Starbucks: great potential in China, no plans to raise prices

Apr. 14, 2008 (China Knowledge) - Starbucks Corp, the world's biggest coffee-shop chain, said it has no immediate plans to raise prices in China even though it is facing mounting pressure from rising costs.

The company experienced a fast development in China which has accounted for one fourth of its total overseas business. And it feels the strong potential power in China, with the plan to turn the country into its largest market outside the U.S., said Wang Jinlong, Greater China President of the firm when attending the Boao Forum for Asia held in China's Hainan.

The coffee giant, which has more than 300 coffee shops in China, is pursuing even faster expansion this year, according to wang, adding that it will add more than 2000 shops to its China fleet in 2008.

In addition, it plans to expand to more second-tier cities while consolidating its businesses in big cities such as Beijing and Shanghai.