Strong logistics chain

So now Starbucks is on a quest to find a partner who has a similarly strong logistics chain, sturdy raw material base and a fair understanding of the the Indian tongue. But with FDI in single brand retail allowed, what stops Starbucks from entering on its own? Gibson G Vedamani, CEO of Retailers’ Association of India, clarifies, “Tying up with Indian partners gives certain benefits. Like logistics, being easily aware about the local environment etc.” Starbucks is already late in the Indian market, what with Cafe Coffee Day (CCD) and Barista already cornering the major share of the coffee pie. Barista now plans to invest Rs.5.16 billion and open up around 270 new outlets by the end of this year. CCD is planning its own 500 new outlets. Even Coffee World, Costa Coffee, Mocha et al have big expansion plans in the coming two years. Starbucks or no Starbucks, coffee sells in India, more than Lopez :-)

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)