CreatripTeam

Last year, Starbucks, a leading coffee chain, raised its prices in Korea, citing rising costs due to droughts in major coffee-producing regions. Despite concerns, their premium pricing strategy paid off, boosting annual sales by over 5% and pushing their revenue past 3 trillion won for the first time. The company's careful approach to price increments, such as freezing prices for popular sizes, minimized consumer resistance. This move encouraged other coffee brands to follow suit. However, unchecked price increases without product or service improvements can lead to consumer backlash, as seen with other brands. Ultimately, pricing strategy must consider both corporate profit and consumer value perception. The Korean government has urged restraint but focuses on preventing price-fixing after observing significant industry price hikes.