(The author of this article is Yiguan Finance, authorized by Titanium Media for publication)
Article | Strange Finance and Economics, Author | Dazzling Night Snow White
Starting today, Starbucks officially launched the new "Starbucks Bear Store Manager Town Series" clothing in over 400 designated stores nationwide, starting to sell workwear vests, T-shirts, and jackets. This is the first time Starbucks has sold clothing products on a large scale in domestic stores.
As a major player in the coffee industry, Starbucks is accustomed to selling cups and collaborations. However, this is the first time it has crossed over to sell clothing, which has attracted social attention and made it to the hot search.
The feedback from the outside world on Starbucks' cross-border clothing purchase can be described as a "mixed bag". Some consumers believe that this design follows the current popular Japanese fashion brand workwear style (similar to their previous collaboration with BEAMS in Japan), and the fabric label and embroidery of the bear store manager are also restrained and textured, which has touched the aesthetic of many core fans and trend enthusiasts.
Some consumers also believe that a T-shirt priced at 279 yuan, a vest priced at 399 yuan, and a jacket priced at 459 yuan are simply "grabbing money", and they think that this price is a "fan filter" for harvesting, with low cost-effectiveness. Moreover, the store does not have fitting rooms, random styles, and a strategy of selling out until sold out, which is more like a "limited time hunger marketing".
Consumers have given different market feedback, but we also need to understand what signals Starbucks has released behind this move?
Performance under pressure: seeking a second growth curve beyond coffee
According to Starbucks' Q2 2026 financial report data, Starbucks China achieved revenue of 799.8 million US dollars, a year-on-year increase of 8%. Comparable store sales increased slightly by 0.5%, with transaction volume increasing by 2.1% and average order value decreasing by 1.6%.
It is worth noting that by the end of fiscal year 2025, Starbucks China will have 8011 stores, entering a total of 1091 county-level markets. The number of stores in China declined in the second quarter, with a decrease of 20 compared to the end of the previous quarter. Starbucks stated that the main reason was the "return to Starbucks" strategy, which resulted in 48 store closures in Q1, partially offset by the number of new stores opened during the quarter.
Starbucks' second quarter financial report for the 2026 fiscal year shows that channel development achieved revenue of $530 million, a year-on-year increase of 39%, mainly driven by hot sales of ready to drink products, peripheral/authorized products, and expansion of retail channels outside of stores. This seems to have given Starbucks a new growth point.
Starbucks' approach of selling coffee as its main business and cross selling clothes using core IP/brand symbols as a secondary business is known as "Lifestyle Branding" in the business world, which is a strategic business strategy that goes beyond traditional product functional marketing.
It not only promotes the product itself, but also deeply integrates the brand image with the desired values, interests, and cultural experiences of the target audience. Its core goal is to suggest a deep emotional connection, which is a part of the brand product becoming a consumer's definition of personal identity and lifestyle.
In fact, it is not uncommon for Starbucks to cross over and sell clothes. In different industries such as catering, automotive, and home/retail, this "off-duty" approach earns a lot of money, and even cases of turning side businesses into trendy brands are not uncommon.
McDonald's has repeatedly released limited edition hoodies, socks, and other clothing featuring the Big Mac logo and elements in different countries and regions. As early as 2019, McDonald's had opened online peripheral specialty stores worldwide, launching hooded sweatshirts, sports shorts, and "french fry socks" with large areas printed with Big Mac burgers, sesame seeds, and french fries patterns, which sparked global fan buying.
Recently, McDonald's also launched limited edition new products and customized merchandise with the popular IP "Star People" under Pop Mart. According to media reports, the joint venture was sold out 15 minutes after its official launch, and the popular "French Fry Star People" was sold out within 1 minute of its launch. In addition to the rush to buy in stores, there is also a significant premium in the second-hand market, with toys originally priced at 59.9 yuan rising by about 30%, and even free meal mats being sold separately at clear prices.
The new domestic car making force NIO has taken this move to the extreme. NIO Life, a subsidiary of NIO, has its own independent fashion designer team, and its mall sells assault jackets, cashmere sweaters, and down jackets with astonishing sales. Car owners (even non car owners) wearing these clothes is the greatest recognition of the brand's lifestyle and circle.
