"When Starbucks opened its first store in Beijing in 1999, it wasn't just selling coffee; it was selling Western aspirations to China's rising middle class. The Seattle-based giant expanded rapidly to dominate China's premium coffee scene. That early-mover advantage has, however, since eroded. Chinese competitors like Luckin Coffee and Manner have overtaken Starbucks in store count and captured market share, thanks to aggressive pricing, mobile integration and a sharper understanding of Chinese consumer habits."
"Luckin drives more than 90% of sales via its app, while Starbucks still relies on in-store traffic. The Financial Times reported recently that Starbucks' China revenues plunged nearly 19% from 2021 to 2024 to $3 billion (2.58 billion). The coffee retailer's market share over the past five years has fallen to 14% (2024) from 34%, according to Euromonitor International. With such headwinds affecting its second-biggest market, Starbucks announced this month it would sell a stake in its China operations to a Hong Kong-based private equity firm."
Starbucks entered Beijing in 1999, selling Western aspirations to China's rising middle class and rapidly expanded to dominate the premium coffee segment. That early advantage has eroded as Chinese chains such as Luckin Coffee and Manner overtook Starbucks in store count and market share through aggressive pricing, faster product launches and mobile-first services. Luckin drives over 90% of sales via its app while Starbucks remains more reliant on in-store traffic. Starbucks' China revenues fell nearly 19% from 2021 to 2024 to $3 billion, and market share declined to 14% from 34% over five years. Starbucks formed a $4 billion joint venture with Boyu Capital, retaining 40%.
Read at www.dw.com
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