2 % of 1.2 BILLION = ALOT!

Sep 16, 2013

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3000 Stores in next 5 years

Just that one line sends shivers down your spine doesn’t it?

And I don’t even need to add who the giant is that will be coming to a street corner in Mumbai and Beijing some time soon

But in case of any doubt – Yes its Starbucks of course!

Speaking recently CEO Schultz announced plans for 3000 new stores in the next 5 years, a staggering 1500 of which would be in China before 2015

One of the perennial growth restrainer’s in this region has been pricing policy – especially in more fragile emerging economies such as India

However, new store openings in India which are partnered by TaTa seem to show that the giant is listening to local consumer needs and wants and is therefore specifically tailoring its offer to meet the value expectations typical of the thrifty Indian  consumer

So in Starbucks Mumbai a 12 oz cappuccino costs $2-14 versus $4-34 (USD) in Beijing

Even at this price only 2% of Indians can even dream to afford a Starbucks latte or cappuccino on a regular treat basis

However the maths is simple 2% of 1.2 B = ALOT of consumers!

Already the country’s café sector is worth some  $230 million and has grown +$50 m in the last five years, as expats such as Costa and locals such as Café Coffee Day exploit the new demand for coffee which is now replace and eroding the traditional desire for tea

It may however be some time before the latest innovation from the Starbucks HQ is unveiled in this region….

A $25 m project with ‘Square’ to enable 3 million mobile transactions per week has been deemed a success and this coupled with the 170 M$  / 180k Sq ft new factory (R&G and Via soluble) in Houston Texas, which will employ 140 workers, rubber stamps with renewed vigor Starbucks conviction for the global long haul
Guru writes for Aromo Coffee – They are coffee experts focussed on providing convenient and tasty ways for the caffeine addict to take their medicine. Aromo supplies excellent ESE Coffee pods and superlative Senseo pods,  both of which offer the espresso and filter connoisseur  a no mess, no fuss,  super fresh and environmentally conscious method to make stunning coffee… the guys at Aromo also have a range of Dualit branded capsules which make a brilliant and economic alternative to nespresso capsules

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