Former Starbucks CEO Howard Schultz & Alibaba Founder Jack Ma On Starbucks In China | CNBC

I began the conversation by asking him and Howard why so many American companies who come here it fails all too often but at least for Starbucks right now they've made it work we've been here 18 years and many people don't realize in the first nine years we were not very successful and so there was a lot of pressure on us early on to kind of close the tent and say it's not gonna work so but I think we had to have patience and we had to have a deep commitment to being locally relevant and understanding the consumer but I don't want to Barriss Jack but you also have to have friends here who can help you kind of navigate through some of the issues that are difficult to understand and you know Jack and I have known each other I I said this the other day I knew Jack before he was Jack and and we've had great conversations about the values of building a great company what u.s. or China and I think the understanding that there are actually more similarities between us than differences and the consumer although it is a Chinese consumer that did not know much about coffee did understand customer service did understand a beautiful place to be and I think also building the kind of company that would be values based in the culture of the company and it can put people first and I think that that gave us a leg up if we could really convey to take anything we came here to get back when you look at this and a lot of technology companies in the US have tried to come here unser guys what do you think is going on I think most of the technology companies come to China to learn from Starbucks first a heart for the customer for the market we love the people love the market second we should have great team they have a patient's concerns of patients doing this for 10 20 years and that's a great product when I I was amazed by Starbucks because Chinese people don't drink coffee we drink tea I don't like coffee I like tea but I like coming here I respect I like and I told my wife I don't like coffee but I like Starbucks because when the reason is that I met him first time I think we discovered long I listened to his talk and we discuss only by the valley vision mission and then I told my team in the past years a lot of times making Starbucks a unique cooler example everybody drink coffee in them in in the world all right also China specially but nobody thought of coffee could it be a business that be a global company serve people is hard not coffee that's what we think tell me what's going on in retail here in China you just had your singles day yeah biggest ever again twenty five billion dollar damn and that's been mostly an online dead yeah but you guys are getting into the bricks and mortar space yeah as well yeah we've been moving very aggressively in the forty four years ago when we grow so fast and we've got a lot of complaints about traditional retail and say hey ecommerce take away all of our jobs all our business so we ask for yourself I will want to serve our customers or our we want to kill all the retail their traditional retail we think we should working together we believe online offline should working together with the data with the customer experience we think retail the traditional retailer has a huge potential if we do properly if we will work together but that is why we're going aggressively in the past four years he just gave up on on online retail we used to mean himself he's handed it over to some degree to Amazon and Amazon just came to China uh-huh what do you make of that Emily to come to China they've been here for most of 15-20 years but you did not see them here anywhere because because I don't think they do properly here it's out it's the mob case you need but maybe ten years today to happen to become big again I mean China but you should have a patience and could great people good services and I think we're working together online and Starbucks has presents a shop shop on on Timur and they also actually using a leap a we're working so closely so the the guru sri officially opens tomorrow i'll give you a statistic they gave me an hour ago we sold almost two million dollars of merchandise talking through Alibaba the store has an open you in Kermit and the other thing is you understand that the technology in the store as being powered by all the so the partnership that we're establishing here in China twisting it's really state of what we can do together how do you think about US and China relations these days and how it relates to you doing business here and you doing business in the u.s. we have two leaders but one of whom talks about America first and President Xi to some extent may be talking about China first though opening as well I did not see President Xi said China first presidency think thinks a lot about the one world in one belt and business should be grow together share profit together so do you but do you look at what's happening even in the conversations and the overhang of the conversation around North Korea for example and how that could affect you being here and and you doing more I know you're trying to do more and more business in the US as well I you know I think they do unfortunately yes I think there's a possibility companies that have a shared level of values around sense of humanity if you continue Alibaba and you take several Tiny's company America perhaps we can demonstrate the kind of cooperation the kind of trust and build a bridge between our two companies that perhaps the politicians cannot do at this time and demonstrate to America and that we are much more to see than we argue but hey talk about can you do that though if if if there is disagreement among the countries over things like North Korea yes of course we'll continue to do it I think politician agree great if do not that great business still have to go on trade have to go out nobody can stop a business nobody can stop trade nobody can stop the cooperation could change the business so this is what we think and if they are so great on the offline we're so good on online they are so good in the states less so good in China we we should set an example that how we've been working together that improving the relationship between to go strengthen the relationship this