Starbucks announced on June 9, 2025, that it will lower prices on some iced drinks in China by an average of 5 yuan ($0.70). This pricing adjustment was communicated via a post on the company's Weixin social media account.
This move comes as Starbucks faces fierce competition from local rivals like Luckin Coffee and Cotti Coffee, which often offer significantly lower prices. The Chinese market has also been affected by a slowing economy and deflationary woes, making consumers more price-sensitive.
For investors, this strategy represents an attempt to stimulate demand and improve comparable sales in a challenging market. While it may put pressure on margins, it is a necessary step to compete effectively and regain market share in China.
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