Competition benefits consumers
Updated: 2013-10-25 22:47
Starbucks' profits are the subject of an article in the 21st Century Business Herald (excerpts below).
The difference in what Starbucks charges Chinese customers compared to outlets in other countries has stirred a storm of media criticism.
Starbucks said many Chinese customers like to spend much longer in the outlet than their counterparts in the United States, so they need much larger space. Rising rents are also a factor.
Their brand value is an important reason for its popularity among Chinese consumers.
The best way to let the consumers enjoy cheaper, yet quality, coffee in China is to create a market environment where competition can thrive.