DQ Coffee and the journey to conquer the international market

DQ Coffee, a prominent coffee brand in Vietnam’s coffee industry, is expanding its market internationally with the determination to conquer the hearts of consumers everywhere. To affirm the position of Vietnamese coffee, DQ Coffee not only focuses on improving product quality but also focuses on promoting marketing activities and building brand image. By developing an extensive distribution network and implementing a smart sales strategy, DQ Coffee hopes to win the hearts of global consumers.

2024 marks an important turning point when DQ Coffee plans to expand into potential markets such as China, South Korea and the US. With drastic actions and clear strategies, DQ Coffee is gradually realizing its ambitions. It is not only about selling coffee but also promoting Vietnamese coffee culture to international friends, bringing Vietnamese experiences to consumers.

DQ Coffee’s expansion strategy

DQ Coffee’s expansion strategy includes many important aspects, from product development to brand image building. The company constantly applies technology in production to bring high-quality products, from roasted and instant coffee to blended coffee products. When having superior products, DQ Coffee will take advantage of modern distribution channels to reach consumers, from cooperating with large distributors to developing an online platform to serve customers in the best way.

The international market that DQ Coffee targets

DQ Coffee has clearly identified potential international markets to expand its business. China is one of the countries prioritized by DQ Coffee, growing rapidly and the demand for coffee is increasing. With a population of more than 1.4 billion people, the potential for consumption here is extremely large. Along with that is South Korea, where the trend of coffee consumption is booming strongly among young people, plus a very developed coffee culture.

• Forecast of coffee consumption demand in some countries in the next 5 years:

These numbers clearly show that entering these markets will bring many business opportunities for DQ Coffee. Let’s also not forget the US market, where coffee culture is not just a trend, but has become a part of many people’s daily lifestyles. Providing American consumers with high-quality coffee products from Vietnam will definitely be a big step forward for DQ Coffee.

Countries with Potential for Market Development

When looking for potential international markets, DQ Coffee is constantly expanding its horizons not only to China, Korea, and the United States but also to other countries such as Japan, India, and some other Asian countries. These markets all have high demand for coffee, and consumers are also paying more and more attention to product quality.

• Japan has always been famous for its exquisite specialty coffee market, where consumers love to experiment with new flavors and impeccable quality.
• India is also a sector that cannot be ignored as the demand for coffee is growing at a rapid pace due to changes in consumption habits.

Grasping these characteristics of each market will help DQ Coffee build an appropriate strategy, thereby creating a solid position in the hearts of consumers in these countries.

Fastidious market entry strategy

When entering fastidious markets such as the EU or Japan, DQ Coffee will have to carefully consider the tastes and consumption habits of the people here. Every country has different food safety standards, so it’s paramount to adapt your products accordingly.

• Taste: Consumers not only want good coffee, but they also want special experiences. Providing a variety of novel coffee flavors will be a great advantage.
• Quality standards: These markets have very high requirements for product quality, therefore, DQ Coffee needs to ensure international quality standards.

Prepare for the fastidious market:

In addition, DQ Coffee should also strengthen creative marketing activities to differentiate itself from competitors. Organizing promotional events not only helps brands reach customers but also creates strong impressions in the hearts of consumers.

Global coffee consumption demand

With a strong expansion strategy, DQ Coffee is aiming to take advantage of the increase in coffee consumption globally. According to the forecast of the International Coffee Organization, the global coffee market is in a strong expansion trend with increasing production and consumption. Changes in consumer lifestyles have driven the demand for convenient coffee products and product diversification.

Coffee consumption trends among young people

Worldwide, especially in developed countries, young people are becoming the main consumer group in the coffee industry. They not only drink coffee as a drink, but also consider it as part of an active lifestyle, creating a personal identity. According to the survey, 68% of teenagers said they regularly drink coffee while working, or participate in meetings with friends.

