Starbucks aims to win over tea-loving Indians as domestic rivals expand

Starbucks is overhauling its strategy in India to attract a wider consumer base, including children, by offering smaller and more affordable beverages. This comes as the company seeks to expand its presence in small towns, where it faces stiff competition from domestic startups in one of its fastest-growing markets.
Having been among the first foreign coffee brands to enter tea-loving India, Starbucks has taken 11 years to open 343 stores, while chains like Third Wave and Blue Tokai have managed to open around 150 stores in just three years.
Sushant Dash, the chief executive of Starbucks in India, emphasised the need to target new consumers as the company grows in size, reported Reuters . The introduction of smaller-sized drinks aims to dispel the perception that Starbucks is an expensive option. The company has launched a new six-ounce drink called “Picco,” starting at around Rs 185, along with milkshakes priced at around Rs 275.
These new offerings are unique to India and not available in China, Singapore, or the United States.
Other international brands like Canada’s Tim Hortons and Britain’s Pret A Manger are also expanding in the market, but their presence is limited to a few outlets.
Experts suggest, according to Reuters , that Starbucks’ decision to adjust portion sizes to suit Indian norms and make prices more accessible could boost its sales further. In fiscal year 2022/23, Starbucks recorded a record sales figure of $132 million.
Competition for Starbucks is intensifying in major cities such as New Delhi and Bengaluru, where Third Wave cafes often see similar footfall to Starbucks outlets.
The company has faced competition from local players in other markets as well, notably in China, where Luckin Coffee has rapidly expanded its presence with attractive discounts.
Starbucks is also stepping up its game by introducing “Indian-inspired” tea options infused with spices and cardamom, starting at 185 rupees. These tea offerings are aimed at attracting non-coffee drinkers and those who have been hesitant to visit Starbucks.
With inputs from agencies
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