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Giving the Market a Shot: China’s Growing Coffee Culture

In China, the motherland of tea, coffee is rapidly gaining in popularity. Although the market faces some cultural and societal hurdles, China is waking up and smelling the coffee – starting China’s Coffee Culture.

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In China, the motherland of tea, coffee is rapidly gaining in popularity. China’s booming coffee culture is also visible on social media, where coffee companies and netizens collectively discuss and share pictures of their perfect brew. Although the market still faces some cultural and societal hurdles, China is waking up and smelling the coffee.

Whether you are a fan of the beverage or not, it is hard to argue against the fact that the majority of the world is starting to love coffee. Every day millions of people gulp down a cup before running to the office, warm their hands on a hot mug during the chilly winter months, and, now more than ever, photograph, blog and filter their cafe experience until it is primed for the rest of the world to see. Even in the United Kingdom, one of the world’s most prolific tea-drinking nations, coffeehouses far outnumber traditional tea rooms. However in China, the motherland of tea-consumption, coffee is still sprouting as a relatively new and foreign luxury.

 

“Starbucks and Costa are selling the ‘coffee experience’ to Chinese audiences.”

 

Despite China’s long history of tea-drinking, the presence of international coffee chains such as Starbucks and Costa is increasing year on year. The American coffee company Starbucks opened its first China branch in Beijing in 1999. Google maps now lists 35 branches of Starbucks in central Shanghai alone, and even more remote Chinese cities such as Urumqi in Xinjiang province are home to three of the chain’s stores. Starbucks has over 1700 stores in 90 Chinese cities, and plans to expand to 3000 stores by 2019. British coffeehouse Costa has 344 branches in China, and is arranging to have opened a total of 900 stores by 2020.

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Large international coffee chains such as Costa and Starbucks have adapted their menus to China’s tastes. This, for example, means that coffee is often served at a warm rather than scalding temperature. They also sell products that are specifically appealing to Chinese consumers, such as green tea-flavoured latte or red bean scones.

The design and operations of the cafes are almost indistinguishable from US and European branches. Internationally famous coffeehouses such as Costa and Starbucks sell the ‘coffee experience’ to Chinese audiences, without the need for too much re-packaging.

 

“What you buy in a Korean cafe isn’t coffee, it’s the film-like romance.”

 

The growing popularity of coffee in Chinese society is also reflected in social media. Starbucks has attracted a large social media following in China. The chain has acquired the loving nickname “Papa Star” (星爸爸) on Sina Weibo. On the official Weibo page of Starbucks Xiamen, the moniker was recently used in a marketing post for the chain’s new spring line: “We invite you to get your friends together and come and get to know Papa Star!”

Aside from American and European branches, South Korean chains have also become big players in China’s coffee market. Names such as Cafe Bene, Maan Coffee and Tous les Jours are becoming a staple in China’s shopping districts. South Korean brands, in particular, boast a unique and whimsical style of interior decoration unlike that of Western chains. Usual hallmarks include large, comfortable chairs, bookshelves lined with reading material, and indoor trees. This style is even replicated in domestic independent cafes.

The booming market for South Korean chains largely stems from the success of Korean pop culture in China. Fans of Korean music, film and television seek to recreate the glamour of Seoul by visiting the same chains as their idols, as well as replicating the supposed Seoul lifestyle, almost to the point of ‘Korean’ becoming synonymous with modernity and luxury. As one netizen writes on Weibo: “What you buy in a Korean cafe isn’t coffee, it’s the film-like romance.”

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US, UK and Korean coffeehouses have succeeded in making coffee ‘cool’ in China. Netizens on Weibo collectively post pictures of their cup of coffee or of themselves sipping it. The coffee brand is often visible, together with a fashionable smartphone or expensive shopping bag- turning ‘coffee drinking’ in a symbol of a trendy lifestyle.

 

“Hefei is full of cafes, yet 80 per cent of the city’s population is made up of rural villagers who have just stepped foot inside the city – here lies your problem.”

 

Despite the success of foreign coffee chains, China is not shying away from home-grown coffee brands. Anhui province in Eastern China is home to numerous branches of Habitat Coffee (栖巢咖啡), a company that offers the comforts of Korean coffee chains but with a menu and playlist more suited to Chinese consumers.

