Why Starbucks has succeeded in China where others have failed

Starbucks is considered the McDonald's of coffee, and this is coming from someone from the place Starbucks started. It's a consistent cup of coffee that is pretty much the same wherever you go. In reality, the water makes the coffee taste the most different (as any good coffee or tea enthusiast will agree to). They have some horrible roasts and China in is love with the Americano, which is one of the most disgusting versions of coffee anyway. If you are going to drink espresso, drink espresso.

With that said, one has to admit that they are almost everywhere in a large city where expats are. And they are all consistent. And their sino-fied flavors are even sweeter than a double chocolate, non-fat, caramel macchiato.

I'm no Mac genius, but I think the headline and the "Starbucks offset the relative lack of revenue in China's" seem to contradict each other.  So they are successful with a lack of revenue?  Explain, please.

Perhaps the inference was lack in coffee-driven revenue -- because while Starbucks is synonymous with (weak, piss-poor) coffee everywhere else it is the food, tea-beverages & other ancillary products that drive profits.

Shaun Rein talks as if Starbucks in the U.S. doesn't have dine-in service, airconditioning or above-average prices for coffee. Another way to look at it is that they just transplanted what worked in the States - "luxury" coffee that just happens to be everywhere you look - and slammed it down here. They were lucky enough that what worked in the U.S. also happened to mesh well with what works in China.

Plus, I think the reason Best Buy and Home Depot didn't work out has more to do with them offering the same product as dozens of other companies, but with no real added value (and usually at a higher cost).

Actually Starbucks is popular for other reasons, then just face. I guess the main reason for Starbucks popularity are:
1. Brand Image.
2. Strategic location.
3. Free WiFi.
4. Convenience
5. Cheap. (where can you get a free place with sofa or table for meeting for 2-3 hours for just RMB 35/person)
So besides giving face (I do not think, it was the main factor though), it offered something which was needed at that time, a decent place for meeting. Now they are just reaping the benefits of what they sow. If you compare it with similar decent lounge in hotel, you would notice its much cheaper and conveniently located in main business districts. Also its easier as landmark for meeting, as people can locate it easily. Personally I use it many times for meeting people and it costs me not more then RMB 70/120 with a drink for 2-3 hours and a free WiFi (although now a days bit inconvenient).

Now that is a more logical explanation.

Are you seriously talking about logic?  Can I quote you for future reference?

Terrior, you are a classic example of logic. LOL!!!! May my 5000 year old pee rain down on you! LOL!

The great part of being an expat in China is that it's all about you: you think it, and everyone else Chinese allow you to think it.

"You know, I always wanted to be a DJ..."

I did not understand your english which is "you think it, and everyone else Chinese allow you to think it". May be an awkward translation.
Also its not being great as an expat in China unless your company offers you an expat package and managerial position, there by you can earn more then your home country. Also this is common to all the countries not specific to China.
If a Chinese aspires working conditions similar to an expat send from headquarter then its not wrong. Indeed everyone wants better benefits in a his/her company.
Also starbucks is successful not because of expats but because of locals who choose it for the reasons mentioned above not because of following expats. Indeed most expats in China do not like Starbucks at all, most europeans working in my company would avoid starbucks.
Indeed most EU cannot understand even why so many chinese would like to go to Starbucks when there is a Lavazza shop next door offering coffee at similar rates with better view and chairs. You can attest to it by going to any Starbucks and count the number of expats going in compared to locals.

Okay, for you, I'll start at the very beginning.

* Do you want to be a DJ?
* Are you in China?

Sorry cannot catch what you mean still. I do not think this comment has anything linked to the article. Also the most logical conclusion of my comments on Shanghaiist is, I am based here.

"Carrying a Starbucks cup is seen as a status symbol, a way to demonstrate sophistication and the capability to afford a personal luxury..."

This about sums it up for most Chinese. No need to take the analysis much further than this.

Who's most Chinese? I notice the majority Starbucks-goers are young middle-class professionals, but they hardly represent the mainstream of society. The real rich in the country are in their middle-age and advanced years, and they rather have their days in a teahouse than in a coffee shop. And the poor, I reckon, have never in their life seen the interior of these not good money for value Western restaurants.