This market segment favors consumers to diversify coffee products. Products such as instant coffee, brewed coffee, or cold coffee are gaining popularity. In particular, brands need to create a unique experience space for young people, from store design to unique types of coffee.

To attract more young people, DQ Coffee needs to regularly update and develop new products in line with current consumer trends.

The impact of the pandemic on coffee drinking habits

The Covid-19 pandemic has changed the way people consume globally, including drinking coffee. The data shows that 41% of consumers have tried new coffee drinks during the pandemic, while 25% have sought to make their preferred drinks at home.

The shift from in-house coffee to at-home coffee consumption has increased the demand for instant coffee products and home coffee makers. These numbers reflect a new consumer trend in which consumers seek convenience as the main thing.

Here are some new habits that have emerged after the pandemic:

To seize this opportunity, DQ Coffee needs to focus on developing easy-to-use coffee product lines that provide a quality experience at home.

Innovation in coffee products

The coffee industry has also been constantly innovating to meet current consumer trends. Coffees are not only traditional products but also have a combination of ingredients similar to nut milk, collagen or mushrooms. These products have created a unique taste experience for consumers, which also attracts young people in particular.

Product innovation: Besides traditional coffees, the development of products such as coffee that combines natural and nutritious flavors is a trend. Some of the new products that DQ Coffee may consider include:

Through product innovation and the application of technology in production, DQ Coffee not only improves quality but also makes a difference in the hearts of consumers.

Competition in the coffee industry

Although global coffee consumption demand is growing strongly, DQ Coffee is also facing fierce competition from domestic and international brands. In that context, finding a competitive advantage and brand positioning is a big challenge.

Compare DQ Coffee with other brands

It can be said that DQ Coffee is competing with many big brands in the coffee industry, from international brands such as Starbucks to prominent domestic brands such as Highlands Coffee and Trung Nguyen. Each brand owns its own strengths, DQ Coffee needs to exploit its own advantages to be able to stand firm in this competitive context.

In the battle between brands, the difference comes not only from the product but also from the experience that the brand brings to the customer. DQ Coffee needs to position its brand as a great choice for consumers who want to explore the typical Vietnamese coffee flavor.

Competitive challenges in the market

The current coffee market is witnessing many major challenges and DQ Coffee is no exception. The main weaknesses in the competition include the lack of a strong brand development strategy, besides, the fact that the products are mainly exported in raw form has led to low added value.

• Brand image: DQ Coffee needs to build a compelling story around the brand to make a difference.
• Quality Standards: The required product standards are becoming more and more stringent, and DQ Coffee needs to make sure to comply with them.

DQ Coffee needs to have a methodical plan to overcome these barriers to maintain its position in the market.

Competitive Advantage of DQ Coffee

Despite facing many challenges, there are still clear competitive advantages that DQ Coffee can exploit well. First, this brand always knows how to exploit the best quality raw materials from Vietnamese farms, bringing coffee products with delicious and rich flavors.

• Quality products: DQ Coffee focuses on the production process, from the selection of raw materials to the processing stage to bring the best user experience to customers.
• National brand: DQ Coffee is not only a coffee brand but also a representative of Vietnamese coffee, with the spirit of Vietnamese culture and lifestyle.

Thanks to these advantages, DQ Coffee is able to create a separate and unique direction for its brand in the hearts of global consumers.

Technology in production and distribution

In a competitive industry like the coffee industry, the adoption of cutting-edge technology in production and distribution is essential. For DQ Coffee, technology not only helps improve productivity, but also enhances efficiency in the supply chain.

Application of new technology in coffee production

DQ Coffee has applied many modern technologies in the production process to improve product quality. Typically, cold drying technology and coffee roasting technology.

• Cold drying: Helps the quality of coffee be optimally preserved, retaining the flavor completely.
• Roasting technology: Applying modern technology to help control the temperature accurately, thereby creating perfect coffee beans.

In this way, DQ Coffee is not only competitive in terms of price but also product quality, meeting the increasing expectations of consumers.

