News / Asia

Despite Slow Start, Starbucks Expands in India

Despite Slow Start, Starbucks Expands in Indiai
X
April 04, 2013 5:18 PM
Despite a slow start in India, the world's largest coffee chain, Starbucks, says it will continue to expand in the South Asian country. That is good news for the Indian government, which is counting on continued foreign investment to help the country boost economic growth. VOA's Aru Pande has more from New Delhi.
Aru Pande
Despite a slow start in India, the world's largest coffee chain, Starbucks, says it will continue to expand in the South Asian country. That is good news for the Indian government, which is counting on continued foreign investment to help the country boost economic growth.

The Starbucks outlet in New Delhi’s Connaught Place has been open for more than a month and still draws long lines and interest from young people like Vikram Maour, who until now had only seen the coffee chain on television.

“I think it’s great to have Starbucks in India," said Maour. "We just heard about Starbucks in foreign countries, but to have Starbucks in India, it’s a really good thing.”

Starbucks opened its first store in India in October of 2012, through a joint venture with India’s Tata Global Beverages. The U.S.-based coffee chain had planned to open 50 outlets in the country by the end of last year, but so far has a total of nine stores in the cities of Mumbai and New Delhi.

Starbucks officials say despite the delay, the coffee giant wants to eventually make India one of its top five global markets.

Tata Starbucks CEO Avani Davda says India is a complex market for foreign investors, both socially and economically, but that it carries tremendous potential.

“It comes with it’s own set of issues, in terms of how fast the government can move on the reform side," said Davda. "But, I think still, the fundamental business potential is there and if you are a group like Tata or Starbucks, who conducts business in a certain way and understands the potential of the market, I think there is huge opportunity over here.”

That potential can be seen in India’s 300 million-strong rising middle class and a younger population that is increasingly espousing Western tastes. Starbucks has deliberately kept prices lower compared to its pricing in neighboring China, in an effort to make the brand more accessible.

But the brand still must convince customers in the traditionally tea-drinking country to spend $2 on a cappuccino - instead of 20 cents on a hot chai.

“Younger people, they are open to experimentation," she said. "They are not just hung up on or tea or a particular beverage.  Yes, it has been a dairy and a tea market for a long time, but I think people want new experiences and their out-of-home consumption habits are different.”

With India’s coffee consumption increasing 80 percent in the last decade and India's coffee market expected to top $500 million in the next few years, Starbucks officials say they are confident the company’s investment will pay off.

You May Like

UN Fears Rights Violations in China-backed Projects

UNHCHR investigates link between financing development and ignoring safeguards for human rights More

Boko Haram Violence Tests Nigerians’ Faith in Buhari

New president has promised to stem insurgency; he’s scheduled to meet with President Obama at White House July 20 More

Social Media Network Wants Privacy in User’s Hands

Encryption's popularity in messaging is exploding; now it's the foundation of a new social network More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Making Music, Fleeing Bombs: New Film on Sudan’s Internal Refugeesi
X
Carolyn Weaver
July 06, 2015 6:47 PM
In 2012, Sudanese filmmaker Hajooj Kuka went to make a documentary among civil war refugees in Sudan’s Blue Nile and Nuba Mountains region. What he found surprised him: music was helping to save people from bombing raids by their own government. VOA’s Carolyn Weaver has more.
Video

Video Making Music, Fleeing Bombs: New Film on Sudan’s Internal Refugees

In 2012, Sudanese filmmaker Hajooj Kuka went to make a documentary among civil war refugees in Sudan’s Blue Nile and Nuba Mountains region. What he found surprised him: music was helping to save people from bombing raids by their own government. VOA’s Carolyn Weaver has more.
Video

Video Rice Farmers Frustrated As Drought Grips Thailand

A severe drought in Thailand is limiting the growing season of the country’s important rice crop. Farmers are blaming the government for not doing more to protect a key export. Steve Sandford reports from Chiang Mai, Thailand.
Video

Video 'From This Day Forward' Reveals Difficult Journey of Transgender Parent

In her documentary, "From This Day Forward", filmmaker Sharon Shattuck reveals the personal journey of her transgender father, as he told his family that he always felt he was a woman inside and decided to live as one. VOA’s Penelope Poulou has more.
Video

Video Floodwaters Threaten Iconic American Home

The Farnsworth House in the Midwest State of Illinois is one of the most iconic homes in America. Thousands of tourists visit the site every year. Its location near a river inspired the design of the house, but, as VOA’s Kane Farabaugh reports, that very location is now threatening the existence of this National Historic Landmark.
Video

Video Olympics Construction Scars Sacred Korean Mountain

Environmentalists in South Korea are protesting a Winter Olympics construction project to build a ski slope through a 500-year-old protected forest. Brian Padden reports that although there is strong national support for hosting the 2018 Pyeongchang Winter Olympics, there are growing public concerns over the costs and possible ecological damage at the revered mountain.
Video

Video Xenophobia Victims in South Africa Flee Violence, Then Return

Many Malawians fled South Africa early this year after xenophobic attacks on African immigrants. But many quickly found life was no better at home and have returned to South Africa – often illegally and without jobs, and facing the tough task of having to start over. Lameck Masina and Anita Powell file from Johannesburg.
Video

Video Family of American Marine Calls for Release From Iranian Prison

As the crowd of journalists covering the Iran talks swells, so too do the opportunities for media coverage.  Hoping to catch the attention of high-level diplomats, the family of American-Iranian marine Amir Hekmati is in Vienna, pleading for his release from an Iranian prison after nearly 4 years.  VOA’s Heather Murdock reports from Vienna.
Video

Video UK Holds Terror Drill as MPs Mull Tunisia Response

After pledging a tough response to last Friday’s terror attack in Tunisia, which came just days before the 10th anniversary of the bomb attacks on London’s transport network, British security services are shifting their focus to overseas counter-terror operations. VOA's Henry Ridgwell has more.
Video

Video Obama on Cuba: This is What Change Looks Like

President Barack Obama says the United States will soon reopen its embassy in Cuba for the first time since 1961, ending a half-century of isolation. VOA White House correspondent Luis Ramirez reports.
Video

Video Hate Groups Spread Influence Via Internet

Hate groups of various kinds are using the Internet for propaganda and recruitment, and a Jewish human rights organization that monitors these groups, the Simon Wiesenthal Center, says their influence is growing. The messages are different, but the calls to hatred or violence are similar. VOA's Mike O’Sullivan reports.
Video

Video Blind Somali Journalist Defies Odds in Mogadishu

Despite improving security in the last few years, Somalia remains one of the most dangerous countries to be a journalist – even more so for someone who cannot see. Abdulaziz Billow has the story of journalist Abdifatah Hassan Kalgacal, who has been reporting from the Somali capital for the last decade despite being blind.
Video

Video Rabbi Hits Road to Heal Jewish-Muslim Relations in France

France is on high alert after last week's terrorist attack near the city Lyon, just six months after deadly Paris shootings. The attack have added new tensions to relations between French Jews and Muslims. France’s Jewish and Muslim communities also share a common heritage, though, and as far as one French rabbi is concerned, they are destined to be friends. From the Paris suburb of La Courneuve, Lisa Bryant reports about Rabbi Michel Serfaty and his friendship bus.

VOA Blogs