We have taken a very long-term view of what India can be in opportunities: John Culver

Interview with Group President, Starbucks, China and Asia-Pacific

Starbucks, the $15-billion Seattle-based coffee chain, is aiming for India to be among its top five markets in the long term. John Culver, its group president for China and the Asia-Pacific, tells Nivedita Mookerji this country is its fastest growing market in the world, with 59 stores in the first 24 months. Even China, which picked up pace over the years and is now at 1,400 stores since 1999, began slower than India. Edited excerpts:

You are celebrating two years in India. How’s the journey been?

Incredible. We have 59 stores across six cities in two years and the experience has exceeded our expectations. What’s more important is that we are very optimistic about our business opportunities here.

What are your expansion plans? Will you grow faster or at a slower pace here on?

I’m not going to comment on specific numbers. We want to grow our India business. What you’ve seen so far is very early stage of Starbucks’ business in the country. We have taken a very long-term view of what India can be in terms of opportunities. India is expected to be among the top five markets for us. Among other things, we are focused on our India partners (employees), currently at 1,000. We will continue to look at investing significantly in the India market and also to give back to the local community.

By when do you see India becoming one of the top five markets for Starbucks? Is there a time frame?

That’s a long-term view. We are a company that’s 43 years old and we have very long-term view on how we want to build our brands and business across the world. We operate in 65 countries and have over 21,000 stores. India represents a big growth opportunity for us. We are going to be very patient.

How easy or difficult has it been for the group in India?

The response from customers has been overwhelming. The opportunity to grow is huge.

But is India an easy market to do business in or it a country with many challenges and hurdles?

All markets have their complexities and challenges. Due to our joint venture with the Tatas, we have been able to navigate the challenges much better.

You are scheduled to meet people from the government during this trip. What’s the purpose of those meetings?

We will meet some government officials as courtesy calls.

You look at the entire Asia market. How would you compare India with other geographies in Asia vis-à-vis Starbucks? What are the favourite coffees here in India?

Cappuccinos and the Lattes have been doing very well. We have some unique offerings for the India market as well. We operate in 15 markets in Asia. We have been doing business in Asia since 1996, with the first store in Tokyo. Now, we operate 4,600 stores in Asia. India is the fastest growing market for Starbucks across the world in its history, with 59 stores in 24 months.

How many stores does China have?

Around 1,400 (in 15 years).

How do you look at competition in the India market? Do you focus on competition and maybe worry a little about it?

We are aware of the competition. But we focus on what we do best-the experience we offer cannot be replicated by our competition.

How much are you sourcing from India at the Starbucks stores?

The majority of what we sell at the India stores is being sourced from India. Now, the India-sourced, roasted and packaged Starbucks coffee is available in select stores in Asia and the United States, too.