“I believe that local strategies ultimately lead to global tastes. We are a global brand, but we strive to develop beverages and foods using ingredients sourced from Korea.”
Choi Hyun-jung, the beverage development manager at Starbucks Korea, noted during a lecture titled ‘The K consumer taste is the global taste and the localization strategy of the global brand Starbucks,’ held on the 11th at the Westin Josun Hotel in Jung-gu, Seoul, that, ‘We always aim to understand what our brand consumers and customers consider most important.’
A representative example is the increasing consumer interest in low-calorie, low-sugar, and better sleep options in Korean society, leading to the introduction of food items with reduced sugar content and the frequent launch of decaffeinated beverages.
Choi highlighted that the rankings of preferred beverages and foods vary greatly by country. Last year, the number one beverage consumed at Starbucks in the U.S. was warm cafe latte, while iced Americano ranked sixth. However, in Korea during the same year, iced Americano was number one, and decaffeinated Americano was sixth. She stated, “Since the preferred beverages differ between Korea and other countries, there are areas that need to be well developed for the Korean society.”
She added that Korea’s unique sensibility and potential drive the development of beverages and foods. “When we launched the Fizzio beverage in the U.S. in 2014, we also introduced it in Korea that same year. However, the U.S. discontinued the Fizzio beverage business after two years,” she said, adding, “We continue to sell Fizzio in Korea, having upgraded it by releasing a version with Korean ingredients like plum, or increasing the vitamin content while eliminating the caffeine.”
“The success of the Fizzio beverage business in Korea is attributed to our ability to harness potential opportunities and reflect the demands of contemporary society,” she continued, “It has become a benchmark for Starbucks worldwide.”
Choi mentioned that Starbucks food focuses on being enjoyed alongside beverages, while also attracting diverse customer experiences. “When developing food, we prioritize which foods pair well with the top-selling beverages at different times, such as breakfast, afternoon, and late evening,” she explained, “This is important as we aim to develop optimized food that serves as a meal replacement or offers something special.”
“We are preparing to create new customer experiences, such as serving coffee smoked with apple wood chips, like the Dosan Reserve store menu, or launching new foods seasonally.”
In particular, Choi advised that it is essential to ponder how to incorporate the unique characteristics and ingredients of the Korean market into the development process. A prime example is the newly opened Gwangjang Market specialized store. She said, “Since it’s a store within Gwangjang Market, we aimed to reflect the market’s characteristics in our beverages and foods,” adding, “We launched items like crêpe roll cakes with a fabric feel and thread-like Baumkuchen, inspired by famous hanbok textiles and threads from Gwangjang Market. They are currently enjoying explosive popularity."
Finally, Choi stated, “As a global brand, we play a role in promoting popular packaged snacks from around the world in Korea while also introducing foods made with Korean ingredients to the world, ensuring that the flavors of Korea become ‘global flavors’ through Starbucks.”