Bei Jing Shang Bao·2025-11-04 13:29Core Viewpoint - Starbucks has announced the sale of its controlling stake in the Chinese market to Boyu Capital, marking a significant structural adjustment in its business model in China, driven by declining financial performance and increased competition [1][2]. Group 1: Business Strategy and Market Dynamics - The joint venture will see Boyu holding up to 60% of the equity, while Starbucks retains 40%, indicating a shift towards a more localized operational strategy [1]. - The rise of local competitors, particularly Luckin Coffee, has altered the market landscape, forcing Starbucks into price wars and diminishing its previous market dominance [1]. - New tea beverage brands have emerged rapidly, appealing to urban workers with lower operational costs and more flexible product offerings, further intensifying competition for Starbucks [1]. Group 2: Challenges and Transformation - The ongoing internal and external pressures have led to heightened performance anxiety for Starbucks, necessitating a change in strategy [2]. - Many foreign dining brands, including Starbucks, are re-evaluating their pricing strategies, expansion pace, and market strategies in response to changing market dynamics and consumer preferences [4]. - The core of the transformation focuses on better localization to stabilize their market position in China, adapting to the increasing online and delivery trends in the retail food industry [5].