Last week, Starbucks was criticized for price discrimination in China market by CCTV, the largest TV media in China. The same medium-sized latte was priced 27 Yuan ($4.4) in China while it was sold at 19.98 Yuan ($3.26) in Chicago, 24.25 Yuan ($3.96) in London, and 14.6 Yuan ($2.38) in Mumbai, reported by CCTV.  According to CCTV, the cost of the coffee sold in China is no more than 5 Yuan. 27 Yuan for a medium-sized latte is way too high for Chinese customers.

Regardless of the massive discussion about whether Starbucks are supposed to be criticized by CCTV, the national wide TV report has surprisingly given Starbucks more attention in China. For those who have not tried Starbucks, they are so curious about Starbuck that they will go and taste their coffee. For those who usually drink Starbucks, they will keep on buying Starbucks as this will enhance their psychological needs.

Meanwhile, the stock price of Starbucks rises by 0.19% at $79.46 even though the Dow Jones Stock Index drops by 0.5%. Apparently, CCTV’s criticism has given Starbuck a free advertisement.

Currently, China market has been regarded as the second homeland by Starbucks as China market is forecasted to become the second largest market for Starbucks after the United States in 2014. Now Starbucks has more than 1001 stores in China, and it plans to open another 500 stores to more than 1500 in the next two years.  From 2007 to 2012, Starbucks’s sales in China increased 90%. In 2012, the revenue was astonishing 7 billion RMB.

Starbucks, the coffee retail giant from the United States, has proven to have extremely successful marketing strategies in China market which is a total different place than its real homeland.