Part 4/9:
The emergence of aggressive pricing strategies from brands like Luckin Coffee and Cotti has played a significant role in challenging Starbucks's market position. Early 2023 saw Luckin launching a nationwide promotion offering coffee for as low as 9.9 yuan, effectively igniting a price war in the industry. Although Starbucks reported record revenue of $36 billion in fiscal 2023 and acknowledged growth in China, it also fell victim to the new competitive landscape, showcasing that its revenue decline is not merely a product of pricing wars but indicative of deeper, systemic economic issues.