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TH International: Caught In A Price War

TH International: Caught In A Price War


Published on 2024-12-09 13:41:07 - Seeking Alpha
  Print publication without navigation

  • Despite Tims China's potential in the growing Chinese coffee market, price competition has severely impacted its top-line sales and store growth. Click to read.

The article from Seeking Alpha discusses the challenges faced by TH International, the operator of Tim Hortons in China, amidst a fierce price war in the Chinese coffee market. It highlights how the company is struggling with declining same-store sales and the broader economic slowdown in China, which has led to reduced consumer spending. The price war, intensified by competitors like Luckin Coffee, has forced TH International to lower prices, impacting profitability. The article also mentions the company's efforts to adapt by introducing new products and promotions, but notes that these strategies have not yet reversed the negative trends. Furthermore, it points out the broader implications for foreign brands in China, where local competitors are gaining ground by offering lower prices and leveraging digital platforms more effectively.

Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/article/4743077-th-international-caught-in-a-price-war ]
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