logo
Starbucks lowers prices in China as rivals brew up discount war

Starbucks lowers prices in China as rivals brew up discount war

Time of Indiaa day ago

Starbucks
China will lower the prices of some of its iced drinks by an average of 5 yuan ($0.70) across the country, the company announced on Monday, as competition intensifies and consumers become more cautious about spending.
In a post on its Weixin social media account, the U.S. coffee chain said it would offer more "accessible" prices on dozens of its drinks, including non-coffee drinks and the Frappuccino, from Tuesday.
While
China
is Starbucks' second-largest market after the U.S., the coffee market is highly competitive and consumers have become more cautious about spending because of the slowing economy and concerns about job security.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Canada is looking for skilled immigrants - New job opportunities are waiting for you!
Canada Immigration Express
Apply Now
Undo
The new approach means some of Starbucks' drinks will be priced as low as 23 yuan, the post said.
Also Read:
More than 1,000 Starbucks baristas go on strike to protest new dress code
Live Events
Domestic rivals such as
Luckin Coffee
and
Cotti
have priced their drinks as low as 9.9 or even 8.8 yuan, while deep-pocketed internet companies JD.com and
Alibaba Group
have entered the food delivery market, adding to the competition. With offers and vouchers, Chinese coffee consumers can buy themselves a drink for as little as 2.9 yuan.
A person close to Starbucks, said the company was not reducing prices in response to intense price competition, but looking to attract more customers in the afternoon.
The individual requested anonymity as they were not in a role that allowed them to comment to the media.
"Starbucks likely has a longer-term strategy, which is to focus on the demand for non-coffee items in the afternoon among consumers," the source said.
Starbucks had said previously that it would not engage in a price war. However, it has also introduced smaller-sized drinks and issued coupons which have lowered prices for customers
The U.S. giant has also been looking to revive its business in China via selling stakes in the business.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

China's vice president visits Spain as mutual courtship blossoms
China's vice president visits Spain as mutual courtship blossoms

Hindustan Times

time32 minutes ago

  • Hindustan Times

China's vice president visits Spain as mutual courtship blossoms

MADRID, - China's Vice President Han Zheng arrived in Spain on Tuesday for a four-day trip during which he will meet with King Felipe and Prime Minister Pedro Sanchez, a further sign of increasingly close economic and political ties. Han's visit is taking place two months after Sanchez visited Beijing for the third time in as many years. There, he sought to woo China's President Xi Jinping as global trade reels from U.S. President Donald Trump's tariffs policy. The Socialist premier has been vying to position Madrid as an interlocutor between China and the European Union, as well as to attract more Chinese investment in advanced technology such as batteries, electric vehicles and hydrogen. Last year, auto maker Stellantis and Chinese battery maker CATL announced plans to build one of Europe's largest EV battery factories in Spain. However, not all is idyllic in Spain's relations with China. Beijing's anti-dumping inquiry into EU pork launched last year in retaliation for Brussels' tariffs on Chinese EVs hit Spain, a top exporter, hard. Sanchez's last visit to China, however, clinched expanded access for Spanish exports of pork stomach - a product widely consumed in China but not previously authorised. Han will meet with Sanchez on Wednesday morning in Madrid, Sanchez's office said, while King Felipe will receive the Chinese official on Thursday, according to the royal household's agenda. The Spanish monarch is also scheduled to visit China later this year to commemorate the signing of a strategic partnership 20 years ago. After his meetings with Sanchez and Spain's king, Han is set to travel to Seville to meet Andalusia's regional leader, Juan Manuel Moreno, who last year secured over 2.5 billion euros of Chinese investments in the southern Spanish region. According to projections by tourism lobby Turespana, the number of visitors to Spain from China is expected to surge by 36% this summer compared to last year, making Spain the European destination with the biggest growth in tourists from the Asian nation.

Auto sector rushes to secure rare earth magnets as deadline looms
Auto sector rushes to secure rare earth magnets as deadline looms

New Indian Express

timean hour ago

  • New Indian Express

Auto sector rushes to secure rare earth magnets as deadline looms

MUMBAI: India's auto industry is racing against time to secure rare earth materials, including magnets, as many players risk exhausting their existing inventory in less than a month. Two industry executives told the TNIE that they are in constant discussions with suppliers, who are awaiting China's approval to resume rare earth material exports to India. So far, there has been no breakthrough. With uncertainty over Chinese permits, automakers are also exploring alternative sources from non-Chinese suppliers to mitigate potential supply disruptions. 'If our existing supply keeps on depleting, its initial impact will be seen in the production of our electric vehicles. We have informed the government about this,' said a senior executive of a passenger vehicle company. CEO of an electric two-wheeler company said that most auto players will start cutting down production from mid-July if they are not successful in securing the magnets. 'Most players are desperately reaching out to non-Chinese players and are willing to pay a premium price for the magnets,' the CEO stated. Ratings agency Crisil said on Tuesday that rare earth magnets could emerge as a key supply-side risk for India's automotive sector if China's export restrictions and delays in shipment clearances persist. A disruption lasting beyond a month can impact electric vehicle (EV) launches, affect production and weigh on the sector's growth momentum, it added.

