Marketing Analysis of JDE Peet's in Chinese Coffee Market

Abstract

With the continuous improvement of the income level of Chinese residents and the popularity of coffee culture among Chinese consumers, the annual coffee consumption in the Chinese market continues to rise. More and more coffee brands are entering the market, intensifying market competition. Large chain brands, represented by Starbucks, have gradually occupied an absolute leading position in the fierce market competition. JDE Peet's is the father of Starbucks, but it is a new player in the Chinese market. Therefore, this paper is guided by the research results of the coffee industry in the world and the Chinese market, adopts the SWOT analysis method and analyzes the company's financial data to analyze Peet's business status, existing problems, internal and external environment, and its own advantages and disadvantages in the Chinese market. Through analysis, it is found that although Peet's has gradually opened up the consumer market in big cities such as Beijing and Shanghai in China, the market is still too narrow, and there is no strong competitiveness, and there are still a series of brand positioning that is not accurate and clear. In the face of strong Starbucks and Luckin Coffee, it is obviously impossible to win in the market competition. Therefore, JDE Peet's doesn't currently have big investment value.

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“…They overstated revenues by upwards of 2.2 billion Yuan. The discovery of the scandal by the public led to a significant drop in its stock price and the ousting of its top executives [1]. Luckin Coffee was also delisted from the NASDAQ stock exchange and the company filed for bankruptcy in the United States in 2020.…”