Counterfeit Coffee?! Blue Mountain Isn't Blue Mountain, Geisha Isn't Geisha...

Professional coffee knowledge exchange. For more coffee bean information, please follow Coffee Workshop (WeChat public account: cafe_style).

For more specialty coffee beans, please add the private WeChat of FrontStreet Coffee, WeChat ID: qjcoffeex

Starbucks Opens Historic 6,000th Store in China

On September 27, Starbucks China announced on Weibo the opening of its 1,000th store at Lippo Plaza on Huaihai Road in Shanghai, which is also the 6,000th store in mainland China. With the opening of this store, the number of Starbucks stores in Shanghai will continue to lead the world, becoming the first city globally to surpass 1,000 Starbucks stores.

This highly significant store is also the 6,000th Starbucks store in mainland China to be certified as a green store, carrying more of Starbucks' thoughts and explorations for the future third space, featuring comprehensive application of leading sustainable retail and digital operation solutions.

Exclusive "Shanghai Coffee" Launch

At the unveiling of this 6,000th store, Starbucks also collaborated with IP SHANGHAI to launch the first-ever city-themed limited drink "Shanghai Coffee," which was released citywide from September 28. According to reports, the creative inspiration for "Shanghai Coffee" comes from the East-meets-West Shanghai culture, blending to create a unique and wonderful taste that belongs exclusively to Shanghai coffee.

The first sip reveals a thick layer of the original generation "viral" malted milk powder that once swept through Shanghai, slowly melting in the mouth. The second sip brings a scotch whipped cream that blends butter aroma and burnt caramel flavor, sliding across the tongue. The third sip reveals finely extracted concentrated coffee that injects unique flavor and soul into this cup of Shanghai coffee.

Store Design and Features

It is understood that the store is designed with the concept of "returning to the original heart, facing the future," featuring a light and bright style that brings customers a refreshed yet familiar and warm spatial experience. Upon entering the store, the most eye-catching artwork uses recycled green aprons as a canvas, with Starbucks' iconic mermaid double-tail posture displayed beautifully and gracefully.

When exploring up close, rich stories and details unfold one by one, tracing back the beautiful moments of Starbucks' journey. The store also features a giant "cup wall," which, under the clever arrangement of designers, resembles a mini city cup museum, where each city cup is filled with memories, seemingly carrying the footprints of Starbucks' journey.

Market Expansion and Competition

In the past decade, the number of Starbucks stores in mainland China has grown nearly 10-fold, making the Chinese market the second-largest market after the United States. According to the 2022 Shanghai Coffee Culture Week report, Shanghai now has nearly 8,000 coffee shops, ranking first among global cities in total number. Among these 8,000 stores, Starbucks accounts for 1,000 stores.

Meanwhile, market monitoring data shows that about 20 overseas renowned coffee brands, such as Canada's Tim Hortons, Italy's LAVAZZA Coffee, and America's "Peet's Coffee" and Blue Bottle Coffee, have also competed to make Shanghai their first choice for landing. Starbucks China's first store was located in Shanghai, and now Starbucks China, full of its original aspirations, has returned to where it first started in Shanghai.

Ambitious 2025 China Strategy

At a recent global investor exchange meeting, Starbucks proposed its "2025 China Strategic Vision": In the next 3 years, Starbucks will add 3,000 new stores at a rate of one every 9 hours, covering 300 cities in China.

By 2025, the total number of Starbucks China stores will reach 9,000, with 35,000 new employees, reaching over 95,000 staff members, and achieving the growth target of doubling net revenue and quadrupling operating profit. This is a goal that shocks many people - 3,000 stores in 3 years, which can be described as a rather "aggressive" goal.

It should be noted that today's coffee market competition is extremely fierce. Currently, the coffee market seems to have been divided into three tiers. The first tier consists of well-known chain coffee brands such as Starbucks, Luckin Coffee, and Manner, which are widely deployed across the country as the "national team"; the second tier consists of regional chain brands forming the "local teams"; and there is also a team of scattered "individual players" competing independently on streets and alleys.

Market Challenges and Pricing Strategy

Luckin Coffee, also in the first tier, has long reached 7,000+ stores, already surpassing Starbucks. According to the Starbucks menu, there are currently 84 drinks for sale, including coffee blended with ice cream, among which only 9 are priced under 30 yuan, while 75 products exceed 30 yuan, accounting for 89%.

In contrast, other brands are much more affordable in terms of price. Luckin mainly focuses on the 20 yuan price range, and Manner also averages around 20 yuan per cup. The second and third tiers are roughly the same, with coffee launched by tea brands mostly not exceeding 20 yuan.

As the market expands to lower-tier cities, the tea beverage industry, similar to coffee, which previously focused on high-end brands such as Nayuki and HEYTEA, also aimed at the terminal market below 20 yuan in the first half of this year, successively lowering the prices of their products and stating that they would not launch new drinks starting with 3-digit prices.

Future Outlook and Customer Commitment

Additionally, Starbucks' current store layout in first and second-tier cities is relatively complete, with high market saturation. Opening another 3,000 stores means further expansion into lower-tier markets, but whether the consumption power of these下沉 markets can support Starbucks' prices remains a question mark.

Starbucks China stated that it hopes to satisfy consumers' coffee needs in various life scenarios as much as possible in the next 3 years. "By 2025, the current 2,500 'Starbucks Coffee Service' points covering office buildings, hotels and other places will double to 5,000."

"Throughout our journey, Starbucks has cherished the close connections established with every customer, and will continue to innovate and upgrade products and experiences to meet and exceed customer expectations, winning more customer support every day," said Cai Delin, CEO of Starbucks China.

Image source: Internet

Important Notice :

前街咖啡 FrontStreet Coffee has moved to new addredd:

FrontStreet Coffee Address: 315,Donghua East Road,GuangZhou

Tel:020 38364473