The limited-edition neon pink cups from Katinat are creating a buzz, and “brother” Phê La is pleasing customers with its velvet cup version. Meanwhile, Starbucks has also attracted customers with its new color-changing cup.
In October 2024, Phê La released a take-away cup design featuring a soft pink and white color scheme made from smooth velvet. This limited-edition cup marks the transition between seasons and is available across their entire system. Just over a week after its release, the “Ly Nhung Lụa Là” received an overwhelming number of positive responses from users.
On November 8th, Katinat joined the fray by announcing that all drinks in size L would be served in vibrant neon pink cups inspired by the Pink Sapphire gemstone, complete with a sparkling heat-retaining sleeve.
This isn’t the first time that Katinat’s limited-edition take-away cups have boosted their sales. Back in November 2022, when they had only about 20 branches, Katinat went viral with their rainbow-colored limited-edition cups. This can be seen as a pivotal moment that propelled the brand to fame and facilitated their expansion strategy of opening 33 stores across southern provinces and entering the northern market.
2023 was also the year Katinat outshone Starbucks in terms of social media presence. According to data from YouNet Media, from January 1st to June 14th, 2023, Katinat sparked 47,843 discussions, surpassing Starbucks and ranking 4th among the most discussed coffee chains. Katinat effectively leveraged social media platforms like Facebook and TikTok to generate massive engagement from consumers.
Starbucks Vietnam, once a favorite among young people, is now facing strong competition from emerging brands like Katinat and Phê La.
Known for its collection of ceramic cups bearing its signature logo (with revenues from this merchandise line rivaling that of their beverage sales), Starbucks is now following in the footsteps of its younger competitors by adopting the strategy of attracting customers with limited-edition take-away plastic cups.
Following Katinat’s lead, Starbucks announced on November 11th that it would release a color-changing cup for members who reload 500,000 VND or more onto their Starbucks cards.
In fact, the color-changing cup is a reprisal of a previous successful strategy employed by Starbucks. The last time they released a color-changing cup was in June 2020, and it was well-received by customers.
As Starbucks faces criticism for straying from its core values, the brand is bringing back strategies from the past, including the use of color-changing cups and writing customers’ names on cups.
Starbucks has recently undergone significant changes in its senior management. On his first day as the new CEO of Starbucks, Brian Niccol sent an open letter to employees and customers, expressing his intention to bring Starbucks back to its “core values.”
Brian Niccol is the third CEO of Starbucks in just two and a half years. During this period, the company has faced opposition from two major shareholders, public criticism from long-time former CEO Howard Schultz, and slowing sales.
Niccol, a veteran in the restaurant industry, was introduced as the new leader of Starbucks, and the board hopes that he will help stabilize the company.
One of the new CEO’s notable strategies is Starbucks’ decision to purchase 200,000 pens to revive the tradition of writing customers’ names on cups. This famous Starbucks tradition not only helps identify drinks but also creates a strong sense of personalization.
In addition to writing names, Starbucks baristas often convey positive messages on cups, ranging from “Have a nice day” to encouraging words like “You got this!” This is part of the brand’s culture, making customers feel valued and creating a sense of happiness when they enjoy their drinks.
In Vietnam, Starbucks still has room for growth. However, according to social media engagement rankings, the brand is facing strong competition from the likes of Katinat and Pha Lê. Adding to their challenges, Starbucks recently returned a “golden” location to their landlord and closed their Starbucks Reserve store after seven years of successful operation.
Financial Performance of Vietnamese Coffee Chains (in billion VND)
While Starbucks Vietnam has seen significant revenue growth, their profit margins have been impacted by rising input costs, particularly for new stores, according to Vietdata.
In terms of financial performance, Starbucks Vietnam witnessed impressive revenue growth, with an 87% increase in 2022 and a further 28% in 2023, surpassing 1,300 billion VND. However, similar to other brands, their profit margins have been affected by fluctuating raw material prices, especially for newer stores, as indicated by data from Vietdata.
The Golden Land on Han Thuyen Street Remains Vacant a Month After Starbucks Reserve’s Departure, Owner Offers to Sell at a Hefty Price of $134,500/sq. m.
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The Rise of Starbucks in Vietnam: Overcoming Critics and Conquering Taste Buds
After 11 years, Starbucks Vietnam has proven the naysayers wrong, including the predictions made by the self-proclaimed “Coffee King” of Vietnam. With over 110 stores and an estimated revenue of 1.3 trillion VND, according to Vietdata, Starbucks has established its presence in the country. And the coffee giant is not slowing down; Chris Bates, the regional director for Starbucks Asia-Pacific, ambitiously shared, “I am sure that in the next 10 years, we will have several hundred stores serving in many more regions in Vietnam.”
The Evolution of Starbucks: A Tale of Two Cities
Starbucks enthusiasts were saddened by the closure of the Reserve Han Thuyen location on August 26. However, many Starbucks stores in District 1 had ceased operations prior to this, an unfortunate reality for coffee lovers in the area.
“Prime Location, Delicious Drinks: Why Did Starbucks Shut Down Its Iconic Store in Ho Chi Minh City Amidst High Demand?”
Starbucks Reserve Hàn Thuyên, the only upscale Starbucks concept store in Ho Chi Minh City, surprised many when it announced its closure. However, from an expert’s perspective, this decision makes sense.
