• last year
With a new coffee innovation park in operation in east China's Jiangsu province, global beverage chain Starbucks has set a new milestone in its business in China. Its CEO Laxman Narasimhan said in an interview that the company will continue to invest in the country.

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Transcript
00:00 [MUSIC PLAYING]
00:03 We've had beans that we've grown in various parts of the world.
00:11 We buy from over 30 countries.
00:13 And what we've done today here in Kunshan
00:17 is we've put in place one of the best factories in the world
00:20 that we've ever had, the largest investment we have made.
00:23 We've invested over $220 million in this facility.
00:29 And what it is, is again, it's an expression
00:31 in our long-term confidence of our business in China.
00:35 I came here at the end of May, and I
00:42 saw this facility partly done.
00:45 And here we are at China's speed.
00:48 It's done.
00:48 It's amazing.
00:49 I've gone and obviously traveled around Shanghai.
00:58 We have 1,150 stores in Shanghai.
01:02 And we have the ability for us to open even more.
01:04 Per capita consumptions of coffee in China
01:07 are 12 per capita.
01:09 Shanghai is higher.
01:11 But it's still much lower than Japan at 280 and the US at 380.
01:17 So I think the per capita is here still are--
01:20 we're in early days.
01:21 We see upside here in China, significant upside.
01:25 [MUSIC PLAYING]
01:28 We welcome competition because it expands the market.
01:32 As the market grows, the market will tear.
01:35 Another investment we made just a few weeks ago,
01:37 we made an investment of another $220 million
01:40 in Shenzhen, where we put in there
01:43 our innovation and technology center anchored in our stores,
01:46 but also highly digitally enabled.
01:49 And that's what Shimbaka in China will do.
01:51 [MUSIC PLAYING]
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02:01 [BLANK_AUDIO]

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