Against the background of the price boom in the tea and coffee markets, starbucks china announced for the first time in 25 years a drop in prices, introducing summer “carving prices” starting on 10 june, which was seen as a strategic adjustment of the starbucks-coded non-coffee market to explore new growth points through the “morning coffee, afternoon non-café” round-the-clock service scenario。
On the first day of the price reduction, beijing youth reporters visited a number of starbucks gate stores to see that the new version of the sunshine sunshine menu had been adjusted, with a large cup of ice cranberry black gallons at a price adjusted from $31 to $26; a large peaches star ice ball at a price adjusted from $41 to $35; and a large cup of red tea and latte at a price adjusted from $35 to $29 ... The average price of the three categories of aces fell by $5. The price of multiple non-coffee beverages went down to the price range of $20 plus
In fact, before that, starbucks was frequently issuing various coupons, such as “60 dollars less 10 dollars” and “50 dollars less 6 dollars less” and “37. 7 dollars more” and “53. 6 dollars more” on various local life purchase platforms, as well as “108 dollars more 5 cups” and “249 dollars more than 10 cups.”。
Instead of participating quietly in price wars, starbucks took the initiative to lower part of the price of the product, allowing consumers to evaluate its increasingly “advisory” and subterfuge. There's a direct call from the internet that finally brought down the price of coffee, and there's a call from the internet that starbucks has room for a lower price. In addition, there are consumers who say that starbucks is definitely a “downside blow” in the 20+ unit area, after all, there is no substitute for the third space environment. “business talks, friends, even a ppt, must be the preferred location for starbucks.” according to one consumer。
In fact, competition in the tea and coffee market has become hotter, especially during the first half of this year, when the war on export subsidies resumed, when coffee brand prices repeatedly went down and there was no sign of a ceasefire. While starbucks continues to take the lead with the advantages of third space, door shop network layouts and differential strategies, in the face of changing market demand, starbucks, branded as the head, has had to look for new growth breakthroughs。
According to data from the china institute of business and industry, the size of the current tea market in china is expected to exceed $36. 89 billion in 2025. In addition, the outbreak of the afternoon tea economy opened up a new battlefield for the drinking market. Data released by the mission in august last year show that there has been a significant surge in the number of tea-time orders since summer. Consumer demand for tea in the afternoon is no longer limited to drinking, but rather to “drinking + light food + social experience”。
In the face of young consumers becoming market players, the demand for healthy and scenery is becoming more pronounced. In addition to the voluntary price reductions, starbucks is adding to non-cart products innovation. For example, on june 17, china will join forces with the mad animal city to launch three iced teas on the theme – the whole orange twirling tea, the swirling pea tea, and the mid-summer blue-twirling ice-cream tea – which are aimed at the trend of consumption of low sugar, low-calories, and natural raw materials. The ability to stabilize market shares and break the growth trap through a “morning coffee, non-coffee” round-the-clock consumption strategy has yet to be tested。
