According to Zhizhong Finance APP, Starbucks (SBUX.US) has hired its first Chief Growth Officer (CGO) in China to attract young coffee drinkers back, as this USA chain has struggled in its largest international market.

Starbucks China announced on Monday that Company Executive Yang Zhen has been at Starbucks since November, with China's product development, research and development, and marketing departments reporting to Yang Zhen. It is reported that Yang Zhen was previously the user development director at electric vehicle manufacturer Xiaoyuan Auto. His role will also focus on coffee product innovation and improving customer experience.

The company stated that China is 'an important growth engine for the future.'

Starbucks was once very popular in China, but as demand has slowed down, consumers have shifted to buying cheaper local newcomers (at only one-third the price of Starbucks), and the company is struggling.

It has been reported that main competitor Luckin Coffee (LKNCY.US) surpassed Starbucks in annual sales in China for the first time last year, and Starbucks is exploring options for its mainland Business, including the possibility of selling shares in that division.

Yang Zhen has committed to collaborating with popular culture franchise companies, indicating that the company hopes to leverage brand power outside itself to save its China Business, as same-store sales fell by 14% in the most recent quarter ending in September. The company also plans to draw from Luckin's practices, which has long made this type of partnership a cornerstone of its marketing strategy. Luckin's recent success is inseparable from its collaboration with 'Black Myth: Wukong' and an alcoholic latte produced by Kweichow Moutai (600519.SH), which not only boosts sales but also enhances online promotion.

This strategy is not only seen in coffee chains. The housewares company MINISO (09896) has launched relatively inexpensive toys based on the cartoon images of Disney (DIS.US) and Sanrio Co. to attract Chinese consumers. POP MART (09992) has also released a "Blind Box" containing cartoon characters from Garfield to Minions.

Starbucks' new CEO Brian Niccol previously stated that he would travel to China this month to better understand the local business and competitive landscape. Starbucks currently operates over 7,600 stores in China. Earlier this year, he also articulated his vision for domestic strategic changes, including controlling beverage customization and improving service times, stating that the company has deviated from its processes in recent years.