Starbucks in Korea under fire for free-gift ‘wastage’
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A giveaway promotion from Starbucks in South Korea has drawn the ire of critics who allege consumers are buying coffee and dumping it to gain enough points for free goods. The promotion has become popular, critics say customers feel pressured to buy products in “excessive” volumes.
Starbucks in South Korea is holding a promotional event from May 21 to July 22. If a customer buys 17 drinks, including seasonal drinks, they can get one of two small suitcases or a camping chair.
Rival chain Hollys Coffee has also been running a promotion since May 12 that allows customers to purchase three products useful for camping, including parasols and chairs, at a 60-per-cent discount, if one spends more than 10,000 won (US$8.10) at the store.
The problem is that some of these promotional products are exploding in popularity, and there is an abnormal craze, such as mass purchases of unwanted drinks to receive them.
On social media sites, tips on how to buy 17 drinks at Starbucks for the lowest price (68,700 won) have been shared.
Starbucks does not disclose the number of free gifts available at each store, but information about the stores is being posted online.
Last Friday, a customer bought 300 cups of coffee at a time and returned home with only the small suitcases, as free gifts.
The customer posted a memo titled “All Free” for the remaining 299 cups besides the one he or she took, but no one drank them, so all the coffee was reportedly discarded.
In addition, some of the Starbucks suitcases are being sold for up to 200,000 won on online shopping malls and secondhand trading sites.
“It is a thank-you event for customers who usually buy more than two cups a week, but we are in a difficult position as other customers report of the inconvenience,” a Starbucks in South Korea official said.
“On social media sites, tips on how to buy 17 drinks at Starbucks for the lowest price (68,700 won) have been shared.”
“However, these gifts are being praised for their design and practicality.
Hollys Coffee is also known to have many people lining up from dawn to buy its promotional items or going from store to store in search of a particular item.
The craze is also attributed to the fact that both companies have released gifts aimed at “home camping.”
Interest in domestic travel and camping has grown as the global Covid-19 crisis has made it virtually impossible to travel abroad during the summer vacation season.
In particular, “home camping,” which can be enjoyed on verandas, porches or terraces at home, has also become popular as the number of people staying at home increases due to the coronavirus outbreak.
According to Gmarket’s recent survey of sales during the period from April 22 to May 21, sales of tents for home use increased by 39 percent year-on-year, compared to growth of 49 percent for folding tables, and 48 percent for folding camping chairs.
Some point out that the purpose of the promotional events, which were intended to convey a token of gratitude to loyal customers, is becoming blurred. Some are calling for measures such as limiting the quantity per person.
“Unlike ordinary products, there is a problem where food and beverage be discarded if they are not consumed immediately,” a retail industry source said.
“To prevent this phenomenon of throwing away money, Starbucks should be telling customers how many free gifts each store has prepared.”
Questions & Answers
Q.What specifically are customers doing to acquire the free gifts offered by Starbucks?
What specifically are customers doing to acquire the free gifts offered by Starbucks?
Critics allege customers are buying coffee and dumping it to gain enough points for the free goods. One customer reportedly bought 300 cups, took the suitcases, and discarded 299 coffees.
Q.Are the promotional items from Starbucks being resold, and if so, for how much?
Are the promotional items from Starbucks being resold, and if so, for how much?
Yes, some of the Starbucks suitcases are being resold. They are appearing on online shopping malls and secondhand trading sites for up to 200,000 won.
Q.What is the reason behind the popularity of these 'home camping' gifts from both Starbucks and Hollys Coffee?
What is the reason behind the popularity of these 'home camping' gifts from both Starbucks and Hollys Coffee?
Interest in domestic travel and camping has grown due to global travel restrictions from Covid-19. 'Home camping' on verandas or porches has become popular as more people stay at home.
Q.What measures have been suggested to prevent the wastage of drinks in these promotions?
What measures have been suggested to prevent the wastage of drinks in these promotions?
Some are calling for measures like limiting the quantity of gifts per person. A retail industry source suggested Starbucks should disclose the number of free gifts prepared at each store.
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