Ruixing is regarding to catch up!Starbucks is crazy regarding discounts and promotions, and sells penny coupons on Douyin but refuses to accept it
Due to an omission in price setting during a promotional event, Starbucks rushed to Weibo hot searches today.
On November 23, many netizens said on Weibo and other social platforms that Starbucks (NASDAQ: ) launched a 0.01 yuan purchase of 2 cups of Fu Rui white coffee coupons on Douyin, and more than 900,000 orders were placed in the end. However, following purchasing coffee coupons, many netizens found that they might no longer redeem the coffee coupons, and Starbucks has also initiated refunds one following another.
Starbucks’ “denial of account” behavior has caused dissatisfaction among some consumers. Some consumers accused Starbucks of “don’t engage in activities if you can’t afford it”, while others thought that Starbucks was “too small”.
On the followingnoon of November 23, Starbucks China’s official Weibo posted a message saying: “This morning we mistakenly activated an internal test link. At present, we have completed the correction of the system settings and initiated an automatic refund. We also notified customers via text messages. . We are truly sorry for causing trouble to everyone.”
In this regard, the relevant person in charge of Starbucks China responded to Times Finance, saying that there is currently no other information disclosed to the public, and all information is subject to the official Weibo response.
According to the latest financial report data, in the fourth fiscal quarter of this year, Starbucks achieved revenue of US$8.41 billion, a year-on-year increase of 3.3%, and a net profit of US$878 million, a year-on-year decrease of 50.2%. As of the end of the fourth fiscal quarter, Starbucks had 35,711 global stores, including 15,878 stores in the United States, accounting for 44%, and 6,021 stores in China, accounting for 16.9%.
Specifically, Starbucks China’s revenue in the fourth fiscal quarter was US$775 million (approximately RMB 5.5 billion), a year-on-year decrease of 19.6%, and store sales fell by 16%, compared with 44% in store sales in the third quarter. The decline has narrowed.
On the other hand, the operating conditions of Starbucks’ domestic competitor Ruixing are gradually improving. Financial report data show that in the third quarter just past, Ruixing recorded revenue of 3.895 billion yuan, a year-on-year increase of 65.7%, and its profitability continued to improve, achieving an operating profit of 585 million yuan. From the perspective of single-quarter revenue, the gap between Ruixing and Starbucks is gradually narrowing.
Ruixing has also become the coffee brand with the most stores in the country. As of the end of the third quarter of this year, Ruixing has added 651 stores, bringing the total number of stores to 7,846. In the past three quarters, it has opened a total of 1,822 new stores, and the total number of stores has surpassed Starbucks.
Ruixing and other rivals are pressing harder and harder, forcing Starbucks to adjust its business strategy in the Chinese market.
Since the beginning of this year, Starbucks has begun to distribute various coffee coupons, and has frequently launched discount promotions such as “buy one get one free”. On Apps and Mini Programs, as well as platforms such as Meituan and Ele.me, Starbucks will issue full discount coupons and “buy one get one free” coupons from time to time. Posts regarding how to get Starbucks wool have been spreading on social platforms, and many consumers posted order information regarding buying two cups of Starbucks coffee for the price of one cup.
In addition, Starbucks has also accelerated the speed of new products. In June this year, Starbucks China launched a new category of iced coffee; in July, Starbucks launched 11 new products at one time; in October, it launched an autumn series featuring Bree Macchiato.
The expansion in the Chinese market is also increasing. As of the end of September this year, the number of Starbucks stores in China has increased by 12% compared with the same period in fiscal year 2021. According to Starbucks’ “2025 China Strategic Vision”, the company will expand 3,000 stores in the next three years, that is, open 2 to 3 stores per day on average, and finally achieve the goal of 9,000 stores in 2025.
Ruixing also announced that it will reopen the application quota for joint venture partners in the sinking market in December this year. With the acceleration of the expansion of these two coffee brands in the Chinese market, the competition in the coffee market has become increasingly fierce.
