The price of Starbucks coffee is "bitter" for Chinese people. Why is Starbucks so expensive?

It is reported that buying a small latte in Starbucks in China costs RMB 27 yuan, while the same coffee in New York costs US $2.75, plus 8% consumption tax, which is equivalent to RMB 18 yuan, 1/3 cheaper than in China.

A recent survey by foreign media in several cities around the world shows that Starbucks prices in Beijing are higher than those in Tokyo, New York, Hong Kong, London and other cities. Among them, Starbucks coffee, which sells for US $3.81 in London, has become US $4.81 in Beijing, an increase of 26%. Beijing's per capita disposable income is far lower than that of cities such as New York and London. According to the GDP forecast data of various countries released by the official website of the International Monetary Fund (IMF) in April 2013, in 2013, the per capita GDP of mainland China was US $6629, far behind US $51248 and UK $38002.

Brand marketing experts said that the real reason behind Starbucks 'high pricing in China is that enterprises deliberately raise brand positioning in order to grab higher profits, so that coffee buyers appear to have good taste.

Not to mention, after such pretentious, Starbucks has indeed made huge profits in China. China's operating profit margin far exceeds that of the United States and even more than 16 times that of Europe and other regions. The pretentious Starbucks may have really figured out the customer's pretentious psychology.

According to a well-known food marketing expert in China, the cost of Starbucks coffee mainly includes two parts, one is operating cost and the other is material cost. In today's global procurement, the prices of coffee beans everywhere are very transparent. Under the international procurement adopted by Starbucks, the raw material costs are almost the same everywhere, and the raw material costs in China will not be higher than those in the United States. In terms of operating costs, labor costs, which account for an important component, are much higher in the United States than in China, while other costs such as rent, water and electricity are also higher in the United States than in China. Therefore, operating costs in the United States are almost higher than those in China. Taken together, the cost of a Starbucks cup in the United States is no lower than in China, which sells it at a higher price.

According to foreign media reports, logistics costs account for a relatively high proportion of Starbucks costs. Starbucks Beijing uses coffee beans and other ingredients such as cups and mugs that cost little more to import into China than into the United States. The problem is that you need to transport these materials from point A to point B. "For example, the transportation cost of coffee beans from Colombia to Tianjin Port is equivalent to that from Colombia to Los Angeles Port." David Wolf, an expert on public relations in China's commerce, explains,"The real reason is that it's expensive to transport raw materials from Tianjin's port to Beijing's stores." Although China has invested billions of dollars over the years to improve port and transportation infrastructure, the combined amount of taxes, transportation costs and intermediary fees adds to logistical costs that will eventually be passed on to consumers in the form of higher-priced coffee products.

Ms. Qin, who has lived in the United States for several years, told reporters that Starbucks is almost the only coffee in the United States that everyone can afford regardless of level or race.

One of the main reasons is cultural heritage. On the other hand, buying a good item such as an expensive cup of coffee can add a lot of "face" to your business or friends.

Starbucks reported for the second quarter of fiscal 2013 that operating margins in China/Asia Pacific were much higher than those in Europe and the United States, and even 16.8 times higher than those in Europe and other regions.