Recently, the report has echoed a separate critique by the official China Daily newspaper that Starbucks has been able to enjoy high prices in China. Some hold the view that it mainly because of the blind faith of local consumers in Starbucks, others maintain that holding Starbucks is kind of the representative of the rich (Jourdan, 2013).

The research shows that a medium-size latte in Beijing costs 27 Yuan ($4.43), or one-third more than at a Chicago store in United States. Clearly, consumers are increasingly aware of these prices differences, and it is going to be a hot topic among people. Although, in Canada, it is common for consumers to have Starbucks; while in China, branded coffee is something people are treating as a luxury good and they are willing to pay for that luxury experience.

So why is there a price difference between China and other countries? The pricing strategy in China, is tied to local business costs such as labor costs, infrastructure investment, real estate and rent. It mainly because the addresses of Starbucks in China are basically at CBD（Central Business District).

Does Chinese really understand why they charge more? It still remains a question for us to figure out (Allen, 2013)

Reference:

Allen, K. (2013, Octorber 23). Starbucks CEO defends Chinese price structure. CNBC. Retrieved from http://www.cnbc.com/id/101136714

Jourdan, A. (2013, Octorber 21). Starbucks under media fire in china for high prices. Reuters. Retrieved from http://www.reuters.com/article/2013/10/21/us-starbucks-china-pricing-idUSBRE99K03P20131021