How DQ Coffee uses technology in supply chain management

To optimize the supply chain, DQ Coffee is applying many new technology solutions to increase accuracy and efficiency. An ERP (Enterprise Resource Planning) or MIS (Management Information System) management system helps minimize time and costs for production and distribution stages.

• ERP system: Track and synchronize processes, from production to distribution, which helps DQ Coffee track operational efficiency throughout the entire chain.
• MIS System: Provides unified visual data that optimizes management decisions.

Thanks to these technologies, DQ Coffee can enhance its competitiveness in the market and contribute to promoting a strong brand image.

Sustainable Development Orientation

In the context of rapidly changing technology and environment, DQ Coffee is focusing on sustainable policies to ensure long-term development and social responsibility.

DQ Coffee’s Sustainability Policies

DQ Coffee implements many policies to protect the environment and the community. They are committed to using organic coffee plant materials, minimizing harmful chemicals in farming.

• Farmer Support: Training and supporting farmers on sustainable farming techniques helps to increase their productivity and improve their lives.
• Environmental protection: Implement environmentally friendly farming methods to conserve natural resources.

From these activities, it affirms DQ Coffee’s vision and commitment to sustainable and socially responsible development.

The role of brands in environmental protection

DQ Coffee not only develops but also shows its responsibility to the environment through many environmental protection activities. The brand has participated in reforestation and water protection programs, and encouraged consumers to participate in environmental protection activities.

• Afforestation program: Contributing to ecological restoration and protection of natural resources.
• Water protection: Commitment not to use toxic chemicals in farming, protecting water sources in coffee growing areas.

Through these efforts, DQ Coffee affirms the prestige and responsibility of a brand not only for profit but also for nature and society.

Vietnam Coffee Market Forecast

With a sustainable orientation and market expansion strategies, DQ Coffee is aiming to become one of the leading brands in the international coffee industry. It is forecasted that the Vietnamese coffee market will continue to grow strongly with an annual growth rate of 8.13%, reaching a size of 763.46 million USD by 2029.

Growth prospects of the coffee industry

Vietnam’s coffee industry is facing many opportunities for sustainable development thanks to the increase in consumer demand both at home and abroad. Investing in production technology, sustainable products and expanding the market will be the key to helping DQ Coffee take advantage of these opportunities.

• Coffee demand: Forecast to increase in the coming years, especially from the Asian and US markets.
• Sustainable brands: Consumers are increasingly prioritizing the choice of safe and sustainable products.

With favorable conditions and serious investment, DQ Coffee is fully capable of winning a solid position in the world coffee industry.

The Impact of Climate Change on the Coffee Market

It is undeniable that climate change is causing negative impacts on the coffee industry, especially product quality and productivity. Extreme weather, heat and uneven rain have affected the cultivation and production of coffee.

According to studies, Vietnam is facing a decline in coffee production. However, a number of technology solutions and sustainable practices are being implemented to mitigate this impact.

Maintaining smart production operations and applying sustainable measures is how DQ Coffee can proactively respond to these fluctuations.

Conclude

DQ Coffee is on a journey to expand into the international market with the determination to affirm the position of Vietnamese coffee brand. By adopting smart strategies, arranging resources, and investing heavily in product quality, DQ Coffee not only fights to survive, but can also prosper in a competitive market.

Towards a sustainable future, DQ Coffee is committed to not only providing consumers with quality products but also contributing to environmental protection and supporting the farming community. DQ Coffee’s journey is a testament to the responsible business philosophy in the new era.

Contact Information

DQ AGRI IMPORT EXPORT JSC

Address: 5th Floor, Pax Sky Building, 34A Pham Ngoc Thach, Vo Thi Sau Ward, District 3, Ho Chi Minh City, Vietnam

Phone: 0979 112 997

Email: dqcoffee@dqagri.com.vn

Website: https://dqcoffee.vn/