Big coffee chains compete with pavement sellers

Covid-19 has forced coffee chain owners to change their approach. Like small shops on the pavement, they now have to attract different segments of customers.

The image of a vending coffee shop of Highlands Coffee at a street corner in Hanoi has caught public attention.

Big coffee chains compete with pavement sellers

Leading the medium- to high-end market segment, Highlands Coffee has decided to ‘go down the street’ to seek new customers. It is selling coffee products on vending cars and other kinds of drinks such as tea and bagged powdered coffee.

Highlands Coffee is not alone. Ong Bau (Promoter) is the coffee chain that pioneered the new business model. The founders of Ong Bau set an ambitious plan of opening 10,000 Ong Bau shops by 2022 based on the rapid development of small shops and kiosks. Ong Bau is also the first chain to set small kiosks in front of large shops.

Vinacafe has also tried to increase its presence by setting vending shops in populous areas and areas with a high number of visitors, especially in Phu Nhuan and Binh Thanh districts in HCM City.

The prices of the take-away cups of coffee are reasonable, just VND12,000 for a cup of black coffee and VND14,000 for milk coffee. The vending shops also sell products made by Vinacafe.

Passio has also joined the ‘pavement shop battle’. The coffee chain’s golden days were in 2014-2015, when its shops were always crowded. However, it now has to compete with many rivals, and has had to find new ways to attract customers.

At many Passio shops, one can see staff standing in front of the shops and inviting passersby to visit.

Meanwhile, Trung Nguyen Legend has recently launched a series of E-Coffee shops through franchising contracts.

 

E-Coffee shops, with an area of between 4 and 40 square metres, target lower-income customers and busy customers who get take-away coffee.

Analysts commented that coffee chains, which have been hit hard by the pandemic, now have to apply new business models and seek customers from the income segments they did not think of before.

The new selling method has allowed them to cut costs on rent and at the same time get more customers.

By approaching customers with low or medium income, big coffee chains are scrambling for customers who often go to small shops.

This explains why the prices of drinks at their pavement shops are lower than prices at their original shops. The price of a cup of filtered coffee, for example, is VND10,000 lower. 

Bao Han

More coffee chains open in Vietnam after Covid-19

More coffee chains open in Vietnam after Covid-19

Investors have rushed to open coffee shops as retail premises rent has become very reasonable and the market is returning to a "new normal" status.

Vietnam becomes Japan’s biggest coffee supplier

Vietnam becomes Japan’s biggest coffee supplier

Vietnam, the world's biggest producer of robusta, has become the top supplier of coffee beans for Japan as the consumption of instant coffee, which uses robusta, is soaring there amid the COVID-19 pandemic, according to the Nikkei Asia Review.

 
 

Other News

.
Positive growth revisions on the cards after resilient Q1
Positive growth revisions on the cards after resilient Q1
BUSINESSicon  26/04/2021 

With its relatively good economic growth in the first quarter driven by surging manufacturing and processing activities and strong control of COVID-19, 

Shares to gain on stable cash flow and Q1 positive earnings
Shares to gain on stable cash flow and Q1 positive earnings
BUSINESSicon  26/04/2021 

Shares are forecast to rebound this week on the positive Q1 earning results and stable cash flow, analysts said.

E-commerce workforce downsized due to COVID-19
E-commerce workforce downsized due to COVID-19
BUSINESSicon  26/04/2021 

The proportion of enterprises with employees specialised in e-commerce decreased significantly last year compared to previous years

National Quality Awards 2019-2020 bestowed on 116 businesses
National Quality Awards 2019-2020 bestowed on 116 businesses
BUSINESSicon  25/04/2021 

The Vietnam National Quality Awards 2019-2020 were presented at a ceremony in Hanoi on April 25, honouring 116 companies with remarkable achievements

China benefits the most from Vietnam’s trade surplus
China benefits the most from Vietnam’s trade surplus
BUSINESSicon  25/04/2021 

Vietnam has joined many multilateral and bilateral trade agreements in recent years. The question is what the country receives from these trade relations.

Vietnam imposes anti-dumping duty on Chinese aluminum imports
Vietnam imposes anti-dumping duty on Chinese aluminum imports
BUSINESSicon  25/04/2021 

The domestic industry has been affected due to the dumping of Chinese aluminum imports in recent years.

