Starbucks Shifting Store Locations to Wet Markets?! Is Opening Coffee Shops in Traditional Markets Viable?

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Starbucks: An Affordable Luxury in Community Markets

An analysis by Credit Suisse last year showed that compared to other coffee brands/chains, Starbucks represents an "affordable luxury."

For years, Starbucks' brand positioning, store locations, and product pricing have created a sense of distance for many consumers. Because they are primarily located in commercial areas, Starbucks has given the general public an intangible sense of social stratification.

However, with economic changes and various policy implementations in recent years, Starbucks locations worldwide have been changing strategies. Compared to customer groups in commercial areas, community customers have become the key focus for Starbucks today. Among communities and places with high foot traffic, none surpass the areas around wet markets. Recently, in a newly opened wet market in Minhang District, Shanghai, to effectively achieve a "one-stop" shopping experience for residents, convenience merchants such as pharmacies, convenience stores, and breakfast shops were introduced near the market entrance. Among them, Starbucks' inclusion surprised many netizens.

To attract more attention from community consumers, areas near and inside wet markets have become the focus of many coffee brands, and Starbucks is no exception. In fact, in recent years, many Starbucks locations in China have been strategically placed near major wet markets, typically surrounded by residential areas, in positions accessible whether people are commuting to work or going to the market for groceries. Beyond China, international Starbucks locations have also begun targeting wet markets. Recently, a Starbucks in Korea opened inside Seoul's historic traditional comprehensive trade market.

The market contains a theater that had been abandoned for many years. For this reason, Starbucks leased the theater and transformed it into a distinctive store with a rich nostalgic story.

The contrast between traditional settings and modern coffee shops not only changes consumers' perceptions of Starbucks' brand positioning but also creates more development opportunities for traditional markets, giving young people a new perspective on traditional commercial areas.

Are Wet Markets Really Good Locations for Selling Coffee?

Perhaps in many people's impressions, the sanitary conditions of wet markets are not very good... puddles on the ground, unpleasant odors in the environment, etc.

However, the problems exposed by traditional wet markets have received attention. Under the supervision and organization of relevant departments, the environment of most markets has greatly improved. Whether inside the market or in surrounding areas, the environment is clean and tidy, with clear functional divisions and very clean, dry floors.

Additionally, various stalls have made considerable efforts in service and supporting facilities to retain more customers. Whether buying vegetables or meat, most merchants can provide processing services. For the younger generation, who may have average knife skills, find processing troublesome, yet value health and wellness, isn't this better than ordering takeout? Consequently, many young people have started visiting wet markets again. The foot traffic in wet markets is actually quite high, even very high. Every day, people of different age groups come and go. Even if they don't make purchases, the seemingly incompatible cooperation between coffee shops and wet markets makes many people忍不住 share with friends and family, thereby achieving a promotional effect.

Opening coffee shops in wet markets is actually not a new phenomenon, but the poor impressions created by the environment of most traditional wet markets over the years have made people feel that coffee shops in wet markets are somewhat inappropriate. However, abroad, coffee shops have long liked to open inside or near traditional markets,毕竟 the foot traffic is genuinely high. Starbucks' first store opened in Pike Place Market, America's oldest farmers' market. For a coffee brand to quickly gain traffic and attention, being approachable is the first requirement.

Selling Coffee in Wet Markets: Not Such a Strange Idea

Many people believe that selling coffee in wet markets is impractical for two reasons: environmental issues and the perception that people who go to wet markets are not likely to consume coffee, thus overlooking this business model. However, the advantages of opening stores in wet markets lie in low rent and high foot traffic. Although coffee is not a necessity, for some customer groups, buying coffee is just a convenient add-on. If these "convenient" customers are genuinely satisfied with the product initially, this will create stable regular customers.

After all, these customers must live nearby and regularly visit the same wet market. As long as the store's product pricing is reasonable and product quality is stable, there's a high probability of repeat purchases. Not everyone has extreme requirements for coffee flavor, so stable product quality is the biggest key to retaining customers.

It's not necessarily true that people who come to the market are not groups that would consume coffee; rather, it's more that coffee prices have deterred people. Affordable prices can give curious but reluctant coffee drinkers an opportunity to experience coffee, which is inherently a good thing.

Only when more general consumers develop a demand for coffee will the coffee market have greater room for development and innovation.

Image source: Internet

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