Other brands closer to home have not fared so well in the past. A recent Weibo post by user ‘Coffee and Book‘ discussed the closure of one of the Hong Kong Pacific Coffee chain stores: “Pacific Coffee, known as Hong Kong’s best-tasting coffee, has fallen under Starbucks’s shadow, and up until now hasn’t enjoyed much success in Hefei city.”

Chinacofee

One of the reasons China’s coffee market is still budding is the prevalence of cafes in urban cities in comparison to their absence in rural areas of China. Location and subsequent exposure to international brands and flavors affect the tastes and preferences of people within the Chinese coffee market. Many people from China’s rural areas are simply still unfamiliar with coffee. In response to Pacific Coffee’s poor performance in Hefei, one netizen writes: “Hefei is full of cafes, yet 80 percent of the city’s population is made up of rural villagers who have just stepped foot inside the city…here lies your problem.”

 

“The price of a single cup of coffee in China is equal to a month’s worth of home broadband internet.”

 

A long history of tea-drinking may not be the only obstacle for coffeehouses longing for popularity in China. With the average prices ranging between 18 and 40RMB (±3-6US$), the price of a single cup of coffee in China is equal to an entire takeout meal or a month’s worth of home broadband internet – a price many can seldom afford to fit into their daily routines.

Aside from the price of the coffee itself, branded products such as flasks, mugs and cups are all heavily marketed online and on social media, further promoting the luxurious and expensive lifestyle that comes hand in hand with visiting the stores.

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Despite cultural and societal hurdles, further growth of China’s coffee culture is unstoppable. It is expected that competition for the nation’s top spot between brands and individual establishments will only become more fierce and multi-faceted. With some chains opting for high prices, others appealing to local tastes and domestic salaries, and a growing desire for a more authentic experience involving traditional brewing, the challenge for brands is to decide which road they will take in their quest to win over the Chinese market.

By Cat Hanson

©2015 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Cat Hanson is a U.K. graduate of Chinese Studies now teaching and living in China. She swapped Beijing for Anhui, and runs her own blog on China life: Putong Press.

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China Food & Drinks

Viral Video Exposes Wuhan Canteen Kitchen Food Malpractices

Boots in the food bowl, meat from the floor: this Wuhan college canteen is making a food safety mess.

Manya Koetse

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A video that exposes the poor food hygiene inside the kitchen of a Wuhan college canteen has been making its rounds on Chinese social media these days.

The video shows how a kitchen staff member picks up meat from the floor to put back in the tray, and how another kitchen worker uses rain boots to ‘wash’ vegetables in a big bowl on the ground, while another person is smoking.

The video was reportedly shot by someone visiting the canteen of the Wuhan Donghu University (武汉东湖学院) and was posted on social media on November 7.

According to various news sources, including Toutiao News, the school has confirmed that the video was filmed in their canteen, stating that those responsible for the improper food handling practices have now been fired.

The Wuhan Donghu University also posted a statement on their Weibo account on November 8, saying it will strengthen the supervision of its canteen food handling practices.

“The students at this school will probably vomit once they see this footage,” some commenters on Weibo wrote.

Wuhan Donghu University is an undergraduate private higher education institution established in 2000. The school has approximately 16,000 full-time undergraduate students.

“I’m afraid that this is just the tip of the iceberg,” one popular comment said, receiving over 25,000 likes.

Students from other universities also expressed concerns over the food handling practices in their own canteens, while some said they felt nauseous for having had lunch at the Wuhan canteen in question.

By Manya Koetse

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2020 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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China Food & Drinks

Famous Goubuli Restaurant Calls Police for Getting Roasted Online, Gets Kicked Out of Franchise Group

Goubuli Wangfujing shows how NOT to address a social media crisis.

Manya Koetse

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The well-known Goubuli Wangfujing restaurant just got a bit more famous this week. The branch, which specializes in steamed buns, is now not just known as one of Beijing’s worst-rated restaurants, but also as a business that shot itself in the foot by handling a social media crisis the wrong way.

The famous Wangfujing main branch of Goubuli Steamed Buns (狗不理包子) is caught up in a social media storm since responding to a blogger’s negative video of their restaurant by contacting the police.

The video, Goubuli’s response to it, and the following consequences have hit the top trending topic lists on Weibo today.

