Starbucks will join hands with Meituan to expand delivery and online services in China, the world’s second-largest market after the U.S.
According to CNBC on the 18th (local time), Starbucks announced that it will expand its delivery service in partnership with China’s largest delivery platform Meituwan, which has 667 million users.
Starbucks is providing the service at 60 stores in Beijing, Shanghai, Shenzhen, and Chengdu, and plans to expand the service to 5,000 stores across China by the end of this year.
As a result, users can enjoy the same benefits provided by Starbucks apps, such as ordering menus and using the compensation system called Starbucks Rewards through the Meituan app.
Starbucks is facing intensifying competition in China, the largest market outside the U.S., with the rise of native coffee chains such as Manner Coffee, Heyty, and Gumming.
In addition, as store sales declined due to the suspension of operations following the COVID-19 blockade, it is expanding partnerships with local companies as a way to overcome it.
This is in lieu with Starbucks plan last year to shift it’s market focus from South Korea to China. The company is changing its strategy to invest more in fast-growing international markets.
South Korea is the fifth-largest market for Starbucks. The coffee chain has over 1,500 stores across 78 cities in the country. Analysts, however, are skeptical over South Korea’s growth opportunity. South Korea’s mature and saturated market might offer little growth opportunity for Starbucks, Reuters notes.
