Shanghai foreign enterprises remain confident about development in China

en.sww.sh.gov.cn | Updated:Feb 24, 2020

At the analysts meeting for the first quarter of Starbucks' fiscal year 2020, "Care for the health of store staff and customers" was given priority during the novel coronavirus outbreak, and Starbucks said it will support local authorities by playing a constructive role in the prevention and control of the epidemic.

"We remain optimistic and committed to long-term development in China," Starbucks CEO Kevin Johnson said.

By Jan 31, Starbucks China had temporarily closed more than half of its stores on the Chinese mainland. As one of the country's largest coffee chain operators in term of store numbers, it currently has about 4,300 stores on the Chinese mainland.

In Shanghai, the city with the most Starbucks stores in China, there are always one or two stores open in major business districts, and special delivery services continue to be available for express delivery.

"The number of single store visitors is not as high as during previous Spring Festival holidays, but it is better than everyone expected," said Huahua, the manager of a store in Xujiahui business area.

"After the temporary closure of some stores, we provided coffee and food delivery services in one to two kilometers. The delivery service was very efficient, and the partners who stuck to their posts were also very active. We did a good job in prevention and control of the epidemic and served our customers well," she added.

Starbucks CFO Pat Grismer said the company remains confident about its growth in China. "In any event, based on our current understanding, we expect the impact on the business to be temporary," he said.

Additionally, Vaillant China, part of the Germany-based worldwide heating and hot water corporation Vaillant Group, expects its business in China to fall by more than 10 percent in the first quarter of 2020 because of a drop in consumer activity caused by the epidemic outbreak, but the company has not halted its push into the Chinese market.

Li Lintao, general manager of the heating division in Vaillant China said that in December 2019, Vaillant opened its 33rd branch store in China in Yichang, Hubei province, and with its sales and service center in Wuhan, Vaillant China still sees China as a very important regional market.


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