Rise of Local Affordable Coffee Brands: Starbucks China Changes Tactics to Compete

After a large-scale price reduction in the Chinese market for several months, Starbucks is reportedly adjusting its equity structure again. Behind this series of changes is the acceleration of local affordable freshly ground coffee brands such as Luckin Coffee and Heytea Coffee in the layout of first-tier cities, launching an offensive against high-end brands. Insiders in the industry told Securities Times reporters that coffee consumption in China is gradually shifting from "social attributes" to "daily attributes" and, compared to the high-end market, high-quality affordable coffee has become the mainstream consumption trend due to its alignment with current demand. However, as market competition intensifies, the freshly ground coffee race is also facing challenges such as high costs and product homogenization, making supply chain capabilities and stability likely to become the core competitiveness of affordable brands.