Willingness of Integration
The introduction of Starbuck did not encounter boycott driven by the hostility of American culture during the time of anti-American campaigns (Song 27). The reason why Starbuck succeeded in expanding into Korean market with relatively low rate of criticism is because of its marketing strategy emphasizing on the integration with local culture (Song 158). Compared to McDonald’s expansion in South Korea in the late 1980s, McDonald’s food was recognized as a threat to the rice-eating culture and subject to boycott (Collins 153). Although the two international brands also have rich experience in marketing and management of oversea business, Starbucks showed greater willingness in combining global brands into local culture so as to diminish anti-American sentiments about the brand.
Its store in Insa-dong, a historic district known for traditional Korean art and galleries, had disputes between local stores over invasion of American brand, Starbucks (Song 29). Since it was condemn for its operation in that location, Starbucks wrote its name in Korean instead of English for the first time and attempted traditional Korean interior design matching with the historical significant identity of Insa-dong, for example, adding traditional details such as wooden lattice patterns on its windows, traditional wooden masks (Bak 48). Moreover, it also offered traditional Korean products like rice cake and red bean soup to fit in the surrounding environment (Song 31). Starbucks is pleased to alter its marketing strategies so as not to arouse anti-American sentiment among Korean society and stand firmly in Korean café market.
Construction of Starbucks Experience
Starbucks creates an atmosphere and identity fitting the needs of Korean customers that attracted them to patronize Starbucks’ cafés. The company realized differences between American and Korean customers. For example, American customers usually come individually and easily communicate with other customers in the café (Bak 48). However, Koreans usually come in groups and seldom chat with other customers because they have great need of area and privacy for their social group to meet and gather and, hence, the stores provide partitions to separate among groups (Bak 49). The provision of social space is essential especially for Korean society due to their collectivistic tradition.
Besides, Starbucks creates a connection between the brand and its customer through a buddy system, that baristas actively communicate with their customers (Song 124). They would ask customers’ name when ordering and call them to get the order. General cafés in South Korea would give customer an alarm which would vibrate when orders are ready. By calling and recognizing the customers, it gives a sense of friendliness and familiarity of the brand and that helps to build up a positive image (Bookman 95). Starbucks appeared as a leader of café franchise to spread the café culture
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The expansion of Starbucks into South Korea contributes greatly to the existence of café culture. Starbucks is recognized as the first foreign take-out coffee chain expanded to Korea since 1999 (Bak 39). Among all international café chains in Korea, namely Pasucci and Coffee Bean and Tea Leaf, Starbucks has a premium status on the top of annual sales revenue in 2011 which is about $300 million by running over 400 stores in Korea (Lee and Seo 04 May 2011). Through its development from the first store in 1999 to 400 stores in 2011, Starbucks tends to integrate into Korean society and meanwhile keeps its principle of providing extraordinary experience of coffee drinking and creating connection between the company and customers (Song 31).
Starbucks is now served as landmarks and cultural icon among young Korean generation and also white collar worker in 20s and 30s (Bak 46). Its first shop opened in the Ewha Women’s University District (Seodaemungu) where crowds of university students and tourists gather. A relatively higher density of Starbucks stores located in Gangnamgu serving large number of officers from nearby Korean and international financial and business institutions’ offices (Song 28).
Influence of Starbucks
