ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Business Insight

Starbucks faces a bigger challenge in China than upstart Luckin

The coffee chain can't afford to grow faster than consumer appetites and incomes

In just 10 months, Luckin Coffee has opened more than 800 outlets in China and gained a valuation of more than $1 billion.   © Reuters

Starbucks, which has recently been among the best success stories among American consumer brands active in China, is suddenly looking vulnerable in the country its leaders have identified as the company's top growth opportunity.

While other American consumer brands are facing challenges because of the U.S.-China trade war or their handling of Taiwan operations, Starbucks is getting heat from the overnight rise of an innovative homegrown competitor, Luckin Coffee.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more