Starbucks has hired its first Chief Growth Officer in China as competition mounts in the local market, according to Bloomberg.
The executive, Tony Yang, has been on board since November 2024 and is a former user development executive at Geely Holding Group Co-backed electric vehicle maker Jiyue Auto.
At Starbucks, Yang will pursue a strategy of brokering tie-ins with entertainment franchises and pop-culture icons to market itself to consumers, according to the company.
Yang’s role would also focus on coffee product innovation and improving customer experience, with the China product development, research and development, and marketing departments all reporting to him.
Starbucks said the Chinese market is “an important growth engine for the future”.
Yang’s pledge to collaborate with pop-culture franchises demonstrates the company’s desire to tap into brand power other than its own to salvage Chinese business, with comparable sales down 14 per cent in the September quarter.
According to Bloomberg, Luckin Coffee surpassed the Seattle-based company in annual China sales for the first time last year and Starbucks is exploring options for its mainland operations, including the possibility of selling a stake in the unit.
Additionally, Bloomberg said Starbucks’ new CEO Brian Niccol previously said he would travel to China in December 2024, where the company operates more than 7600 stores, to better understand the local business and competition.
