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Premium Australian coffee brand Gloria Jean's Coffee has caught customers' eyes by serving coffee in a street-styled ‘thela' (cart). Brought to India by Dubai-based Citymax group, the company tried out three retail formats and the brew-on-the-move concept has clicked.
Now, it might use the concept for promoting brand visibility. “We have three formats namely high street, kiosk, and the mobile cart. The cart was launched in Hyderabad last year and has been a huge success. We would like to replicate it; however, we would not want to be identified with only a cart,” Mr Manish Tandon, President, Citymax told Business Line .
The Australian chain sells its cuppa between Rs 60-110 and is positioned premium. Its carts will sell coffee in malls and in high traffic shopping areas such as Connaught Place in Delhi and elsewhere.
Expansion
Gloria Jean's Coffee entered the Indian market in 2008 and is expanding across key cities. The chain which opened four outlets in the Capital on Tuesday, said it has 250 stock keeping units including food and merchandise. The company plans to have 200 outlets in the next three years. The company-owned and operated stores entail an investment of Rs 50 lakh per store. At present, it has 17 stores.
Mr Tandon said the company would consider sub-franchising the brand. Citymax's expansion in India will be funded by its parent company, the Landmark Group, along with bank loans, he added.
The organised coffee segment in India is estimated to be growing at 40 per cent and is pegged at Rs 1,000 crore. A few key factors influencing this growth is transition of certain sections of the population from traditional tea-drinkers to coffee lovers, increasing amount of disposable income and exposure to international brands.
The market too has been buzzing of late with global chains such as Starbucks on the verge of entering India. Though there are several competitors in the segment — Barista, Cafe Coffee Day and Costa Coffee — the market is far from saturated.
A study by Coffee Board of India pegs the domestic coffee consumption at one lakh tonnes in the year 2010. Further, out of more than 3,000 cities in India, coffee retailers are present in only 175 cities which indicates the enormous growth potential the industry holds.
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