Features of Starbucks marketing strategy management in the context of the Chinese market

Abstract

Since entering the Chinese market in 1999, Starbucks has built an extensive network of 7,828 stores (data as of June 2025), making China its second-largest market globally, with a core customer base concentrated among consumers aged 19-35 in new first-tier and first-tier cities (accounting for more than 54%). Corporate white-collar workers, students and freelancers make up the main group (62.74 percent combined). But there is a divergence between store expansion and revenue growth, with net income falling by 2.4 percent year-on-year in 2024, reflecting the squeeze on profit margins from competition from local brands and changes in consumer demand. There is a structural contradiction between the product and the scenario: Although the product end covers classic coffee, tea beverages, light food and related products, consumer preferences show obvious localized characteristics. Tea drinks accounted for 59.92% of the choices, far exceeding the 30.45% of classic coffee, and 65.56% of consumers listed "low sugar, low calories" as core demands, while Starbucks currently has only 40% of low-sugar options and only three plant-based milk options, lagging behind in healthiness and localization innovation. The "third space" positioning at the scene end fits the needs of leisure and office (66.54% of consumers use it for daily leisure, 52.92% for work/study), but the weighted average score of satisfaction with the store environment is only 3.28 points, and 33.95% of consumers complain about congestion, noise, and the need for improvement in experience perception. In summary, despite challenges such as the squeeze from local brands and diverse demands in the Chinese market, Starbucks' brand foundation, supply chain capabilities and localization potential remain irreplaceable. By optimizing the product structure, adapting the price channels, and upgrading the service experience, the current contradictions can be effectively resolved, and the transformation from "scale expansion" to "quality growth" can be achieved.