Hoshino Coffee chains eye Asian expansion
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Upmarket Japanese coffee businesses are expanding into other Asian markets in an attempt to win over customers from global leaders such as Starbucks.
Specialty brands Sarutahiko Coffee and Hoshino Coffee are among those reaching into major Asian markets, with Sarutahiko entering Thailand and Hong Kong, and Hoshino moving to Taiwan.
“Consumers who frequent Starbucks are ready to embrace Japanese-style service,” said president and CEO of Sarutahiko Tomoyuki Otsuka.
Mitsubishi has taken a 15 percent holding of Sarutahiko for around 500 million yen ($4.6 million), with a view to expanding the brands’ network from the current 16 stores (including three in Taiwan) to 30 outlets.
Hoshino Coffee already trades well in Singapore, Malaysia, and Indonesia and will launch in Taiwan in the next fiscal year.
Questions & Answers
Q.Which specific Asian markets are Sarutahiko Coffee and Hoshino Coffee targeting for expansion?
Which specific Asian markets are Sarutahiko Coffee and Hoshino Coffee targeting for expansion?
Sarutahiko Coffee is expanding into Thailand and Hong Kong. Hoshino Coffee is moving into Taiwan, having already established itself in Singapore, Malaysia, and Indonesia.
Q.What is the strategic reason behind these Japanese coffee chains' expansion into other Asian markets?
What is the strategic reason behind these Japanese coffee chains' expansion into other Asian markets?
The companies are expanding to win over customers from global leaders like Starbucks. Sarutahiko's CEO believes that consumers who frequent Starbucks are prepared to embrace Japanese-style service.
Q.What is Mitsubishi's involvement with Sarutahiko Coffee and what are their expansion plans?
What is Mitsubishi's involvement with Sarutahiko Coffee and what are their expansion plans?
Mitsubishi has acquired a 15 percent stake in Sarutahiko Coffee for about 500 million yen. Their goal is to expand the brand's network from 16 stores to 30 outlets.
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