Bargaining power of buyers
Initially the bargaining power of the suppliers was restricted as they had few choices when it came to consuming coffee in China. However with the changing traditional and social trends, the increase in the consumption of coffee as well as the various coffee chains opening in mainland China the buyers have more choice and therefore more bargaining power.
Threat if substitute products
The main substitute product for coffee in China is the tea. Tea shares a cultural and traditional link with the Chinese people making it the choice of drink for them. Aside from this the tea that is consumed in china comes from various roots, leaves and plants, making the taste and the function of the drink very diverse. Therefore it can comprehensively be highlighted that the main threat faced by coffee in china is form Tea and other caffeinated fizzy drinks which are popular amongst children and the younger generation in the region.
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