolymbatrip.com/2007/china/starbucks-closes-in-the-forbidden-city/#comment-2524 I visited this store while we were there. It is a very small place. Without the big signs at the store front, I was only able to find it after following the generic park arrow signs placed at different areas saying only the text "coffee." While I was there, I observed an American couple waiting in line shaking heads discussing how bad it was for Starbucks to come into this historical site and open a store. However, to my surprise, the couple grab a cup of coffee each, paid and left happy with their coffee. This coffee shop was definitely not the Starbucks model that Dr. Woon spoke about. It was very small, not a place to hangout like most other Starbucks stores in China where people go to enjoy the atmosphere first and then coffee second. I think closing this store is a good decision made by Starbucks. Branding is very important for Starbucks, and loosing branding to a 7-million per year tourist attraction does not adhere to Starbucks' branding principles; not to mention Starbucks "looses face" somewhat by giving up its brand to the Palace. Insteading of struggling with the branding issue and a small store, I think Starbucks can and will do better closing the Forbidden city store and focus on growing other China stores that are doing very well. I visited this store while we were there. It is a very small place. Without the big signs at the store front, I was only able to find it after following the generic park arrow signs placed at different areas saying only the text “coffee.” While I was there, I observed an American couple waiting in line shaking heads discussing how bad it was for Starbucks to come into this historical site and open a store. However, to my surprise, the couple grab a cup of coffee each, paid and left happy with their coffee.

This coffee shop was definitely not the Starbucks model that Dr. Woon spoke about. It was very small, not a place to hangout like most other Starbucks stores in China where people go to enjoy the atmosphere first and then coffee second.

I think closing this store is a good decision made by Starbucks. Branding is very important for Starbucks, and loosing branding to a 7-million per year tourist attraction does not adhere to Starbucks’ branding principles; not to mention Starbucks “looses face” somewhat by giving up its brand to the Palace. Insteading of struggling with the branding issue and a small store, I think Starbucks can and will do better closing the Forbidden city store and focus on growing other China stores that are doing very well.

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