By Li Hongmei

The high prices for Starbucks coffee in China has led to high profit margins, far exceeding those in the United States and 16 times higher than Starbucks operating in Europe, reports Shanghai-based First Financial Daily.

A recent survey conducted in several cities around the world indicated that Starbucks coffee in Beijing is more costly than in Tokyo, New York, Hong Kong and London. The company's financial report for the second quarter of 2013 showed that sales in Starbucks China, or the Asia-Pacific region, surged by 22% to US$214 million year-on-year, while the profit margin was up 0.1% to 32%, or US$68.3 million. During the same period, the profit margin in the Americas was 21.1% while the figure in Europe, the Middle East and Africa rose by only 1.9%.

Many have complained about the higher pricing in China, saying that the price is unreasonable given that the disposable income of Beijing residents is far lower than resident of cities such as New York and London. According to the International Monetary Fund, the 2013 per capita GDP for China is US$6,629, trailing behind US$51,248 in the US and US$38,002 in the UK.

A source said that Starbucks must pay for operational and food material costs, but said that the company's operational costs, including rent, utilities and labor, are much lower in China than the US. Meanwhile, foreign media has attributed the higher Starbucks prices in China to the expensive shipping cost of coffee beans, mugs and other materials.

A marketing specialist said that Starbucks China aims to earn higher profits specifically through increased pricing and that the high profit margins have sustained the rapid expansion of the coffee chain in the country.

According to official statistics provided by Starbucks China, the chain has opened 1,001 stores in China, which will become the company's second-largest market after the US in 2014. Starbucks plans to open its 1,500th store in the Chinese mainland by 2015.