is what we think by working together the two countries can do a lot do you have a take on North Korea I know you're sponsoring by the way the Olympics this year I'm gonna be in South Korea you're gonna be there as well and it's gonna be a big conversation there what's happening in North Korea yeah it's so complicated to me I've enough had to keep my business I think when I cared about North Korea I say oh my god of course it is Russia there is China said this Americans say this leave this job from President Xi and Donald Trump you know I'm focused on my business okay let me ask you one question last time I saw you in Davos you said something very provocative President Trump had talked at one point about the u.s. or rather China stealing jobs from the US and you said that was the strategy but that was the strategy by the leaders of the US President Trump has tried to change that I'm curious whether you think he's been successful we have tax policy that he's trying to put through I think what do you make of what's happening in the United States well I think the Americans also should have a patient so you know you made them do not a great thing when he say I want to do this he's been present upon that only one year something he can never get achieve something within one year at least he's trying and for me I think the the China is not stealing jobs we are creating a larger lot of them companies succeed in in in China star back to the accident in China in a Microsoft detection in China I build it actually in China in China and we do not see a lot of Chinese company to the excellent in the States so we shall work on together right when you have conversations with government here how much they talk about Trump with you there's a constant theme about asking about President I I have one state new that I consistently pee I'm not here talking about politics that's certainly not going to criticize the president States on foreign soil fair enough back there when you buy a coffee you can pay with Ali pay but you can also pay with WeChat which has been growing in its market share yeah what are you gonna do to stop that why should I stop them I mean it first if there's only one Ally pay Ali Ali B cannot grow that fast when there's a fair competition grow fast no matter how fast did it grow we're still bigger we're still better so it's it's way of a fair healthy competition it is good and we don't want to be lonely to talk to the government because we're the only one don't wait another two or miss three and then we have the right policy talking about currency the topic at least back in the u.s. I think here as well is Bitcoin and what some people think of as the modern it's like a tulip bubble or is it a bubble and I was curious I don't know if you're gonna accept Bitcoin you do either of you have a take on whether we're in a bubble other people have called it a fraud Jamie Dimon says it's it's a ridiculous thing I don't understand it myself I'm just trying to figure out the sake Lucas listen just two days ago in Ulsan internet conference people asked me what do you think I say honestly I know very little about it and I'm totally confused and that evening it works even if it works the whole international rules and laws on trade of finances going to completely change I don't think we are ready for that so I think I'm focusing on the Ali pay a burger i and be US dollars or Euros that's fine and your ass I know no do you see a day where you could know we we have a team specifically study that and also we have a team blockchain technology we spend a lot of efforts on blockchain technology provider but bitcoins I say not for me all right I know I I can see a point in time where Starbucks becomes a cashless and I think that time is nearer than slavery I don't let me say one thing we are not focusing on Bitcoin we're focus on cashless society for China and every control we go try them making sure the society is more efficient more transparent no corruption this is what we want to do using a catchment okay I got two final questions and I'm gonna embarrass you with one of them there's a lot of speculation in the United States that this gentleman may one day run for president or should run for president what do you think of that I think he should I respect him a lot and he has a great Valley vision and is very paranoid for the future you always think about how you can change see this thing very I see so many retail complain about new technology and on the hate technology they stop with just a complaint but he is changing and I think this is what a country leaders with happen and final question we've been watching you dancing like Michael Jackson creating movies what's next outside of doing magic shows outside of running Alibaba well I every I tried to do something because there are three jekima first Jack reminds people imagination is great is not good and this is the people's imagination second jekima jekima is the CEO and founder of chairman of Alibaba Group and third Jeremiah is my real person I love to sing I love to dance I have a fun I like it walking around the streets and all the thing you see I'm myself by my real jackhammer coming out of these days I'm gonna forth ya know jack a long time Jack obviously has become extraordinarily successful and influential in China and around the world the fourth jet poor guy is the man of the middle a humble person and that's why I think at somewhat respectfully yeah it's not cheap at all hey there thanks for checking out CNBC on YouTube be sure to subscribe to stay up to date on all of the day's biggest stories you can also click on any of the videos around me to watch the latest from CNBC thanks for watching

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Keywords: CNBC, Mad Money, Squawk Box, Power Lunch, Opening Bell, Closing Bell, Financial News, Finance News, Stock News, Stocks, Trading, Investing, Stock Market, US News, World News, howard schultz, howard schultz interview, starbucks, new starbucks, starbucks shanghai, largest starbucks, biggest starbucks ever, shanghai, shanghai china, china, china starbucks, jack ma, jack ma interview, howard schultz and jack ma, alibaba, alibaba ceo, alibaba ceo interview, coffee markets in china

Id: sBKL9752NWw

Length: 13min 27sec (807 seconds)

Published: Tue Dec 05 2017