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Case Code: ECON063
Case Length: 13 Pages 
Period: 2010- 2017   
Pub Date: 2017
Teaching Note: Available
Price:Rs.500
Organization : Starbucks
Industry : Beverages; Retail
Countries : India 
Themes: Manegeraial Economics/  
 Competition/  
 Market Structure/  
 Pricing/  
 Consumer Behavior  
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

Can Starbucks Sustain its High Prices in China?

 
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INTRODUCTION

 
Starbucks Corporation (Starbucks), the world’s largest coffee chain by revenues, was considered a success story in China, where it maintained its unique character of serving premium coffee and succeeded in cultivating the demand for high-price brews throughout China. The premium image of Starbucks in China enabled the company to drive up the aspirational status of the brand, which in turn made it an affordable luxury item in China. According to Ye Qiu from Ordos Kangbashi, Western China, “Starbucks got its success because of the quality of coffee it offered and also because it was more expensive than other prices. The fact that Starbucks coffee shops are expensive and luxurious is the very reason it attracts the wealthy in the society.” The top management of Starbucks viewed China as a key growth market despite concerns over the country’s sluggish economy since 2015.

However, Starbucks also faced criticism for its high prices in China. In September 2013, the coffee chain came under fire from the official Chinese media when it raised prices in its stores in the country. . ..

 

 
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