Starbucks brews slow, steady growth plans for India

As promised, Mumbai is all set to get its flavour of Starbucks Coffee this festive season. But ahead of the launch of this much-hyped Tata JV, CNBC-TV18's Priyanka Ghosh and Animesh Das find out what's brewing on the branding front.

Coffee-lovers can now sip their cup of Starbucks in Mumbai. The 50:50 Starbucks-Tata JV, involving an initial investment of around Rs 400 crore, is to set to open three of its stores in Mumbai within the next one month. The pilot store will be launched at Mumbai's  heritage building, 'Elphinstone House'. But while the first outlet will be a high-street stand alone, it will be followed by stores in malls including the Oberoi Mall and a commercial complex in Worli.
"One will be a high-street standalone and the second is going to the malls. From a high-street positioning, they are looking at places that are frequented by the affluent who have the ability to go out and spend money. From that perspective, you immediately establish the brand. It doesn’t quickly get established in a mall," Anuj Puri, country head, Jones Lang LaSalle.
However Starbucks is reportedly rethinking its earlier strategy of a rapid scale-up of 50 stores in one year. Having learnt a lesson from its venture in Australia which saw deep losses and multiple store-closures, in India Starbucks is looking for a slow and solid entrenchment. Tailoring food products to suit the Indian palate, it plans to launch three stores in the six months after November. However, tapping the Delhi market has been postponed
Even as Starbucks opens its stores in malls, it still remains committed to positioning itself as a premium brand. CNBC-TV18 has learnt that, although Starbucks will cost a tad bit less than in the US, it will still be priced above Rs 100, in tandem with its competitors.
What has worked in favour of Starbucks even before its launch, is that unlike other international coffee brands who gained prominence after entering the Indian market, most of its target customers are aware of Starbucks.