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China the Focus of Starbucks Growth

Clean the Sky - Positive Eco Trends & Breakthroughs

— February 15, 2006 — Lifestyle
I'll have a double-tall, non-fat Chinese tea, please.

Coffee king Starbucks is going from Seattle to Shanghai and spreading caffeine jitters around the globe.

"Starbucks has said it expects to see its profits rise by at least 20% over the next three to five years, with China as the focus for this growth," according to the BBC. "The US giant opened its first Chinese branch in 1999 and now has 165 outlets. It said 2005 was its fastest year of growth so far in China and it now intended to roll out more stores in a growing number of cities."

However, the expansion has not been without its challenges. Starbucks recently won a two-year court battle against a Chinese rival that used a similar name and logo. Apparently, Louis Vuitton and Prada are not the only western brands dealing with copyright infringment in China.
Trend Themes
1. Rapid Growth of Starbucks in China - The expansion of Starbucks in China is expected to drive the company's profits by at least 20% over the next three to five years.
2. Increasing Number of Starbucks Outlets in Chinese Cities - Starbucks intends to roll out more stores in a growing number of cities in China, indicating a strong potential for market penetration.
3. Copyright Infringement Issues for Western Brands in China - Starbucks winning a two-year court battle against a Chinese rival highlights the need for western brands to protect their intellectual property rights in the country.
Industry Implications
1. Coffee Chain Industry in China - The rapid growth of Starbucks in China presents opportunities for other coffee chains to expand their presence in the country.
2. Retail Industry in China - The increasing number of Starbucks outlets in Chinese cities indicates a growing demand for high-quality retail experiences, presenting opportunities for other retail brands to enter the market.
3. Legal Services Industry in China - The copyright infringement issues faced by Starbucks and other western brands in China create opportunities for legal services providers to assist in protecting intellectual property rights.
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