A reporter noted that amid the expansion of Thailand's coffee industry, whose total market value has recently reached 65 billion baht, the "specialty coffee" segment leads with a 46% share, about 30 billion baht, growing 10-15% annually. However, a large price gap remains. Recently, ZUS COFFEE, a specialty coffee brand from Malaysia with over 1,000 outlets across ASEAN, officially entered the Thai market, focusing on using "price" as a key weapon to penetrate the market.
Ms. Patthanan Meesiripeerathorn, General Manager of ZUS COFFEE Thailand, said their strongest advantage in the Thai market is making high-quality coffee "accessible daily." They set a starting price at 65 baht, which is 20-30% lower than international premium brands. Their goal is to transform specialty coffee from a luxury item into a daily coffee choice for working people and young consumers, aiming to expand to 50 branches by 2026, focusing on prime, easily accessible locations.
The core strategy to offer prices lower than the market while maintaining specialty quality is the “App-first” and “New Retail” model, which cuts excess costs from large storefronts and complex management. Customers place orders through the app and either pick up themselves (Self Pickup) or use delivery services. Digital order data helps the brand manage inventory and ingredients precisely, reducing wastage, allowing saved costs to be passed on as attractive prices to Thai consumers, outperforming competitors.
Mr. Vernon Tian, Chief Operating Officer of ZUS COFFEE Group, said Thailand is a challenging market but offers huge opportunities if products are positioned correctly. Combining a strong technology-driven brand with an "irresistible price" will be key to ZUS’s rapid growth, as seen in Malaysia and the Philippines. The store model in Thailand will focus on high agility to infiltrate every street corner.
For this Thai market entry, ZUS COFFEE is aggressively "cutting prices" to make a mark with a launch promotion selling cups for only 49 baht when ordered through the app from 30 Jan to 7 Feb. This is a strategy to quickly attract customers into the brand’s digital ecosystem.
This move is seen as the start of a “premium coffee price war” in Thailand, pressuring existing players to adapt significantly. In an era of rising living costs, consumers still demand quality products but at affordable prices.