Starbucks Korea experienced a sharp sales decline after a marketing campaign tied to the May 18 Gwangju Uprising anniversary triggered public anger. The Tank Day campaign referenced the military deployment of troops and tanks used to suppress pro-democracy demonstrations, leading to widespread criticism. Shinsegae Group, which owns Starbucks Korea through E-Mart, faced mounting pressure over the campaign. Shinsegae Group chairman Chung Yong-jin issued a public apology and took responsibility for the incident. He asked people not to direct anger toward Starbucks employees and front-line staff, stating responsibility rests with management. Shinsegae fired the head of Starbucks Korea, and Starbucks Global apologized and began an investigation. No major store incidents were reported immediately.
"Starbucks Korea has suffered a very significant drop in sales after a marketing campaign that evoked a brutal 1980 military crackdown on pro-democracy protesters triggered a public outcry, according to the coffee chain's local operator. Shinsegae Group, whose subsidiary E-Mart owns the coffee chain in South Korea, has faced mounting criticism over its so-called Tank Day campaign, launched on the anniversary of the May 18 Gwangju Uprising, when the military government deployed troops and tanks to suppress pro-democracy demonstrations."
"In a news conference on Tuesday, Shinsegae Group chairman Chung Yong-jin made a public apology and asked people not to take out any anger on Starbucks Korea employees and front-line staff. I take it very seriously, the fact that many people felt deep pain and anger because of Starbucks Korea's inappropriate marketing campaign, Chung said. I will take all responsibility for the incident. Chung also asked people not to take out their frustration on staff at Starbucks shops, saying the responsibility lies with management."
"Chung issued his first apology on May 19, saying in a statement that the campaign caused deep pain to the victims and bereaved families of the May 18 Democratization Movement as well as to the public. Shinsegae fired the head of Starbucks Korea last week after apologising over the campaign. Starbucks Global also apologised and said that an investigation had begun. A Shinsegae official said sales had fallen sharply since the marketing controversy."
"While sales are not our main concern at the moment, we have seen a very significant drop, said the official. At Tuesday's news conference, Jeon Sangjin, a senior Shinsegae Group executive, said the company had yet to find conclusive evidence that Starbucks Korea marketing em"
Read at www.aljazeera.com
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