Core Insights - Starbucks China has shown a recovery in performance, with Q3 revenue reaching $9.5 billion (approximately RMB 68.2 billion), exceeding market expectations and reflecting a 4% year-on-year growth [1] - The company reported a net profit of $558.3 million, a significant decline of 47.1% year-on-year, while North American same-store sales fell by 2% due to a 4% drop in comparable transaction volume, although average ticket prices increased by 2% [1] - In the Chinese market, Starbucks achieved revenue of $790 million (approximately RMB 5.67 billion), marking an 8% year-on-year increase and continuing three consecutive quarters of growth [1] Revenue and Profitability - The same-store sales metric, a key indicator of store profitability, experienced a crucial turnaround with a 2% growth in the last fiscal quarter, marking the first increase in six quarters [3] - The growth in same-store sales was primarily driven by a significant 6% year-on-year increase in transaction volume, despite a slight 4% decrease in average ticket price [6] Store Expansion and Market Strategy - As of the end of Q3, Starbucks China had a total of 7,828 stores, a net increase of 522 stores (7% year-on-year), moving closer to the goal of operating 9,000 stores by 2025 [6] - The company opened 70 new stores and entered 17 new county-level markets, with new stores contributing above-average same-store sales within two years [6] Factors Driving Improvement - The improvement in performance is attributed to several factors, including a flexible pricing strategy that involved a significant price reduction of over 10% on non-coffee products, effectively broadening the customer base and attracting younger consumers [9] - Product innovation has been tailored to local demands, with 78 new products launched in FY2024, including a coffee bean themed around the Chinese New Year, developed by local baristas [9] - Enhanced marketing strategies, including collaborations with popular brands and celebrities, have driven significant engagement and sales growth [9] Delivery and Competition - The growth in same-store sales is also linked to the booming delivery market, with Starbucks actively participating in promotional activities on platforms like JD.com and Meituan, leading to increased consumer demand [10][12] - Despite the recovery, Starbucks faces intense competition from local brands and is focusing on localizing operations and forming strategic partnerships to strengthen its market position [14] Strategic Partnerships - Starbucks is exploring strategic partnerships to capture future growth opportunities in the Chinese market, with over 20 potential partners being evaluated [15] - The company emphasizes that these partnerships are not primarily for funding but to ensure a stronger brand presence in China, requiring partners to share similar values and possess strong local operational capabilities [15] Conclusion - The recent performance recovery of Starbucks China is a result of multi-faceted strategies involving product, pricing, marketing, delivery, and membership enhancements, reflecting agility in responding to local competition [15] - The pursuit of strategic partnerships may mark a new starting point for Starbucks in the competitive Chinese coffee market [16]
星巴克中国在华业绩回来了