Esteban Liang, Managing Director Asia, Costa, discusses coffee in China
Although China continues to prefer tea among hot beverages, coffee has also been making its way through significantly in the last two decades. Managing Director of Costa, Asia, Esteban Liang says that coffee is a symbol of status for the young generation here and is an “affordable luxury”.
The first Costa Coffee was opened in Shanghai ten years ago in 2006 and today there are almost 400 stores in China. Shanghai and Beijing have about 100 stores each.
When Costa was introduced in China it was difficult to make the people aware about coffee but today people are aware of what it is. Liang says that it’s not just the coffee that matters in China but the ambiance, food, music – a complete package. The trendy people look for places where they can take a cool selfie and proudly show it off.
The preparation of Costa Coffee in China is the same like what it is for UK however, just like other countries there are seasonal drinks that are made available to the customers based on the taste of locals.
Liang continues that it is just a couple of years that they have been localizing and are trying to understand what would make them come to a coffee shop. He says that ambiance or environment is what topped their list. Besides a good cup of coffee the people also look for polite service.
Liang is confident about being number one in China and is relaxed when spoken about Starbucks. Starbucks entered the Chinese market seven years before Costa could come in and helped the people to understand what coffee was all about. Liang praises Starbucks as a company but adds that Costa Coffee knows how to expand business in China. He confidently says that the market in China is vast and there are a lot of potential customers waiting to be explored.
Liang is then asked about the Indian coffee shops that seem to be doing well. He says that although the artisanal operators are skilled and know brewing techniques, they lack skills of marketing and while they are still learning the market and trying to open more shops, Costa is expanding as well as bettering their coffee skills.
Liang positively ends his interview by saying that China has a huge market and Costa’s future is bright. They are aware of the competition in the market but they will ensure that they stay close to their customers and deliver them exactly what they want.
