Starbucks Corp. has identified China as a key growth market; however, it has not fulfilled expectations, reporting flat comparable-store sales recently. Competing against Luckin Coffee, which has over 21,000 stores in the region, Starbucks is implementing sharp discounts, particularly on its tea products, leading to thinner margins. The company's new CEO, Brian Niccol, has been hired to drive improvement after his success at Taco Bell and Chipotle. He has made significant changes in the U.S. but faces uncertainty about their effectiveness in China, relying on discounts to regain market share.
Starbucks is struggling in China against local rival Luckin Coffee, prompting price cuts on tea products to boost sales and improve market share.
New CEO Brian Niccol faces challenges in revitalizing Starbucks, having fired employees and aiming to transform it into a local coffee house in the U.S.
Collection
[
|
...
]