News / Asia

Despite Slow Start, Starbucks Expands in India

Despite Slow Start, Starbucks Expands in Indiai
X
April 04, 2013
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.
TEXT SIZE - +
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

Abuja Blast Impacts Lives, Livelihoods

Officials say they are looking at ways to help bombing victims and boosting security More

Cambodia Technology Adviser Criticizes Cybercrime Draft Law

Phu Leewood says current criminal code can be used to prosecute offenders and that there is no need for a separate law More

Photogallery A Year Later, Boston Remembers Deadly Marathon Bombings

City pauses to honor victims and salute emergency workers who came to their assistance in frantic moments after blasts More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid