Retailing, Franchising, and Consumerism Business Intelligence in China

Starbucks Announces China President Change

John Culver, former president for Starbucks China and Asia Pacific, has been promoted; and Jeff Hansberry, former head for channels in China and Asia Pacific, was appointed new president for Starbucks China and Asia Pacific.

According to Starbucks, the appointment has already been effective and the involved people are implementing a work handover. Once the handover is completed, the new president is expected to make new announcements such as operating goals.

Starbucks recently announced its statistics for the second financial quarter of 2013, stating that its total net operating revenue increased by 11% year-on-year to USD3.8 billion. Meanwhile, its sales from America increased by 6% year-on-year; its sales from China and Asia Pacific increased by 8% year-on-year; and its sales from Europe, Middle East and Africa decreased by 2% year-on-year. Starbucks predicted that by 2014, China will become its largest market outside America and the importance of Chinese business will exceed its Canadian business. The company said they planned to increase the number of Chinese outlets to 1,500 by 2015. By the end of 2012, Starbucks had about 700 outlets in China.

Starbucks China said during the 2013 financial year, the company expects to open 300 new outlets in the Chinese market. While enhancing their layout in the first- and second-tier markets, they will further expand into the third- and fourth-tier markets.

Apart from the development of new stores, Starbucks is adding new business categories and new products in the Chinese market. In the second half of 2012, Starbucks launched a baked goods business in China. It also participated in the breakfast market, aiming to gain new profit points.

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