What is the difference in the price of Starbucks in different countries? cultural decoration.

Coffee beans

Given the high relative price, it is a small miracle that Starbucks can still operate in China. But in fact, the coffee empire from Seattle is thriving in China. In December, Bloomberg reported that Starbucks plans to double the number of employees in China by 2015 and open hundreds of new stores in major Chinese cities. Starbucks even wants to develop China into its second largest market after the United States. In fact, per capita income is just a crude way to measure the purchasing power of Starbucks' real customer base: most Starbucks coffee shops are in China's large coastal cities, where people earn much more than inland per capita. However, in a developing country, especially one where there is no coffee culture, it is surprising that people are willing to pay for the expensive Starbucks. According to normal logic, wouldn't it be better if Starbucks could lower its price a little to attract more customers?

In fact, the problem with lowering prices to attract customers is obvious-it is too expensive to open Starbucks coffee shops in China. In a country where labor is so cheap in China, Starbucks employees earn much less than their American counterparts. This may be paradoxical, but the cost of a large latte goes far beyond the labor costs of employees. The message from the Wall Street Journal is shown in the picture, so feel it:

China Starbucks where you 1

The really expensive place is logistics and distribution. Imported coffee beans or other materials, such as mugs and coffee cups, are used at a Starbucks in Beijing, almost the same as in the United States. But the real difficulty is domestic logistics and distribution. "although the cost of shipping raw materials from Colombia to Tianjin Port is almost the same as importing raw materials from Colombia to California," said David Wolf, a professor of public relations in Chinese business, "the cost of shipping these materials from Tianjin Port to Beijing is high." Although the government has invested billions of dollars over the past few years to improve the country's port and transport infrastructure, spending on taxes, services and logistics personnel has eventually been passed on to the prices of lattes and cappuccinos, paid for by consumers.

The question is, since Starbucks is so expensive in China, why do so many people buy it? In many cities in China, there are many coffee shops that offer basically the same quality coffee and comfortable environment as Starbucks, but charge much less than Starbucks. But why is Starbucks still so popular?

It is mainly a matter of concept. Since China began to import foreign products in the 1970 s, these products have won the favor of brand-conscious consumers. "generally speaking, foreign goods are always considered to be of better quality, better workmanship and better quality, but in short, they are better than domestic ones." "A person's social status is defined by what he has," Wang Fei, a Washington consultant who grew up in Wuhan, told reporters. " Therefore, high-priced products are highly attractive to those who want to show off their wealth. In other words, buying coffee in a high-end place is a very honorable thing. Another reason why Starbucks is so popular may be that its entry into the Chinese market coincided with the popularity of coffee drinking among Chinese young people.