Just 15 years ago, Chinese consumers were flocking to Western brands. Now they prefer Chinese ones.
The fate of the Starbucks Group is telling: Sales and profits in its current 7,300 stores in China are declining. The Chinese are not drinking less coffee, but prefer Chinese brands, partly because they offer more for less money.
Luckin Coffee, which was only founded in 2017, is rapidly taking market share from the American market leader. Even outside of China, such as in Singapore, Luckin Coffee stores are popping up everywhere and competing with Starbucks.