Talking about the price increase from Starbucks

Not long ago, Starbucks official Weibo officially announced that it has opened 550 stores in the Chinese mainland market and will increase the price of some products from January 31st. In this regard, there are netizens jokingly saying: "I hate! Just after the New Year's price increases, to the people to pressure money ah."

In fact, it is not only the Starbucks families that are making money for the Chinese people this year. As early as before the Spring Festival, since January 12th, McDonald's, a catering giant, has raised some food prices. The price adjustment ranged from 0.5 yuan to 2.0 yuan, involving staple foods, beverages and desserts. In addition, the Pizza Hut brand under the Yum! brand also made a price increase on January 2.

The successive price increases of foreign fast food brands have undoubtedly increased the pressure on Chinese consumers. White-collar workers who love foreign fast food have expressed that they can't afford to hurt. Li Jing, manager of public relations at Starbucks Greater China, said that one of the reasons for this price adjustment is the increase in operating costs, which is related to factors such as raw materials, manpower, store rental, and logistics. There are also many people who believe that foreign restaurant brands have been increasing their prices in China in order to speed up the Nuggets in China.

Ironically, tolerant Chinese consumers are lining up to buy Starbucks products while complaining of “mild” price increases. So who spoiled these foreign fast-food brands and gave them a “climate” for price increases?

The price increase is a foreign brand in order to accelerate the speed of Nuggets in China, but the price increase actually has its reasonable factor, it is because of these foreign brands or Starbucks, it is in this kind of food and beverage industry, more than a year ago. During the process, the rising cost of the food and beverage industry is indeed very fast, and food prices have also become the most important factor in leading the CPI. Therefore, these industry price increases do have a very important aspect of its cost increase. Although Starbucks has already raised prices last year, the rate of price increase is quite moderate. Starbucks has a relatively strong ability to control prices and control costs in the industry. Because of his large scale, he decided that there must have been several rounds of internal discussions and hearings before the price increase. Therefore, his price increase should be It is a very cautious price increase.

But on the other hand, we can also see why these foreign brands have frequently increased their prices in recent years. We know that when it first entered China, it will not rise too much. Starbucks has not increased its prices in the past five years. The recent increase in prices may have a direct relationship with the entry of these companies into the Chinese market and its determination in the market position.

In the early days of the intervention, in order to expand its market share, the strategy identified may be to maintain the share as the main goal, so even if it is to open a new store may not make money does not dare to increase prices, with the gradual improvement of market status, has a group of loyal Consumers have a relatively firm market position. At this time, they can turn to profit protection and continue to expand their market share. They also need to make profits as an important goal. Starbucks may not have increased prices in the past five years, but this year it has started to rise, but In fact, the past five years did not mean that foreign markets did not rise, and the cost of coffee in the past five years also rose rapidly, and in the past five years is also a very rapid increase in labor costs, store rental costs, why can we digest it? This can be seen, in fact, Starbucks' strategic adjustment in the Chinese market, from the original to maintain market share to ensure profits, to maintain profitability.

For domestic fast food brands, this market strategy of Starbucks is worth studying. The market competition between the small brand and the big brand is the market position of the follower or the market. The follower will not first increase the price and follow the big brand to increase the price, not only in terms of price competition. In other market competition strategies, we will not first create new competition methods or new competition methods. This is even more so in terms of price. After the price increase of the big brands, the price rises quietly behind them. The reason for price increase is basically the same as the reason for the big brands.

At the same time, the case of Starbucks' successful entry into the Chinese market also tells us that domestic brands must go abroad to ensure the quality and safety of products. This is the cornerstone of expanding the market and the key factor in the formation of a reputation among consumers. The development of new markets is not a thing that can be accomplished overnight. Domestic brands should establish their own concepts, plan well for the long term, and unremittingly cultivate the market to fully tap brand development opportunities.