Starbucks Coffee Korea created a de facto VVIP system as soon as it was integrated into the E-Mart subsidiary. Starbucks Korea launched a similar method in 2012 and has been chastised for "classifying customers without providing selection criteria." Starbucks Korea's inclusion into the E-Mart affiliate will reflect Starbucks Coffee Korea's fourth-quarter sales and operating profits in order to maximize performance.
According to the retail sector, Starbucks Coffee Korea stated this month that it is launching the "My Starbucks Friend" system to its consumers. From November last year to October 31st, the top members who got the most "stars" from November to October 31st will be chosen as "My Starbucks Friend," which will provide you with unique advantages for the following year. It did not specify how many stars it deserved.
"We have chosen to pick my Starbucks buddy based on star earnings to give numerous benefits to our regular customers," stated Starbucks Coffee Korea, adding, "we have started this year for the first time and are favorably assessing the future."
The concept is comparable to the "gold premium membership system" proposed by Starbucks Coffee Korea in 2012. At the time, the business sought to provide consumers in the top 1% based on Starbucks card payment transactions benefits such as monthly drink and food coupons, hall cake reservation vouchers once a year, and other unique presents. However, the firm finally white-papered customer complaints by not reporting how much coffee could fit into the 1%.
There are now three membership tiers available in Starbucks Korea: welcome, green, and gold. When you buy a drink with a Starbucks card, you start at the welcome level, and if you buy more than 5 times a year, you move up to the green level, and if you have more than 30, you move up to the gold level. Internally, gold members who do not reveal openly have chosen those with significant payment amounts as "outstanding members" and provided unique presents such as diaries at the end of the year. It is not stated how members are chosen or how they are chosen.
Two days after E-mart announced that its stock sales agreement with Starbucks headquarters in the U.S. had been finalized, Starbucks Korea quickly brought back the VVIP Program.
Starbucks Coffee Korea's sales and operating profit will begin to be reflected in e-results mart's in the fourth quarter. Until now, the equity rate was only 50%, and it was categorized as a connected business and subject to the equity method of accounting. The net and net income of Starbucks Coffee Korea were represented in e-financial mart's statements as a share of its holdings. However, the E-mart share will increase to 67.5 percent, and Starbucks Coffee Korea will be incorporated as an affiliate, and sales and operating profit will be reflected in the fourth quarter's 100 percent e-mart performance.
The VVIP Program has the impact of driving customer sales. As the selection comes to an end, more customers are likely to visit Starbucks branches more often than usual this month. Every time Starbucks Korea launches a limited edition plan like mugs, planners, and other goods, customers line up in the store. Last month, on the 28th, a 20-30 minute queue was seen in stores nationwide when a drink in a reusable cup was offered.
Due to the new coronavirus infectious illness (covid-19), which made it impossible to open in-store, Korea failed to achieve 2 trillion won in sales last year, and operational profit fell for the first time in 11 years. However, it is expected that sales would exceed 2 trillion won this year while operating profit will grow. Sales grew by 17.5 percent year on year to krw 1.10 trillion while operating profit increased by 8.9 percent to krw 95.8 billion.
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