Part 4/15:
Instead of fueling growth, new store openings have led to foot traffic dilution, creating a self-consuming expansion cycle that exacerbates losses. Secondly, the brand's premium halo has diminished as Chinese consumers shift increasingly toward local brands like Lucking Coffee and Cotti, which offer lower prices. The result is a shrinking market share: from 42% in 2017 to roughly 14% in 2024.
Since China was once Starbucks' second-largest market globally, these struggles mark the culmination of a long decline. The company had once capitalized on introducing coffee culture, but rising local competition, a slowing economy, and consumer downgrading have eroded its dominance.