Starbucks Expands Beyond Coffee with New Fashion and Beauty Division

Starbucks is making a significant shift in its business strategy by expanding into the fashion and beauty sectors. This move comes as part of a larger initiative dubbed the ‘Back to Starbucks’ turnaround plan, aimed at revitalizing the brand amid increasing competition and internal challenges. The coffee giant has enlisted industry veteran Neiv Toledano as the head of Brand Activation, marking a strategic step to diversify its offerings beyond coffee.

The company has faced mounting pressure in recent years, with experts noting a shift in focus towards rapid sales at the expense of customer loyalty. As competitors seek to capture market share, Starbucks is striving to regain the trust of consumers who are exploring alternative brands. Rising costs, from coffee beans to employee wages, coupled with inflation, have compounded the company’s financial struggles.

In a bid to ensure a smooth entry into the new markets, Starbucks is prioritizing leadership in its fashion and beauty divisions. Toledano’s extensive experience includes her previous role as a senior marketing manager at e.l.f. Beauty, where she successfully promoted the brand on social media. Her background also includes managing social media for Chipotle and The Cheesecake Factory.

In a recent LinkedIn post, Toledano expressed her enthusiasm about joining Starbucks, stating, “Now, I’m so excited to share I’m joining Starbucks as the Head of Fashion & Beauty… combining my greatest passions to drive culture, fandom, and buzzworthy moments for this ICONIC brand.”

Strategic Collaborations and Brand Evolution

While the launch into fashion and beauty may seem sudden, it aligns with Starbucks’ long-term vision. The company has previously ventured into creative partnerships with high-profile designers, demonstrating its ability to blend fashion with its brand identity. Notably, in 2019, Starbucks collaborated with designer Diane von Furstenberg to release a limited-edition product line in Asia. More recently, in 2023, a partnership with designer Brandon Blackwood resulted in the introduction of stylish sling drink bottle bags, reinforcing the notion that Starbucks products can serve as fashion accessories.

These successful collaborations have provided Starbucks with the confidence to expand into fashion and beauty on a larger scale. By leveraging its strong brand presence and unique creative partnerships, the company aims to redefine its identity and attract a broader audience.

As Starbucks embarks on this ambitious new journey, the coffee chain seeks to not only regain its loyal customer base but also to position itself as a contender in the fashion and beauty industries. This strategic pivot reflects a recognition of evolving consumer preferences and a commitment to innovation in a competitive landscape.