Xin Lang Cai Jing·2025-11-06 04:49Core Insights - Starbucks has entered a strategic partnership with Boyu Capital, marking a significant shift in its operational strategy in China, where it will now share control of its retail business for the first time in 26 years [1] - The partnership allows Boyu Capital to hold up to 60% of the joint venture, while Starbucks retains 40%, reflecting the intense competition and strategic challenges faced by international coffee giants in the Chinese market [1] Industry Dynamics - The competitive landscape of the Chinese coffee market has dramatically changed, with Luckin Coffee surpassing Starbucks in both store count and revenue, establishing itself as the new market leader [1] - Other local brands, such as Kudidi Coffee, have also emerged rapidly, with Kudidi opening over 14,000 stores since its establishment in 2022, further intensifying the competition for Starbucks [1] Strategic Implications - Analysts suggest that Starbucks' collaboration with Boyu Capital is driven by the latter's expertise in retail investment and integration, particularly its experience in operating in lower-tier markets through investments like that in Mixue Ice City [2] - The partnership is expected to bolster Starbucks' presence in lower-tier markets, enhancing its high-end coffee positioning and potentially leading to a more localized strategy that could influence the overall landscape of high-end coffee brands in China [2]