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following starbucks' appointment of a new global ceo, the coffee giant will also usher in an important transfer of power in china, its second largest market in the world.

on september 24, starbucks coffee company announced the adjustment of its leadership structure in china. starting from september 30, liu wenjuan will be promoted from co-ceo of starbucks china to ceo of starbucks china; wang jingying will no longer serve as ceo of starbucks china, but will continue to serve as chairman of starbucks china.

in september 2023, liu wenjuan was appointed as the co-ceo of starbucks china, and together with wang jingying, then the chairman and ceo of starbucks china, she led the chinese business. after a year, this management structure has been adjusted. "this well-thought-out plan demonstrates the company's commitment to gradually and smoothly handing over the leadership of the china region to a new generation of successors." starbucks said.

liu wenjuan, born in the 1980s, is a veteran in the consumer industry. she graduated from fudan university and worked at consulting giant mckinsey, where she was mainly responsible for the consumer and retail industries. in 2012, liu wenjuan joined starbucks and served in several leadership positions at starbucks china, including chief operating officer and vice president of digital innovation. her performance as co-ceo over the past year earned her the "offer" to become ceo.

image source: daily economic news data map

the post-80s generation takes the lead in china

the media that interviewed liu wenjuan once described their impression of her like this: even at the first contact, it is easy to feel the personality of this young manager. for example, as a corporate executive, liu wenjuan, in addition to her decent traditional business attire, dyed her bangs a few shades of bright and fashionable purple.

what may surprise many people is that this "veteran in the consumer industry" is actually a "post-80s" - it is rare for business managers of this age group to be able to "take the lead" in well-known restaurant chain brands, especially in large foreign-funded enterprises.

according to the fudan university alumni association website, liu wenjuan was an undergraduate student of the school of economics of fudan university in 1998 and a master's student in 2002. public information shows that liu wenjuan joined mckinsey after graduating with a master's degree and worked at mckinsey for nearly 7 years. in 2012, she joined starbucks china as a corporate project director and has since received multiple promotions, with a very impressive resume.

in september 2023, starbucks announced the appointment of liu wenjuan as executive vice president of starbucks and co-ceo of starbucks china. this is the first time that starbucks has added a co-ceo position in the domestic market.

"in fact, the joint mechanism is not necessarily the best solution. a fortune 500 company still needs someone to make the final decision in important markets." zhu danpeng, a food industry analyst, told the reporter of the "daily economic news", so liu wenjuan's promotion this time should be said to meet the needs of the entire company and the law of optimizing the organizational structure. "i think liu wenjuan has done a good job in the overall innovation, upgrading and iteration of starbucks in recent years."

as the person in charge of digital innovation business, liu wenjuan has launched digital businesses including "star delivery" and "fast coffee" digital ordering. however, some netizens commented that in the chinese market where online consumption is highly developed, these digital initiatives cannot be regarded as breakthrough innovations, but can only be regarded as going with the trend.

liu wenjuan's step-by-step promotion is also seen as a further handover of the "starbucks china succession plan". as a foreign company, in the important chinese market, whether the headquarters' management power can be decentralized and whether successors can be trained locally is related to the company's direction. howard schultz, the founder of starbucks, once mentioned in his autobiography "starting from the beginning" that delegating management power to starbucks china was a major decision.

"starbucks' other business units have never had this level of autonomy, and many people are uneasy. but it's the result of the situation, and it's necessary to do so if we are to grow in this uniquely important market," said howard schultz.

"it is generally believed that starbucks has deviated from its core" the new head of the headquarters will initiate reforms

at the same time, under the partnership of wang jingying and liu wenjuan, starbucks china still faces huge challenges.

according to starbucks' third-quarter financial report for fiscal year 2024, starbucks' revenue in the chinese market increased by 5% quarter-on-quarter. compared with the same period of the previous fiscal year, starbucks china's same-store sales fell by 14%, and the average customer unit price and same-store transaction volume decreased to varying degrees.

in the earnings call, liu wenjuan responded that in the face of profound changes in the industry's competitive landscape, same-store sales and other data will inevitably be affected in the short term. "the market environment we are in has undergone significant and permanent changes. in a competitive environment with frequent promotions, we remain highly restrained and avoid price wars."

in other markets around the world, starbucks is still in a difficult situation, facing the pressure of two consecutive quarters of declining sales. in august this year, starbucks suddenly announced a change of leadership, appointing brian niccol as the new chairman and ceo, who will officially take office on september 9. unlike in the past, when starbucks was in a period of change, founder howard schultz usually temporarily took over as ceo for the transition, but this appointment was a direct "airborne soldier". this also reflects that starbucks may be about to start a profound change.

brian nicol, who was the ceo of a chain restaurant company, was expected to bring new ideas to starbucks' business and turn around its operations. on september 10, the second day after he came to work, nicol published an open letter titled "return to starbucks" and talked about his reform measures.

in the letter, nicol pointed out that in his conversations and field visits over the past few weeks, he discovered two facts: first, starbucks is a well-loved brand with great partners that is integrated into people's daily lives; second, it is generally believed that starbucks has deviated from its core.

“our stores have always been more than just a place to buy a drink. they’ve been a gathering place, a community hub where ideas are exchanged, friendships are built, and every customer is greeted by a passionate barista,” nicol said. “but in some locations, especially in the u.s., we haven’t always achieved that. menus can be overwhelming, offerings can be inconsistent, wait times can be too long, or the handoff process can be too rushed.”

he said he would push for reforms within 100 days.

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