Overpriced and surprisingly popular over here, say expat coffee lovers
The world’s largest coffee chain, Starbucks, has come under fire in China for reportedly charging locals higher prices than in other markets, including the United States.
China Central Television (CCTV) analysts compared the price of a Starbucks Grande Latte (16 ounces) in four major cities around the world. Beijing came out as the most expensive at 27 yuan ($4.43), followed by London at 24.25 yuan, 19.98 yuan in Chicago and 14.6 yuan in Mumbai, India.
The CCTV report also pointed out that mugs sold in Starbucks in China are more expensive than in the US, even though they are made in China.
Starbucks responded to the report and said that the price gap between its drinks in China and the US is a result of different costs in the two markets and not because of unreasonable price settings.
Starbucks has more than 1,000 stores in the Chinese mainland and it keeps expanding rapidly. China is set to overtake Canada as its second-biggest market next year.
The issue became one of the most popular talking topics on Sina Weibo.
What do Shanghai expats think about the city’s coffee prices and the prices of other foreign products in the city?
Robin Poulet, from France, designer
“We all know that Starbucks coffee is overpriced, and not only in China. The problem here is the unfairness. I don’t think it is fair that Chinese customers need to pay more for their coffee when their average salaries are much lower.
It is interesting though that the Chinese customers don’t seem to mind the prices; most of the Starbucks’ shops I have been to in Shanghai are always full of local customers. Starbucks coffee has become something of a trend, a fashion statement, a sign of luxury for many fashion conscious Chinese while I know that many of my expat friends in Shanghai refuse to pay the higher prices here.
I splurge sometimes on a nice cup of coffee, not necessarily from Starbucks, and on other foreign products here, although I know they are much more expensive than they should be.”
Laura Grossman, from the UK, manager
“Coffee in Shanghai, not only from Starbucks, is very expensive bearing in mind the average salary in China. It is pretty outrageous that Chinese customers have to pay extra for a cup of coffee considering that pretty much everything else, rent, cost of living, labor, is much cheaper in China comparing with other markets like the UK.
What surprises me is that Chinese are still willing to pay that much for their coffee. The majority of Starbucks’ customers in Shanghai, Beijing, or any other Chinese big cities are locals. Considering the fact that China doesn’t really have a coffee culture, this really dazzles me every time I walk into a local Starbucks.
As for me, I often pay that little bit extra to get a good quality coffee, be it in Starbucks or any other foreign coffee shop in the city. I have got used to the fact that almost any foreign product in Shanghai is way overpriced.”
Grace Hamilton, from Canada, events planner
“This is not groundbreaking news for most of us. I’m aware, as are other Shanghai expats, that foreign products, including coffee, alcohol, food, clothes, shoes, or makeup, are more expensive in China than they are back home. I usually prefer to shop in local supermarkets, buy my veggies from a local wet market and eat out in local restaurants, as I know that everything that’s foreign in Shanghai is usually overpriced. I would also prefer to sit in a nice small independent coffee shop and enjoy my coffee there instead of a crowded Starbucks, but unfortunately Shanghai doesn’t have that many of them yet as the coffee culture here is still not that developed.
I still pay high prices for foreign products, from time to time, when I get homesick for a taste of home. As for clothes, makeup and perfumes, I shop in bulk when I go back home so that I don’t have to pay these ridiculous prices when I come back to Shanghai.
But surprisingly Starbucks is filled with Chinese customers. For them, it is a luxury item and they don’t mind paying the high prices.”