Market research conducted by BrandsEye shows what South Africans expect from Starbucks when it enters the local market next month – and how much they’d be willing to pay.<\/p>\n
Taste Holdings announced on Thursday that South Africa’s first Starbucks coffee chain will be opening at the end of April in Rosebank, Gauteng.<\/p>\n
A second branch will open around the same time at the Mall of Africa in Midrand.<\/p>\n
The global brand’s entry into the market has South African coffee consumers divided, with the excitement of such a big brand operating in the country being quelled by concerns over quality and price.<\/p>\n
BrandEye tracked and analysed consumer sentiments towards Starbucks and other local coffee brands on social media, to gauge what South Africans expect.<\/p>\n
The group found that Starbucks’ entry into South Africa increased conversation not only about the US brand, but local brands as well.<\/p>\n
Read:\u00a0When and where Starbucks will officially launch in South Africa<\/a><\/strong><\/p>\n And while a lot of consumers – especially consumers of artisanal\u00a0brands of coffee – are less excited, and unwilling to pay premium fees for Starbucks, many rejoice the brand’s equity, and wouldn’t mind “splurging” out for its\u00a0novelty blends.<\/p>\n According to the report, overall sentiment towards Starbucks in the country is more positive than it is negative. The only place where this isn’t true is Cape Town, where 33% of consumers expressed negative sentiment towards the brand, versus 26% who were positive.<\/p>\n Durban is the most positive towards Starbucks (43% positive vs 17% negative), while Gauteng is in the middle – but also more positive (33% vs 18% negative).<\/p>\n BrandEye suggests that Durban would be the next most logical city for Stabucks to head to, after Joburg, as Cape Town would prove to be a resistant market.<\/p>\n One of the most talked-about aspects of Starbucks’ launch in the country is price. BrandEye’s analysis found that South African consumers were largely unwilling to spend more than R25 for a cup of coffee<\/strong>.<\/p>\n Local brands offer high-quality products for up to R28 per cup – while Starbucks is expected to enter at a R30-R50 price point. When prices were discussed, sentiment toward Starbucks was negative.<\/p>\n Another subject that drew criticism from consumers was a question of quality, where South African coffee fans saw local brands – especially artisanal brands – as being of higher quality and more affordable.<\/p>\n However, Starbucks\u2019 novelty blended beverages prompted high levels of excitement from South Africans, the group said.<\/p>\n While pricing is one of the most-discussed issues, it’s only the 5th most important factor, according to South African consumers.<\/p>\n Topping the list is quality, followed by the in-store experience, product mix and brand status.<\/p>\n “Despite initial concerns as to what Starbucks would charge per cup, price only ranked fifth in the above scale, but (it was) also linked to quality,” BrandEye said.<\/p>\n How much Starbucks coffee could cost in South Africa<\/a><\/strong><\/p>\n How many Starbucks stores will open in SA<\/a><\/strong><\/p>\nWho loves and hates Starbucks<\/h3>\n
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