Starbucks takes on India

Discussion in 'Economy & Infrastructure' started by Singh, Feb 1, 2012.

  1. Singh

    Singh Phat Cat Administrator

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    Starbucks is due to open its first store in India through a 50-50 joint venture with Tata Global Beverages. The first branches will open in Mumbai and New Delhi in September and about 50 stores will follow within the first 12 months.

    John Culver, Starbucks president for China and Asia Pacific, said there could be as many as 3,000 Starbucks stores in the world's fastest-growing economy after China. China currently has about 500.

    Starbucks declined to comment on the pricing at its future Indian stores. The price of a cup of coffee ranges widely in India, where consumers can spend Rs 53 rupees on a cappuccino at a local chain or Rs 400 on a frappé at The Coffee Bean & Tea Leaf, an international chain that already has a presence in India.

    Starbucks arrives at a time when the Indian government is trying to attract more foreign retail investment, but is slow at loosening restrictions.

    Strict limits on foreign ownership in India in the past have kept many international brands from setting up shop, including Ikea and Walmart. The latter met with stringent conditions on a recent deal while the Walmart negotiations have been put off altogether.

    Starbucks however has had a less difficult time as a single brand retailer. They will retain 100 percent ownership of their outlets with the requirement that a part of their products are from Indian producers.


    Masala chai still wins in India.

    Much of the coffee served in Indian Starbucks will be locally sourced through partner Tata Global Beverages, India's biggest coffee producer. Half of the coffee produced in India comes from Karnataka, where beans yield a sweet, low acidity brew.
    Although better known as a nation of tea-drinkers, Indians in the coffee-producing region of Karnataka have long loved coffee. A mild, milky coffee concoction is traditionally consumed there.

    However, most of the beans from India are destined for export rather than for deepening domestic coffee culture.

    In recent years, it became cool to drink coffee due to the influence of Western culture and fashionable international brands, such as Starbucks.

    And coffee houses have become an alternative sanctuary and social hangout for India's youth in a culture that generally shuns bar-going, particularly for young women.

    About 1,000 coffee shops have opened in the last five years to cater to a market that is growing by 25 percent each year, according Technopak.

    When Western-style coffee houses were first introduced in India, the drink was a moot point.

    Café Coffee Day, currently India's largest coffee chain, first opened in the mid-1990s and was seen by patrons as more of an Internet café. Stores had to offer free coffees on top of paid-for Internet time to introduce people to the modern variations of the drink.(?)

    While Café Coffee Day has managed to take firm root in India, with more than 1,200 outlets, its patrons still prefer to order milkshakes and teas to coffee. (?)

    Starbucks may well face a similar localization issue with their products.



    Starbucks in India | CNNGo.com


    Finally I can haz my caramel frappuccino venti :hail:
     
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  3. Iamanidiot

    Iamanidiot Elite Member Elite Member

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    Paaji has a taste for overpriced coffeee
     
  4. H.A.

    H.A. Senior Member Senior Member

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    Anybody for a coffee?
     
  5. Singh

    Singh Phat Cat Administrator

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    I doubt people would be rushing to buy if they charge 500 rs for a coffee, but then again I could be wrong.
     
  6. H.A.

    H.A. Senior Member Senior Member

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    in cities like Delhi and Mumbai there might be takers for Rs. 500/= coffee. However in tier II cities like mine they might plan a Rs. 100/= (starters) for coffee. That is if they want to compete with Cafe Coffee Day.
     
  7. Iamanidiot

    Iamanidiot Elite Member Elite Member

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    Coffee day and Domino's are making losses in your city ditto with Pizza hut.Chocalate romm is making money.Costly franchises with long gestation period for returns in a problem with all these coffee shops.They can have flies for customes
     
    Last edited: Feb 1, 2012
  8. Singh

    Singh Phat Cat Administrator

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    I am talking about other cities only, in Delhi and Bombay people will be willing to shell out even more.
     
  9. H.A.

    H.A. Senior Member Senior Member

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    Agreed with you. and do you know the best part is that I saw Enunch's the other day in Domino's. Pizza hut has improved after the arrival of Domino's. Chocolate room is making profit because it is new, let everyone get over the craze then we shall see.
     
  10. Iamanidiot

    Iamanidiot Elite Member Elite Member

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    Paaji the Stabucks wallah's are saying that they will open 6000 stores in India i read somewhere.They do not even have makret for 60 stores here in India.Nobody is going to even enter a starbucks in conservative metro like Chennai.They may do well in Bombay ,Delhi and Poona and may be gujarat and thats it.
     
  11. H.A.

    H.A. Senior Member Senior Member

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    Saala bahut paisa hai tum log ke paas....
     
  12. amoy

    amoy Senior Member Senior Member

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    Locally there may have been 8 Starbuck outlets already. Rs.500=$10?? then indeed over priced. Starbuck and Nestle procure a large portion of coffee from Yunnan Province, weather of which is ideal for growing coffee

    I'd prefer our Oolong tea :shocked:.

    [​IMG]

     
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  13. H.A.

    H.A. Senior Member Senior Member

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    I would love to see Starbuck guys shout coffee in railways or rather planes :taunt:....well that's how they can earn their bread and butter.
     
  14. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Good news. Starbucks offer better service
     
  15. Blackwater

    Blackwater Veteran Member Veteran Member

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    phaaji is UK returned. paise wale ha bhai
     
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  16. Blackwater

    Blackwater Veteran Member Veteran Member

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    phaaji is UK returned. paise wale ha bhai
     
  17. Blackwater

    Blackwater Veteran Member Veteran Member

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    You are wrong, In Punjab or Delhi ,Chd. If they charge 1000 for a coffee then also our phukare punjabi will drink...punjabiya di shaan wakhari
     
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  18. Singh

    Singh Phat Cat Administrator

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    Starbucks doesn't use the best beans, however, they do the best cold/iced coffees.
    Cafe Coffee Day, Barista, Gloria Jeans, Costa are not able to produce good cold/iced coffees.

    I keep returning every year :rofl:
     
  19. Singh

    Singh Phat Cat Administrator

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    Delhi, Chandigarh, Ludhiana is not all of India, oi loki sade warge fukre nahi aa... :taunt:
     
  20. Iamanidiot

    Iamanidiot Elite Member Elite Member

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    Majority of Indians have a very frugal psyche(barrring Punjabis).They will no way spend 500 bucks on a cup of coffee.IF they are rich they will buy a koorg Monsooned Malabar which costs 6000/bucks a Kg and a family can drink that for 2 months (most rich south Indian families do this they ) or they will get the beans roast and make the coffee everyday (a ritual for my grandparents).In such a background Starbucks won't even click in South India.In north India it may work in Delhi and may be Bombay or Poona
     
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  21. Singh

    Singh Phat Cat Administrator

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    Not all youngsters are as frugal as you. Imo not a lot of difference in city folks.
     

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