Starbucks to reduce prices in China with a high temperature of competition

BEIJING (Reuters) -Scarcs (SwubChina will reduce the prices of some of its iced drinks at a rate of 5 yuan ($ 0.70) throughout the country, the company announced on Monday, as the competition is intensified and consumers become more cautious about spending.

In a publication on the account of the social media for Weixin, the American coffee chain said it will save more “accessible” prices on dozens of drinks, including non -national drinks and Frappuccino, from Tuesday.

While China is the second largest market in Starbucks after the United States, the coffee market is very influential and consumers have become more cautious in spending due to the slowdown in the economy and concerns about job security.

The Post said that the new approach means that some Starbucks drinks will be priced up to 23 yuan.

Local competitors, such as Luckin Coffee and Cotti, priced their drinks to 9.9 or even 8.8 yuan, while deep internet companies JD.com and Alibaba Group entered the food delivery market, adding to the competition. With offers and vouchers, Chinese coffee consumers can buy a drink for less than 2.9 yuan.

A person close to Starbucks said that the company does not reduce prices in response to intense price competition, but it is looking to attract more customers in the afternoon.

The individual asked not to be identified because they were not in a role that allowed them to comment on the media.

“Starbucks may have a long -term strategy, which is to focus on the demand for non -national elements in the afternoon between consumers,” the source said.

Starbucks previously said he would not participate in a price war. However, I also made smaller drinks and coupons released that reduced customer rates.

The American giant is also looking to revive its business in China by selling risks in this field.

($ 1 = 7.1870 Chinese Yuan Renminbe)

(I participated in the reports of Sophie Yu and Brenda Goh; Al -Tahrir by Jimmy Farid and Kate Maybry)