Starbucks Korea sales slump after ‘Tank Day’ marketing backlash

SEOUL: Starbucks Korea has suffered a “very significant” drop in sales after a marketing campaign that evoked a brutal 1980 military crackdown on pro-democracy protesters triggered a public outcry, an official from the operator Shinsegae Group said yesterday.

The retailer, whose subsidiary E-Mart owns the coffee chain in South Korea, has faced mounting criticism over its “Tank Day” tumbler marketing campaign launched on the anniversary of the May 18 Gwangju Uprising, when the military government deployed troops and tanks to suppress pro-democracy demonstrations.

In a press conference yesterday, Shinsegae chairman Chung Yong-jin made a public apology and asked people not to take out any anger on Starbucks Korea employees and frontline staff.

“I take it very seriously that Starbucks Korea’s inappropriate marketing hurt and angered many people. I will take all responsibility for the incident.”

Hundreds of people are estimated to have died or gone missing when the military dictatorship of Chun Doo-hwan cracked down on the protests in Gwangju.

A Shinsegae official said sales had fallen sharply since the marketing controversy and an internal investigation was focused on whether there had been any premeditation or intentional wrongdoing by management or employees.

Starbucks Korea’s e-commerce team organised the campaign and received final approval from team leaders and executives, the official said.

The investigation had not been able to conclude whether there was intentional wrongdoing, but the incident exposed serious flaws in Starbucks Korea’s risk management framework, the company said. — REUTERS

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المصدر: New Straits Times