BRIEF: Starbucks names new head for struggling China operation
Starbucks China has adjusted its leadership in China, as it faces unprecedented competition from several aggressive startup rivals. The company said its China Co-CEO Molly Liu will take over as its lone CEO from Sept. 30, while former co-CEO Belinda Wong will continue to serve as chairman of Starbucks China.
The change is one of the first major executive moves by Starbucks (SBUX.US) Chairman and CEO Brian Niccol , who only took the helm of the global coffee giant from Laxman Narasimhan at the start of this month.
Starbucks China is facing an unprecedented challenge from homegrown chains Luckin (LKNCY.US) and Cotti, which are charging just 9.9 yuan ($1.41) per cup of premium coffee. It also faces competition from the country’s proliferation of bubble tea shops that also sell premium beverages. Starbucks currently has 7,300 stores in China, making the country its second largest market after the U.S.
By Lau Chi Hang
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