The Three Cups that Changed KATINAT’s Destiny: From Obscurity to the Most Famous Cafe Chain on Social Media, Surviving a Boycott Scandal to Become the Hunted.

Katinat’s Limited-Edition Pink Cup Creates a Buzz and Overshadows Past Scandals

On November 11th, Katinat once again set a new “trend” on social media with its pink cup. The brand witnessed a surge in demand as hordes of shippers lined up outside Katinat stores.

The Sparkling Pink Cup Overshadows the ‘Boycott’ Scandal

The pink cup is a limited-edition release for the 2024 holiday season. According to Katinat’s Fanpage, from November 8th onwards, all large-sized beverages will be served in neon pink cups inspired by pink sapphire gemstones, complete with a glittery thermal sleeve.

The cup is made of PP plastic, capable of withstanding temperatures ranging from -10 to 120 degrees Celsius, and is reusable.

The frenzy over the pink cups seemed to make consumers forget about the previous media scandal involving Katinat just two months ago.

Recalling the incident, on the evening of September 11, 2024, Katinat’s official fan page announced its plan to donate a portion of its revenue to support the northern provinces affected by natural disasters. The plan was to contribute 1,000 VND from each cup sold between September 12 and September 30, 2024.

Within less than 24 hours of the post, it garnered over 100,000 interactions, many of which expressed outrage and controversy. Some people criticized the idea as a marketing tactic to sell products by exploiting pain and suffering.

Subsequently, the company pledged to donate 1 billion VND directly to the Vietnam Fatherland Front’s account.

In reality, the release of limited-edition cups is not a new strategy for Katinat, as this is the third time they have employed this tactic.

The Rainbow Cup Phenomenon: A Turning Point for the Unknown Coffee Brand

The first instance occurred in November 2022, when Katinat had only about 20 branches. The rainbow cup limited edition created a sensation across social media, marking a pivotal moment for the brand. This strategy played a significant role in their expansion to 33 stores across the Southern provinces and their foray into the Northern market, including Hanoi.

The rainbow cup was so popular that people would arrive early or patiently wait for 2-3 hours to get their hands on one.

2023 was also the year Katinat surpassed Starbucks in terms of social media buzz. According to YouNet Media data, from January 1 to June 14, 2023, Katinat generated intense discussions with 47,843 mentions, outperforming Starbucks and ranking 4th among the most discussed coffee chains. Katinat effectively leveraged social media platforms like Facebook and TikTok to create a massive wave of engagement from consumers.

This summer, Katinat introduced the “color-changing summer garden” cup. The unique feature of this cup is its ability to change color from white to pink, resembling blooming peonies. The lid’s design also drew inspiration from traditional tea cup lids.

As a young chain, Katinat’s marketing campaigns, coupled with eye-catching store and product designs, have been instrumental in their rapid rise in a highly competitive market dominated by established players.

Katinat’s cups are creating a GenZ trend, reminiscent of Starbucks’ success.

The Journey of the Most Talked-About Coffee Chain on Social Media

Established in 2016, Katinat Saigon Kafe started as a small brand with a handful of stores in Southern Vietnam. Managed by Saigon Kafe Katinat JSC, the brand embodies the distinctive coffee culture and lifestyle of old Saigon. Drawing inspiration from the renowned Catinat street, Katinat creatively stylized its name with a “K” to convey a youthful and modern image.

In terms of business performance, Katinat has surpassed established brands like Cong Ca Phe and PhinDeli in revenue rankings. According to Vietdata, Katinat’s net revenue in 2022 surged by 403% to 300 billion VND. In 2023, their revenue continued to climb to approximately 470 billion VND, capturing a 1.35% market share.

Moreover, while many established brands struggled with losses, Katinat turned a profit of over 6 billion VND in 2021, followed by a remarkable 771% increase to nearly 60 billion VND in 2022. In 2023, their profit dipped to around 40 billion VND.

Factors Behind Katinat’s Success

Katinat’s triumph can be attributed to four key factors, in addition to their aesthetically pleasing designs and effective brand promotion.

First, they capitalized on the “heritage” aspect of Ho Chi Minh City by opening their first store on Dong Khoi Street (formerly known as Catinat), one of the city’s most beautiful avenues. All Katinat locations are iconic, strategically positioned near corners, and opened in clusters, ensuring a strong brand presence.

Second, their menu has always included popular items, such as the signature bac xiu (condensed milk coffee) with crushed ice, which sparked a powerful trend. As consumer preferences shifted towards tea, Katinat promptly introduced crowd-pleasers like milk tea and, notably, macchiato.

Third, they understand their target audience. Katinat caters to a younger, more discerning clientele who believe that beverages should not only taste good but also be aesthetically pleasing, allowing for Instagram-worthy moments. Katinat’s cafes attract a younger, trendier crowd that values the opportunity to showcase their sophisticated taste.

Fourth, their marketing strategies are exceptional. With a younger demographic than brands like Trung Nguyen or Highlands Coffee, and a more sophisticated audience than The Coffee House, Katinat’s marketing approach is uniquely bold. The “Rainbow Cup” campaign, for instance, was a massive hit and cemented their association with tea through the launch of the Oolong Tu Quy (Four Seasons) Milk Tea…

Another critical factor is their strong financial backing. The owner of the company that operates Katinat, Ms. Truong Nguyen Thien Kim (holding 84.2% of the shares), has also found success with the Phê La chain, which is currently creating a buzz with its “Velvet Cup” for the 2024 holiday season.