| | DECEMBER 202419market as head of the Digital Ventures organization. She launched digital ordering services such as Starbucks Now, which increased 48 percent of China sales in Q3 FY 23. Then, she led the company's rapid development into new shop locations in her role as COO since 2021.Belinda Wong, Chairwoman & CEO, Starbucks China - Sparks Innovation and Change in Company CultureBelinda Wong, Chairwoman & CEO, Starbucks China, is also another powerhouse of the brand. Her strategic vision and entrepreneurial spirit boosted development and innovation, and created new waves around the company's culture and values. She has even made a few rounds on the Forbes and Fortune's lists of the most powerful businesswomen, both in China and outside.She Truly Stands for Fostering a Family CultureShe is highly regarded for her work in leading people-positive ideas and for fostering a "family" culture. These are innovative programs like partner family forums and the provision of critical illness insurance, which are not just for partners but also for their parents.She is also known for her support for communities and her stance toward creating the Beijing Starbucks Foundation in China 2020. Under her leadership, Starbucks' Planet Positive agenda in China got enhanced after she established a Farmer Support Center in 2012 that provides free agronomy intel and resources. This helps in aiding coffee farmers in implementing more sustainable practices while increasing crop yield.More Optimism in China's MarketReports suggest that Starbucks is thinking of selling a portion of its China branch in an attempt to turn things around in the biggest market for branded coffee shops worldwide. Its current CEO, Brian Niccol, threw hints at the company's actions of looking into "strategic partnerships" in China to assist the market's long-term growth. This boost comes from the coffee brand in the region, which has more than 7,500 locations. Also, China happens to be Starbucks' second-largest market after the US, making up almost five percent of its 40,200 locations worldwide. In China, all Starbucks branches are run by the company, which is different from the majority of markets worldwide. Niccol also claimed that the company needed to "understand the potential path to capture growth and capitalize on our strengths" in the "dynamic" Chinese market.Joint Venture Methods Are Believed to be Successful in ChinaIn China, joint venture methods have worked well for other significant foreign coffee chains. For example, fast food giant McDonald's sold the majority of its 2,400 locations in China to US investment group Carlyle and Beijing-based private equity firm Citic in 2017. The company currently runs over 6,000 locations in China, including 4,000 freestanding and concession McCafé locations.In 2019, the Toronto-based restaurant conglomerate Restaurant Brands International (RBI) and the New York-based private equity firm Cartesian Capital formed a joint venture to bring the Canadian coffee chain Tim Hortons to China. Currently operating 946 locations under the trade name Tims China, the coffee chain is Tim Horton's second-largest market worldwide.Other foreign companies that operate in China through partnerships include premium Italian coffee roaster Lavazza, which debuted in China in April 2020 as part of a joint venture agreement with quick-service restaurant chain Yum China, and California-based Peet's Coffee, which joined the market in 2017 through a joint venture with Singapore-based investment firm Hillhouse Capital.According to World Coffee Portal's Project Café East Asia 2024 research, the Chinese branded coffee shop industry is expected to develop at a compound annual growth rate (CAGR) of 11.7 percent to reach 86,370 outlets in the fourth quarter of 2028.
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