NEW YORK -- Nasdaq-listed Luckin Coffee entered 2020 with a new title: the largest coffee chain in China by number of outlets, surpassing Starbucks. That’s what Starbucks shows on its website,  a confirmation of the quality of its products : “Starbucks Arabica beans are different from regular Arabica beans. The cold nights and warm days create denser beans. Last week, on its fiscal first-quarter earnings call, executives provided an updated picture of Starbucks in China. This operation principle is suitable for Chinese people’s fast-paced lives and puts pressure on other traditional coffee brands. She became Starbucks China’s first chief executive officer in October 2016 and has been named each year on both Fortune and Forbes magazines’ lists of China’s most influential businesswomen, and one of the top 50 people shaping the future of the U.S.-China relationship. Starbucks Rewards. East China is a significant and strategic region for Starbucks in China, with Shanghai containing nearly 600 stores, the largest number of stores globally of any city where Starbucks has a presence. Unlike the United States, where Starbucks chairs are often the quiet spots for lone laptop users, Chinese Starbucks is willing to welcome crowds, noise, and relaxation. Last updated 10/1/18. Do you want to know more about Coffee brands strategy in China? Unlike its rival Luckin coffee, Starbucks coffees are of excellent quality and their flavor is far better. It plans to triple its revenue and double its operating profit in China between 2017 and 2022. A Warner Media Company. This enables us to achieve our promise everyday through our stores. Number of Starbucks in China: 3,521 stores. In China, the B2C model is dominated by the Tmall portal of the Alibaba group, which holds a 56.6% stake. The Chinese really appreciate their community, traditionally labeled “internal circles”. Starbucks succeeded in adding social value to its products. After hitting $ 25.96 on the first day, the stock dropped to $ 16 on the second trading day. When you say Luckin failed it kind of implies the situation is hopeless, and that any and all loyalty from their customer base has vanished. It charges 20% higher prices in China compared to other parts of the world. Costumers generally turn to Tmall for Food and beverage purchases, that’s why it is important to build a strong presence in this e-commerce platform, in order to increase sales and brandawareness. While Starbucks is Luckin’s main competitor in the coffee market, there are at least a dozen famous tea brands across China. We chat offers many possibilities to brands, in fact, it gives the possibility to create verified official accounts, useful for interacting with followers and for keeping them updated on brand news. He also noted that the company successfully rolled out Starbucks delivery partnerships with Alibaba to over 2,100 stores and more than 35 cities throughout China. In addition, WeChat offers so-called mini-programs, small apps inside the WeChat system that cover various functions, such as e-commerce, games and much more. Contact GMA a digital marketing agency, specialized in the Chinese digital market. Luckin also gained exposure in the U.S. stock market by applying automated quotes to the National Association of Securities Dealer and starting trading on Nasdaq for $ 17 per share. Perhaps unsurprisingly, the rapidly growing consumer nation of China accounted for the second highest number of Starbucks stores with over three and a half thousand in 2018. Luckin Coffee did not open any traditional brick-and-mortar stores in the beginning. As of January 2020, it has operated 4,507 stores and surpassed the number of Starbucks stores in China. Starbucks conducted market research to enable a deeper understanding of the Chinese markets, and the way that capitalism functions in the People's Republic of China … Luckin coffee strategy focused on three aspects : The company’s marketing and market appeal are centered around marketing and discounts. Starbucks Headquarters 2401 Utah Ave. S., S-CR1, Seattle, WA 98134. Starbucks has positioned itself as the premium coffee brand in China. China is a rapidly growing consumer market with more companies throughout the world looking for ways to develop their marketing, branding and communication that is relevant to Chinese consumers. Trefis has an estimate of $66 for Starbucks… Luckin Coffee was formed in October 2017 and, in January 2018, had opened its first stores in Beijing and Shanghai. All rights reserved. Number of Starbucks in the UK: 335 Starbucks operated stores 653 licensed stores. The next day, the China Securities Regulatory Commission said it would investigate the company for fraud. Consequently, they want to be associated with brands and products that portray prosperity, success, and upward mobility. STORES IN MORE THAN 180 CITIES IN MAINLAND CHINA Now, Starbucks has already opened over 4,400 stores in more than 180 cities in mainland China, employing over 58,000 partners. Your email address will not be published. Luckin Coffee stores started trial operations in January 2018. Number of Starbucks in Japan: 1,286 stores. Starbucks Card Corporate Sales. This enables us to achieve our promise everyday through our stores. Is that the case or do you get the sense that they’re suffering from a stigma that cannot be overcome? In the United States, Canada and Latin America, revenue rose just 8%. It's bringing a new line of pre-made cold tea and coffee to China next month. Revenue in China and the Asia-Pacific region jumped 54% last quarter compared with the same period a year earlier, according to Starbucks' latest earnings report. Marketing news and analysis for CEO, Entrepreneurs, and Top Managers. Its tumbler cups and coffee mugs are very popular in China, which is often sold out in a couple of weeks. Meituan-Dianping is also one of the world’s largest online and on-demand delivery platforms. The seating areas are open format and usually have no walls, the chairs seem to flow into adjacent spaces, such as lobbies