What happened with the Starbucks Douyin coffee coupon campaign?

Starbucks ran a Douyin promotion offering two Flat Whites for 0.01 yuan on the morning of November 23. By early afternoon, buyers reported they could not redeem the coupons and received messages saying issuance had failed and refunds would arrive within one to three days. About 900,000 orders were sold before the link was taken down.

Starbucks apologized, saying an internal test link had been activated by mistake, but legal experts noted that unilaterally canceling the orders may count as breach of contract. The episode lands as the chain pushes aggressive promotions and faster store growth in China, part of a broader push behind Starbucks success in China.

Coffee chain giant Starbucks has once again become the focus of public opinion, this time due to a Douyin promotion offering coupons for two Flat White coffees for 0.01 yuan. Many consumers who grabbed the coupons were then told they could not be redeemed and the system automatically issued refunds, sparking widespread dissatisfaction. Starbucks subsequently issued an apology, explaining that an internal test link had been mistakenly activated. However, the incident did not die down, with legal experts pointing out that the merchant's unilateral cancellation of the contract was suspected of breach of contract. Meanwhile, Starbucks is accelerating its expansion and adjusting its marketing strategy in the Chinese market, frequently rolling out promotional campaigns. This article reviews the course of the incident, the reactions of various parties, and Starbucks' recent moves; Front Street Coffee also continues to follow developments in the coffee industry.

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Starbucks has once again shot to the top of the trending searches! This time it was because a promotion requiring only 1 cent set off a huge uproar.

Yesterday, the topic #StarbucksExposedForDouyin0.01YuanCouponNotRedeemable# quickly climbed to the Weibo hot search list, and netizens immediately began discussing it in droves, with many bluntly saying, "Isn't this a case of not being able to afford to play? If you can't afford to play, don't run the promotion."

The incident began when Starbucks launched a promotion on the Douyin platform for coupons to buy two Flat White coffees for 0.01 yuan. The promotion started on the morning of November 23, and around 1 p.m., netizens began reporting one after another that they could not complete redemption after grabbing the coupons. Soon afterward, they received text message notifications saying that coupon issuance had failed and the system had automatically initiated a refund, with the refund expected to arrive within 1 to 3 calendar days. According to media reports, about more than 900,000 orders were sold under the promotion link before it was taken down.

That evening, Starbucks China urgently issued an apology statement and pinned it to the top. The statement said roughly: this morning an internal test link was mistakenly activated; the system settings have now been corrected and automatic refunds have been initiated; consumers have also been notified by text message, and we apologize for this.

After Starbucks responded, netizens generally believed that this was an internal management problem and that consumers should not have to bear the consequences, especially since customers who bought early had already successfully redeemed the coupons. Under the hot search topic, netizens left comments one after another: "The key point is that some people already redeemed it successfully," "Some people have already drunk it, and it was your livestream host who told everyone to place orders quickly, so this looks like illegal traffic diversion, doesn't it?", "Can't afford to play, can't afford to play, can't afford to play," "Just withdraw already, it's so embarrassing, you're not even as generous as Luckin," "Your mistake should be paid for by yourselves, why refund me? I'm going to complain to 12315 about you! ..."

On Weibo, lawyer Fan Chen of Beijing Jingsh Law Firm said that Starbucks' internal operational problems should not affect its performance of the corresponding responsibilities and obligations toward consumers. After customers paid 0.01 yuan to buy coffee coupons, customers and Starbucks formed a corresponding contract.

According to the Civil Code and the Law on the Protection of Consumer Rights and Interests, Starbucks should perform its obligations according to the agreement, and its issuance of a statement unilaterally canceling the contract is clearly a breach of contract. Moreover, in the long run, canceling the campaign without honoring it may lead customers to believe that the merchant lacks credibility. Starbucks should cherish its reputation, fulfill the campaign promises, and leave consumers with the image of being honest and keeping its word.

Perhaps due to the relentless pressure from competitors in the coffee market, Starbucks has, at some unknown point, begun adjusting its marketing strategy in the Chinese market. Since the beginning of this year, Starbucks has been opening stores crazily in China. As of the end of September, Starbucks had 6,021 stores in China, a 12% year-on-year increase compared with fiscal year 2021.

In addition, Starbucks has also begun distributing various types of coffee coupons and frequently launching discount promotions. On its app and mini-program, as well as on platforms such as Meituan and Ele.me, Starbucks irregularly issues spend-and-save coupons and "buy one get one free" coupons, and even waives delivery fees, along with "spend 50 yuan and get a 6 yuan gift coupon," the Double 11 presale "Starbucks Grande Stock-Up Card," and "choose any 10 cups of coffee for a final price of 240 yuan." Posts with guides on how to take advantage of Starbucks deals have also begun spreading continuously on social platforms.

In addition, Starbucks has accelerated the pace of launching new products. In June of this year, Starbucks China launched a brand-new iced coffee category—the "Iced Shaken Espresso" series. In July, some Reserve stores launched the Starbucks Reserve Whiskey Barrel-Aged Coffee series, releasing 11 new products at once. In October, it launched an autumn series headlined by Creme Brulee Macchiato.

Not only is Starbucks continuously increasing its expansion efforts in the Chinese market, but the expansion of various brands in the Chinese market is also accelerating in the same way. Competition in the coffee track can be described as extremely fierce. Now this move by Starbucks has attracted considerable attention. I wonder whether it will have an impact on its revenue in the new quarter?

Image source: Internet

The above content is compiled by CoffeeHunters, a coffee news website.