Friday, October 19, 2012

…And Now For Something Completely Different: Starbucks Faces One Enormous Problem In India



Starbucks has finally reached the "Jewel in the Crown." The coffee giant, in a partnership with Tata Global Beverages, opened its first location in India today, amidst "pomp and tempered ambition," as The New York Times' Vikas Bajaj put it....
But why did it take one of the world's largest food chains to reach the world's second largest country and Asia's third largest economy? There's one big problem — most people in India aren't drinking coffee (only about 80g per capita, according to the International Coffee Organization, compared to 4.11 kg in the US or 3.04 kg in the UK).....
Instead, tea is king in India. It has been consumed for thousands of years, and is still a staple of the Indian palette. The tea industry itself is also one of the strongest drivers of its economy — it accounts for 31 percent of the global production and generates income for millions of people in the country. So Starbucks, a company known for selling coffee, must promote its brand in a country that prefers an alternative beverage…...........................................................................................................................................................

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