or walkways. Every brand that wants to enter the coffee market in china should follow its strategies, adapting to local customs and traditions, creating specific products for the Chinese market and promoting them on the most famous sites in china. © 2020 Cable News Network. As of 2018, there were over 3.5 thousand company-operated Starbucks stores in China. Businesses should invest in SEO and buy keywords based on “pay per click”. A key operation is the optimization of search engines (SEO). That means opening 600 new Starbucks a year in China -- or one every 15 hours -- a significant increase on the company's earlier goal of around 500 a year. In December, Starbucks opened its largest store in the world in Shanghai. Luckin Coffee also cooperates with the second-largest courier in China, SF Express, delivering orders to customers within two kilometers around each store. Morningstar: © 2019 Morningstar, Inc. All Rights Reserved. Starbucks is pushing "a coffee culture in China where the reward will be healthy, long-term, profitable growth for decades to come," CEO Kevin Johnson said in a statement. This is where Luckin failed. The company is flush with cash, having sold Nestle (NSRGF) the rights to sell Starbucks-packaged tea and coffee around the world for $7.2 billion earlier this month. WeChat has grown to become the most popular social and mobile app in China where it has over 1.1 billion registered accounts. Rewards, stars, levels, promotions and coupon questions. Luckin missed one of the 3 key points to succeed in China. Starbucks sources its coffee beans from three coffee producing regions, Latin-America, Africa, and Asia-Pacific. So why would peoples spend a good amount of money to order a big bag of Starbucks for their colleague? Last updated 10/1/18. Following its successful marketing strategy, by adapting the brand to the Chinese market, Starbucks not only sells coffee, tea, coffee beans, and mooncakes but also sells cups. The Seattle coffee chain on Wednesday announced plans to build nearly 3,000 new stores in mainland China over the next few years. Most of its stores are small collection points in university office buildings or campuses that serve for picking up and delivering orders online. On April 8, the U.S. stock market stopped trading on all Luckin shares due to the anti-fraud probe. Taste them in every cup of Starbucks coffee”. The aim of this website is to inform readers about the market and provide insightful analysis. Belinda Wong is named president of Starbucks China in July 2011. In fiscal 2019, which ended Sept. 29, the Seattle-based coffee chain crossed the 4,000-store mark — across 160 cities — in China, where Starbucks established its first store in 1999. The target customers of Luckin Coffee are those who do not have much time to drink coffee at stores. Marketing to China is a website created by Gentlemen Marketing Agency designed to provide fresh insights and a deeper understanding of the Chinese market. Today, the green logo hangs in more than 3,600 shops, in 150 Chinese cities. Starbucks is closing stores and losing money in its most important European market. CNN Sans™ & © 2016 Cable News Network. Starbucks entry into emerging and developed markets is informed by market research. What is the Best Marketing Model For Your Brand On Bilibili? With this in mind, Starbucks has designed its commercial spaces to facilitate the meeting of these “circles”. Marketing China- Smart Tips for Smart Business in China. For more information see : Our Magazine is written by Benji (British), Olivier (French) and Philip (Chinese) with additional contributions from our team of experts on the Chinese market. We are passionate about marketing in the aptly named ‘mysterious orient’. And it is precisely on the quality of its products that Starbuck puts the accent. Luckin offers freebees, where each new customer is offered a free drink and a 50%-off coupon for one cup. We are dedicated to helping our clients grow in the Chinese market by implementing the most effective digital strategy to offer return on investment. If you’re drinking coffee, you’re already hip. We want to be Your Digital Guide to do Business in China. Be it houses, schools, or companies, they turn to these clubs for loyalty, information, and approval of their choices. Please feel free to comment and share our articles ! Number of Stores in China in 2018: Number of Stores in China in 2019: Starbucks: 3700: 4121: Costa Coffee: 450: 2200: Luckin Coffee: 2000: 4500 Extensive international supply chain – Starbucks is known to have an extensive global network of suppliers. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. They are well established even in smaller cities. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. CHINESE MILLENNIAL AND COFFEE: BIG LOVE STORY, COFFEE MARKET IN CHINA : HOW TO SELL YOUR COFFEE, Huge Opportunities for Online Education Businesses In China, JD & Alibaba, the battle of the healthcare. On April 2, 2020, Luckin Coffee announced that an internal investigation revealed that its general manager, Jian Liu, had made the company’s sales in 2019 of “approximately RMB 2.2 billion” ($ 310 million). Marketer at GMA , like to analyze the Chinese trends. It was keeping its customers hooked with cheap price and discounts but what would have happened the day they had to increase their prices for sustainability reasons? CoCo Fresh Tea & Juice has more than 3,000 stores and Yidiandian has more than 2,100, compared with around 2,400 for Luckin. To Partner with us it is here. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. We are a Digital Marketing Agency based in Shanghai. Last updated 10/1/18. Starbucks opened its first store in China in 1999 and only has a quarter of the number of Starbucks stores that of the US, but the growth rate over the past 10 years has been extremely high, reaching almost 700%.The coffee chain recently laid out plans to compete with KFC to become the fastest-growing Western food chain in China. 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