Business · Companies · 1 day ago
Starbucks regains top spot in South Korea’s coffee market by card spending
Starbucks regained the top spot among coffee brands in South Korea for estimated credit and debit card spending in September.
Its spending total was 1,210.8 billion won, up 4.3% from August.
Twosome Place came second at 1,105 billion won, after leading Starbucks from May through August.
Starbucks’ card spending had fallen after criticism over a promotion using the phrase “Tank Day” on May 18, a national day of remembrance for the 1980 democracy movement.
The company paused some new products and promotions, then began bringing them back in July.
The timing of that return may have helped spending recover, but card estimates do not show all sales or prove that customer trust has recovered.
The estimates exclude Starbucks’ prepaid cards and mobile gift certificates.
Starbucks regained the top spot in South Korea’s coffee market by estimated credit and debit card spending in September.
Its estimated card spending reached 1.2108 trillion won, up 4.3% from August.
The increase was the third consecutive monthly rise since spending hit a low in June.
Twosome Place, which had led from May through August, recorded estimated September spending of 1.105 trillion won.
The recovery coincided with Starbucks restarting product launches and customer promotions from July, but the figures do not capture all sales.
- Who
- Starbucks and Twosome Place. Other coffee brands in the figures include Mega MGC Coffee and Paik’s Coffee.
- What
- Starbucks regained first place in estimated credit and debit card spending among the coffee brands covered.
- When
- In September, after three consecutive monthly increases from June.
- Where
- South Korea.
- Why
- Starbucks’ spending recovery coincided with the restart of product launches and customer promotions from July; the sources say these may have contributed.
This story does not have two clearly opposing sides.
No direct quotes in the coverage so far.
Starbucks Korea drew criticism for using the phrase “Tank Day” in a tumbler discount promotion on the anniversary of the May 18 Democratic Uprising.
Shinsegae Group dismissed the head of Starbucks Korea, issued a public apology and began history education for staff; summer product launches and promotions were paused for a time.
Starbucks began gradually resuming new product launches and customer benefit programs.
Starbucks’ estimated card spending rose for three consecutive months after reaching a low in June.
Starbucks’ estimated card spending exceeded Twosome Place’s, restoring its lead.
- Starbucks, September spending
- 1,210.8 billion won
- Starbucks, August spending
- 1,161.2 billion won
- Twosome Place, September spending
- 1,105 billion won
- Starbucks spending increase from August
- 4.3%
- Starbucks June spending low
- 1,003.9 billion won
Sources
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