Overview

• Starbucks has hired Tony Yang as its inaugural chief growth officer for China, aiming to reverse declining sales in its second-largest international market.
• Yang, who joined in November, will focus on building partnerships with entertainment brands, developing new coffee products, and improving customer experiences.
• The company has faced a 14% drop in comparable store sales in China during the last quarter, with revenue declining 7% year-over-year to $784 million.
• Local competitor Luckin Coffee has surpassed Starbucks in annual China sales, offering more affordable drinks and a larger store footprint.
• Economic pressures, changing consumer habits, and increasing anti-U.S. sentiment are additional challenges Starbucks is navigating in the region.