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Market competition promotes economic prosperity and social development, except for "involutionary competition".

In 1999, the international coffee chain Starbucks opened its first store in Beijing's World Trade Center. At that time, my country had only been introduced to the market economy for more than 20 years, and coffee culture had hardly been established.

But with further opening up to the outside world, what has poured in is not only Western market economy ideas and culture, but also their coffee drinking habits.

Since then, Starbucks has gradually penetrated into the domestic market through cooperation with local companies, adapting to and meeting the needs of local consumers, while also bringing the experience of Western coffee culture.

Starbucks has been in China for more than 20 years. However, as the second quarter financial report just passed, Starbucks Global CEO Nathhan said at the performance meeting: "In the past year, consumers have been more cautious in spending. At the same time, the unprecedented store expansion and large-scale price wars at the expense of same-store sales and profitability by (competitors in the domestic market) have caused significant disruptions to the operating environment."

When Starbucks' global CEO Nathhan made these remarks, second-quarter data showed that Starbucks' domestic revenue fell 10% year-on-year to US$730 million, lagging behind its competitor Luckin Coffee. At the same time, Starbucks' same-store sales in the domestic market were also falling by double digits, down 14% year-on-year.

This is the most difficult time for Starbucks in the Chinese market.