Beijing.
Starbucks has become the latest foreign firm to be roasted by China’s state-run
media, following a series of accusations it is overcharging consumers.
State
broadcaster CCTV aired a seven-minute-long report criticizing the coffee shop
chain’s pricing in China, arguing that a tall latte in Beijing is more
expensive than in London, Chicago and Mumbai.
The report
on Sunday stated the price of a Beijing latte as 27 yuan ($4.42), compared with
24.25 yuan ($3.97) in London, 19.98 yuan ($3.26) in Chicago and 14.6 yuan
($2.39) in Mumbai.
It came
after a stream of print stories attacking the Seattle-based firm, with the
state-run Economic Information Daily accusing it of “profiteering”.
The China
Daily newspaper last week took aim at the chain in an article headlined:
“Starbucks can’t justify high prices in China”.
The
allegations come after US tech giant Apple was subjected to a barrage of
attacks earlier this year over its warranty policy and customer service, which
state media cited as examples of its “unparalleled arrogance” toward Chinese
consumers.
The
criticism stopped after Apple CEO Tim Cook apologized.
Foreign
baby formula and pharmaceutical firms have also recently been targeted by
authorities over allegations of price-fixing and corruption.
In a
statement, Starbucks said that its pricing in different cities is based on a
variety of factors, including infrastructure investment, real estate, currency
valuation and labor costs.
“Each
Starbucks market is unique and has different operating costs, so it would be
inaccurate to draw conclusions about one market based on the prices in a
different market,” the company said.
Starbucks
opened its doors in China in 1999 and now has more than 1,000 stores in the
country and growing, making China likely to overtake Canada as its
second-largest market after the US next year.
Agence France-Presse
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