As the world slowly emerges from the COVID-19 pandemic, businesses are looking for ways to recover lost sales and attract customers once again. Starbucks, one of the world’s largest coffee chains, is no exception. The company is now looking to China, where the pandemic is under control and stores are reopening, for a much-needed sales boost.
Starbucks has a strong presence in China, with over 4,700 stores across the country. The Chinese market is a key growth area for the company, with a growing middle class and increasing demand for coffee. However, the pandemic hit China hard, with stores closing and customers staying at home. As a result, Starbucks reported a 32% drop in sales in China in the second quarter of 2020.
But now, with the pandemic under control in China and stores reopening, Starbucks is hoping for a rebound in sales. The company has already seen promising signs, with same-store sales in China rising by 91% in the first quarter of 2021 compared to the same period in 2020.
To capitalize on this trend, Starbucks is implementing a range of measures to attract customers and increase sales. These include launching new products, such as a plant-based menu in partnership with Beyond Meat, and expanding its delivery and mobile ordering capabilities.
Starbucks is also differentiating itself from its competitors in China, such as Luckin Coffee and Costa Coffee, by focusing on quality and innovation. The company’s premium Starbucks Reserve brand, available exclusively in China, offers unique flavors and brewing methods that set it apart from other coffee chains.
In addition, Starbucks is leveraging its partnerships in China to drive sales. The company has teamed up with Alibaba to offer delivery and mobile ordering services, and with Nestle to bring its coffee products to the Chinese market.
To communicate these efforts to customers, Starbucks is using a range of marketing strategies, including social media and digital platforms. The company’s marketing team in China has been recognized for its innovative campaigns, which have helped to attract new customers and drive sales.
Overall, Starbucks is well positioned to capitalize on the reopening of stores in China and the growing demand for coffee in the country. With a strong brand, innovative products, and effective marketing strategies, the company is set to continue its success in the Chinese market.
In conclusion, Starbucks is looking to China reopening for a sales boost after a difficult year due to the COVID-19 pandemic. The company is implementing a range of measures to attract customers and increase sales, including launching new products, expanding its delivery and mobile ordering capabilities, and leveraging its partnerships in China. With these efforts, Starbucks is well positioned to capitalize on the growing demand for coffee in China and continue its success in the market.