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Starbucks (SBUX) intends to more than double its headcount in Asia Pacific, which excludes...

Starbucks (SBUX) intends to more than double its headcount in Asia Pacific, which excludes China, India and Japan, to 40,000 over the next five years. Asia Pacific "has been a growth engine and will continue to be a growth engine despite economic uncertainty," says Starbucks' Jinlong Wang.
Comments (2)
  • Stymie67
    , contributor
    Comments (162) | Send Message
     
    I have lived in Vietnam for 9 years and although I think a few stores will do well, it is unlikely that we will see "hundreds" of Starbucks stores here, as quoted in the article. The country has developed steadily, indeed, but there is still a wide income gap and for the majority middle class in cities like HCMC and Hanoi, its just too expensive (note that the retail spaces costs are as high in these 2 cities as almost anywhere in the world). And there are alternatives/national brands competing in a country that has a strong coffee history etc. It will do well, and attract a rising segment of society that can afford it and are interested in the Starbucks experience etc. but IMO dont expect anything like the level seen in Bangkok or Singapore for example. The other issue is that as a Nation State (that has their own state-own companies etc) we may see some deliberate attempts at limiting Starbuck's expansion. especially in Hanoi.

     

    I'd guess 20 stores in 3 or 4 years would be a reasonable target.

     

    But dont get me wrong, I love this company and this stock.

     

    PS. How is it that Asia Pacific "excludes Japan"?
    18 Feb 2013, 07:44 AM Reply Like
  • movies555
    , contributor
    Comments (656) | Send Message
     
    Dairy Farm International (DFIHY) owns 50% of Maxim's Restaurants, which owns the rights to SBUX in Hong Kong and Macau. Jardine Matheson (JMHLY.pk) owns 78% of Dairy Farm.
    18 Feb 2013, 08:30 AM Reply Like
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