Starbucks Introduces New Cup Size in China to Combat Rising Competition

Starbucks Corporation launched a new cup size for its market in China. This is a smaller cup which the coffeehouse chain said is part of its new range called the "Inteso Collection."

Starbucks said the 259 ml. cup is being rolled out to attract more customers as the competition in the Chinese market picks up. This new size can hold more espresso with less milk or cream, making the coffee flavor more intense.

Customers may now buy a smaller cup of coffee in all of Starbucks' 6,500 store outlets in the country. This new beverage size is priced at 33 yuan or about $4.51.

New Cup Size - A Marketing Strategy to Spar With Local Rivals

According to Reuters, the new cup is not the smallest size in the store as the 236 ml. size is available. This one is about one-third smaller than the "tall" cup that can hold 355 ml. and drinks for this size have a starting price of 30 yuan.

China Market Research Group's managing director and head of strategy, Ben Cavender, said that Starbucks' newest offering is an effort to continue presenting "newness" in the market to pamper customers who are regular coffee drinkers.

Moreover, adding a new small-size option comes as Starbucks' rivals, including Manner Coffee and Luckin Coffee, launched their aggressive expansions. They have been continuously introducing new products at a fast rate as well.

Launch of Small Size to Other Regions

The newly-launched small-size cup is said to be a first for the China unit of Starbucks. A source said the chain will decide if this will also be offered to other countries after observing how it will be accepted. If successful, the small cups will also be introduced to other markets. Meanwhile, Seeking Alpha reported that China is the company's second-largest market and plans to add more stores to reach 9,000 units by 2025.

Photo by: Sorin Sîrbu/Unsplash