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What is Starbucks Pricing Strategy in China about?

Starbucks faced criticism in China in 2013 for high prices that were seen as profiteering. While the CEO claimed higher costs justified the prices, consumers were frustrated by the premium prices. Operating a Starbucks in China was more expensive due to higher transportation and labor costs. However, Chinese consumers still purchased Starbucks products due to seeing imported brands as higher status. To be sustainable, Starbucks needs to consider lowering prices to better fit average incomes while maintainin

Author

Asahi My love

Language

EN