Vietnam’s booming economy and growing middle class should make it a prime destination for international brands. However, many global giants, including McDonald’s, Uber, Zara, and Auchan, have struggled or failed. Their mistakes often stem from poor market adaptation, high pricing, strong local competition, and weak digital strategies.
Below is a detailed breakdown of why each brand failed and how they could succeed in 2025.
Fast Food Chains
McDonald’s
Failure Reasons:
- Pricing was too high compared to Vietnamese street food, where a meal costs significantly less.
- Slow adaptation to local tastes, with a lack of traditional rice dishes or Vietnamese-inspired burgers.
- Poor real estate strategy, opened locations in high-end malls instead of densely populated, high-traffic areas.
- Local competitors like Jollibee, Lotteria, and KFC offered more affordable, localized menus.
2025 Business Strategy:
- Introduce budget-friendly meal combos tailored for Vietnam, featuring local flavors and ingredients.
- Expand menu options with Vietnamese-inspired burgers, rice meals, and street-food-influenced snacks.
- Focus on strategic store placement in high-footfall locations outside major malls.
- Strengthen delivery partnerships with GrabFood, ShopeeFood, and Baemin.
Burger King
Failure Reasons:
- Weak branding and marketing compared to McDonald’s, Lotteria, and Jollibee.
- Poor store locations and minimal visibility.
- Did not differentiate itself in a highly competitive fast-food market.
2025 Business Strategy:
- Rebrand with aggressive marketing and social media campaigns targeting younger audiences.
- Expand into mid-tier malls and high-traffic urban locations.
- Introduce unique menu items exclusive to Vietnam, such as bánh mì-style burgers.
Dunkin’ Donuts
Failure Reasons:
- Failed to compete with Vietnam’s strong café culture, dominated by brands like Trung Nguyên, Highlands Coffee, and The Coffee House.
- Doughnuts were considered a snack, not a daily staple, limiting demand.
- Higher pricing compared to local bakery chains.
2025 Business Strategy:
- Reposition as a coffee-first brand with Vietnamese robusta blends and condensed milk-based drinks.
- Introduce smaller, cheaper doughnut options to appeal to local snack habits.
- Strengthen digital presence through promotions on ShopeeFood and TikTok Shop.
Retail & Supermarkets
Auchan (French Supermarket Chain)
Failure Reasons:
- High operating costs made it difficult to compete with low-cost local supermarkets like VinMart and Co.opmart.
- Vietnamese consumers still prefer traditional wet markets for fresh food.
- Poor online integration compared to VinMart and Big C.
2025 Business Strategy:
- Shift focus to smaller-format stores in high-density areas.
- Improve fresh food offerings with a mix of imported and locally sourced products.
- Develop an AI-driven loyalty program with personalized promotions.
7-Eleven
Failure Reasons:
- Entered the market too late, allowing competitors like Circle K and VinMart+ to dominate convenience retail.
- Weak localization failed to introduce a compelling fresh food menu tailored to Vietnamese tastes.
- Limited store expansion led to weak market penetration.
2025 Business Strategy:
- Expand store count aggressively in urban centers and near universities.
- Improve fresh food options, including Vietnamese-style snacks and ready-made meals.
- Offer cashback and discounts through ZaloPay and Momo.
Tech & Ride-Hailing
Uber
Failure Reasons:
- Did not integrate cash payments early, while Grab allowed cash transactions.
- High commission fees made it unattractive for drivers.
- Grab’s aggressive partnerships (with restaurants, logistics, and payments) created a super app ecosystem.
2025 Business Strategy:
- If re-entering, focus on a niche service like UberMoto (motorbike taxis).
- Introduce lower commission rates to attract drivers.
- Build a localized super app with food delivery, ride-hailing, and digital payments.
Fashion & Apparel
Zara & H&M
Failure Reasons:
- Higher pricing than Uniqlo and local fashion brands.
- Slow adoption of e-commerce, while Vietnamese consumers prefer Shopee, TikTok Shop, and Lazada.
- Competition from local and Chinese online retailers offering cheaper alternatives.
2025 Business Strategy:
- Implement Vietnam-exclusive pricing to remain competitive.
- Strengthen e-commerce presence on Shopee and TikTok Shop.
- Offer online-only deals and limited-time exclusive collections for digital shoppers.
Topshop
Failure Reasons:
- Targeted high-end consumers but lacked a strong brand identity in Vietnam.
- Local brands provided similar fashion at lower prices.
- Limited digital presence and online marketing efforts.
2025 Business Strategy:
- Reposition as an affordable premium brand with exclusive influencer collaborations.
- Invest in social commerce through TikTok and Instagram.
- Offer in-store pickup options for online shoppers.
Hypermarkets & Wholesale
Metro Cash & Carry
Failure Reasons:
- Focused on bulk wholesale shopping, but most Vietnamese consumers prefer daily fresh purchases.
- Did not expand aggressively into digital retail, while VinMart and Co.opmart grew their online delivery services.
- Higher operating costs made products more expensive.
2025 Business Strategy:
- Shift focus to a hybrid wholesale-retail model with both bulk and smaller-sized packaging.
- Expand into AI-driven personalized promotions to encourage repeat customers.
- Strengthen online retail presence via Shopee and TikTok Shop.
Key Takeaways for 2025 Success in Vietnam
- Competitive Pricing: Global brands must localize pricing to match Vietnam’s price-sensitive consumers.
- Localization of Products: Adapting to Vietnamese tastes is crucial, whether it’s McDonald’s offering rice meals or Zara adjusting fashion pricing.
- Digital & E-Commerce Focus: Investing in Shopee, TikTok Shop, and Zalo for direct-to-consumer sales is essential.
- Convenience & Speed: Fast, affordable delivery options and strategic store placements can make a difference.
- Partnerships with Local Businesses: Collaborating with Vietnamese payment platforms, influencers, and logistics firms is key.
Global brands can win in Vietnam, but only if they ditch their one-size-fits-all strategy and deeply integrate into the local market.
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