, India

Affordable Indianized Starbucks menu to get new customers: GlobalData

But the analyst said it could dilute the global brand proposition.

The Tata Starbucks Private Limited, an Indian joint venture of Starbucks with Tata Consumer Products, is seen to produce new customers due to its affordable and localised menu, GlobalData said.

It may help Starbucks mitigate inflation but it risks diluting its international brand proposition.

Starbucks is also reportedly rolling out a “trial” smaller beverage cup in four bustling Indian cities: Bengaluru, Gurgaon, Bhopal, and Indore.

Bobby Verghese, consumer analyst at GlobalData, said, “Since opening its first store in India in 2012, Starbucks has strived to Indianize every aspect of the consumer experience, from products and pricing to store ambiance and marketing. For instance, the cost of a Starbucks coffee is cheaper in the price-sensitive Indian market than that in Singapore or China. Yet, Starbucks has always set itself apart from competitors such as Cafe Coffee Day with its premium pricing and American brand aura."

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