Starbucks, a famous U.S. coffee franchise that was also popular in Italy, a “coffee powerhouse,” is suffering in Vietnam, according to reports. Citing data from global market research firm Euromonitor International, the BBC reported that Vietnam’s coffee market was worth $1.2 billion (about 1.56 trillion won) last year, of which Starbucks accounted for only 2%. This shows that Vietnamese people like coffee but do not like to visit Starbucks, the BBC said.It has been 10 years since Starbucks entered Vietnam, but the expansion of Starbucks stores in Vietnam is also slow. Currently, there are 92 Starbucks stores in Vietnam, which is less than one store per 1 million people. There are 36 Starbucks stores per 1 million people in Korea.An official from Euromonitor International said, “The location of Starbucks (in Vietnam) is still limited due to consumer preference for local coffee flavors.”The reason why Starbucks posted such a sluggish report card in Vietnam is “price.”In Vietnam, you can always taste cheap coffee on the street.
It is common for Vietnamese customers to drink coffee not only with street chairs but also with newspapers or mats on the floor.Local residents said, “I went to Starbucks only once because I wanted to drink luxurious coffee, but I thought it was a waste of money, so I never go again.”Some analysts say that Starbucks failed to consider local tastes.He said he often visits Starbucks with his friends in Ho Chi Minh City, but he doesn’t like Starbucks’ coffee. “The photos taken at Starbucks look trendy,” he said, explaining the reason for his visit to the store.Traditional Vietnamese coffee is stronger and more fragrant, Trangdo, who lives in Da Nang, said, “The way to make Vietnamese coffee with a filter helps extract more coffee, and the taste of coffee when hot water drips slowly when brewing coffee is really the best.”In Vietnam, a tin filter called ‘pin’ is used to make coffee. Place the pin on the glass and pour hot water for about 10 minutes. It is common to put ice in here and drink condensed milk.In particular, Starbucks uses 100% Arabica beans, while Vietnam uses locally harvested robusta beans. Robusta has more caffeine and has a stronger aroma and bitterness than regular coffee.However, among some young customers, collecting Starbucks cups and tumblers has spread like a trend. However, the BBC reported that this was also less interested than when Starbucks entered Vietnam.
JULIE KIM
US ASIA JOURNAL
