On the news of May 4th, Starbucks CEO made it clear that it will not participate in the price war in the Chinese market because it has a hugeCandycrushcandyCompetitive advantage.
According to the latest financial data, the Chinese market contributed 7% in the second quarter.Candycrushcandy.10 billion US dollars, down 8% from the same period last year, same-store sales down 11%, transaction volume down 4%, and average customer unit price down 8%, which was also much lower than expected.
Some experts say bluntly that in a sinking market where spending power is not high, consumers are easily "persuaded" by Starbucks' positioning and prices, and it is extremely difficult to sink. Compared with competitive products, Starbucks has no advantage.
Admittedly, compared with the American style of lucky coffee with 5 yuan per cup, Starbucks' price of 27 yuan per cup is obviously more difficult for young people in small towns to accept.
In fact, Starbucks has never been cheap in China. The International Labor Organization (ILO) has conducted a survey on how many Starbucks cups can be bought by global users per day, and the results show that:
According to the average wage in Japan, you can drink 21 cups a day, while South Korea has 27 cups. The survey shows that there are only six cups in China, four cups in Thailand, and three cups in India and the Philippines.
Compared with the price of Starbucks medium latte, the price is 30 yuan in China, 5000 won in South Korea and 125baht in Thailand.