WSJ "Starbucks, Alibaba and hand in hand with a delivery service throughout the year"



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Starbucks will cooperate with Alibaba's online food delivery company in China Ele.me to deliver coffee delivery services in China this year, the Wall Street Journal reported on Wednesday (August 30th).
WSJ said alliances between Starbucks and Allergies will be officially announced later this week, with delivery services starting this fall.

Starbucks has not officially commented on this alliance plan.

China Starbucks chief executive Belinda Wong recently told badysts: "We will start in Beijing and Shanghai this fall and we will expand throughout China next year", he declared.

Starbucks' alliance plans are seen as a strategy to deal with growing competition and declining sales.

Starbucks, which opened its first store in China in 1999, maintained a market share of over 80% last year.

However, sales in China fell 2% in the second quarter. This is down from the 7% increase in the same period last year.

Euro Monitor, a global market research agency, estimates that the Chinese coffee market will reach 30 billion yuan ($ 4.4 billion, about 4.9 trillion won) and will increase by 50 percent from here 2022.

As a result, Starbucks faces fierce competition in China.

Chinese local brand Louis Xing (Luckin) Luckin coffee, which was founded in September last year by Chen Ziya, the former chief of the Shenzhou Yu car business, We increase the tax through the scooter delivery service.

Louis Xing has opened 660 stores in China since January and receives no money whatsoever it can be delivered within 30 minutes of receiving an order via a smartphone application.

Shanghai Market Research Group Shanghai "Luizhin estimated that he had a 5% market share.

Global competitors are jumping too.

The British coffee chain, Costa Coffee, has opened 459 stores in China and plans to expand to 1,200 by 2022.

Canadian coffee brand Tim Horton recently announced that it will open more than 1,500 stores in China over the next decade.

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(New York News-Yonhap)

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