Starbucks China launched its delivery services on Wednesday [19 September 2018] in Beijing and Shanghai before expanding to more than 2,000 stores in 30 cities in the country by the end of this year. This means more than half of its current Starbucks stores in China will be covered and the coverage will continue to grow in 2019…Full Article: China Daily Sept 2018

Key Points

  • In October 2018, Starbucks China plans to expand its delivery service to various Hema supermarkets (Alibaba owned) in Shanghai and Hangzhou, Zhejiang Province.
  • In September 2018, Starbucks China began delivery service (via Alibaba’s Eleme) in Beijing and Shanghai. Orders will be delivered with tamper-proof seals that, if disturbed, can be rejected by the customers.

ChinaAg Comments

  • In August 2018, Starbucks China announced it would form a partnership with Alibaba’s Eleme delivery service. The partnership, called “Starbucks Delivers”, was slated to be launched in Beijing and Shanghai the following month.
  • In July 2018, Starbucks reported that its China store sales decreased by -2% during its Q3 (third-quarter) fiscal year (ending in July 1, 2018). In November 2018, Starbucks reported that its Chinese store sales increased by 1% during its Q4 fiscal year (ending in September 30, 2018).
  • Founded in October 2017 (in Beijing) and headquartered Xiamen, Fujian Province, Luckin Coffee (aka Ruixing Coffee, 瑞幸咖啡) is a coffee chain that operates sit-down cafés, carryout only stores, and delivery only stores. By the end of 2017, Luckin Coffee had approximately 300 stores in mainland China. The coffee chain was founded by the chairman and CEO of UCAR Group, a riding sharing app that managed 300,000 cars across 300 cites (as of June 2018). Both UCAR Group and Luckin are headquartered in Siming District, Xiamen. As of mid-2018, Luckin Coffee used the delivery company, SF Express (HQ in Shenzhen).
  • As of July 2017, Alibaba had opened 13 Hema Fresh Stores (primarily in Shanghai) in China, including two in Beijing. During a visit to a Shanghai-based store, Alibaba Group’s Chairman (Jack Ma) noted it was stocked with king crab and Boston lobster.
  • In March 2015, Alibaba Group established its first Hema Fresh Store (aka Hema Xiansheng) in Shanghai. Hema Fresh is an online-to-offline (O2O) supermarket chain that sells a variety of food products including seafood (live and frozen), meat, vegetables, wine, and dairy products.
  • In 2014, Tianjin Goubuli Food formed a partnership with Australia’s Gloria Jean’s Coffee chain to operate more than 100 shops in China. As of 2017, Gloria Jean’s Coffee chain stops were primarily located in Tianjin, with other shops located in Beijing, Shanghai, Chengdu, Wuhan, and Qingdao.
  • Founded in 2012 and headquartered in Shanghai, Coffee Box (aka Lian Coffee or Lyan Coffee) is a coffee delivery app that has worked in China with Starbucks (USA), Gloria Jean’s Coffee (Australia), Costa Coffee (UK, acquired by Coca-Cola Company in January 2019). Coffee Box also works with Meituan-Dianping to deliver coffee.

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