Starbucks said it’s going to open its first outlet in India by the end of October. Starbucks has been looking to expand globally targeting Asia, particularly China. They expect China will become their largest consumer outside the US by 2014. In India “ coffee has changed from becoming a traditional beverage consumed mainly in South India, to a mainstream beverage nationally. (Panchal, 2012)” Part of the reason is due to the fact that there have been lifestyle changes and rising incomes. Taking into account the population size, growing popularity of coffee and rising incomes India is expected to be a large market for Starbucks in the long-run.
India and China have two of the largest populations in the world. Recently , India announced they were opening their doors to foreign retail markets. Multinationals have been taking advantage of the growth potential in China and are now able to expand their reach into India with these new regulations. The Excel Blue Chip fund is the only Canadian mutual fund that focuses on purchasing these multination’s as part of its overall holdings. Clients who are looking for growth but are nervous to venture away from North America would benefit from owning this fund.
Written by Jeff K.
Panchal, S. (2012, September 28). Starbucks to Open its First Cafe in India Next Month. The Globe and Mail. Retrieved October 1, 2012, from http://www.theglobeandmail.com/report-on-business/international-business/asian-pacific-business/starbucks-to-open-first-cafe-in-india-next-month/article4573990/