Analyzing of Potential Market of China for Ethiopian Coffee

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Proceedings of the 7th International Conference on Innovation & Management

Analyzing of Potential Market of China for Ethiopian Coffee
Eskinder Asfaw Bantiwalu, Asfaw Yilma Demisse
School of Management, Wuhan University of Technology, Wuhan, P.R.China, 430070
(E-mail: eskinder_2001@yahoo.com, Asfity333@yahoo.com) Abstract After analyzing the opportunities and challenges of Chinese market by using secondary data, this paper finds that the population of China (1.3 billion), the increasing demand of Coffee in China
(30% per year), the fastest growing of Chinese Economy (an average rate of 10% per year since 1990) and the purchasing power of the people are the key indicators of Chinese potential market for all coffee
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Also other cities like Wuhan coffee culture seems to expand. Recently coffee appeals to adventurous young, rich, and urban consumers. This is just because originally coffee is considered as a
Western concept to most Chinese consumers. According to Subhuti (2003), the Chinese do not consume coffee because of its potential health value either in terms of modern medical data or traditional Chinese

Proceedings of the 7th International Conference on Innovation & Management

·445·

medical concepts. Rather, it has been consumed until now as part of the fascination with western culture that has grown during the past few decades, particularly after the anti-Western campaigns of the Maoist regime. However the coffee culture is getting well known in China nowadays. Chinese coffee consumers are more exposed to Western influences and tend to look up to Western lifestyles.
Manufacturers have targeted Westernized young professionals as the main target market for coffee.
Another large consumer group, which influences the coffee consumption, is returnees. China has many returnees (mainland Chinese students returning from Western countries) over the last ten years. Many of these returnees have lived in Western countries for a decade and they have become accustomed to the coffee culture. Upon their return to China they have
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