Starbucks Adds Vietnam To Thriving Asian Business
US coffee chain Starbucks has announced it will debut in Vietnam's capital , Ho Chi Minh City , in February as it continues to develop its Asia-Pacific business, where it has seen great success over the past few years. The Vietnam business will be operated by Starbucks' regional partner Maxim Group . The new outlet represents the latest addition to a n Asia n business that will now be 12-strong and is supported by the outstanding success story that is China.
|Incomes Growing From Low Base, But Population Key|
|Selected Asian Economies - Per Capita GDP (US$)|
Starbucks has proven with its success in China that it can succeed even in predominantly tea - drinking countries . In this regard the going might be easier in Vietnam, which somewhat unusually for South e ast Asia drinks a lot of co ffee. While Starbucks' success in China can to some extent be attributed to successful menu tweaks including dressing down its coffee to make it sweeter and milkier, the real story lies in how it is able to sell an experience, a place where like-minded people can meet up, with the emphasis far less on takeaway coffee. Indeed , in Asia there is much more emphasis placed on making Starbucks a place where people meet up socially and for business. We believe the same model is likely to do well in Vietnam . Moreover, t he country bears all the hallmarks of an ideal market for Starbucks given the rising spending of the middle class and , crucially, its large population nearing 90mn.