In China during the recent Dragon Boat Festival, the popular American coffee chain Starbucks has been serving “Zongzi” (glutinous rice wrapped in a reed), the traditional food for this celebration. Apparently Starbucks’ “Zongzi” have met the expectations of the local customers, and have been welcomed, especially by those looking for out-of-the-ordinary products.

It was not the first time Starbucks have offered localized products to its Chinese customers. Besides “Zongzi” for the Dragon Boat Festival, Starbucks also offered Cantonese-style pancakes last September and two types of coffee blended with tea during this year's Spring Festival. This strategy has name ― glocalization, meaning to think globally and act locally.

Generally speaking, glocalization is a way for international companies to enlarge their customer base and build customer loyalty in local markets. In the case of Starbucks in China, glocalization is all the more important since it is a coffee chain operating in a traditionally tea-drinking market. According to Kevin Lin, vice-president of the chain's Shanghai joint-venture, “Store layout, artwork and food options make Starbucks friendlier to Chinese eyes”. However, too much localization can turn out to be a detrimental strategy for international brands, as this can cause the brand to loose their foreign or international appeal.

There are two main conditions for international companies to localize successfully. First, they have to understand the local market they are trying to cater to. Second, they must find a good balance between their global and local brand dimensions. It seems that Starbucks has been able to do both of these thus far.

Nevertheless, Starbucks must continue to manage their brand in China to ensure they maintain the fragile balance between localization and globalization, all the while attracting Chinese consumers, and of course, selling coffee.