To get ahead of increasingly fierce competitors such as Luckin Coffee, Starbuck China has announced that it will be implementing measures to increase its digital footprint in the country.
The coffee shop chain's Chinese offices announced that it would be forming two new units, namely a Retail and a Digital Ventures unit. Both new departments will be handling different implementations to bolster the company's digitalized operations to strengthen its position within the country.
As part of its ongoing efforts, Starbucks has chosen to rearrange its organizational structure within the country. Starbucks China executive Molly Liu has been put in charge of the company's Digital Ventures. Meanwhile, Starbucks executive Belinda Wong has been promoted as the CEO of Starbucks China.
Wong will be put in charge of the company's business development in the country, which is focused on long-term growth. Placed in charge of the company's Retail arm is Leo Tsoi, who has been promoted as its chief operating officer and president.
According to the company, the measures that it will be implementing were mainly driven by the rapid rise in the digitalization of the lives of the people living in China. The company is looking into tapping new business segments, which would hopefully improve its customer's overall experience.
The online team under the firm's Digital Ventures will majorly be focusing on expanding its online presence. Starbucks previously collaborated with Alibaba in launching its online delivery service through Alibaba's else.me platform.
The company hopes to do much more of the same in the coming months by partnering with new tech startups. Starbucks recently launched its Starbucks Now mobile service, which provides customers with the option of ordering their coffee online prior to their arrival at over 300 select stores in Beijing and Shanghai.
The company is also working to further expand its online and mobile payment options, which will be a task for its Digital Ventures unit.
Meanwhile, the firm's Retail Ventures will mainly be focusing on improving its customer's in-store experience through personalized and integrated services.
The firm revealed that it will emphasize its so-called "third place" strategy, by further enhancing its interior designs. The particular department will, of course, be working hand-in-hand with the digital unit to leverage different digital technologies.
Starbucks will have to work hard and fast if it hopes to keep up with its competitors in the space. Its main competitor Luckin Coffee, which was recently listed in the United States just this month, is rapidly growing. The small company, which is just less than two years old, has heavily relied on its online presence and delivery services to get ahead.
