Core Insights - The article discusses the establishment of a bubble tea brand in Vietnam, focusing on the founder Leo's strategy to differentiate his product in a saturated market targeting local middle-class consumers [1][18]. Market Overview - The bubble tea market in Vietnam is crowded with both local and international brands, including Chinese brands like Gong Cha and Mixue Ice City, as well as brands from Singapore and Thailand [4]. - Leo aims to create a unique brand by emphasizing health in his product offerings, which he believes is currently overlooked in the Vietnamese market [6]. Business Strategy - Leo's bubble tea shops currently generate a monthly revenue of 150,000 RMB, and he plans to expand through franchising [2]. - The pricing strategy for his bubble tea ranges from 15 to 22 RMB per cup, which is higher than the local average, targeting affluent customers aged 20 to 50 [10][11]. Product Development - The brand focuses on using local fresh milk and high-quality tea sourced from China, ensuring product uniqueness and quality control [7]. - Leo has conducted extensive market research, including tasting local competitors' products and analyzing customer preferences [8][9]. Customer Engagement - The target demographic primarily consists of local professionals who value health and quality, with a significant customer retention rate [12]. - Instead of relying on discounts, Leo emphasizes creating emotional value through customer interactions and unique promotional items, such as branded masks and collectible toys [13][15]. Operational Challenges - Leo faces challenges related to language barriers and local regulations, which he addresses by hiring local staff for translation and communication [16]. - The initial investment for setting up the first store was 1 million RMB, with ongoing operational costs including rent and employee salaries [16]. Future Plans - Leo aims to increase brand awareness and expand the franchise model, incorporating automated tea-making machines to maintain product consistency [18]. - The article highlights the volatility of the bubble tea market in Vietnam, with many shops closing within six months, emphasizing the need for a well-rounded understanding of local dynamics [18].