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    Starbucks'S Price Increase Plan Will Not Affect The Chinese Market.

    2010/9/23 17:48:00 40

    Starbucks Price Rise

    In September 23rd, Starbucks (Starbucks Co.) announced that it would plan "targeted" to improve specific products in some markets.

    price

    The price of green Arabica coffee hit a 13 year high and the prices of other raw materials also rose sharply.


      

    Starbucks

    Li Jing, director of public relations, told reporters that the price increase plan is only in the US mainland and will not affect the Chinese market.


    Since the middle of last year, Starbucks has shut down nearly 1000 stores in the United States, cutting costs by about $600 million.

    This led Starbucks to achieve its positive growth in the second quarter of this year, and achieved the best profit level in the third quarter.


    Previously, Starbucks considered its ubiquitous restaurants and signboards to be the best advertising, but it turned out to be not the case. The threat of McDonald's "McCafe" in the US market and overseas markets allowed Starbucks to pay attention to the cost performance rather than quantity of each store.


    But in

    Chinese Market

    Starbucks is still expanding.


    According to Starbucks's public information, Starbucks has opened more than 400 stores in 28 cities in mainland China since Starbucks opened its first coffee shop in mainland China in January 1999.

    At present, Starbucks has nearly 800 stores in Greater China.

    Wang Jinlong, chairman of Starbucks Greater China, said: "at present, Starbucks's largest overseas market is Canada, with 1100 restaurants, while the second largest market in Japan has 900, and China is very close to their size."


    As a growing overseas market, will China be affected by the price increase?

    Li Jing said that Starbucks has always regarded the Chinese market as the second home market. The price adjustment is only a pick up of the US market and has no connection with the Chinese market.


    Howard Schultz, chairman and chief executive of Starbucks, said that in the past six months, the speculation in the green coffee market has been serious and the cost of raw materials has risen sharply, which has made a great change in the economic and financial situation of many companies in the coffee industry.


    He said that many coffee Baker and retailer began to raise prices a few months ago, and Starbucks has so far chosen to digest its own price increase instead of passing it on to consumers. But the cost is too severe for the company to continue to digest itself.

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