Specialist
Former executive from the Chinese coffee industry
Agenda
- China’s coffee retail market in 2022 – coffee retail development potential and competitive focuses
- Starbucks (NASDAQ: SBUX), Luckin Coffee, Tims and Manner – market positioning, strength and weakness
- Starbucks – development status quo in the Greater China market, strategic planning, marketing promotion, store quantity and expansion plan
- Starbucks’ store profit model
Questions
1.
Based on your observation, what were the development trends of China’s coffee industry over the past few years? Could you also introduce the overall market size, customer preferences, penetration, market supply and demand and the corresponding changing trends?
2.
Do you mean the coffee retail market size will grow 2-3 times bigger than before? Could you share the factors you had considered to come up with this judgement?
3.
You have just mentioned that the coffee market in tier 1-2 and tier 3-4 cities will continue to expand. What are the challenges for the coffee business in tier 1-2 cities? How are the challenges different compared with those in tier 3-4 cities? Are there any solutions?
4.
Could you elaborate on the business planning of Starbucks, Luckin Coffee, Tims and Manner in tier 1-2 and tier 3-4 cities?
5.
Brands all apply new marketing strategies to stimulate purchases or educate the market. In your opinion, which strategies generate the best results? Is the customer demand stimulated in this way only temporary or permanent?
6.
After gaining customer traffic, do brands need to rely on products and services to retain the customer traffic? Among Luckin Coffee, Starbucks, Tims and Manner, which one performs better in this regard? Can you compare these brands in terms of product competency?
7.
From the perspective of the product, brand and marketing, which brand’s future development are you more optimistic about?
8.
You said these brands target different consumers under different models. What are the sizes of the corresponding consumer groups? You also said that they have some overlapped customers. How high is the overlap?
9.
The overlap between Starbucks’ and Luckin Coffee’s consumers is not high. Did Starbucks grab some consumers from Luckin Coffee? Did some of Luckin Coffee’s consumers switch to Starbucks because of their consumption upgrade?
10.
Many people discussed whether the consumer goods market would face consumption downgrading amid the pandemic. Is there such a phenomenon in the coffee retail market according to your observations?
11.
You mentioned that Starbucks has 6,000 stores and plan to reach the target of 9,000 stores in the future. How was this calculated? Can the goal of opening more than 3,000 new stores be achieved?
12.
Could you elaborate on the site selection and store model of Starbucks’ newly opened stores?
13.
We know that Starbucks has a set of internal standards. What parameters does it use for reference? In the current business and economic environment, how many more new stores can it open this year?
14.
Starbucks used to receive favourable policies to set up stores in shopping malls. Does Starbucks still receive many favourable policies?
15.
Tims plans to open more than 2,700 stores by the end of 2026 and achieve profitability. Manner also says that it can open 1,000 stores by the end of 2023. Do you think they can achieve their goal?
16.
According to Starbucks’ financial report, its store sales in China have been in decline for several consecutive quarters. What about the revenue and overall operations of Starbucks’ stores in regions that you are familiar with?
17.
What about the revenue of Starbucks’ stores?