VietNamNet
Bridge – Trying every means to attract
more customers, making heavy investments to develop brands--businessmen have
admitted that it’s very difficult to attain the market.
Anil
Bhuwania, South East Asia and East Asia Director of MacCoffee, has affirmed
that since 2011, after three years of surveying the Vietnamese taste and the
market, MacCoffee has changed the coffee processing formula to make fit to
Vietnamese taste, and decided to use domestic coffee sources to cut down
expenses and improve the competitiveness of MacCoffee products.
In 2012
and the next years, MacCoffee would gather strength on establishing a
distribution network, building up a new brand recognition system, changing the
packing to generate big renovations, according to the senior executive.
The
motto that MacCoffee follows is to make research and development to maintain
the best stable quality of products in accordance with international standards.
The executive
said MacCoffee keeps optimistic about its business development in Vietnam as it
can see the number of people drinking coffee has been increasing rapidly.
MacCoffee, which still has not a big market share and has not made big
investment for branding, still could see the sales rising steadily by 20
percent a year.
McCoffee
is making its efforts to build up a strong brand by acting as the main sponsor
for the “Sieu dau bep Vietnam” (Vietnamese super chefs) TV program, expected to
be broadcasted from May 2012.
Statistics
show that every Vietnamese consumes 40 glasses of coffee a year, a low level if
compared with the world. Therefore, the coffee market, both roasting and
soluble, is still believed to have great potentials for investors.
A lot
of new coffee brands have joined the market in recent years with the ambition
of obtaining just “small pieces of the cake” of the coffee market, namely Me
Trang, Thu Ha, Phuc Long, Legend Revived, Gogo Coffee.
The
brand owners have been trying to follow their specific ways to penetrate the
market, offering specific products. However, they all have admitted that this
is a very tough playing field.
Lam
Tuan Huy, Deputy Director of Phuc Long Tea and Coffee Company, said that though
the company’s products have been favored in the world market with the exports
rising steadily year after year, Phuc Long still is not a well-known brand in
the domestic market.
“We
kicked off the plan to develop the domestic market many years ago. However, to
date, we still have not been able to squeeze into the market,” Huy said.
The
problem is that Phuc Long’s coffee is pure and clean, with no additives;
therefore, they do not fit the taste of Vietnamese people who like strong
coffee. As such, Phuc Long still has been focusing on making coffee for export.
Besides, it is also building up a chain of cafes like the model of Highlands
Coffee or Coffee Brean to popularize its image.
To
date, Phuc Long has developed four cafes, but they mainly serve foreigners.
However, difficulties have arisen when, in the café market segment, a lot of
well- known foreign names have appeared in HCM City, including The Coffee Bean
& Tea Leaf, Gloria Jeans Coffees, Illy's...
Meanwhile,
sources have said that the giant Starbucks is also intensively preparing to
land in Vietnam from 2013.
Thu Ha
coffee brand has also obtained satisfactory initial achievements in HCM City
market.
However,
Ngo Nguyen Anh Tuan, Director of the HCM City Branch of Thu Ha Coffee Company,
has admitted that the company is facing big difficulties. The company needs to
invest more on marketing and sale, and it needs to borrow capital from banks.
Meanwhile, the lending interest rates are still sky high at 18-19 percent per
annum.
Doanh
Nhan Saigon
Business & Investment Opportunities
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