In February, Starbucks corporation officially entered the Vietnam market with a big store in Ho Chi Minh City. According to Howard Schulz, CEO of Starbucks, the revenues in the first store in Vietnam drastically exceeded the company’s expectations. However, these first results might not be indicative of the company’s projected success in the entire country, as there is a substantial difference between the deep-rooted coffee culture of Vietnamese people and Starbucks coffee.
Vietnam has an established and traditional coffee culture originating from its historical roots in coffee production to its current position as a leading global coffee producer. In contrast to Starbucks’ normal markets, Vietnam has a long tradition in drinking very strong coffee and the local shops at a substantially lower price.
However, Mr. Schulz has maintained that the current development of Starbucks in Asia is a sign of improved future performance for Starbucks in Asian countries. Although, Starbucks’ main focus is on the U.S., its home market, the company still has large investment plans for countries like China, Thailand and other Asia-Pacific regions; the company believes investing in the fast-growing economies of Southeast Asia presents large growth potential for Starbucks in the future.
In trying to bridge the culture gap, Starbucks has launched specific products that correspond with flavors of typical Asian dishes. Nevertheless, Vietnam is still not an easy market for American coffee, but, Starbucks intends to offer more than just selling coffee. According to Mr. Schulz, it is the environment, store design and the experience of Starbucks coffee shops that makes Starbucks so unique. Young customers are attracted by not only the product, but the experience of going to a Starbucks; this is a good sign for the future development of Starbucks in Vietnam.
(source: vnexpress)
ANT Consulting