Old Huang, have you followed Starbucks China's big deal? Handing over controlling stakes to Boyu Capital for 4 billion USD—this move is quite meaningful.

I’ve been following it closely. On the surface it’s a financial deal, but fundamentally it’s driven by pressure from local brands. Its market share has been eroded heavily, forcing it to seek change.

Exactly. Local players like Luckin and Cotti have rewritten the rules with rapid expansion and digital strategies. Starbucks simply couldn’t keep pace.

So bringing in Boyu this time has a very clear intention—to introduce a strategic partner who understands the Chinese consumer market and can operate more locally to rebuild competitiveness.

Some in the industry think the 4-billion-dollar valuation is low, but looking closely at the terms, Starbucks keeps 40% equity and can still collect considerable brand-licensing fees. The structure is cleverly designed.

Right, this is a classic shift to a ‘light-asset’ strategy. It transfers part of the operational burden and market risk while locking in a more stable profit source—giving itself room to advance or retreat.

The coming battleground will only be tougher. Starbucks has set an ambitious goal of 9,000 stores, but its competitors have not slowed down their expansion at all.

The key to victory lies in product innovation and flexible pricing. Today’s consumers, especially young people, are extremely price-sensitive. Starbucks must lower its stance and respond more proactively.

I actually think this partnership is a ‘strategic reboot’ for Starbucks in China. Whether it can find a second growth curve through local capital—we’ll see.

Agreed. But for us consumers, fiercer brand competition means more choices and better prices, which isn’t a bad thing at all.