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Starbucks in India and Asia Pacific | Retail Insight

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Starbucks already has more than 500 cafes / stores in China with $166.9 mln in turnover as most media carries reports on its imminent entry into India with the first cafes six months down the lne. The JV in India will be guided by the same team of John Culver president of China and Asia Pacific and President Jinlong Wang, looking after markets like Australia, China and Singapore.

Green logo used from 1987-2010, still being us...

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The Tata JV will introduce the “Starbucks Coffee Experience” to the Indian palette in the Quick Service Restaurants category whch has three main players of which two have grown less than 200 stores including Lavazza ( Barista) and Costa Coffee but with snack and meal options for office goers and the mobile crowd these cafes have grown into a more than $1 bln market space and per head expenses rival that of your neighbourhood pizza / burger joints at nrearly $15 in PPP terms per person or $6 per head

The Starbucks Asia business is just 5% of the company’s global $3 bln business. The Asian customer profile is that of a younger go getter with Coffee business likely to grow between 20-30% in India like in Korea and other fast business pockets of Asia Pac, growth in Apac markets in coffee between 10-30%  (Jinlong Wang interview)

The current business revenues from Apac stores are looking at $800,000 -$2 mln per store in the region while other QSR businesses in India do INR 52 lakhs or $100,000 per store (or $500k in PPP terms) with upmarket restaurants losing on crowds and premium labeled global chains getting advantages in both price and foot falls where not shopped beyongd the reach of the office goer

The Indian JV will also market Tata Global’s procured indian Arabica internaitonally. While some coffee chains like Gloria Jean use local coffee and ingrediaents others lie Costa rely on imported as well as local ingredients. Cafe Coffee Day has a venture capital interest from GTV ventures and KKR

 

 

 

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One comment on “Starbucks in India and Asia Pacific | Retail Insight

  1. Pingback: The Apple Trillion is coming | Retail insight | The Banking and Strategy Initiative

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This entry was posted on February 6, 2012 by in Financial Markets and tagged , , , , , , , , .

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