Goubuli, sometimes transcribed as Go Believe, is a well-known franchise brand of steamed stuffed buns (baozi) from Tianjin that was founded in 1858. The brand now has more than 80 restaurants in mainland China, 12 of them in Beijing. Since Wangfujing is one of Beijing’s most famous streets, the Wangfujing branch is popular with both foreign and Chinese visitors.

 

Gu Yue’s “Visiting the Worst-Rated Restaurant” Video

 

The social media storm started on September 8, when Weibo blogger Gu Yue (谷岳) posted a video titled “Visiting the Worst-Rated Restaurant” (“探访评分最差餐厅”). Gu Yue is a travel blogger with over 1,7 million fans on Weibo.

Gu Yue in front of Gubouli.

In the video, Gu Yue starts by explaining he chose to visit Gubouli after searching for the restaurant that receives the lowest ratings in the Beijing Wangfujing and Dongdan areas on the super-popular Chinese mobile food app Dianping.

The blogger found that, out of the 1299 listed restaurants in the area, Wangfujing Goubuli Baozi was the worst-rated place. Ironically, the brand’s name Gǒubùlǐ (狗不理) literally means ‘dogs don’t pay attention,’ which makes the name ‘Goubuli Baozi’ sound like a place with stuffed buns that even dogs would not eat.

Complaining about the service, prices, and quality of food, many Dianping users rated the restaurant with just one out of five stars.

Gu Yue then sets out to visit the restaurant himself to see if Gubouli on Wangfujing really is as bad as Dianping users say. He orders some steamed braised pork dumplings, 60 yuan ($8.7) for 8, and regular pork dumplings, 38 yuan ($5.5) for 8.

The blogger concludes that Gubouli’s dumplings are not worth the money: the dumplings are greasy, the dough is too sticky, and they do not have enough filling. Gu Yue’s video also suggests that the restaurant’s hygienic standards are not up to par, with loud coughing coming from the kitchen.

Gu Yue’s video received over 97,000 likes and thousands of responses on Weibo, with many fans praising the idea of the blogger checking out the worst-rated restaurants.

 

Goubuli’s Reaction Starts a Social Media Storm

 

The Wangfujing branch of Goubuli did not appreciate Gu Yue’s video.

In an online statement on September 11, the branch accused the blogger of spreading lies about their restaurant and harming their reputation, and demanded a public apology.

Goubuli Wangfujing called the video “vicious slander” and stated they had contacted the police in relation to the matter.

The hashtag “Wangfujing Goubuli Responds to Netizen’s Negative Video” (#王府井狗不理回应网友差评视频#) immediately went viral on Weibo, attracting some 430 million views.

Many Weibo users were outraged about the way the Goubuli branch handled the situation. “Aren’t we even allowed to say if something is tasty or not?!” many commenters wondered, with others writing: “You are harming your own reputation!”

“Let’s call the police over the quality of your food,” others suggested.

There were also many netizens who commented that some Chinese Time-Honored brands, such as Goubuli, often only survive because of their history and fame rather than actually delivering good quality to their customers.

Following the major online backlash on its statement, the restaurant soon removed their post again. But the social media storm did not end there.

On September 15, the Goubuli Group issued a statement saying that it would directly terminate its franchise cooperation with the Goubuli Wangfujing branch over the incident.

With over 280 million views on its hashtag page (#狗不理解除与王府井店加盟方合作#), news of the franchise termination blew up on Weibo.

According to the latest Weibo reports on September 15, the Wangfujing Goubuli branch was closed for business on Tuesday (#狗不理包子王府井店门店关闭#).

“This is the power of clout,” one person comments: “If it were not for the [Goubuli] restaurant’s flawed marketing department, this would not have led to their closure.”

“The restaurant has brought this on themselves. There’s nothing wrong with posting a bad review.”

Another person comments: “This is the first time I’ve seen a marketing department making something big out of something small, leading to their own closing.”

Meanwhile, blogger Gu Yue says that he was not contacted by Goubuli, nor by the police. The social media controversy has only made him more popular.

“Gue Yue single-handedly crushed this restaurant,” some say, appreciating how social media has increased the power of Chinese consumers to make or break a business.

 
Also read: Overview of the Dolce&Gabbana China Marketing Disaster Through Weibo Hashtags
 

By Manya Koetse

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2020 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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