Starbucks is accused of profiteering in Huamou with a 30% difference in the price of the same coffee at home and abroad

"looking up at the bright sky at a 45-degree angle at Starbucks, you can feel a touch of vulgarity."

"will you feel that the high-end atmosphere is high-end & # 39?"

"it is a roadside shop that can be seen everywhere in the United States, but it has become a symbol of petty bourgeoisie life at home."

When it comes to Starbucks' popularity among business people and white-collar workers in China, many people do not understand the reasons behind it. Recently, some media exposed that Starbucks was suspected of profiteering in China, which aroused widespread public concern as soon as the news came out.

Consumer: Starbucks is "a little expensive"

A few days ago, a reporter from the Economic Information Daily visited several Starbucks stores and interviewed some consumers randomly and found that the price of the relevant coffee products was generally about 30 yuan. many consumers interviewed thought Starbucks was "a little expensive" and would only spend once in a while, while some consumers said the price was still within an acceptable range.

Mr. Chen, a coffee lover who lives in New York, told reporters that real coffee lovers seldom drink Starbucks in the United States. In fact, Starbucks coffee is usually not very particular about technology, and it targets a customer group that is affordable to everyone, regardless of level or race.

Mr. Chen said that in China, Starbucks is still the same Starbucks, but the consumer population is different. Starbucks in China is mainly aimed at middle and high-end consumers, many consumers appreciate its "petty bourgeoisie atmosphere", and some business people even arrange meetings with customers in Starbucks stores.

According to media reports, Starbucks' prices in Beijing are higher than those in Tokyo, New York, Hong Kong, London and other cities. A Starbucks coffee sells for $3. 81 in London. The price of Starbucks coffee in Beijing has increased by 26% to $4.81. The same small cup of coffee, which sells for 27 yuan in China, costs about 18 yuan in the United States.

In addition, it is not just coffee that is more expensive in China's Starbucks than in the United States and other places. The mugs sold by Starbucks, coupled with tariffs and shipping costs, are cheaper in the United States than in China. Some consumers have found that a mug bought from a Starbucks in Seattle costs $10.9 after tax, while a similar mug sells for about 100 yuan in China. It is worth mentioning that this mug bought in the United States is marked "made in China".

It is worth noting that the per capita disposable income in Beijing is much lower than that in cities such as New York and London.

Starbucks: responding to questions and throwing out "cost Theory"

Looking at Starbucks' fiscal second quarter 2013 report, the reporter found that during the reporting period, Starbucks China / Asia Pacific revenue rose 22% year-on-year to $213.6 million, with an operating profit of $68.3 million and an operating profit margin of 32%. On the other hand, the profit margin in the Americas is 21. 1%, and the operating margin in Europe, the Middle East and Africa is 1.9%. Thus it can be seen that the operating profit margin of China and Asia-Pacific region is much higher than that of Europe and the United States.

In response, Starbucks China sent a response to the Economic Information Daily that the results of the three regions reflected in Starbucks' results were consolidated financial reports of all markets in each region. The profit margin of a region is affected by many factors, and the data of a market can not be derived directly from the consolidated statements of the region.

Starbucks said that compared with other countries and regions, Starbucks' operating costs and market drivers in the Chinese market are completely different. Therefore, the comparison of Starbucks' price differences in the Chinese and American markets is not based on the same dimension.

Starbucks also said that pricing is based on a comprehensive consideration of various operating costs such as raw materials and equipment, infrastructure investment, logistics and transportation, employee compensation and benefits, rent and exchange rate. In addition, the cost is also dynamic, which is affected by the dynamic economic environment of the local market, the price range of the industry and other variables. Compared with the American market, the Chinese market is still in the early stage of development, at this stage, there is a lot of investment in infrastructure construction, and the number of stores in China is much less than that in the American market, that is, the overall scale is smaller, which makes some costs relatively high. such as logistics, warehousing and so on.

Some experts refuted Starbucks' claim.

In terms of material cost, some people in the industry said that as the main raw material of Starbucks coffee, although coffee beans are shipped by enterprises to the United States for baking after global international procurement, and then shipped everywhere, coupled with cross-border logistics costs and about 15% customs duties, the actual cost of coffee beans per cup of coffee is also very limited. In addition, the global price of coffee beans has been falling in recent years. At present, the price of high-quality cooked coffee beans on the market is about 100 yuan per kilogram.

In terms of operating costs, including employee compensation, benefits and rent, it is generally believed that Starbucks' investment in China should be far lower than that of other countries and regions. According to GDP forecasts published on the International Monetary Fund's website in April 2013, the per capita GDP in mainland China was $6629 in 2013, far behind $51248 in the US and $38002 in the UK. The huge income gap suggests that Starbucks' labor costs in China should be much lower than those in the US and UK.

Starbucks also has a relatively high investment in China due to increased spending on converting some licensed stores into proprietary stores, Starbucks said in its report. However, some experts believe that under normal circumstances, the biggest costs of food retail are concentrated on materials, labor and rent, and other factors have little to do with the price setting of the final product.

Experts say: blindly following the brand effect is not worth encouraging.

The same foreign brands are "civilians" in their hometown, but they have become "aristocrats" when they arrive in China.

Ren Jing, director of the Press and Public Affairs Department of the China Consumer Association, told reporters that Starbucks' product pricing belongs to the category of complete market competition, there is no fraud such as concealing price information, and it does not involve the public interest. therefore, there is no illegal behavior from the perspective of price law. However, consumers'"blind obedience" to brand effect due to information asymmetry in the process of consumption should not be encouraged.

Some brand marketers believe that since China's economy opened to the outside world in the 1980s, imported products are usually considered high-quality and high-grade, and can reflect a person's social status. This has resulted in the current "vulgar" consumption habits of many Chinese consumers. Instead of being an obstacle to consumption, high prices have become a kind of attraction. On the other hand, it also exposes the reality of the lack of competitiveness of similar high-end brands in our country.

In response to the increasingly heated discussion that Starbucks should reduce its prices in China, du Jiangyong, an associate professor at the School of Civil and Commercial Law of Southwest University of political Science and Law, said, "as an ordinary consumer product, the price of coffee should be self-regulated by the market." not by other means. And consumers should not pursue blindly and excessively hype some brands and products that do not live up to their name. It is very important to establish a rational concept of consumption. "

Short comment: Starbucks is not worried about selling in China, on the one hand, it is caused by the increasing popularity of coffee in China; on the other hand, it is the result of blindly worshiping foreign countries and following the fashion. Just want to say: advise consumers that foreign brands are by no means synonymous with "high-end atmospheric class"; advise foreign brands that Chinese consumers only want to "treat them equally".

(responsible Editor:)