The giant Seattle-based coffee chain,Starbucks,announced on Thursday that it was beginning its long-awaited move into India. In what might well be the first of a series of deals,its chairman,Howard Schultz,said in Mumbai that he had come to an agreement with the Tata group whereby the giant chain would source some beans from Tata Coffees plantations in south India,and open a few stores,most probably in Tata-run Taj hotels. Schultz told reporters that the company had been preoccupied with its advance into China,and that Indias regulations controlling multi-brand retail had been a problem,but tackling the Indian market couldnt be postponed for ever.
It will be interesting,of course,to see if this entry comes too late. The two duelling coffee-shop brands,Barista and Café Coffee Day,have had a fairly major head start. And coffee shops arent quite like colas or shoes; a brand matters more,carrying with it not just the normal sense of exclusivity or lifestyle-consciousness,but a sense of place thats supposed to soothe and comfort. That was how Starbucks made its name in the US,with brown-and-green upholstery,and smooth jazz music,and service that never,ever,expected you to get up. Will that transfer easily to India,to young consumers grown accustomed to orange interiors and the twang of an untuned guitar,or to red-and-white walls,rattan sofas and the buzz of crowded conversation?
What is interesting,perhaps,is that were having this conversation at all. Its a reminder of how much cheap chain coffee shops have changed the space of urban India,how much they have grown into a part of the memories of its middle class. The ease with which the CCD generation can find a place to hang out is one of the great,unsung benefits of liberalisation.