Starbucks products are sold at much lower prices in the US than in China, even with tariffs and transportation costs added. CBN Daily reported.
David Fieldman: Starbuck’s price-gouging and deceptive marketing practices as well as their inferior coffee is well known and has been their core strategy in China ever since they opened their first shop in Beijing. And it has become worse in recent years.
They intimidate landlords, create an iconic appeal among the populace and do their utmost to drive out the competition.
Even though Costa Coffee is priced higher than it should be in China, it costs less than Starbucks. More important, their coffee is superior.
There are many independent coffee houses and coffee shops in the major cities in China, which should be micas for coffee drinkers, given their intimate surroundings, quiet atmosphere and attentive staff that actually serve you.
Who wants to line up to buy an overpriced cup of cappuccino or latte made with long-lasting, (not fresh) milk and eats lousy warmed over and sometimes stale food only to be ripped off?
Bruce Bernstein: Starbucks is priced where they are because they can. Their prices are based on based on what the market will pay. In China, Starbucks is not really a coffee shop. It is an image generator, letting the local Chinese feel that they “have made it”… The middle to upper class 18 – 40 year olds use Starbucks to prove to their peers that they are management.
Andrea Gilbey: I do agree with your sentiments Edward, but Bruce is right. Expansion in China is the reason they’ve turned the company around and pulled it out of recession.
yaodong han: CCTV do not know what civil people want, so they always do some stupid thing.
David Mortaz: Has anyone considered the impact of import tariffs that China charges on Coffee that Starbuck imports into China!!? US was doing the same to Japanese Auto Companies for years in the name of protecting the domestic auto makers. The shoe is now on the other foot.
Besides, Startbucks is not just serving coffee. They are creating an “experience”. How much value do you place on the Free wifi that Starbucks delivers at their coffee shops worldwide.
Aiyan Smolak: Even I agree with CCTV’s analysis on the cost of coffee industries. What makes a business successful? It is not just lower price. All those require investments, therefore it worth of value.
Domestic coffee stores are not selling their coffee at 10rmb. The margin is pretty attractive like CCTV said. Comparing with Starbucks, local coffee stores are using less quality coffee beans.
Domestic businesses want to target Starbucks shall invest more on service, product quality and brand establishing.
Marty Pollack: I agree with some of what this article says but the notion that someone could sell coffee for 10 Yuan a cup and stay open is just stupid. Milk in china that can be used for espresso drinks costs 8 yuan per liter, if you are using a 16 oz cup that would be 3.8 yuan just for the milk not counting espresso, labor, rent, waist and the million other costs that go into a cup of coffee.
Don’t get me wrong i don’t drink Starbucks coffee in any country I go to and the Cafes I work with are all a bit cheaper than Starbucks and offer a much fresher product, but if we are going to talk bad about them lets do it in a way that makes sense understanding that take away business in China is really low compared to the US meaning your volume will be lower and cost per cup higher.
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