Starbucks Korea reclaims coffee market lead after 5-month slump

Starbucks Korea has reclaimed its position as the leading coffee chain in the Korean market after a five-month slump, according to data released by market tracker IGAWorks. The coffee chain reported an estimated credit and debit card spending of 121.08 billion won ($90.1 million) in September, a 4.3 percent increase from the previous month of August.

This surge in spending propelled Starbucks ahead of its competitor, Twosome Place, which recorded 110.5 billion won in card spending during the same period, approximately 10.58 billion won less than Starbucks.

The recovery in Starbucks' card spending came after a marketing controversy sparked consumer backlash in April. The company's estimated card spending had dropped by 13.13 billion won to 121.19 billion won between April and May. It hit a low of 100.39 billion won in June before beginning a three-month upward trend, reaching 110.06 billion won in July, 116.12 billion won in August, and finally surpassing 120 billion won in September for the first time since the downturn.

The resurgence in Starbucks' popularity can be attributed to the nationwide outrage over a promotion that announced May 18, the anniversary of the 1980 Gwangju Democratization Movement, as "Coffee Day." The promotion was widely criticized, leading to a significant decline in the coffee chain's market share. The reversal of this trend suggests that Starbucks' efforts to improve their marketing strategy and address consumer concerns have been successful, restoring their dominance in the Korean coffee market.