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Starbucks bets on digital innovation amid intensifying market competition in China

The Starbucks China Innovation and Technology Center (SITC) on Wednesday unveiled the digital achievements it has made since its establishment, underscoring the company’s efforts to sharpen its edge in a fiercely competitive beverage market.

Launched in Futian District of south China’s Shenzhen City on Aug. 18, 2023, with an initial investment of 220 million U.S. dollars, SITC has over the past two years taken charge of Starbucks China’s core digitalization initiatives.

Over the period, SITC has helped Starbucks advance its digital transformation, delivering tangible results across its operations.

Marketwide, more than 7,800 branches have replaced paper menu boards with electronic upgrades. Starbucks has also introduced extensive customization options, including espresso type, extraction method, serving temperature, and milk or other bases, offering consumers at least 500 combinations of flavors and sweetness levels.

“Looking ahead, Starbucks, empowered by AI technology, will open up innovative opportunities for ‘technology integrated with humanity’ in more scenarios, expanding its unique advantages in stores, products and partners like never before, and creating richer new value for customers,” said Luo Jinpeng, chief technology officer of Starbucks China.

Starbucks has deep roots in Shenzhen, where it opened its first store in south China in 2002. The company has since introduced a range of store concepts in the city, including pet-friendly, signing and greener stores. By April, Starbucks operated more than 360 stores in Shenzhen.

Platform with Xinhua

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