Ding.  Let's simply say no one in China drinks coffee for the taste, but more importantly to be able to be seen drinking it.

Starbucks understands "face" and the fact that language exchanges/first dates need to happen somewhere.

The above 2 simpletons needs to get their heads checked. Drinking starbucks is hardly a luxury symbol in China. Coffee Bean & Tea Leaves outlets in Shanghai consistently see more customers than Starbucks. The take off in Starbucks culture (or Coffee Bean, Pacific Coffee Co. etc) is a regional phenomenon in Hong Kong, Malaysia, Singapore as well. It took off earlier in Taiwan. In fact sophisticated Chinese urbanites flout their new found status by drinking in expensive hotel coffee shops. Having said that, Satrbucks is much better in China and elsewhere than in the US, where a latte tastes like watered down milk with weak coffee taste.

It looked like you were going to make a counter argument, as you began your  argument with the following sentence: "Drinking starbucks is hardly a luxury symbol in China."

But then you stated examples that appear to conform with my argument, or at least do not refute what you ostensibly disagree with. You stated:

(1) "Coffee Bean & Tea Leaves outlets in Shanghai consistently see more customers than Starbucks." This doesn't refute that Starbucks is seen as a status symbol. If correct, there are a number of inferences that could be drawn; none of which are conclusive proof that Starbucks is not a status symbol.

(2) "The take off in Starbucks culture (or Coffee Bean, Pacific Coffee Co. etc) is a regional phenomenon in Hong Kong, Malaysia, Singapore as well. It took off earlier in Taiwan." Okay, fine. That's not inconsistent with what I said.

(3) "In fact sophisticated Chinese urbanites flout their new found status by drinking in expensive hotel coffee shops." That may be true. Even if it is, they also do so at Starbucks.

(4) "Having said that, Satrbucks is much better in China and elsewhere than in the US, where a latte tastes like watered down milk with weak coffee taste." I found the taste to be the same. Either way, not relevant to the discussion.

Just my 2 cents on this discussion. I feel the answer is somewhere in between instead of 2 extreme opinions. Some people do feel its better to go to Starbucks due to its brand image and it instantly brings coffee when you think of Starbucks.
If you have been observing long enough in China you can also see a transformation in McDonalds. Around the world they prefer to target kids with their bright colors. But in Asia and China they are now transferring themselves as a McDonalds Cafe and use brown color to change their perception and target audience. They try to target people who like to meet up at Cafe. But I am not sure if this would payoff since when you think of McDonalds the only things comes to your mind would be a burger not a coffee. 
Although I have to say the Espresso in McDonalds (double shots) cost RMB 20 (RMB 10 for 1 shot) and in Starbucks it costs RMB 18. So based on this I should assume McDonalds offer better luxury then Starbucks but that's not true.

Nope, you read it all wrong.

1. I use Coffee bean as an example because the title is wrong to say only Starbucks succeeded. And people go to places like starbucks and coffee bean because they do provide a comforatble place for people to meet up and relax in the hustle of Shanghai or Guangzhou. But drinking starbucks is not a status symbol. Incheon puts it very well.

2. Again, Starbucks sucess in China merely mimics the culture elsewhere, so its success in China is not extra-ordinary.

3. Nope. you have really arrived when you drink in the Ritz Shanghai Center or at the Fairmount Peace Hotel. People go to Starbucks for the reasons I mentioned above.

4. I have drank Starbucks in a few continents, and the stuff differes everywhere, except in USA, the stuff is weak at best. If they sell coffee like they make them in America then no one in Europe will drink Starbucks, for example.

At the end of a day, if there is a good coffeee shop standing next to a starbucks that serve up a real expresso, I will never give Starbucks a thought.

Right on! Everything is better in China!

Please don't put words in my mouth. I said China and elsewhere. There is a reason why Starbucks taste so flat in the US, that is because they use skim milk and Americans, well, you know their coffee has been derided as dish water. LOL!

Right on! Everything is better than the US

There are a lot of things anywhere that is better than America's. American coffee, dishwater after washing expresso cups. LOLLLL!!!!!!!!!!!!!!!!

At least, I know meat in Europe does not have all those hormones injected so typical of American beef, pork and chicken etc.