Starbucks, a multi-product product in china, comes down。
On 9 june, journalists were informed by starbucks that starbucks china had announced that it would boost the market for non-coffee beverages to create a “morning coffee, non-coffee” round-the-clock service. Specifically, as of 10 june, a total of dozens of products will be collectively priced, with an average price reduced by $5 to a minimum of $23。
Starbucks indicated that there would also be a sustained “non-courage” scenario for product innovation and that multiple products would be associated with new tastes. Starbucks will bring a whole new “non-challeng” experience to its customers with more attractive prices, product innovations, and unique custom games。
It has been learned that the price space left after the launch of the top three categories, star ice, iced tea and tea latte, will also encourage customers to explore customization, unlocking the various types of "hidden menus" of starbucks, or tailoring drinks to their preferences。
As yang zhen, chief growth officer of china, starbucks, said, “starbucks has always been committed to meeting the diverse needs of customers at different times and in different scenarios. A refined product matrix under a `non-courage' scenario will go hand in hand with the core coffee product, allowing starbucks to create different product combinations and experiences based on different consumption scenarios, door-store types, etc., to better meet the diverse needs of customers.”
It is noteworthy that several coffee brands have introduced time-bound price preferences since this year。
During this year's midday festival, the minimum price for most of the products of swisso coffee was reduced from $9. 9 to $6. 9, showing a time-limited preference, which expired on 2 june. At that time, swiss coffee responded by stating that the brand introduced a double-leaf benefit for consumers for the midday festival and children's day, with a random coupon of $6. 9, not a price reduction. In addition, in recent days, coutier has been the beneficiary of a “price war” on the out-sale platform, with a number of consumers tanning in social media, and even a few dollars less than a dollar to take a couty post, which has resulted in a sharp increase in his order。
Fortunately, the management of the coffee industry has stressed on previous occasions that it will continue to maintain a competitive price strategy ($9. 9), and there are no plans to raise prices. In addition, management noted that new changes could occur in the current pattern of competition in the drinking industry with the recent roll-out of the tea industry. In order to better respond to potential competition challenges, it will also continue to increase brand and marketing inputs. Previously, the couteur chief strategy officer, lee yongbo, had told journalists that $9. 9 promotion would also be a “long-term battle” for the next three years and that subsidies to affiliates would continue until the end of 2026. There is an increasing number of brands entering the level-of-the-coffee track, and the coudi coffee will constantly adjust the duration and intensity of the promotion policy to the pace of market expansion。
Starbucks, the main player in the third space, faced increased market competition on the coffee track, but the chinese market also achieved renewed growth in the second quarter of this year。
At the end of april, starbucks released the second quarter of 2025, and key data, such as business income from the chinese market, the volume of business with the same store and the company's profitability, increased in comparison, and sales by the same store continued to improve significantly. Of this amount, operating income amounted to $739. 7 million, an increase of 5 per cent over the same period. Compared to the previous quarter, the volume of business with the same store has risen by 4 per cent over the same period in the various business circles, at different municipal levels and at various business times. The profitability of the shop continues to be double-digit, and the company's profit margin has increased at the same time。
For the second quarter, the chairman and chief executive officer of starbucks stated that, in china, the recent restructuring of the product line had begun to bear fruit, with positive growth and encouraging performance, “our brand remains strong, and business development depends on a near-localized supply chain and a baking operating system. Along with this positive dynamic, i would like to reiterate unequivocally that the chinese market has great potential for growth and that we will continue our long-term commitment to deep cultivation and development of the chinese market.”
At the end of november last year, according to foreign media reports, starbucks was considering selling his shares in chinese operations. Informed sources have revealed that starbucks is exploring ways to expand its operations in china with the possibility of introducing local partners. Companies have informally assessed the interest of potential investors, including domestic private equity companies. Some informed sources also indicated that the sale of shares may also attract interest from chinese enterprise groups or other local companies with extensive experience in the industry. Starbucks is still assessing whether to proceed with this decision。
The starbucks global spokesperson responded that “we are fully committed to the long-term development of chinese operations, partners (staff) and the chinese market. As stated at the fourth quarter press telephone conference, companies are spending time getting a deeper understanding of our operations in china and the competitive market environment. We are working to find the best ways to grow, including exploring strategic partnerships.”
