The net profit of Starbucks in the third quarter decreased by 21%year -on -year?Should Starbucks in China's poor performance be seen?

In the world's coffee market, Starbucks can be said to be a super giant, but this super giant is not good recently. Its latest financial report has fallen by 21%year -on -year, especially in the Chinese market. Poor performance, many people are asking what happened to this Star Buck?

1. Starbucks's net profit in the third quarter decreased by 21%year -on -year?

According to the Wall Street Journal Chinese website on the 3rd, Starbucks said that the increase in labor expenditure and other inflation pressures have affected the recent fiscal quarter's profits, but the demand for American customers is strong.

According to the report, Starbucks said on Tuesday (August 2) that the increase in employee salary, training and raw materials cost dragging down the profit of the store in the fiscal season. However, the price increase of the product to a certain extent offset the increased cost.

According to the report, the net profit of Starbucks's third quarter was US $ 912.9 million, a decrease of 21%over the same period last year; sales were 8.15 billion US dollars, an increase of 9%over the same period last year, which is the same as the analyst's expectations.

According to the Finance and Economics Weekly report, the sales of Starbucks International Stores have fallen by 18%, which is mainly dragged down by China's poor performance. Its Chinese store sales fell 44%, and international markets outside China have achieved double -digit growth. Affected by this, the net income of Starbucks International's business decreased by 6%compared with the same period of fiscal 2021, mainly due to the restrictions related to China's epidemic and foreign currency conversion.

Starbucks' operating profit margin was affected by factors such as inflation, increased labor costs, and supply chain pressure. The seasonal profit margin of the season was 15.9%, a decrease of 4 percentage points from 19.9%in the previous year.

In the season, Starbucks opened 318 new stores, and currently there are 34,948 stores worldwide, of which 51%are operated by the company and 49%are licensed. As of the end of the season, stores in the United States and China accounted for 61%of the company's global stores, including 1,5650 stores in the United States and 5,761 stores in China.

2. What should Starbucks think in China?

To be honest, seeing that Starbucks has a relatively large market problem on the entire market, many people are puzzled. I want to know what is going on with Starbucks?

First of all, Starbucks has a bad performance, which is actually a normal phenomenon. Affected by the epidemic, Starbucks is impacted by more or less offline consumption in countries around the world. The offline market is constantly being closed under the requirements of prevention and control. In such a special environment, the market performance of Starbucks itself is bound to not be as good as imagined, and even a relatively large decline is normal. This is the result of the problem of Starbucks's own performance. We can say that the current Starbucks is actually in a state of relatively market disadvantages. This is why Starbucks does not perform well, but it exceeds market expectations. Many analysts feel that it is not easy to say that you can have such a performance in Starbucks, so What we see is that Starbucks's stock price is still rising.

Secondly, what we can see is that the performance of Starbucks in the Chinese market may be worse than other markets. The reason is that the current Chinese consumer market is actually a relatively popular state for Starbucks. On the one hand The high -priced strategy used in China is a bit too high for most current Chinese consumers. At present, Chinese consumers are still more cost -effective when they consume the entire coffee. It is difficult to conquer the needs of Chinese consumers. On the other hand, the Chinese coffee market has developed vigorously in recent years, and a large number of market participants have begun to appear. Many companies on the entire market have been laying the coffee market. , Manner, Tims, etc. These market competitors are actually constantly diving Starbucks market share, so we can say that Starbucks has a relatively large market disadvantage.

Third, for the current Starbucks, if you want to make a difference in the Chinese market, in addition to the opening of offline stores in large scale, the most effective way to consider whether your pricing strategy needs to be needed After all, Chinese consumers are very obvious about price sensitivity. If Starbucks has no way to change the price, Chinese consumers' market demand for Starbucks will gradually decrease, rather than gradually increase. China's consumer market has become more and more rational. Some of the long -term competitive advantages of Starbucks have lost, and the logic of Starbucks into luxury goods has begun to exist.

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