Starbucks is trying something new to fix its China problem

To help turn things around, the coffee giant has appointed Tony Yang as its inaugural chief growth officer for the region. Yang will focus on re-energizing Starbucks’ brand through celebrity and entertainment partnerships, as reported by Bloomberg.

Yang, who joined Starbucks in November, brings a unique background. Before his move to the coffee chain, he worked in product development for Jiyue Auto, a company owned by Chinese multinational conglomerate Geely Holding Group. Now, Yang, alongside the company’s marketing team, will aim to enhance the customer experience and develop new coffee products. Yang’s appointment follows Molly Liu’s in September, when she was named sole CEO of the region.

The challenge for Starbucks is clear. As local competitors like Luckin’ Coffee (LKNCY) gain ground, the American giant has struggled to maintain its edge. Under former CEO Laxman Narasimhan, the company’s struggles deepened, and its once-promising “Triple Shot Expansion” plan – aiming to open a new store every nine hours – has fallen short of expectations.

With China’s economy slowing and consumers tightening their belts, Starbucks is losing market share. Rather than splurging on premium drinks, customers are opting for more affordable alternatives. In fact, the company saw a 14% drop in comparable sales during the last quarter. Starbucks is hoping that Yang’s new approach will help reverse this decline.

In the U.S., new CEO Brian Niccol has already outlined a series of changes to streamline operations, including paring down the menu, reintroducing condiment bars, and making sure fresh brewed coffee is delivered to customers in under four minutes. At the time, he stressed that while the U.S. will remain the primary focus, the company must gain a deeper understanding of how to “unlock growth opportunities and leverage strengths” in China.

Meanwhile, analysts at Bank of America $BAC (BAC) suggested in September that Starbucks could benefit from licensing its China business. By “spinning off” its operations in the region, the firm believes the company could enhance value, given the challenges it faces in navigating a tough market environment. In November, the company was reportedly considering various options for its Chinese business, including a potential sale of a portion of its stake in the operation.