In Vietnam, Chinese high-end milk tea brand Chagee is aggressively expanding with its 6th store opening soon just two months after entering the market. Chagee already reveals plan to open 24 stores in the country by end-2025 leveraging on an international franchising strategy.
Chagee’s expansion however creates pressure on Phuc Long, Vietnam’s leading premium milk tea chain, which has 184 stores.
Both brands have similar product portfolio, focusing on tea beverages with minimal toppings, priced between Dong 50,000 and Dong 60,000 (US$1.96 – US$2.35). As Chagee accelerates its footprint, Phuc Long faces mounting competition in the mid- to high-end tea market.
Recently, Phuc Long has also launched its first flagship store to seek to reinvent itself and maintain relevance among Gen Z and Gen Alpha consumers. Currently, Masan Group owns 85% stake in Phuc Long.
