A fast-changing Chinese coffee market awaits Starbucks CEO Brian Niccol

During Starbucks' fourth-quarter earnings call, newly installed CEO Brian Niccol told investors he needed to spend more time in China to understand the challenges.

The company's same-store sales nationwide plummeted 14% due to foot traffic and average spend per customer fell. Niccol told CNBC's Andrew Ross Sorkin that he plans to visit the country in the first or second week of December to better understand things.

Here's what he might see when he comes to visit.

Chinese startups have become increasingly popular in the coffee sector, competing with more than 7,300 Starbucks stores in the country.

Previously listed on the Nasdaq, Luckin Coffee encountered accounting problems and was delisted. But despite this, the Chinese coffee chain has grown rapidly in China, with more than 20,000 stores at the end of the third quarter.

And it is far from the only one. Other local rivals include Cotti Coffee, Manner, M Stand, Seesaw and Nowwa.

Luckin, Cotti and Manner are the most aggressive on pricing.

In Beijing, for example, a small latte that costs $4.22 at Starbucks, $2.25 at Luckin, $1.75 at Cotti and $2.11 at Manner. And that is without the regular competitive discounts. For example, on a recent day, Luckin offered a promotion that sold most drinks for 90 cents.

Many of these Chinese chains have stores that can be cramped and may employ two (or in Manner's case, often only one) barista. The food menus are limited and the seating is little more than a few folding chairs. However, the drinks overall consistently undercut Starbucks by half.

Starbucks has a fast-paced version of its coffee shops in China called Starbucks Now, where most customers order drinks for takeout through the app. The interior is simpler. Still, there are no special discounts compared to traditional Starbucks.

Price is an important consideration for Chinese consumers due to the slowing economy. At the same time, many want to maintain a similar lifestyle, which means consumers want to save wherever they can without sacrificing too much on quality.

For the coffee competition, Chinese chains keep their brews interesting by switching menus often and experimenting with combos that go far beyond the traditional cappuccino.

Coffee is mixed with fruit juice, scented with flowers and thickened with rice and even cheese. Chinese brand Manner claims it only uses locally produced beans and trains its baristas to work with semi-automatic coffee machines.

M Stand and Seesaw compete at the higher end of the market with higher-end concoctions, such as an all-time M Stand hit – a latte in an edible oatmeal cookie cup.

But with so many choices available, for the most part, coffee drinkers can find something to suit both their tastes and their wallets.

In addition to its Chinese coffee rivals, Starbucks competes with a host of other local chains in tea.

Specialty tea stores such as ChaPanda, Auntea Jenny and Mixue Bingcheng sell similar fruit and milk teas to Starbucks for about 60% less. In addition to cheap tea drinks, Aunt Jenny sells lattes for $2.67. Mixue's version costs 56 cents.

As more and more Chinese want a daily java fix, grab-and-go coffee is becoming widely available at tea chains and convenient supermarkets.

Starbucks also faces international challengers such as Tim HortonsCosta Coffee, McDonald's And KFC.

Despite fierce Chinese competition, Starbucks still has fans.

A key selling point for Starbucks in China remains that it is seen as a place where you can go with friends or maintain business contacts.

Unlike many other locations in the country, Starbucks stores are winning as important meeting places because of their uniform experience: pleasant interiors, comfortable seats, cleanliness and friendly staff. Starbucks maintains its status as a high-profile, aspirational brand.