2023-09-19 10:44:54
The American coffee giant Starbucks opened a “parc d’innovation» open to the public, for a budget of 220 million dollars (206 million euros), a sign of the interest that multinationals maintain in China, despite its economic difficulties.
The announcement comes as the American and European Union chambers of commerce in China published reports on Tuesday to warn of the difficulties foreign companies face in the face of local legislation that is often vague and subject to interpretation. Nevertheless, “Starbucks’ best days in China are ahead of us“, assured AFP a spokesperson for the company. THE “coffee innovation park“, which includes a roasting plant, a distribution center and an immersive experience system for visitors, is Starbucks’ largest investment in this type of project outside the United States, according to a press release published Tuesday.
«As China is our largest and fastest growing international market, we will continue to strengthen our investments and long-term commitment» in this market, assures CEO Laxman Narasimhan, quoted in the press release. The group’s boss visited China in May and met the mayor of Shanghai, according to state media. Like him, many CEOs of multinationals – including Apple, Tesla, JP Morgan and General Motors – have come to the world’s second largest economy in recent months. To support a struggling economy, China is further lowering an indicator.
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Increased competition with local players
Starbucks has more than 6,500 stores in more than 250 Chinese cities and ensures that a new store opens in the country every nine hours. But in recent years the brand has faced increasingly fierce competition from local brands with innovative tastes. The Luckin Coffee chain caused a sensation at the beginning of the month with a Maotai latte (or “Moutai“) –a 53% white alcohol, made from fermented sorghum and a half-liter bottle of which costs around 2,500 yuan (320 euros).
Luckin, damaged in 2020 by a resounding fraud case, has more than 10,000 points of sale in China and now surpasses Starbucks in the country.
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