Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 15 pages
Data source: Published sources
Abstract
Vietnam's coffee drinking culture dated back to 19th century when the French colonised the country and the missionaries planted coffee in the central highlands. But as a result of the prolonged conflict that spread through the years from 1959 to 1975, the production of coffee suffered. In the 1980s, thanks to the reforms led by Doi Moi the country soon became the second largest producer and exporter of coffee in the world after Brazil. However, the failure in reaching international coffee agreement in the late 1980s led to development of domestic coffee market and decline in exports. Due to stiff market conditions, major international brands avoided entry into Vietnam and as a result local coffee brands like Trang Nguyen, Highlands Coffee, and S-Cafe ventured into coffee retailing catering to the needs of young consumers. The rising urbanisation and incomes, and the western influence resulted in spreading of cafe culture. Meanwhile, the Seattle-based Starbucks Coffee Company (Starbucks) whose portfolio included coffee, handcraft beverage, merchandises, fresh food, and consumer food products decided to pursue growth in the emerging markets especially in the Asian region. In 2013, Starbucks opened its first outlet in Vietnam to serve the Vietnamese consumers with tailor made flavours. Coffee Concepts (Vietnam) Ltd, a Hong Kong Maxim’s Group subsidiary were given the task to operate the chain in Vietnam. The coffee chain aimed to cater to the young who were fashionable and aspired to live a western lifestyle and enjoy international brand names. With well entrenched local coffee brands and traditional brewing style, it remained to be seen whether Starbucks would be able to overcome the local competition and win Vietnamese consumers.
Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 6 pages
Data source: Published sources
About
Abstract
Vietnam's coffee drinking culture dated back to 19th century when the French colonised the country and the missionaries planted coffee in the central highlands. But as a result of the prolonged conflict that spread through the years from 1959 to 1975, the production of coffee suffered. In the 1980s, thanks to the reforms led by Doi Moi the country soon became the second largest producer and exporter of coffee in the world after Brazil. However, the failure in reaching international coffee agreement in the late 1980s led to development of domestic coffee market and decline in exports. Due to stiff market conditions, major international brands avoided entry into Vietnam and as a result local coffee brands like Trang Nguyen, Highlands Coffee, and S-Cafe ventured into coffee retailing catering to the needs of young consumers. The rising urbanisation and incomes, and the western influence resulted in spreading of cafe culture. Meanwhile, the Seattle-based Starbucks Coffee Company (Starbucks) whose portfolio included coffee, handcraft beverage, merchandises, fresh food, and consumer food products decided to pursue growth in the emerging markets especially in the Asian region. In 2013, Starbucks opened its first outlet in Vietnam to serve the Vietnamese consumers with tailor made flavours. Coffee Concepts (Vietnam) Ltd, a Hong Kong Maxim’s Group subsidiary were given the task to operate the chain in Vietnam. The coffee chain aimed to cater to the young who were fashionable and aspired to live a western lifestyle and enjoy international brand names. With well entrenched local coffee brands and traditional brewing style, it remained to be seen whether Starbucks would be able to overcome the local competition and win Vietnamese consumers.
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Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 6 pages
Data source: Published sources