In 2015 Tim Cook emailed CNBC’s Jim Cramer. In the note he said:
China represents an unprecedented opportunity over the long term.
Where is this opportunity in China? A good place to look is Starbucks.
Jim Riley from tutor2u looked at the coffee giant’s long term strategy:
Starbucks has been in China for 14 years, with an initial presence in the major tier 1 cities like Beijing, Shanghai and Guangzhou.
Starbucks expects to have 1,500 outlets in China by year’s end. The number of staff employed by Starbucks in China is forecast to rise from 12,000 to 30,000.
The company most like Starbucks in China, and one that analysts like Jason Hall from TMFVelvetHammer call “somewhere between luxury and discretionary”, is Tim Cook’s Apple.
Cook most recently reported quarterly revenue in China had doubled to $US12.5 billion. iPhone 6s sales were strong and boosted by App Store sales that increased 127%.
By these metrics, Apple has achieved much in a relatively short time with its consumer goods. Apple has also just announced that its ecommerce payment system, Apple Pay, will start in China in early 2016.