Why India has an incentive to act tough in Trump trade talks
Why India has an incentive to act tough in Trump trade talks

Economic Times

timean hour ago

  • Economic Times

Why India has an incentive to act tough in Trump trade talks

Agencies Prime Minister Narendra Modi and US President Donald Trump The ongoing trade dispute between the United States and China, two of the world's most powerful nations, could present India with a crucial opportunity to finalize its own trade deal with the US before the 90-day reciprocal tariff deadline. As India and the United States engage in intense negotiations, Swaminathan Aiyar, Consulting Editor at ET Now, believes that India has the potential to be a strong negotiator, much like its neighbor China, and secure a favorable deal for itself. "The Chinese stood up, when Trump increased the import by 125%, so did they and ultimately Trump had to back down on that and has backed down on various things. So, on the one hand this means that some kind of deals are definitely more possible. It also means that every country including India we have an incentive not to give way very easily," said Aiyar. Aiyar explained that India has an incentive by bringing up how China stood up against the wishes of US, and was rewarded. "If all of us stand up, then we have this guy who from being a dragon now is beginning to chicken out on various deals, so let us talk tough, let us act tough. So that is the global position right now. For the very fact that the Americans say they are willing to ease the restrictions on high-end chips in return for the rare earths is a sign of chickening out in a big way," said Aiyar. "As I said, we all have an incentive now to act tough because Mr Trump is very keen on reaching deals with the major countries before the 90-day deadline. Let us see what happens. As I said, I would look for last minute developments rather than anything right now despite the talks in London," added Aiyar. Both sides are looking at an interim trade deal before the first tranche of the proposed bilateral trade agreement (BTA) as the USA's 26 per cent reciprocal tariff on India is suspended till July 9 this year. It was imposed by the US on April 2. However, Indian goods still attract the 10 per cent baseline tariff imposed by America. India, US remain 'optimistic' Recently, US Commerce Secretary Howard Lutnick said he's 'very optimistic' about prospects for a trade deal between the US and India, suggesting an agreement could come before a July deadline for higher tariffs. The same sentiment was shared by Union Commerce Minister Piyush Goyal. According to a recent report by the finance ministry, a successful US-India bilateral trade agreement could flip current headwinds into tailwinds, opening up new market access and energising exports. The possible optimism is seen with the US trade team that's currently in India for negotiations has extended its stay, reported Bloomberg quoting its sources, in a sign talks are progressing ahead of a July deadline. India and the US are working on a phased trade deal with an early agreement targeted for July, the deadline for implementation of the so-called reciprocal tariffs. At the same time, those tariffs are facing legal challenges in Indian officials say talks remain on track, there have been signs of tension in recent days. New Delhi appears to be adopting a tougher stance in negotiations, threatening retaliatory tariffs on US goods last week. Trump has also claimed that India offered to slash tariffs on US goods to zero, while downplaying any sense of urgency to reach a trade deal. What are India, US hoping from the trade deal? The US remained India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.84 billion. The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent in imports, and 10.73 per cent in the country's total merchandise trade. With America, India had a trade surplus of $41.18 billion in goods in 2024-25. The two trading partners look to more than double bilateral trade to $500 billion by boost bilateral trade, India is seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, chemicals, grapes, and bananas in the proposed pact with America. On the other hand, the US wants duty concessions in sectors like certain industrial goods, automobiles (electric vehicles in particular), wines, petrochemical products, dairy, and agriculture items such as apples, tree nuts and GM (genetically modified) crops. While the import of GM crops from the US continues to remain a non-starter due to regulatory norms in India, New Delhi is open to import non-GM products like Alpha alpha hay (a kind of cattle feed).On April 10, the United States temporarily suspended additional tariffs on Indian exports for a 90-day period, effective until July 9. The pause was seen as a goodwill gesture and an effort to build momentum in trade discussions. This development followed a broader tariff overhaul on April 2, when the US imposed universal duties on imports from nearly 60 countries in a bid to reduce the American trade deficit and strengthen domestic production. As part of that move, Indian exports were slapped with an additional 26% duty—covering sectors ranging from seafood to industrial metals like steel.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store