The Journal.
Can Chinese Customers Rescue Starbucks?
May 9, 2024
Spencer Jakab, the Global editor for the Heard on the Street column at The Wall Street Journal, delves into Starbucks' recent sales struggles in the U.S. and its pivot to China for recovery. He discusses how fierce competition is complicating this strategy, particularly from fast food and bubble tea brands. Jakab highlights innovative products like the pork latte aimed at local tastes, while emphasizing Starbucks' challenge to maintain its premium brand image amid ever-increasing competition and economic pressures.
17:33
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Quick takeaways
- Starbucks is targeting China for revenue growth due to declining US sales.
- Starbucks faces fierce competition in China's market but maintains premium pricing strategy.
Deep dives
Starbucks' Struggle with Earnings and Declining US Market Visits
Starbucks recently reported disappointing earnings, causing its stock to drop by 12%. The company faces a challenge as Americans are visiting its cafes less frequently. To counter this, Starbucks is turning its focus to China, which is currently its second biggest market. However, China's coffee market has become highly competitive and saturated, posing a new challenge for Starbucks.
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