In the competitive landscape of global F&B market, what makes a brand outstanding is more than a good product – it demands cultural sensitivity, authentic storytelling, and smart localization. Cong Caphe, a unique and successful Vietnamese coffee chain, has exemplified this with its strategic move into the South Korean market in its first international venture.
So, how did a brand steeped in Vietnamese nostalgia successfully cross the borders and win the hearts and tastes of South Korean consumers?
THE STORY OF CONG CAPHE: A BREW OF NOSTALGIA AND IDENTITY
Founded in 2007, Cong Caphe is not just an ordinary coffee shop but a cultural experience. Its signature aesthetic draws inspiration from the post-war socialist era in Vietnam, with interiors echoing vintage military green tone, old furniture, and propaganda-style posters. The name “Cộng” itself is the first word in the national name Cộng Hòa Xã Hội Chủ Nghĩa Việt Nam (Socialist Republic of Vietnam), evoking a bold sense of cultural authenticity and history.
Despite its retro theme, the brand shows a chic contemporary vibe that resonates with young Vietnamese urbanites. This unique blend of the old and new, local and aspirational, set a strong foundation for Cong Caphe’s expansion abroad.
FROM HANOI TO SEOUL: MORE THAN JUST ADAPATION
In 2018, an average South Korean drank 512 cups of coffee yearly, and the market had exploded to $10.8 billion – four times more than ten years before. Coffee had become as popular as kimchi, and people enjoyed their favorite brew around 12 times every week.
Vietnamese coffee chain Cong Caphe spotted this opportunity and made its foreign debut in this market. The brand focused on localization after launch while staying true to its identity. Their mission “to inspire imagination and bring about a distinct emotional experience of Vietnam” helped them stand out in Seoul’s crowded coffee market. Young South Korean consumers seeking new experiences and valuing cultural diversity became their primary target, which worked perfectly since the cultural exchange between Vietnam and South Korea many years ago had already sparked interest in Vietnamese coffee among local consumers.
Signature products in harmony with south Korean taste
Cong Caphe brought its signature drinks like coconut coffee and milk iced coffee to South Korea, staying true to its roots while educating South Korean customers on Vietnamese coffee culture. Other than that, they also kept all the original choices in the menu, like coconut coffee, Vietnamese breakfast classics, and local snacks such as peanut brittle and sunflower seeds. Its founder studied the local tastes and dining preferences and found out that most South Korean consumers prefer milder flavors, milkier drinks and a lighter coffee taste compared to the strong, robust brew of traditional Vietnamese drip coffee. It resulted in the adjustment of sweetness levels and presentation to suit local preferences better.
Competitive price benchmark
Seoul’s coffee landscape was packed with shops of both local and foreign players. To stay competitive, Cong positioned itself slightly higher than local chains like Ediya but below premium brands like Starbucks, aligning with its unique niche appeal as an “exotic” yet accessible brand. While Cong Caphe offered affordable prices from 5,500 to 6,000 Won, Starbucks charged from 6,000 to 7,000 Won and so did other local South Korean coffee brands. Such better pricing has helped Cong draw locals of all ages to its spots in Seoul and other cities in the country.
Premium location in creative city hubs
Location matters. Cong’s first Seoul outlet was strategically placed in Yeonnam-dong – a trendy neighborhood frequently visited by youngsters and creatives with a lot of coffee shops, mirroring the coffee’s customer base in Vietnam. The space maintained its Vietnamese retro-chic aesthetic with antique armchairs, rustic enamel cups, and signature peacock blanket patterns, offering a distinct visual and experiential contrast to modern South Korean coffee chains. The novelty and distinctive atmosphere sparked a buzz among experience-seekers and social media enthusiasts, quickly turning the coffee shop into a popular hangout spot for South Korean youth.
Later on, when its new locations were set up, Cong Caphe consistently showed up in bustling, high-traffic neighborhoods – a strategic move that aligned with the brand’s urban, community-focused spirit which attracts a lot of young customers who come for a photo check-in everyday.
Local user voice echo
Instead of mass campaigns, Cong leveraged user-generated content. South Korea ranks among the world’s highest in social media usage, and Cong Caphe made the most of this, especially Instagram, which is popular among young people. Korean influencers and early adopters flocked to this trendy space, organically creating buzz around the brand.
Pre-launch Instagram campaigns featuring signature products like coconut coffee were also rolled out to build excitement with creative hashtags.
Well-trained Vietnamese human resources
The staffing strategy also showed this balanced approach and manners. Crucially, for the first time, Cong sent a full team of Vietnamese staff to South Korea to run operations and deliver training to its employees. This not only ensured consistency in brand delivery but also made cultural exchange a two-way experience for customers. On top of that, they brought in an experienced Vietnamese barista who lived in Seoul to keep quality consistent across locations.
SUCCESS IN SOUTH KOREA AMPLIFIES TO ASIA AND NORTH AMERICA
The success in South Korea laid the ground for further regional ambitions. Cong has set its sights on other Asian markets and even Europe since then. What started as a single store in Yeonnam-dong has grown into 23 locations throughout South Korea and over 28 outlets in Canada, Malaysia and, coming soon, Taiwan. They even plan to bring more Vietnamese culture overseas, not just coffee.
This growth proves that cultural authenticity works well with market localization. The brand’s success comes from a deep understanding of its market insights, targeting the right customer groups, and never compromising its identity in combination with a comprehensive spectrum of suitable products, right pricing strategy, key places, tailored promotions and empowered people
Ready to take your brand across borders? Talk to us!