Vietnam’s no 1 rice in world in danger of losing brand
Vietnam’s no 1 rice in world in danger of losing brand
BUSINESSicon  25/04/2021 

If certain legal entities in the US successfully register the ST25 rice brand, Ho Quang Cua, the real owner of the brand, will lose ownership and it will be very difficult to claim it back.

Agriculture Minister: smaller companies play big role in economy
Agriculture Minister: smaller companies play big role in economy
FEATUREicon  25/04/2021 

Minister of Agriculture and Rural Development Le Minh Hoan believes that Vietnam needs to attract both "eagles", or big investors, and "sparrows", or small investors, because both are important to the country’s development.

Special Economic Zones create more risks than benefits
Special Economic Zones create more risks than benefits
BUSINESSicon  24/04/2021 

Ho Chi Minh City and Da Nang are seriously planning to convert the two cities into international financial centers. This decision has been raising much concern among experts in the field.

Vietnam’s stock market draws foreign capital from new funds
Vietnam’s stock market draws foreign capital from new funds
BUSINESSicon  24/04/2021 

Statistics by securities companies show that in 2020, foreign investors had net sold more than VND39 trillion in the stock market. 

Central bank to keep proactive, flexible monetary policy
Central bank to keep proactive, flexible monetary policy
BUSINESSicon  23/04/2021 

For the time ahead, the State Bank of Vietnam (SBV) will keep a proactive and flexible monetary policy basing on market developments and forecasts for the macro-economy, SBV Deputy Governor Dao Minh Tu told a meeting on April 22.

FDI firms still dominate electronics shipments
FDI firms still dominate electronics shipments
BUSINESSicon  23/04/2021 

Foreign direct investment (FDI) firms still dominated electronics shipments to foreign markets in the first quarter of 2021, accounting for a whopping 95% of the total revenue from electronics exports,

Foreign firms register trademark protection for Vietnamese rice in U.S.
Foreign firms register trademark protection for Vietnamese rice in U.S.
BUSINESSicon  22/04/2021 

Four foreign companies have registered trademark protection for Vietnam’s ST25 rice in the U.S., which may choke off Vietnamese food exporters tapping the market later,

Experts: E-commerce to grow solidly in 2021
Experts: E-commerce to grow solidly in 2021
BUSINESSicon  23/04/2021 

Vietnam’s e-commerce market will maintain its solid growth trajectory this year, analysts said at a ceremony announcing Vietnam’s E-Business Index within the framework of the Vietnam Online Business Forum on Tuesday.

LienVietPostBank to have new boss, the most powerful tycoon from Ninh Binh
LienVietPostBank to have new boss, the most powerful tycoon from Ninh Binh
BUSINESSicon  25/04/2021 

The owner of Xuan Thanh Group is likely to be a powerful boss at LienVietPostBank. After being involved in cement and real estate, the most powerful tycoon in Ninh Binh province has entered the financial sector.

PCI 2020 pinpoints areas to improve on
PCI 2020 pinpoints areas to improve on
BUSINESSicon  23/04/2021 

While advancements in 2020 Provincial Competitiveness Index strengthen local business climate, breakthrough approaches are urged to create new room for future improvements to increase investment attraction amid tougher regional competition.

Two VN female entrepreneurs named in 2021 Forbes 30 Under 30 Asia
Two VN female entrepreneurs named in 2021 Forbes 30 Under 30 Asia
BUSINESSicon  22/04/2021 

Three Vietnamese women, including two entrepreneurs and a fashionista, were listed in the 2021 Forbes 30 Under 30 Asia, which was announced on April 20.
 

Hanoi, Ho Chi Minh City lead Vietnam e-business index 2021
Hanoi, Ho Chi Minh City lead Vietnam e-business index 2021
BUSINESSicon  22/04/2021 

The trend of e-commerce development differs between slow-growing regions and developed regions.

Consumer finance market anticipated to continue facing difficulties after recovery
Consumer finance market anticipated to continue facing difficulties after recovery
BUSINESSicon  23/04/2021 

 The consumer finance market in the year ahead is predicted to struggle making any significant breakthroughs, despite lending interest rates witnessing a downward trend, according to experts.

M&A on cusp of post-COVID-19 surge
M&A on cusp of post-COVID-19 surge
BUSINESSicon  24/04/2021 

As global mergers and acquisitions activity continues to rebound following a pandemic-fuelled freeze, Vietnam is expected to benefit from the growth of deal-making.

 
 
 
Leave your comment on an article

OR QUICK LOGIN