Is “local” the new “global”?


Browsing the Brand Republic website I came across an interesting article about Starbucks. In the US, Starbucks are experimenting with a new café format. The idea is to remove most branding elements from selected cafes in an effort to become part of the fabric of local communities.

This initiative has stirred considerable controversy about the ethics of “disguising” a global brand in order to overcome customers’ negative image of international corporations and to build stronger relationships with the members of local communities who prefer local businesses and produce. Before you make up your mind about how you would feel about such a scheme being introduced in the UK lets cast a glance at what Starbucks stands for and what it represents to us.

Starbucks started off in Seattle as a small local coffee house. Since the 1970s the brand experienced phenomenal expansion now having a presence in 49 countries which makes it the largest coffeehouse in the world. The secret of its success? Starbucks took the experience of coffee to a whole new level transforming coffee from a functional product to a luxury treat worthy of a superior experience. The brand built its image on the unique experience created from the combination of its innovative and high quality range of coffees and the atmosphere that invites you to take a break from your hectic life, relax and treat yourself. Everything in a Starbucks coffeehouse, from the friendly baristas, the indulgent drinks and cakes to the comfy, relaxing sofas and the soft music speaks of comfort and sophistication, an escape to an oasis of peace and relaxation.

Maintaining these high standards in each and every coffee shop from the Forbidden City in China to Bucharest to New York but slightly adapting the product offering according to local taste has fuelled Starbucks’ massive expansion. The brand became associated with numerous environmental and philanthropic causes, supporting local communities and suppliers. It has gained its customers’ trust and loyalty so much so that even during this global recession, people still indulge in their favourite coffee treat although they refrain from buying a new car or going on an expensive holiday.

However, the brand’s growth seems to threaten its acceptance into local communities as people feel that global giants like Starbucks are a menace to their local culture as well as smaller businesses. Furthermore, the question whether Starbucks tries to cheat its way into the heart of local neighbourhoods makes one wonder how far would the brand go in order to keep profits high and whether its values are just driven by business interests rather than genuine care for the causes it supports.

See here to a sample of customer interviews on this topic that may be of interest.

1 comment:

  1. I think that your blog raises important questions that customers should perhaps ask themselves, when they decide where to make their coffee purchases. Thanks for raising important issues :).

    ReplyDelete