How many starbucks did you drink in this cold winter? On January 24, Starbucks released its financial report for the first quarter of fiscal year 2019. Starbucks Global net income for the quarter ended December 30, 2018 was $ 6.63 billion, an increase of 9.2% over the prior year to $ 6.49 billion. . Starbucks began laying off 5% of its workforce this quarter, and Starbucks is still on the right track due to internal changes.
However, according to financial reports, the Chinese market pulled down Starbucks' overall performance. Starbucks' global and US domestic sales increased 4% in the fourth quarter, while other major Chinese markets increased 1% in existing store sales.
If you compare the Chinese market without comparing other regions, 1% growth is also optimistic.
Source: Wall Street
In the third quarter of 2018, the number of Starbucks stores in China declined by 2% and gross margin in the Asia-Pacific market fell from 26.6% to 19%.Starbucks China Same-store sales declined for 2 consecutive quartersBut compared to 2016 and 2017, Starbucks' China development slowed down.
The price increase was effective. Starbucks' 4Q global retail sales growth was largely due to a 3% rise in customer prices. Last November, Starbucks raised the price of some beverages in the Chinese market by 1 yuan, and all stores were steadily adjusted. However, the price of price increase is the decrease in order. Existing store sales grew by 1%, but existing store sales declined by 2% and the Asia-Pacific operating margin reached 18%.
The overall situation of Starbucks China seems to remain unchanged.It is only possible to increase overall sales by opening up new stores with stagnant growth of old stores.Buck's very important gene is a social asset, but the online market is growing. It is more successful in internet coffee after the "third space" fails.
Last August, Starbucks and Alibaba announced a comprehensive strategic alliance. Since mid-September, Starbucks has relied on hungry and gradually started distribution services throughout the Chinese market, which is regarded as Starbucks getting more in the "Third Space". Get more passengers in the field.
But Starbucks raised the price when it opened the takeout. Where did they come from in the "winter" price hikes? In the case of a tiger sniffing expensive ginseng, there is a questionable point.Starbucks 'price increase and subscription change system is not optimistic about the increase in consumption due to Starbucks' sales activities.
In an interview in January, Shi Quan, director of the Alibaba-Starbucks project,Starbucks has sold over 2,000 stores in 30 cities across the country.. The two sides dispatched about 800 people to participate in a collaborative, exchange membership system through a number of BUs in Ali. Ali will have a normal PM team to facilitate bilateral cooperation, Ali and Starbucks will be hired and Starbucks You will live in an office.
The depth and breadth of cooperation between Ali and Starbucks is unprecedented in the history of collaboration with brands.However, the same store volume fell 2%, indicating that deodorization and multiplatform interlocking have not yet been applied to Starbucks.
To be honest, Starbucks 'same store orders are steadily declining, and Starbucks' activity is stimulating this quarter.
After working with Ali, the rights and interests of both members are interoperable; if they are hungry, they receive 1-won beverages, drain Starbucks through distribution coupons and other activities, and explore Starbucks consumption scenes from Taobao tickets . Starbucks also launched a one-off sell / sell event, such as a Shanghai bank card use Wednesday, a Guangfa bank credit card offer on Friday, in partnership with a bank credit card, of which Guangfa Bank's activity time is almost half a month.
Ali's marriage, start of take-out, activity continues, but Starbucks store orders can not be saved, but according to Starbucks store plans, the future will still open at two speeds per day. With confidence, what is Starbucks' plan and where did it come from?