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Last updated: August 30, 2014 at 11:09 am

Finally Starbucks all set to enter India!

Starbucks, the most famous coffee chain in the world is finally all set to enter the world’s second fastest growing country. After trying for the past 3 years and having issues with India’s rules on FDI cap for foreign retail chains, the Seattle based coffee conglomerate is entering India in a JV with Tata Coffee. This should come as an amazing piece of news for coffee connoisseurs across the nation.

Starbucks Coffee

The café culture was brought into this country by Café Coffee Day, the Chikmanglur based brand which opened the first café in 1996. Since then it has established 1250 outlets with 150 outlets operating out of Bangalore itself. Add Barista’s 200 and Costa Coffee’s 70 along with new entrants like Aromas, and you are looking at 2000 cr market with 1500 cafés. Now that’s quite a big market, isn’t it? And obviously despite all the regulations in FDI, Starbucks couldn’t sign off this country for long.

In the US, Starbucks is like their Café Coffee Day present at every nook and corner. But in India, they have already indicated that they would initially start their operations by sourcing coffee beans from Tata Coffee’s plantations and set up shop in Tata run Taj Hotels. A good idea obviously because of the high – end premium positioning they have in the minds of the Indian consumers.

Barista and Café Coffee Day have established themselves a great deal in this sector as they were the first movers. This has happened so much so that the customers have become used to staying at a café more for its ambience rather than the product as CCD says “A lot can happen over coffee”.

But then the high end coffee chains like Costa which is one of Starbucks strongest competitors in the UK is planning to increase its number of stores to about 120 by end of 2011. Having an average day sales of Rs. 24,000, it seems to be positioned for strong future growth. Even though Aromas from Australia has also entered this segment, CCD and Barista are tough competition for them.

In such a situation, the question remains on how Starbucks would go about differentiating itself in such a scenario. The fact that India as a country is so vast and everyone has equal opportunities should make sure that they would necessarily carve a niche for themselves. Their quality, style and sense of service would definitely improve the café culture in the country.

In the long run, the importance they give on branding, customizing their products for the Indian palette and their positioning would surely be closely watched! What do you think – Can Starbucks be popular in India?

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  • […] an Indian company did create a problem. But nonetheless Costa and Aromas have entered the country. Starbucks is all set to enter soon. And you also have some localized chains like Chocolate Room India who try to be different saying […]

  • […] the launch of US based Starbucks in 2012, CCD has certainly lost some of its dominant position in the Indian coffee beverage market. […]

  • Good for India if Starbucks comes here. Why delay FDI in retail. Let us learn a lesson in economic development from not so far south east asian countries. How the FDI in retail has improved not only their economy but also their infrastructure. Let us be a model to other countries and boast later about our economists, scientists, technocrats, doctors, media professionals etc.,. It is image which matters a lot in the modern world and our great neighbour China has transformed itself in just 20-25 years.

  • yes CCD is at every nook n corner in the cities of iindia…but starbucks can go long way in india too if it sets its products at comparitive prices.

  • boss really I want to say that starbucks is best, u can judge by tasting dulce deleche frappucino or latte, starbucks coffee is so costly because the brewing method is so costly also from 100% starbucks get only 25% selective high quality beans, ans u can judge by tasting expresso shots, starbucks rocks.

  • boss really I want to say that starbucks is best, u can judge by tasting dulce deleche frappucino or latte, starbucks coffee is so costly because the brewing method is so costly also from 100% starbucks get only 25% selective high quality beans, ans u can judge by tasting expresso shots, starbucks rocks.

  • I love STARBUCKS waiting for it since I went to Starbucks in USA. Finally, dream cum true. Thanks to Tata for efforts.. N who is the son of a Bitch dislike Starbucks? Dude/Bitch Fock your self.

  • I love STARBUCKS waiting for it since I went to Starbucks in USA. Finally, dream cum true. Thanks to Tata for efforts.. N who is the son of a Bitch dislike Starbucks? Dude/Bitch Fock your self.

  • I love STARBUCKS waiting for it since I went to Starbucks in USA. Finally, dream cum true. Thanks to Tata for efforts.. N who is the son of a Bitch dislike Starbucks? Dude/Bitch Fock your self.

  • I think it will do great in the metros… Its a popular brand and for the youth today it will be a status symbol .. yes they would need to come down with their prices.. but the coffe is delicious. If Gloria jeans and Costa can work so can starbucks.. all it needs to do is a little bit of good marketing like kfc has recently become so popular. Looking forward.

    • Would not be so very easy for them to establish themselves…..we have huge coffee shops brands here in Cafe Coffee Day,Barista, kalmane Koffes(in Blr), Costa Coffee… they should get the pricing/positioning right else their exit would be quicker than their entry… Anyways waiting for a Sip…

  • Star bucks coffee is not for the Indian palette…They cannot survive only due to their decor , many others already offer that!! They need to analyse the Indian market needs accurately!

  • CCD wasn’t the first to promote COFFEE in India :P Dear Mr. Reporter I think you’re forgetting something called ICH or Indian ‘Coffee’ House which has been promoting Coffee from a long time.

  • i think if they are able to provide some different taste to indians which is liked by them, then it doesn’t make any difference whether they are foreigners or not? but the main thing is that price should be reasonable……. if it is they will be successfull in indian arket.

  • QWIKY’s was a brand which got launched prior to CCD and wound up a few years back. Also Tata’s had a considerable stake earlier with Barista which they sold to Sivasankaran held Fresh & Honest coffee (if my memory is right)

  • the brand is iconic and got the right perception and youth appeal . it will rock provided they get the right mix for indian taste buds . The brand may look at an extensive activation @ exclusive approach in india -heavly betting on radio internet+ smartphones and movie platforms and in discussion with an A list star as the face in india

  • Why do all brands wish to depict themselves at the high-end premium position in India, when they are just an everyday brand in other countries.

    • Cafe Coffee Day has established itself in the mid level cafe segment and has such a big headstart alongwith Barista in this segment that it becomes hugely difficult for anyone else. But Costa has able to establish itself to some extent and I dont see any reason Starbucks wouldnt be able to make a name for itself. As far as the premium positioning is concerned, I guess its our traditional mindset that whatever is videshi is premium right. Even Aromas and Costa are still considered premium. Or for that matter retail chains like Carefour and Wal Mart are low priced but may still be considered something too good to buy for some person who generally buys from say a Spencers or Big Bazaar.

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