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Coffee majors rewriting playbook in China

2026-10-06 14:09   China Daily

  Far more than another coffee shop, the location serves as a showcase for Starbucks' evolving strategy. The store combines Reserve coffee, Italian desserts and the national debut of its "Global Inspiration" gifting collection, aiming to create a destination where coffee, luxury retail and lifestyle experiences converge.

  The concept represents Starbucks' "thousands of stores, thousands of faces" strategy. Stores are increasingly customized according to local neighborhoods, shopping districts and customer occasions, instead of following a standardized global format.

  "Starbucks Reserve is an innovative practice in which we respond to customer needs and the character of the trade area, using creativity, professional capability and global resources to create a distinctive experience," said Molly Liu, CEO of Starbucks China.

  "It is also an important exploration under our 'thousands of stores, thousands of faces' strategy — co-creating a destination space with a landmark retail partner."

  The strategy comes just months after Starbucks Global completed its strategic partnership with Boyu Capital, which also owns SKP.

  The investment has accelerated Starbucks China's transition toward what executives describe as a "high-quality, scenario-based" expansion strategy. The company is tailoring formats to different consumption occasions, including premium commercial landmarks, lower-tier cities, cultural tourism destinations and everyday neighborhood locations.

  As of Sept 15, Starbucks operated 8,238 stores across China. During fiscal 2026, it added 227 net new stores while entering 69 county-level markets. Nearly half of those openings were in third-tier cities and smaller markets, where management said new-store profitability has remained strong.

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