Digital distribution takes Vietnam’s coffee to the world

June 18, 2021 | 10:00
Taking advantage of the digital transformation and e-commerce platforms could be critical to help Vietnamese coffee brands reach global markets.
Digital distribution takes Vietnam’s coffee to the world

Trung Nguyen shook hands with the two e-commerce platforms Amazon and Alibaba to bring Vietnamese coffee products to the world. In January, Trung Nguyen Legend officially launched the Trung Nguyen Legend Brand Store on Amazon, marking an important step in the company’s journey to export coffee through cross-border e-commerce.

Nguyen Nguyen, the representative of Trung Nguyen, stressed that “Trung Nguyen wants to deliver its values to consumers in Vietnam and over the world through coffee. Therefore, we decided to bring the Trung Nguyen Coffee brand and products on Amazon to help us reach a large global customer base.”

He added, “This plays a crucial role in Trung Nguyen’s strategy to expand and scale-up business to meet global customer demands. Moreover, Amazon enables us to express our values, which cannot be achieved through traditional sales channels.”

Applying technological solutions in franchising has helped Trung Nguyen E-Coffee overcome the difficulties amid the pandemic and realise its ambitions to bring its brand to the world. Last October, the company also succeeded in opening the first store in Laos.

Sharing about this strategic move, the representative of Trung Nguyen Legend stated, “Although the results are very encouraging, there is still a long way ahead, but we are confident. Trung Nguyen believes that e-commerce channels will flourish even more.”

Phuc Sinh, which focuses on deeply processed coffee and pepper exports, is another example for e-commerce success. Each year, the corporation exports up to 25,000 tonnes of pepper, making up 15 per cent of Vietnam’s pepper export turnover and 8 per cent of the world’s market share.

The corporation’s products are present in more than 130 countries. Phuc Sinh owns a complete, modern, and self-contained infrastructure consisting of six factories across the country and a network of sales agents and partners in the supply chain, focusing on coffee and pepper under the KCoffee and KPepper brands. The corporation identifies digital transformation as a top priority in its business strategy to match the needs of customers.

In late 2019 when the pandemic broke out in Wuhan, the corporation forecast difficulties if they would maintain traditional sales. Immediately, it changed the business strategy and convinced international partners to buy larger volumes while simultaneously increasing sales on its mobile app KPhucSinh.

In the first four months of last year, the corporation reported an increase of 40 per cent in export value. From next year, Phuc Sinh aims to continue to expand and diversify its consumer goods with the help of technology to meet the demands of customers from all walks of life and supply cross-border e-commerce services.

By Ha Vy

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