Personal experience:
It was cool to hold a Starbucks drink in hand, but less so in recent years.
The cool factor is diluted with %Arabica (82 stores), Blue Bottle (5 stores), and Peet’s (over 200 stores).
Blue Bottle can drive me to a shopping mall that wasn’t on my plan. Starbucks has less effect these days.
I rarely buy Luckin coffee, unless it’s a hit product like Moutai coffee. Mostm Luckin items don’t taste like coffee but more like sugar drinks to me.
I have tried other domestic brands like M Stand (350 stores). I think that tastes more on par with Starbucks.
Manner (1000 stores) is not on par with Starbucks, but the minimalist style looks appealing than Luckin for certain customers.
Other international brands like Tim’s (912 stores) is not a bad choice. But the store is less sophisticated than Starbucks (lack of charging).
In terms of drinks, I think Starbucks is less differentiated among premium brands like %arabica, Blue Bottle, Peet’s.
In terms of services, Starbucks is differentiated with charging outlets. And I like the option of ordering without a phone, although I mostly order on phone.
In terms of branding, it’s less “cool” compared with %Arabica and Blue Bottle, unless it’s a Starbucks Reserve coffee.
I think Starbucks’ problem in China is more of a positioning problem. How it can target different segments with a single brand? Different customers want different things and they are just too different in China.
- too mainstream to be premium / high-end
- too expensive for routine customers in the real mass market (incl. lower tier cities) in the long run
I am sure in some cities, Starbucks shall still enjoy a “cool” factor for some time, but can fade over the years if other foreign brands enter.
%Arabica Shanghai
Blue Bottle Shanghai
