Concocting a plan: Starbucks hires chief growth officer in China to reignite sales

Starbucks hired its first-ever chief growth officer in China, tasked with luring back young coffee drinkers as the US chain struggles with cheaper local rivals in its biggest international market.

Tony Yang, who has been on board since November, will pursue a strategy of brokering tie-ins with entertainment franchises and pop culture icons to market itself to consumers, Starbucks China said on Monday.

The China product development, R&D, and marketing departments will all report to Yang, a former user development executive at Geely Holding Group-backed electric vehicle maker Jiyue Auto. His role will also focus on coffee product innovation and improving customer experience.

China is “an important growth engine for the future”, the company said.

Starbucks was once seen as largely infallible in a China where flush consumers flocked to Western brands high in prestige. But it has struggled as the economy slows, with cash-strapped diners pulling back on pricier drinks in favour of cheaper local upstarts whose coffees can cost just a third of a Starbucks cup.

Key rival 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, Bloomberg has reported.