Behind these cases, there are three major business logics:
1. From "functional consumption" to "emotional immersion": Starbucks is not just about caffeine, but also about white-collar life. Starbucks sells vests, T-shirts, and more, and it may prefer that you wear its IP (Bear Store Manager) on your body, using clothing as a high-frequency, visible medium to turn brand fans into its mobile billboards.
2. Lowering the audience threshold for fans: Taking cars as an example, the consumption threshold for cars is high, and the frequency of replacement is not high. Consumers will not spend high every day, but through T-shirts or other accessories worth a few hundred yuan, they can interact with the brand every day.
3. High gross profit margin and inventory clearance logic: The premium space for clothing far exceeds that for food and raw materials. Through the gameplay of "limited time, limited time, limited quantity", brands do not need to bear the risk of traditional clothing brand overstocking.
After changing ownership: from "Third Space" to "Thousand Stores and Thousand Faces"
In recent years, with the generational changes in consumers and the gradual entry of tea and catering companies into the coffee industry, local competitors such as Luckin Coffee have also had a strong impact on Starbucks. Their traditional approach has failed in the Chinese market, and ultimately, Starbucks, a century old coffee giant, sold this important overseas market to a Chinese private equity fund.
In April 2026, Starbucks announced the completion of its joint venture with Boyu Capital, marking the end of Starbucks China's 26 year "all foreign, pure direct operated" model and the official entry into the era of franchise joint ventures controlled by local Chinese capital.
After the change of ownership, Starbucks China has undergone a significant shift in strategy, from its previous aloof and elite tone to a more radical, down-to-earth, and localized approach.
1. Radical store expansion strategy: from direct sales to franchise expansion of 20000 stores.
After Boyu Holdings, more than 8000 directly operated stores in China have switched to a franchise model in terms of finance and management, and even announced a grand goal of expanding to 20000 stores in the long term.
Starbucks has stated that its China team plans to expand its coverage of county-level cities from over 1000 to over 1500 in the next three years. This means that Starbucks will take the initiative to penetrate the market in county towns and third -, fourth -, and fifth tier cities, competing with Luckin, Kudi, and Milkship to grab the cake.
2. Changes in store type and scene: Say goodbye to the large store model and switch to "thousands of stores and thousands of faces"
Starbucks has always emphasized that coffee is a way of life. Since entering the Chinese market in January 1999, it has attracted the love of many white-collar workers, middle class, and young people through its "third space", which has become the brand logo of Starbucks.
The "third space" created by Starbucks in the past is too heavy and slow in the current fierce competition. After the change of ownership, the store expansion strategy also changed, focusing on lightweight store types and promoting lightweight and stall store types ranging from 80-120 square meters, or even as small as 10 square meters. In response to the "buy and go" habit of young people in the sinking market, we have reduced the number of dine in seats and focused on configuring delivery windows.
On April 8th, Starbucks China held its first public forum in Shanghai after the change of ownership, announcing a new strategy called "Thousand Stores, Thousand Faces" with five major directions: professional coffee, product innovation, scene expansion, one store, one community, and AI driven humanistic connection. In terms of store expansion, we will no longer replicate standardized stores, but adapt stores to different communities.
Starbucks' recent focus on selling clothing and merchandise through IP is a reflection of its strategic shift after the change of ownership. Boyu Capital has invested in companies such as Meixue Ice City and Xiaohongshu, and has a deep understanding of the consumption psychology and social gameplay of young Chinese people, as well as the "traffic code".
This time, by selling clothes and accessories across borders, we are using Starbucks brand assets as a side business to increase store profits through high margin products such as clothing, limited IP, and trendy brand collaborations. At the same time, we are using social media to create topics, maintain brand popularity and youthfulness, and help old brands regain new vitality.
It remains to be seen whether Starbucks' cross-border clothing sales are a "trial run" of limited marketing, or whether they have the potential to become the backbone of the company's second growth curve in the future.
In the short term, Starbucks' clothing sales are not the main focus. Its goal is to create social topics, amplify the value of its IP through clothing, increase individual store profits, and win the local competition.
In the long run, the goal is to transform Starbucks from a "coffee chain store" into a lifestyle IP platform, in order to support the expansion goal of 20000 stores.
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