Starbucks China female leader to retire

Author | Zheng Qiao

Editor | Wang Xiaojuan

Starbucks' personnel adjustments are still ongoing.

According to reports, Wang Jingying, Chairman of Starbucks China, will officially retire on January 24. In response, Starbucks China has confirmed to Wall Street News that Wang Jingying's retirement is true, but it is currently only an internal notification.

Having joined Starbucks for 25 years and served as the helm of Starbucks China for over a decade, Wang Jingying has become an iconic figure in Starbucks' development in China.

Public information shows that she joined Starbucks in January 2000, began to lead Starbucks China operations in 2011 as President, and became CEO in 2016, later promoted to Chairman and CEO in 2019.

During her leadership over the past decade, Starbucks expanded its number of stores in China to over 6,000, entering more than 200 cities. The compound growth rate of the Chinese market once exceeded that of the United States, making it one of Starbucks' largest markets globally.

Starbucks founder Howard Schultz has also praised Wang Jingying's leadership. He once mentioned in a podcast that when Starbucks first entered China, it struggled for nearly a decade and nearly exited the market until Wang Jingying took over, which turned the situation around. "In my view, she may be the company's most valuable partner."

However, in recent years, with the continuous transformation of the Chinese tea and coffee market, Starbucks China has faced numerous challenges, especially as emerging brands like Luckin Coffee rapidly rose through low-price strategies, shaking Starbucks' absolute leading position.

By the end of 2021, the number of Luckin stores first surpassed that of Starbucks China; in the second quarter of 2023, Luckin's quarterly revenue first exceeded that of Starbucks China; for the entire year of 2023, Luckin's total revenue first surpassed that of Starbucks China; and in the third quarter of 2024, Luckin's operating profit margin first exceeded that of Starbucks.

Starbucks China once experienced rapid growth, but maintaining this speed has become increasingly difficult in recent years. Particularly last year, Starbucks' revenue and net profit both declined year-on-year for three consecutive quarters.

Starbucks has also shown weakness in the North American market. Recently, Starbucks announced that it would cancel the "open policy" implemented in 2018 in the United States and Canada, with the new policy taking effect on January 27. This means that in North America, customers wishing to sit or chat in Starbucks stores must order coffee or other products.

However, Starbucks China stated that this is a policy aimed at the North American market and is unrelated to the Chinese market.

There were also reports that Starbucks is exploring various options for its business in China, including the possibility of selling part of its equity. At that time, this news was not confirmed, and a global spokesperson for Starbucks stated, "The company is taking time to gain a deeper understanding of our business operations in China and the competitive market environment. We are working hard to find the best growth paths, including exploring strategic partnerships."

Against this backdrop, Starbucks China welcomes a new leader.

Successor Liu Wenjuan has worked at Starbucks China for 12 years, previously serving as Chief Operating Officer and Vice President of Digital Innovation. She graduated from Fudan University’s School of Economics in 1998 and obtained a master's degree in International Finance from the same university in 2002. After graduation, she joined McKinsey & Company, focusing on the consumer and retail industry, and after nearly 7 years, she joined Starbucks China in 2012 as Director of Corporate Projects Liu Wenjuan also led several digital innovation initiatives for Starbucks China, including "Zhuanxing Song," "Fei Kuai," and the Xingyi Delivery social gifting service, and established the "Xingxiang Club" membership system, contributing nearly half of the company's sales in China.

In 2023, Liu Wenjuan was appointed as Co-CEO of Starbucks China, leading the business alongside then-Chairman and CEO Wang Jingying. In September 2024, Starbucks announced an adjustment to its management structure in China, with Liu Wenjuan transitioning from Co-CEO to CEO, while Wang Jingying continued to serve as Chairman.

"This well-considered plan demonstrates the company's commitment to gradually and smoothly transition leadership in the China region to a new generation of successors." Starbucks also stated that Liu Wenjuan and Wang Jingying together led Starbucks China to maintain profitable, high-quality, and sustainable growth momentum, further consolidating its leadership position in the high-end specialty coffee market in China.

After all, in Starbucks' view, China is its largest international market and an important engine for the company's future growth.

Now, Wang Jingying has successfully stepped down, but the challenges for Starbucks continue, with the responsibility of revitalizing the business resting on the shoulders of the next generation of leaders, who must continuously seek new opportunities amid increasing market saturation