Starbucks' Next Big Venture Isn't Coffee: Hires First Manager to Lead Fashion and Beauty Segment

Starbucks has been the global king of coffee for decades. But now, the business is reportedly struggling. According to experts, Starbucks lost its way as it focused more on fast salesprofits instead of taking care of its loyal customers.

Now, as part of a major 'Back to Starbucks' turnaround plan, the once unbeatable coffee chain is launching a bold new strategy to diversify its identity. In a move that has surprised many industry insiders, Starbucks is venturing beyond the coffee cup and into the world of fashion and beauty.

A Crowded Market and Internal Struggles

While Starbucks was once the undisputed leader of the industry, it now faces a surge of competitors eager to claim their market share. The coffee giant must act fast to regain the loyalty of customers who are increasingly looking elsewhere.

Starbucks is also dealing with its own internal problems. Everything from coffee beans to employee wages has become more expensive, and because of inflation, customers are not spending as much as they used to. Because of these issues, the company is making less money.

Starbucks Enters the Fashion and Beauty Scene

As Starbucks builds out its new fashion and beauty divisions, the company is prioritising a seamless launch by creating a specialised leadership role. To lead this expansion, the coffee giant recruited industry veteran Neiv Toledano as the head of Brand Activation. Her job is dedicated exclusively to crafting the strategy and overseeing the brand's debut in the fashion and beauty markets.

Toledano has a strong background in marketing big brands on social media. Before joining Starbucks, she was a senior marketing manager at e.l.f. Beauty and also handled social media for Chipotle and The Cheesecake Factory.

'The past two years on the e.l.f. Cosmetics brand team have been nothing short of amazing... I'm forever grateful to have worked on such a category-defining brand alongside the most disruptive and fearless crew in the industry,' she wrote on a post in LinkedIn as she revealed her move to Starbucks. She added, '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.'

A Long-Term Strategy

Meanwhile, Starbucks's latest move into fashion and beauty may seem like a sudden shift, but Modern Retail noted that this strategy is actually woven into the company's long-term DNA. As the leader in the American coffee market, the brand has the unique power to hand-pick its creative partners from elite designers in the fashion world.

In fact, in 2019, the firm experimented by collaborating with the legendary designer Diane von Furstenberg to launch a high-end line of limited-edition items for its stores across Asia. More recently, in 2023, Starbucks teamed up with Brandon Blackwood to release stylish, functional sling drink bottle bags. These successful partnerships proved that Starbucks products are often viewed as fashion accessories, providing the company with the confidence to officially enter the fashion and beauty space on a much larger scale.