Starbucks is a famous coffee company whose products are known worldwide. People all over the world use Starbucks products, just like they do with McDonald’s and other well-known businesses.
Keep in mind that Starbucks offers a wide range of food items alongside its coffee selection. However, compared to other recognizable corporations, Starbucks’ product sales worldwide are lower. In this article, I will explain why Starbucks products’ sales are lower. So, without delay, let’s get started!
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Why International Sales of Starbucks are Low?
Looking at Starbucks’ financials, its international sales have fluctuated from 2010 to 2022. From 2021 to 2022, sales increased from 24.61% to 26.58%. In North America, Starbucks has 16,888 locations, generating the highest revenue.
These stats show that Starbucks’ overall sales and revenue have always been used. Look at the numbers from 2010 to 2022. It shows that Starbucks gained popularity and customers over the numbers.
But there were a few months where Starbucks struggled. At that time, almost every physical business went through tough times. The COVID-19 epidemic caused a decline in Starbucks’ sales worldwide and also impacted its profits.
At that time, many companies selling different products struggled to achieve their expected profits in 2021. People were at home, restrictions were imposed, and customers were not allowed to come to the physical location, which caused a decrease in the sale for Starbucks.
But when COVID-19 ended, things returned to normal, and Starbucks’s sales and revenue skyrocketed. The customers were allowed to come to the physical locations of Starbucks which helped Starbucks to regain its attention.
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Starbucks International Exposure
Sales of Starbucks’ beverages are noticeably effective. Starbucks faces international competition, and its sales are lower in countries like China, the U.K., and many others. Still, in North America, especially in the United States and Canada, Starbucks dominates the market for beverages.
This is where the company needs to work – as better market analysis and research can help the company boost its sales in countries like China, the United Kingdom, and other Asian countries. I still believe that Starbucks has not touched its potential in the above-mentioned countries.
In Europe, people like hot chocolate, iced beverages, and tea. In the last 10 years, Starbucks has made more progress compared to the previous years. But I think the company should expand its business in this international market to grow its business worldwide instead of sticking to the USA.
Starbucks has corporate offices in Germany, Indonesia, and the United Arab Emirates. However, the competition is comparatively higher in these international markets, which is keeping Starbucks at the back. I think the higher prices of Starbucks are other reasons that are causing some troubles in these countries.
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Faults of Starbucks & Opportunities
As I said earlier, Starbucks is not very famous in the Asian market. There is a big competition that this coffee company faces. To be a prominent player in this part of the world, Starbucks will have to reduce its prices. Right now, their products are very expensive.
According to its strategy, Starbucks should identify prominent locations and promote its products in densely populated areas. These strategies can also work but Asian people have less spending power so the price is a real issue that is causing trouble for Starbucks.
Frequently Asked Question
In the last few years, Starbucks had to face many difficulties, but the business is now spreading successfully.
Starbucks has 32,000 stores in 80 countries. Starbucks is a very big seller of coffee around the world.
Conclusion
The well-known coffee brand Starbucks did face many issues that needed to be resolved. The good thing is that the company has a great team that is working hard to get things better. After COVID-19, the sales, and revenue of this company have gone up. So, After reading this article, you will understand why Starbucks’ sales are lower in other countries.
In the end, I would say that In this modern era, to stay alive and well, Starbucks needs to not only provide better service to its customers for their survival but also continue to search for new places to establish itself. They should also look to reduce the prices.
Robert Brook is a skilled writer who adores Starbucks coffee. On this platform, he writes about the coffee shop, its partners, and everything else related to it. Thank you for visiting us – and happy reading!