For quite some years, it was the novelty, foreign and luxury brands that sits well with many Chinese who aspires a different kind of lifestyle, thanks to the western social media influence.
Fast forward years later, with the continuing depressed property market, tepid job market and deflationary environment where many middle income consumers are reluctant to spend more than necessary on the things they like.
Take for example, coffee. China was a tea drinking culture country but Starbucks managed to overturn the tide and slowly influence many youngsters especially those in tier 1-2 cities to switch to coffee. And they succeeded...........until recently............
Looking at the chart , we can see that Luckin coffee has rally while Starbucks is fighting hard to maintain its market shares, especially in China.
Same taste but cheaper , why not ? Consumers are practical when face with uncertainties especially in the job market. They will still spend money but want to stretch the dollar unlike before. This shift in consumer sentiments means a lot to the marketeers who need to change their pricing, promotional strategies...
Fast forward years later, with the continuing depressed property market, tepid job market and deflationary environment where many middle income consumers are reluctant to spend more than necessary on the things they like.
Take for example, coffee. China was a tea drinking culture country but Starbucks managed to overturn the tide and slowly influence many youngsters especially those in tier 1-2 cities to switch to coffee. And they succeeded...........until recently............
Looking at the chart , we can see that Luckin coffee has rally while Starbucks is fighting hard to maintain its market shares, especially in China.
Same taste but cheaper , why not ? Consumers are practical when face with uncertainties especially in the job market. They will still spend money but want to stretch the dollar unlike before. This shift in consumer sentiments means a lot to the marketeers who need to change their pricing, promotional strategies...
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.